Marketing is the process of fascinating likely customers and clients in your goods and services. Therefore, in order to attract customers one needs to come up with a marketing strategy which refers to the overall game plan of not only reaching prospective customers but also turning them into consumers of the services and goods your business offers. As a result, one needs a channel strategy which facilitates the sell and movement of a product to the consumer. Additionally, the channel ensures they meet customer experience by delivery of the good and service themselves.
Channel Members and their roles to Target Market
The channel strategy is run by channel members who are divided into two main categories. These are resellers and specialty service firms. Resellers are also referred to as intermediaries and are comprised of retailers, wholesalers and industrial distributors. They form a resellers network whose main function is to purchase products with the aim of selling it to others. Therefore, producers manufacture raw materials and turn them into finished product which are then bought and sold by the wholesalers. The wholesalers buy goods in bulk and then sells them in small quantities to retailers who in turn sell to the consumers as per their needs and requirements.
Then there are the specialty service firms who provide services that aid in the sale of products without buying the products. They are comprised of agents and brokers who bring buyers and suppliers together for a fee. Then there are the distribution service firms who provide services such as transportation and storage of products. Lastly there are firms that help in the distribution process for instance insurance firms.
Since they target a particular market, its satisfaction is very important. The channel members thus ensure that they provide quality goods and in time which makes consumers loyal establishing a brand. Additionally, target audience satisfaction ensures proper services are rendered hence increase revenue (Greenberg n.p). Moreover, consumers share information about the products with others drawing new consumers. Also, firms compete leading to provision of quality products. Consequently, their continued knowhow on consumer needs and wants also makes them flexible, enabling them to meet the consumers changing interests and opinions.
Developing a marketing channel strategy similar to many other marketing activities must start with the end-users who hold the “power of the pulse”.(Chapter 2)
Potential/existing conflict between firm and channel members
Channel conflict occurs when the manufacturers sell the products directly to consumers through marketing or over the internet (Imam 192). Modern era has made e-commerce popular because it is cheaper in terms of expenses and communication costs. However, price and product differentiation becomes challenging in the online markets. This means that both the traditional and modern marketing practices should be integrated to ensure success.
Manufacturers sell their products through different channels which compete to reach the same consumers creating conflict that finds its way back to the consumer. Therefore, when the supplier does not follow the normal distribution channel conflicts arise affecting both the manufacturer and the consumer.
Technological Advances Importance to Market Strategies
Technology has aided in marketing strategies as it takes less time and energy to market a product online and viewers can turn into potential customers. Announcements are made through online services and media stories (Alford and Page n.p). Firms compete making the product authentic and of good quality increasing sales hence consumer satisfaction.
The advances have also made people advance their education in computers and marketing strategy since it is proving to be a lucrative business plan (Gudema n.p). Therefore, schools teach courses that fill the societal needs thus solving problems in the target market.
Although marketing is continually advancing especially due to technological advancements as illustrated above, channel strategies are very important. Similarly, those who play a role in them are vital for the satisfaction of the consumers and generation of revenue.
Alford, Philip, and Stephen John Page. “Marketing technology for adoption by small business.” The Service Industries Journal 35.11-12 (2015): 655-669.
Greenberg, Oren. “Target Market Vs. Target Audience – Kurve | Growth Marketing Consultancy”. Kurve | Growth Marketing Consultancy, 2019, https://kurve.co.uk/blog/target-market-vs-target-audience/.
Imam, Yagana Babakura. “Channel Conflict in Marketing.” Research Journal of Finance and Accounting 5.18 (2014): 191-195.
Louis Gudema. “7 Marketing Technologies Every Company Must Use”. Harvard Business Review, 2014, https://hbr.org/2014/11/7-marketing-technologies-every-company-must-use. Accessed 1 Dec 2019.