How do marketing channels work?
Posted: Tue Feb 18, 2025 9:31 am
The main marketing channel is the one in which the manufacturer sells directly to the consumer, without intermediaries.
For example, a farmer who produces chicken eggs can sell them directly to the consumer, without having to go through a store or market.
Another example is when your company has an e-commerce , being able to sell directly to consumers through this medium.
However, many manufacturers do not have sufficient financial resources to directly market their products, either through physical or online sales .
Consider a candy manufacturer, for example. It would cost a lot of money for this company to set up small shops to sell its candy and serve all its customers nationwide. That is why, in many cases, using intermediaries is the best solution.
Intermediaries are those who represent, distribute and even sell what is produced to the final consumer. By using them, it is possible to optimize sales results.
Below are some examples of the main intermediaries operating in marketing channels:
Retail
In this type of distribution channel, a retailer executes the purchase — which may be the owner of a specific store, market or business related to what you produce — and subsequently sells those products to the end customer.
This channel is mainly used by manufacturers that produce consumer goods such as clothing, shoes, furniture, appliances, among others.
Wholesaler
The wholesaler buys large quantities directly from the manufacturer and then sells the merchandise to industrial establishments, other merchants and retailers.
Because you buy in bulk, you manage to reduce some of the cost for your consumer.
However, in most cases, this consumer must be a legal entity or a member of a club in order to purchase from the wholesaler.
For example, a pharmaceutical wholesaler sells directly to pharmacies, and they in turn deliver the products to the end consumer.
Distributor
It is the one who sells, stores and provides technical assistance in a certain graphic region.
The distributor buys your company's products and makes a new sale to customers located in an area close to his own. As an example, we can mention beverage distributors.
Agents
When product distribution involves cameroon phone number list more than one intermediary, it is necessary to use agents to assist with transactions between all participants in the marketing channel.
An agent will receive a commission from you, as a producer, and will be very useful in cases where products need to move quickly on the market.
For example, in the case of a fisherman who catches large quantities of fish on a daily basis – a perishable product – it is essential to ensure that the fish quickly reaches the hands of the final consumer as soon as it is available for consumption, as this prevents the product from being lost.
Since making contact between different wholesalers or retailers can be time-consuming for the fisherman, the best way out in this case is to use an agent who makes all these contacts and sells the product to these intermediaries, thus earning a commission on their sales.
For example, a farmer who produces chicken eggs can sell them directly to the consumer, without having to go through a store or market.
Another example is when your company has an e-commerce , being able to sell directly to consumers through this medium.
However, many manufacturers do not have sufficient financial resources to directly market their products, either through physical or online sales .
Consider a candy manufacturer, for example. It would cost a lot of money for this company to set up small shops to sell its candy and serve all its customers nationwide. That is why, in many cases, using intermediaries is the best solution.
Intermediaries are those who represent, distribute and even sell what is produced to the final consumer. By using them, it is possible to optimize sales results.
Below are some examples of the main intermediaries operating in marketing channels:
Retail
In this type of distribution channel, a retailer executes the purchase — which may be the owner of a specific store, market or business related to what you produce — and subsequently sells those products to the end customer.
This channel is mainly used by manufacturers that produce consumer goods such as clothing, shoes, furniture, appliances, among others.
Wholesaler
The wholesaler buys large quantities directly from the manufacturer and then sells the merchandise to industrial establishments, other merchants and retailers.
Because you buy in bulk, you manage to reduce some of the cost for your consumer.
However, in most cases, this consumer must be a legal entity or a member of a club in order to purchase from the wholesaler.
For example, a pharmaceutical wholesaler sells directly to pharmacies, and they in turn deliver the products to the end consumer.
Distributor
It is the one who sells, stores and provides technical assistance in a certain graphic region.
The distributor buys your company's products and makes a new sale to customers located in an area close to his own. As an example, we can mention beverage distributors.
Agents
When product distribution involves cameroon phone number list more than one intermediary, it is necessary to use agents to assist with transactions between all participants in the marketing channel.
An agent will receive a commission from you, as a producer, and will be very useful in cases where products need to move quickly on the market.
For example, in the case of a fisherman who catches large quantities of fish on a daily basis – a perishable product – it is essential to ensure that the fish quickly reaches the hands of the final consumer as soon as it is available for consumption, as this prevents the product from being lost.
Since making contact between different wholesalers or retailers can be time-consuming for the fisherman, the best way out in this case is to use an agent who makes all these contacts and sells the product to these intermediaries, thus earning a commission on their sales.