Channel Marketing

Seeking exclusivity in business is one of the main advantages being in business. Maybe if we were to stream through the internet and were to stumble upon a product that we would find interesting, we’d maybe send an enquiry seeking more information on the product with interest to have it as our own product to sell. You can view websites such as Cool Business Ideas at http://coolbusinessideas.com/. You can find not only cool products but are highly marketable. Just look at the products, go to their own website and contact them.

After contacting them, you’ll find that most of the products are from the manufacturers themselves. Most probably they are looking for distributors, resellers or affiliates. What am I talking about? this is what we call channel marketing. Manufacturers don’t market the product themselves but go through other channels to get more coverage.

Exclusive Distributors



These are parties that purchase a bulk quantity from the manufacturer and controls or monopoly the marketing of the product in a specific region depending on the geographical site. As long as they meet the minimum quota set in the agreement between them and the manufacturer or the parent company, they will have the exclusivity in that region. The manufacturers are also binding not give exclusive distributorship to any other parties.

Sole Distributors

Sole distributors are distributors have the right to market the products in a specific country. They usual obtain the bulk orders from the manufacturers or if they are appointed by exclusive distributor then they will obtain the bulk orders from the exclusive distributor.

Resellers

Resellers are often retailers where they obtain orders from distributors. Their margins are not as high as the distributors as their orders are usually are lower in quantity. They would usually sell direct to the customers through retail shop, online and others.

Affiliates

Affiliates are parties that don’t hold stocks. They usually own a demo product but don’t hold stocks. They are usually marketers. The would advertise the products directly to customers and obtain stock from resellers or distributors depending on the quantity.