January 30, 2024

What Typically Happens During the First Flow of Information Through a Marketing Channel?

Typically, information flows from the producer through the intermediaries to the consumer. This is known as a conventional marketing channel. However, technological advancements have allowed a new type of marketing channel to emerge: one that goes in the reverse direction.

For example, a bakery produces cookies that meet the needs of restaurants. The bakery distributes those cookies to the restaurants through the marketing channel. The baker also has to secure transportation for the products to ensure that the cookies make it from the bakery to the restaurant in good condition. Similarly, an electronics manufacturer makes computers that it sells to the electronics stores through the marketing channels. The computer company also has to transport the computers from the factory to the store for sale to customers.

In addition to transactional functions, intermediaries also perform logistical functions such as handling, packing, inventorying, warehousing and transportation. They also provide facilitating functions such as financing and sharing information with channel members. In a traditional marketing channel, intermediaries will share information and data about the market to help plan for future business opportunities.

Marketing channels also help businesses to communicate with their end-users and build trust and credibility. For example, social media and email marketing platforms allow consumers to interact with businesses, ask questions and provide feedback. This two-way communication helps to build a relationship between the business and the customer that increases brand loyalty. It also allows the business to keep track of customer satisfaction and identify areas for improvement.

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