Learn how to build a successful business with real estate and distribution as key factors. Discover the importance of building goodwill, email marketing, affiliate marketing, and leveraging existing platforms for revenue generation. Understand the different types of marketing channels and their functions in expanding customer reach while reducing distribution costs. Explore strategies for effective channel marketing, channel mix optimization, and designing an efficient channel system that benefits everyone involved. Subscribe to these content creators’ YouTube channels for more learning opportunities on entrepreneurship and marketing.
What Is an Example of Distribution Channel Marketing Strategy?
The video discusses a powerful lesson on building a successful business that makes significant money.
The focus is not on affiliate marketing or selling digital products, but on distribution and real estate as the key to success.
Starbucks, McDonald’s, and Walmart have all figured out that their real business is their distribution channel through which goods and services are sold.
Building a massive global virtual distribution channel with nothing more than a laptop is possible in the Internet age.
A product is never a business; instead, building goodwill by providing value to subscribers is critical to revenue generation.
Email subscribers can be worth $1 a month in revenue if there is high goodwill between them and the provider of valuable information through email newsletters.
Giving away books for free in exchange for email addresses can help build an email list quickly while promoting other goods and services that benefit readers generates revenue.
Affiliate marketing allows the use of other people’s products or services to generate commission-based income by promoting only those products that have been personally purchased and checked for quality while believing that they will provide tangible benefits to subscribers without losing goodwill.
Personal use of photos or videos of promoted products increases sales by at least 100-200 %.
The case study shows how focusing on turning free email subscribers into actual customers increases their value from $12 per year to well over $1,000 generating substantial monthly revenues.
How Do You Create a Channel Marketing Strategy?
David English is the President of TSL Marketing.
The topic for today’s discussion is how to create a joint marketing plan.
Foundational items are required for successful plan implementation, and it’s important not to jump right into tactics without getting these foundations right.
The first thing to consider when creating a joint marketing plan is the segment – who or what you are targeting/selling.
Value proposition should be considered for each partner individually and together, but going to market with a joint value proposition is not always necessary.
A SWOT analysis should be carried out on both companies together and independently where they overlap.
The sales skills of both partners need to be assessed as this can affect the success of the marketing plan at the sales level.
Marketing skills also need to be assessed so that plans can be designed accordingly (simple vs complex).
Different types of business generation options include net new customers, cross-selling Partner A/B customers, or upgrades from older products/services
Goals need to be clearly defined in terms of closed business goals, pipeline goals, and sub-goals such as awareness before moving on to tactics and messaging in Part Two of the series.
What Are the Different Types of Distribution Channels?
Distribution channels are the path a product or service takes to reach consumers.
Marketing’s four Ps include product, place, price, and promotion; distribution channels fall under “place.”
Channels help with logistics (transporting products), finance (spending money), and after-sales services.
There are two types of channels: direct (manufacturers deal directly with end consumers) and indirect (products sold through intermediaries).
Direct channels allow for better consumer understanding and quality control, but can be limited in terms of investment.
Indirect channels cover larger areas, require minimal investment, and provide knowledge about customer behavior in specific locations.
To choose a channel, companies must consider whether it is suitable for their consumers, how it affects product positioning, organizational capacity to manage intermediaries, and financial profitability.
Companies may use multiple channels over time as they grow.
Consumers’ questions can help content creators deliver better material in the future.
Subscribing to the channel helps its growth while liking the video shows appreciation for its content.
How Do You Master a Marketing Channel Strategy?
Dr. Luisito Masanga is presenting an educational video on marketing channels.
The tutorial will cover the definition and functions of marketing channels, including intermediaries such as wholesalers and retailers.
Direct marketing channels go from manufacturer to customer, while indirect marketing channels involve intermediaries.
Michael Dell’s business model for Dell Computers involved removing middlemen to reduce costs and lower unit prices for customers.
Marketing channels help organizations expand their reach to customers and increase revenues and sales through different distribution goals (intensive, selective, exclusive).
The growing importance of marketing channels is due to rapid changes in technology and globalization leading to re-intermediation rather than disintermediation; difficulty in gaining sustainable competitive advantage; growing power of distributors/retailers as gatekeepers; and the need to reduce distribution costs.
Online entrepreneurship has boomed during the pandemic, with companies like Lazada and Shopee serving as new types of intermediaries in electronic commerce.
Place strategy or distribution is difficult for competitors to duplicate, making it a potential source of competitive advantage for manufacturers/producers using effective channel management strategies.
Retailers act as purchasing agents for consumers rather than selling agents for manufacturers/producers due to their direct access to customers through physical stores or online platforms.
Channel structure and management style are important factors in reducing distribution costs by strategically locating warehouses, fleets, employees, offices, branches across different geographic locations where products are sold or used (Luzon Visayas Mindanao).
What Is the Explanation of Marketing Channels?
Gabriel Weinberg’s “Traction” is a useful book for entrepreneurs.
The thesis of the book is that there are only 19 marketing channels.
All growth hacks and tactics can be classified into one of these channels.
It’s important to know all the channels to test campaigns in as many places as possible and measure results accurately.
Startups should spend money on experiments, double down if successful, and move to a different channel if not.
The book forces you to think outside the traditional channels of growth.
The 19 marketing channels include viral marketing, PR, unconventional PR, search engine marketing (SEM), display ads, influencer marketing/email/SMS marketing/offline ads/SEO/content engineering/guest posting/business development/sales/affiliate programs/leveraging existing platforms/trade shows/offline events/speaking engagements/community building
Each channel has its own example campaign, such as Tesla for PR or Zapier for SEO.
Testing each channel is crucial because what works for one company may not work for another.
Always design campaigns with testing in mind
The Basics of Channel Marketing Strategy
Channel marketing strategy involves targeting customers and partnering with channel resellers.
Demographic size, industry, type of company, functional titles within the company are important factors to consider when targeting customers.
Building personas is crucial in identifying the target audience from a personal perspective.
Clarity on which accounts are handled by direct teams or channel resellers is essential for an effective channel marketing strategy.
Roles and responsibilities at different stages of a customer’s life cycle should be clearly defined between partners.
Responsibility for demand generation can be shared by both parties, but clarity is vital.
Closing deals may require collaboration between partners depending on their strengths and weaknesses.
Customer management, upgrades, and fulfillment should also be mapped out ahead of time to avoid confusion or conflicts between partners.
9.Channel alignment must be carefully considered as it affects the success of joint marketing programs and strategies.
10.Mapping revenue from new customers over three years helps determine how closely aligned companies are financially and strategically.
What Is Channel Promotion in Marketing?
Channel mix is the ratio of resources allocated to different communication channels for a product.
It is a strategic document that identifies each channel and demonstrates the optimal mix among them.
The goal is to maximize reach and effectiveness within the channel mix.
Each channel serves a different function, so select the channels that best serve each function needed to achieve the goals.
Create a strategy that ensures that messages reach ideal customers in an effective way by setting a mix of channels, messages, audience address, campaign mix, and budget for each channel.
Assess available channels based on target audience engagement level, preferences, influence level per exposure, and costs associated with each channel
Select the right balance between reach (the number of customers exposed) and intensity (the average number of times a customer receives a message).
Finalize your plan by indicating how each chosen channel will contribute to the overall campaign; compile a timeline; allocate financial resources accordingly; document program management; and monitor the process.
Sign off before implementing a plan
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Marketing Channel Strategy in 2023
The lecture discusses the benefits of an efficient channel system for both upstream and downstream members.
A complex channel system is a sign of efficiency and specialization within it.
There are nine functions that occur in an efficient channel system, including physical ownership, ownership, promotion, negotiation, finance, risk management, ordering, payment and information sharing.
Disintermediation is the process of removing intermediaries from the channel system but not their functions.
Specialization within a channel structure allows for more efficient performance of all necessary functions.
Physical possession may occur through third-party delivery services rather than directly from manufacturers to end-users.
The performance of one function affects the efficiency of the whole chain (weakest link theory).
Designing and implementing a successful channel system involves analyzing consumer needs/desires; deciding on product sourcing; designing/benchmarking channels; and implementing with people skills/relationship building strategies.
Walmart commercial example demonstrates effective market segmentation by promoting curbside pick-up using nostalgic music to appeal to target audiences.
The lecture emphasizes that information sharing is crucial in achieving customer satisfaction and value appreciation in an efficient Channel Systemm
A channel marketing plan is a strategic document that outlines marketing activities and strategies to promote and sell products or services through various distribution channels. It focuses on coordinating marketing efforts with channel partners, such as retailers, distributors and resellers, to drive sales and increase market reach.
Here are some key components typically included in a channel marketing plan:
Channel Objectives: Clearly define the goals and objectives of your channel marketing efforts. These can include increasing market share, expanding into new markets, boosting sales revenue, or improving partner relationships.
Target Audience: Identify the specific target audience for your products or services within each channel. Consider demographics, behaviors, needs, and preferences to tailor your marketing messages and strategies accordingly.
Channel Selection: Determine the most effective distribution channels for reaching your target audience. This could involve working with retailers, wholesalers, distributors, online marketplaces, or a combination of multiple channels.
Value proposition: Clearly articulate the unique value your product or service offers to end customers and channel partners. Highlight the benefits and competitive advantages to motivate partners to promote and sell your offers.
Partner Segmentation and Support: Segment your channel partners based on their capabilities, strengths, and strategic importance. Develop tailored support programs, incentives, training, and marketing materials to empower and motivate them to actively promote your products.
Marketing Strategies and Tactics: Outline the marketing strategies and tactics you will use to reach and engage customers through channel partners. This can include joint marketing campaigns, co-branding efforts, digital advertising, social media promotions, trade shows, and incentives for channel partners.
Sales and Revenue Targets: Set specific sales and revenue targets for each channel and communicate them to your channel partners. Provide clear guidelines and expectations to align their efforts with your overall business goals.
Measurement and Evaluation: Establish metrics and key performance indicators (KPIs) to measure the success of your channel marketing initiatives. Regularly monitor and evaluate the performance of each channel and adjust strategies as needed.
Budget and Resources: Allocate resources, such as budget, personnel, and technology, needed to effectively execute the channel marketing plan. Consider factors such as marketing support for partners, promotional materials, training programs, and marketing technology tools.
Collaboration and Communication: Foster open communication and collaboration with your channel partners. Regularly share updates, marketing materials, and performance feedback. Establish channels for partner feedback and continuously refine your strategies based on their input.
Remember, a channel marketing plan should be flexible and adaptable to changing market conditions, partner dynamics, and customer needs. Regularly review and update the plan to ensure it remains aligned with your business goals and captures new market opportunities.