Channel strategy

Abstract

Let us start by emphasizing the close link between physical distribution channels and promotional channels, as outlined in Figure 16.1 (the same as Figure 11.4 on page 256). Promotion and distribution have been transformed by new channels such as the Internet. The choice of channel and medium is generally a complex one, and is closely intertwined with distribution strategy, as distribution channels often have a mix of purposes, providing both a means of conveying a physical product to the customer and a medium for exchange of information. A car showroom, for example, provides information on car models, an opportunity for a test drive, a location where price negotiations can occur, and a step in the physical delivery of the chosen car to the customer. A clothes shop provides a location where the information exchange of feeling a garment and trying it on can occur in a way that is difficult to replicate using direct marketing approaches. Similarly, the Internet can be both a promotional medium and a physical delivery outlet. So, the focus of promotion and information exchange is linked closely to the physical issues of distribution. None the less, in this chapter we focus exclusively on physical distribution channels, as this is still a major domain in marketing and needs in-depth consideration in its own right.