The importance of picking the right marketing channel to have a direct line of communication with your customers can mean success or failure. Epsilon Electronics Inc.’s Jack Rochel knows the importance of having a strong online presence. This way customers can see your company’s new products, communicate with you, and even helps with SEO. The main reason people choose to advertise online is because customers choose with channel to spend their time on. It doesn’t stop there; these sites like Facebook actually have more information on you like your gender and age and ads you see vary based on what category you are in. It is the companies’ jobs to know which channel is best to focus their efforts on to get the most reach on the least amount of capital as possible. Also note that the Internet is not necessarily the best channel to be present on depending on the type of product or service you are trying to sell.
First of all, a customer and a business customer have to be approached differently. Obviously when buying something for yourself, like food, you will only buy what you and your family will need and not for hundreds of people like restaurants. So people who approach restaurants have to sell them products differently with special payment terms. But say for example, you are selling perishable foods to grocery stores. One needs to have a shorter distribution channel and few intermediaries for products to be as fresh as possible.
With the Canadian dollar value decreasing, Jack Rochel knows that labor in Canada will now be less expensive and the price of commodities from Canada is also cheaper. Technological changes also have an impact on marketing channels. Companies like Epsilon Electronics Inc. have a better grasp of what their price will be online as compared to selling them to a reseller. In addition, when companies sell products online, they have more information on their customers as opposed to having only a brick-and-mortar store. Because of Google Analytics, companies can track where a lead came from, how long they spend on the website and even if they made a purchase.
There are three ways Jack Rochel can decide on how to sell his products. The intensive distribution is when companies try to sell their products on as many channels as possible. Selective distribution consists of selling only at select locations at a few outlets. Exclusive distribution involves selling products to one or a couple of outlets. In a way this strategy creates demand and one can get away with charging a higher price because of this.
