What is Internet marketing channel

Internet marketing channel is that use the Internet to provide available products and services so that through computers or other technology to complete the transaction and activities.

It same as traditional internet marketing, With the Internet as a support network marketing channel also should have the function of the traditional marketing channel. Marketing channel is to provide products or services for use or consumption this process about a set of interdependent institutions, it involves information communication, funds and things transfer, etc. A perfect online sales channel should have three functions: order function, function and distribution function.

If you are selling a product that requires a lot of training, installation and support, you may go direct until you get your resellers trained and certified--or, if you have a large enough sales force, you may stay direct. However, if you have enough sales people to only cover the largest customers (10 sales people to cover top 100 Telco’s, but not enough to cover the middle 5,000 Telco’s), you may wish to use resellers to cover the middle market--then segment your product line, one for direct and one for resellers.

An alternative term is distribution channel or 'route-to-market'. It is a 'path' or 'pipeline' through which goods and services flow in one direction, and the payments generated by them flow in the opposite direction.

A marketing channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer.

Direct sales can occur in person, via the phone, the web or mail. Indirect, or channel sales typically refers to sales through a reseller. A reseller can order from you direct (one tier between you and the end user), or from a wholesale distributor--you would sell to a wholesale distributor and they in turn would sell to multiple resellers two tiers between you and the end user, hence the common term “two-tier” distribution.


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