The concept of marketing has existed for more than a millennium now. Over the years, marketers have devised several new and creative ways to market the product and services their firms have to offer.

The marketing method where companies work with third parties to market and sell their product offering is known as channel marketing. Below we’ve explained the concept of channel marketing in more detail.

Channel marketing basics

Simply put, channel marketing is a marketing method used by producers to market their offerings to consumers. In channel marketing, producers partner with third parties that act as an intermediary between the firm and the end consumers. Based on their specific needs, firms may use a single channel or go with multiple channels to sell their products or services.

This marketing model is often used by large organizations that have a huge consumer base in multiple regions. But it may apply to smaller firms as well. For instance, a business manufacturing artisanal spices may partner with brick-and-mortar stores in new regions to increase its customer reach and sell its spices.

Common channel marketing partners listed

Partners are central to the concept of channel marketing. The channel marketing partners can take the form of consultants, resellers, agents, affiliates or third-party companies. Below we’ve explained some of them:

Reseller – A reseller is someone who buys products or services from manufacturers and bet on selling them to end consumers. In the context of channel marketing, a reseller can:

• Whitelabel a product or service to market it like their own. A new casino entrant partnering with a white label casino solution provider to offer their services within a short time frame is a good example of white labelling. Here, the white label solution will usually provide a generic gaming platform with a fixed number of online slots, mobile slots and other popular casino classics.
• Control the price they offer the service for.
• Have a direct means of communication with the firm so they can keep up with the changes.

Affiliates – Affiliates are individuals or companies that market a seller’s product or service to potential customers. They usually do it by creating content about the product offering and sharing it on blogs, social media platforms or individual websites. Affiliate marketers get a commission based on the number of potential consumers directed to the product or service.

Consultants – In channel marketing, consultants are expert professionals who have vast knowledge about the product or service being offered. In most cases, consultants directly work with the business’s customers so that they can use the product or service in an optimal way. Just like affiliates, consultants may receive a commission as an incentive for promoting the goods or services.

Benefits of channel marketing

Below we’ve listed some advantages of using the channel marketing strategy:

Cost-effective – Channel marketing can eliminate the requirement of having a large number of the company’s own marketers in place. This, in turn, can bring the cost down while achieving the same reach.

Increases brand recognition – Working with affiliates and reputable third-party companies can increase customer trust and brand recognition.

Reaches potential customers in new regions – A company trying to offer their product or services in a new region may not have all the required resources to do so. And this is where channel marketing can help.