Here are the few provisions that kick in for the tax return:
Channels are the touch points through which an organization liaises with its customers and as such, play a huge role in defining the customer experience. Channels can be categorized as marketing, sales or distribution channels. Most companies have a different medium to attract a customer and separate strategies on how to retain them.
It is advisable to list separate channels for different customer segments if your organization is targeting more than one. In fact, there was only one channel being used; the direct channel in which a customer would go to a score with salespeople and physical distribution occurred.
The distribution channel represents one of the quarters of the Marketing Mix and represents how an organization will make its product or service available to the end consumer for consumption or use.
A Distribution channel can be direct, which means that the manufacturer sells directly to the customer, or it can contain intermediaries who may buy and resell the product, in the case of merchants, or represent the manufacturer without owning the product, in the case of Agents and brokers.
Organizations have to take into account multiple factors when deciding between owning their channels, establishing partners to provide channels or employing an amalgam of both.
An organization which sells bulbs to lighthouses can have access to a multitude of channels such as a website where lighthouse attendants can view and purchase different kinds of bulbs, advertisements placed through Google Ads are also one of the channels.
If the organization outsources after-sales services to another company, this company also represents another channel that links the company to the end-user. A well-thought out Distribution strategy can become a source of competitive advantage for your organization, as is the case for giants such as Dell and Amazon.
If your Distribution Channel is customer-centric as well, that is, it is tailored to convenience the end-user, it will be even more successful.
How to select a distribution channel When selecting a distribution channelfive elements need to be taken into consideration to ensure a good match for your business; The number of customer segments or the size of the market you are targeting.
Investment required by the distribution channel — these will include an analysis of the different associated costs such as absolute value cost, cost per customer, fixed and variable costs and the profitability each channel option brings to the table.
Whether the product is standard, in which case the same version will appeal across customer profiles and can be sold through an external channel or a non-standardized product which needs to be tailored to the customer needs and for which the company needs to have direct contact with the customer.
Amount of control required over the distribution channel — the distribution channel can be characterized by open communication and free-flow of information or, if there is a possibility of competition from the distributor, then a much more closed relationship.
It is also important to take into account how long a healthy relationship will take to be established with the distributor as well as the length of the relationship as well; factors which contribute to the flexibility of the channel.
Functions of channels Listed below are some of the purposes of a typical channel; A medium through which an organization can educate its chosen customer segments about the products and services it provides. Providing customers with an opportunity to study and evaluate the organizations value proposition.
Providing customers with the facility to buy their chosen products or services. Providing the customer with the Value Proposition. Providing the customer with after sales services.Arlo smart HD security cameras are the perfect low-cost DYI security monitoring solution for small and medium business with simple setup and flexible cloud recording plans.
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