Friday 15 July 2016

Channelizing the Global Market - Tophawks.com


In this sizzling summer, we all have bought a can of chilled Coke to avenge our thirst. It is a point to be pondered, how the Coke became such a popular company, conquering the market across the globe. The answer is channel sales.

Channel Sales is basically, a method of distribution used by a business to sell its products, usually by dividing its sales force into groups that focus on different selling conduits. For example, a company might implement a channel sales strategy to sell its product via an in house sales force, dealers, and retailers or by direct marketing. In other words, channel marketing is including a third party called re-seller, the sales force in order to expand in a global scenario.

It might apparently be easier to not involve any middlemen and sell the product directly. But this cannot assure that the product will reach to the wider section of the global market. Therefore, it becomes necessary to incorporate intermediary, so as to reach larger section of the market.
Retail Marketing can be a helping hand when considering channel sales, for example, Microsoft. Microsoft’s products are sold through ‘Channel Sales’ because Microsoft would have become a retail operation in order to achieve the same level of global sales. This would hugely increase their costs and still not be as effective as ‘Channel Sales’.

Channel Sales is like outsourcing the costs of having your own far-reaching sales operations, whilst still retaining an excellent portion of the sales profits. These days the relationship between the seller and the re-seller is much closer, allowing for better cooperation and coordinated strategies.

Channel Sales doesn’t just mean shipping your products off to a third party and hoping for the best. Channel Sales means keeping your outsourced sales teams up to date with your products, ensuring that they are adequately informed and regularly updating them on changes and issues in order for them to function at their best. Nonetheless, this is significantly less costly than training and maintaining your own sales teams. Particularly with the current global economic problems we are all facing, any opportunity to save money and increase profits has to be considered a benefit. This type of outsourced sales through partnerships with re-sellers is effective for strategic growth and for the increase in incremental revenue for the vendor.


The main benefit of working with a Channel Sales provider – a re-seller, is that you can rapidly expand your business without having to rapidly expand your entire business operation. Of course, if you then wish to slow any aspect of your business down, you can stop supplying your re-sellers with certain products or introduce new ones with little fuss. All of this costs the vendor nothing in terms of initial outlay; the cost of Channel Sales comes after the sale is made. Overall, it doesn’t have to be an either/or decision; companies can employ channel sales partners in order to get the most expansive sales growth. Thus, channel sales can be prove to be the best option, if considering expanding in the global market. Sometimes, asking for a little help can be a lot profitable. Isn’t It?

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