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Understanding Marketing Channels: How Products Reach Consumers | Marketing Decoded — Transcript

by Omer Topaloglu · 8,974 words · 1,575 segments · language en · Watch on YouTube

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0:01Hello, everyone. Dr. T here. Today, I
0:03will talk about how to reach more
0:04customers.
0:05So, you have something that already
0:07works. You are already solving a
0:09problem.
0:10You have a product that people around
0:12you like.
0:15And uh your natural next question is,
0:17"How can I increase my reach? How can I
0:19make sure that my product is used at
0:22other places at other times?"
0:25For that, you'll need to work with other
0:28organizations, other businesses.
0:31And this is what we call a marketing
0:33channel.
0:35In marketing,
0:36we have the four Ps, as you know.
0:39Uh the product P is what you offer to
0:41the market. Price P is you what you ask
0:44in return.
0:45And we have the place P. So, this is how
0:47you get the product to the point of
0:48exchange. And then there's the promotion
0:51P, which is how you get the word out
0:53there, so the right people show up to
0:55the point of exchange.
0:57Now, the place P is how you can create
1:00value just by
1:03getting the product to the right places.
1:05Vending machine is a great example of
1:07this.
1:09You pay $2 for the same kind of soda
1:11that cost 30 cents at at Walmart, just
1:15because
1:16there is a place utility provided by
1:19that vending machine.
1:22So,
1:23you know,
1:24making the product available at
1:26different places by creating place
1:28utility. Or making your product
1:30available at other times. You know, you
1:33create the product today,
1:36but you want the product to be available
1:376 months from now. That's the time
1:39utility.
1:41Or
1:42you uh are expert in creating your
1:44product, but you know what? You are not
1:46sure how to get the product to the point
1:47of exchange. So, you work with other
1:49businesses.
1:50You create a division of labor. Everyone
1:54prioritizes what they are already good
1:56at.
1:57You know, that's another way to create
1:59value.
2:00So, there are different ways to create
2:02value just by
2:05using different organizations
2:08and getting the product to the point of
2:10exchange.
2:12Marketing channels defined as
2:14interdependent entities aligned for
2:16transferring possession of a product
2:18from producer to consumer.
2:21Is it billions of dollar worth of
2:24industries combined?
2:27But, I want to connect this to the
2:29journey of an entrepreneur to make it
2:31easier to understand.
2:33Because at the end of the day, it all
2:35starts with a product that solves a
2:37problem.
2:38That's the first thing. You need a good
2:40product.
2:42So, let's think about Emma.
2:44Right? Baking cookies at home. Maybe
2:46from an early age, she realized that her
2:49cookies people really like it. These are
2:51homemade cookies.
2:52Everyone likes it.
2:54So, I'm going to use this example
2:56uh
2:57you know, Emma making cookies.
2:59But, this applies to any any other type
3:02of entrepreneurial um product. So, you
3:05can be making candles at home or uh I
3:08mean, maybe you are writing a code then
3:10you write an app
3:11that solves a real problem that people
3:14face. Okay. Now, you have it and then
3:18you realize okay, Emma realized that
3:20people around her, they like the
3:22product.
3:24Her neighbor around the corner, Betty in
3:26this case, busy mom of four,
3:30she buys Emma's cookies all the time.
3:33Okay? And Emma and then there other
3:36opportunities around her and Emma
3:38realized that okay, I have something
3:40that really works. I can sell this
3:42product.
3:43And she decides to do this in a more
3:46serious manner.
3:48Then
3:49um
3:49the question comes, how can I reach more
3:51customers?
3:53Right? Because you can only sell so much
3:56to the people around you, right? They
3:58have a certain demand, certain need.
4:01But, you realize that you know what? I
4:02have time. I can make more. I can make
4:05more cookies.
4:06So, you try to look for ways to sell
4:10your product. First, like I said, you
4:12got to find a
4:14way Make sure you got to make sure first
4:16of all, you got to make sure that,
4:19you know, your product solves a real
4:21problem. Okay? There's some interest
4:25around you about that product.
4:27product, right? If the product doesn't
4:29work, then you don't need to deal with
4:31the marketing channels. You don't need
4:33to try to find people who can help you
4:35get the product other places, other
4:37times.
4:39But once you have a product that works,
4:42that people like,
4:43then you move on to the second stage.
4:46You know,
4:47Emma thinks about ways, so maybe she
4:49needs to start a social media page,
4:50right? So, you she can reach more
4:52people.
4:53She creates an Instagram page or a
4:55TikTok page that
4:57shows how she bakes, how she makes uh
5:01you know, cookies and other things.
5:03And then, she says that she's open for
5:07orders. Then, she starts getting some
5:09orders from social media. And then, she
5:12figures out a way to package the product
5:14and ship the products, right? So, she
5:16sends the products to customers, right?
5:19These are direct channels, right? You
5:22deal with customers
5:23uh
5:24without an intermediary, without no one
5:27in between. You just take the order and
5:30place the order.
5:32And it works out fine, you know,
5:35everyone is happy, you know, she
5:37realizes that she still can do more,
5:39right? She has Maybe she invests in an
5:42oven.
5:43Uh okay, she's able to bake more
5:45cookies. She's able to um
5:48uh package more cookies and ship more
5:50cookies. Okay, what are some other ways?
5:52Now, maybe the next stage she's going to
5:55look into
5:57uh
5:58a channel
5:59uh online channel, okay? Well, how about
6:02Amazon? You know, I know how to package
6:04my products. I can go on Amazon or
6:07similar websites, right? It doesn't have
6:09to be Amazon. I'm using Amazon as an
6:11example because it's the largest online
6:14retailer.
6:16But she goes to this
6:17online retailer and she realizes that,
6:19okay, maybe I have wider audience
6:22through Amazon, which is obviously the
6:24case if the product
6:26product is already good. You know, if
6:28she can find a customer base, she's sure
6:31that she can you know,
6:33uh
6:35she can create a strong customer base on
6:38Amazon, right? Now,
6:41creating a page on Amazon is has a lot
6:45of things that you need to pay attention
6:46to. It's not um
6:48as straightforward as this, you know?
6:50Maybe you can take a semester-long
6:53course just on how to start a business
6:56on Amazon. Um the best resource for me
7:00about Amazon is
7:02um
7:03Amazon has a website. It's called Amazon
7:05Seller University. And um they
7:09provide a lot of current information on
7:12YouTube. So, because
7:14if you look at some other videos on
7:16YouTube about how to start a business on
7:18Amazon,
7:19they may get outdated and naturally
7:22because things change, algorithms
7:24change. I mean, now AI is
7:27something that Amazon uses all the time.
7:29So, but the best option is go to the
7:31source, Amazon Seller University, and
7:34follow you know, the you know,
7:36follow their instructional videos.
7:40Uh you can uh ship your own products,
7:43but that creates a lot of additional
7:45work for you. You have to deal with
7:46returns, you have to deal with customer
7:48service.
7:49Uh
7:50Amazon gives you an option,
7:53you know, to take care of that, you
7:54know,
7:55Amazon will take care of the shipments.
7:57You just ship your products to Amazon
7:59and then they deal with customers. So,
8:02that's uh the common option that you can
8:04deal with Emma can deal with in this
8:06case, right? All Emma needs to do is to
8:09create the page, you know, write the
8:11right description, take the right
8:13pictures,
8:14um and develop the reviews, right? You
8:18reviews are going to be most important
8:19thing for for Emma, uh you know, maybe
8:23incentivize her customers, maybe
8:25existing customers, maybe new customers
8:28to write a review.
8:30Uh so, she works on developing the
8:33Amazon page. It's a matter of time. It's
8:35not going to happen overnight, but, you
8:38know, she
8:39cons- constantly works on it and tries
8:41to create a strong Amazon page that
8:44ranks high in the rankings.
8:47In the search results.
8:49So, online channels, you know, is one of
8:52the first things that come to your mind
8:54when you are thinking about um
8:56getting your product,
8:58you know, to to other customers.
9:00You can also have your own website and,
9:03you know, allow your customers to place
9:04orders through your website. That would
9:06be another direct channel, right? So, if
9:07you're dealing with your customers
9:08without any intermediary, that would be
9:10a direct channel. If you're just taking
9:12orders and put, you know, shipping your
9:14products.
9:15Uh but, then you can have an online
9:17retailer like Amazon.
9:19Companies use, by the way, for instance,
9:20there's something called Dollar Shave
9:22Club, like you get your uh razors
9:24through the
9:25through the business without um an
9:28intermediary. There are business models
9:30only based on direct online channels as
9:33well.
9:34But, you know, uh since it's a common
9:36way to get a product out there, I just
9:38wanted to mention Amazon.
9:40Now, Amazon ha- doesn't have limited
9:42shelf space, right? So, they have
9:44unlimited shelf space. They can have as
9:48many listings as they want.
9:51So, you know, that's why the barriers to
9:54entry is not as high as a retailer, you
9:57know, compared to other types of
9:58retailers, you know, barriers to entry
10:01is not that high. But,
10:03uh
10:04to be successful and long-lasting on
10:06Amazon is not an easy task. You have to
10:09work on it, obviously.
10:12Another natural
10:13uh
10:14next step for Emma would be to go to the
10:17um
10:18you know, the downtown cafe in our
10:21neighbor- neighborhood cafe and ask
10:23them, "Look, I have these cookies. They
10:25really work. People love them.
10:27You know, do you want to buy them from
10:28me and serve it to your customers,
10:30right?" So, she can go to these type of
10:33cafes. This is a retail channel, right?
10:35Not an online channel, but she can go to
10:37these um cafes or bakeries around town
10:41and see if they'll be interested in
10:43selling Emma's cookies or serving Emma's
10:46cookies.
10:47So, as you can see, as Emma grows her
10:49business, there are so many things that
10:51she needs to consider. You know, she
10:53needs to tell
10:54think about how to deal with these
10:56different retailers. You know, you got
10:57to make sure that she has a good
10:59relationship with the
11:00uh neighborhood cafe uh or Betty, the
11:04the next-door neighbor.
11:05She needs to make sure the online
11:07reviews are working fine, you know? So,
11:09making the product is the first
11:10question, but there are so many other
11:12responsibilities that are added. Maybe
11:14you know, everything works out and she
11:15grows her business. Maybe she invests in
11:17her business. She hires some help. She
11:20maybe buys bigger um
11:23ovens and you know, that that you know,
11:26to to bake her cookies.
11:29But in the process, there are so many
11:31other responsibilities added to this
11:33dynamic.
11:35Um
11:36but let's let's assume, you know, for
11:38the sake of this example that everything
11:40is works out work out and now she's like
11:43she's ready to take the next steps.
11:46Now, the next step is now she's toying
11:48with the idea that whether she can be in
11:50a one of her product can be in one of
11:52those big retailers, right? That's
11:55something that all entrepreneurs would
11:58think about.
11:59So, for that, you really need to
12:01understand the landscape of consumer
12:04packaged goods, especially, okay?
12:07They you you should
12:08That was a Harvard study about this.
12:10Usually there there are around 30,000
12:12new
12:13consumer package products every year.
12:1695% of them fail.
12:18The 5% of them that work out,
12:2285% comes from existing
12:25um companies.
12:26So, every year you may have maybe 200
12:29new products that work, you know, by the
12:32entrepreneurs.
12:33So, you are trying to be
12:36you are trying to accomplish something
12:38so rare. It's not that easy so to go on
12:41to this large
12:43uh retailers. It's important to
12:45understand
12:46the landscape and
12:48more than anything, it's really
12:49important to have a product that's
12:52really unique and works really well.
12:54Cuz like I said, the entry barriers are
12:57low for Amazon.
12:59For Walmart, the entry barriers are
13:01high.
13:03So, you really need to have a great
13:04product and um great connections and
13:07everything should work out.
13:09You know, and then you you know, but but
13:11then the orders
13:13order amounts will be a lot higher.
13:16So, if you think about the entire
13:18landscape uh um
13:20maybe
13:2270% of all retail spending is at largest
13:27retailers. You know, the largest
13:29retailers are um
13:32like Walmarts, uh CVS, or um
13:36Walgreens, Costco. Some of these are the
13:40largest retailers. So, you to get your
13:42product in one of these retailers
13:44uh and then top five retailers, it's
13:46probably the 70% and then Amazon and
13:49everything is everything else, uh the
13:52smaller retailers uh
13:54like Kroger's and things like that, they
13:56they may be they are around 30% of the
13:59uh the entire revenue in this area.
14:02So, um the point is when you want to do
14:04Walmart or these type of large
14:07retailers, then your goal is really high
14:10high.
14:12So, how can you talk, you know,
14:15talk to someone from Walmart there.
14:16Walmart has buyers, right? So, you may
14:19want to talk to their buyers, but think
14:20about it. There are tens of thousands of
14:22people every year from all around the
14:25world that wants to talk to these
14:27buyers, right? They only have limited
14:29time. So, there should be a vetting
14:31mech- mech- mechanism to talk to these
14:34people.
14:35That comes the brokers, okay? So, the
14:38the the big retailers like Walmart,
14:40Target, CVS, they have brokers
14:44that connects you to these buyers.
14:46Now, what's a broker? Broker is also an
14:48important
14:49uh channel, marketing channel, okay? So,
14:53from the Emma's example, if you think
14:54about it,
14:56uh let's assume Emma has a brother that
14:58has
14:59who has a friend named Bobby, okay?
15:02Bobby is someone who's delivering uh
15:05bread
15:06to the bakeries around town, right? So,
15:10he's already connected to all the
15:12bakeries around town. So, Emma talks to
15:14Bobby and says that, "Look, I have these
15:16cookies. You can try them Try them. It's
15:18They They're really good.
15:20Do you mind selling my cookies to the
15:22bakeries? You already have connections
15:24with them, right? You already deliver
15:26uh bread every morning. So, you know,
15:29all these cafes and bakeries, you
15:31already know them. So, do you mind just
15:33making these connections? And if you,
15:36you know, are able to, you know, close
15:38any sales, I'll give you 10% of the
15:40revenue or 20% of the revenue, right?
15:44Whatever that amount is. So, this is uh
15:46a person who doesn't take ownership of
15:49the product. The the
15:52neighborhood cafe, like the initial
15:54retail store that Emma sold her cookies
15:57to,
15:58they bought the cookies from Emma.
16:00Bobby is not buying the cookies from
16:02Emma. Bobby is making connections, and
16:05if
16:06Bobby can close the sales, then um
16:11uh then he'll get a percentage of the
16:13sales. So, that would be the agent. And
16:15these agents are,
16:18you know, they they
16:19you know, they're very experienced in
16:21certain fields, right? So, let's say if
16:23you enter a new business, you don't
16:24really know anyone. Well
16:26let's say you are in New Jersey.
16:29You have a furniture you are you make
16:31furniture, right? You are you try to
16:33manufacture furniture.
16:35But you you know, you have only limited
16:37number of stores around you and you
16:39realize that okay, you know what? I can
16:40ship my product other places. Like an
16:43agent
16:45in the Chicago area. Right? Has been
16:47working in this furniture field for 30,
16:5140 years.
16:52Has all the connections, all the
16:54furniture stores. They know, they trust.
16:57Talking to that person is going to make
16:59a difference and that person really can
17:01bring sales.
17:03So, we call these people intermediaries,
17:05okay? The
17:07online channel, online retailer, broker
17:10wholesaler, retailer, all these these
17:13are all intermediaries, the marketing
17:16channel members that will help the
17:19transfer of these products from producer
17:22to the consumer.
17:24For Walmart, most of their um
17:27brokers, they are located close to its
17:29headquarters in Arkansas.
17:31But you know, you they may have um
17:34representatives here.
17:36Um even talking to these pro brokers for
17:39large retailers like Walmart, Target,
17:41CVS
17:43you need you usually need to hire
17:45consultants, okay? So, you hire
17:47consultants again have been in business
17:49and have connections with these um
17:52brokers
17:54who will
17:55these consultants will get you in touch
17:57with the brokers
17:59and these brokers will get you in touch
18:00with the buyers at Walmart, right? So,
18:03there is a significant and serious
18:06vetting process uh in in in what in
18:10large retailers like like Walmart.
18:14So, after all that, you may have maybe
18:1620 minutes with the buyer, right? So,
18:19you need to convince the buyer, Walmart
18:21buyer, in that 20 minutes time, after
18:22going through all that, that your
18:24product is going to work. And it's not
18:26just it's going to work because, like I
18:28said, Amazon doesn't have limited shelf
18:30space. Walmart has limited shelf space,
18:32right? Uh
18:34you got to convince them that product is
18:35going to work better than
18:37the product that is removed from the
18:39shelf, right? So
18:41again, the point of
18:42uh barriers of entry is very high.
18:46Um you need to really have a team, you
18:49know, that's experienced in that. Maybe
18:51you hired a broker, the I mean, you
18:53hired a consultant.
18:55Uh maybe you need to have a marketing
18:56person because, again, Emma should need
18:59to show that, look, I've been selling
19:01this product for so long. I have this
19:02capacity. I have this many followers on
19:05Instagram. I've been It's been a while
19:07since I started this, and I have strong
19:09interest.
19:10My Amazon sales are this much, right? I
19:13get regular sales on Amazon.
19:16And I have this many local retailers
19:19that are already carrying my product. So
19:21you you're trying to show that in that
19:2320 minutes time, you are trying to
19:25convince Walmart buyer that having your
19:28product uh on the shelves, instead of
19:31the XYZ or existing product that's
19:33already making them money, by the way,
19:35right? So instead of that, uh having
19:38Emma's cookies on the shelves is going
19:40to make more money to Walmart, right?
19:43Most um
19:44young entrepreneurs,
19:47they don't understand this dynamic,
19:49right? When you are talking to a
19:50retailer,
19:52you are trying to convince them why your
19:55product is going to work better for
19:57them. You are not going to You are not
19:58trying to convince them that um
20:01your product tastes good, right? Or you
20:03will love this product. No, you are
20:05going to tell show why it will help
20:08Walmart
20:09in, you know, well, I'm using Walmart as
20:10an example, but any large retailer you
20:12can think of it.
20:13This is the case for all sales uh
20:15conversations. Even if when you are
20:17talking to the neighborhood cafe, you
20:19are trying to show them why this product
20:21is going to help them.
20:22So you are you need to have that kind of
20:24a mindset. Talking to Walmart, you're
20:26going to you're going to tell them,
20:26"Look,
20:28you have this product, my product has a
20:30higher premium, right? You for the same
20:33product, you can charge more. So, you
20:35can increase the revenue from from
20:37existing customers. Or there are two
20:39ways that you can prove that you are
20:41going to make
20:42you're going to make a difference. One,
20:44you're going to increase the revenue
20:45from existing customers. Two,
20:48you are going to
20:49uh
20:50bring in new uh
20:52customers to that category, right? So,
20:55for instance, you have this cookie that
20:58has certain ingredient.
21:01Only because of the ingredient, maybe it
21:03has something healthy, may maybe
21:04something special. Only because of the
21:06ingredient, people who don't buy cookies
21:09before, they're going to start buying
21:11cookies.
21:12All right? So, Walmart
21:14if if the revenue is going to be the
21:16same, so you are
21:18they already have cookies that cost like
21:19$5.99. And then you're going to bring
21:21the
21:23Emma's cookies are going to co- cost
21:25$5.99. Then um Walmart will say, "Why do
21:28I need to even make this change?" Right?
21:30The There is no higher premium, there is
21:32no margin. You have to prove that,
21:34"Look, my product either has a higher
21:37premium
21:38or will bring in extra customers in your
21:42stores, right? It's not going to be oh
21:46Think about it. Walmart is not thinking
21:48that um
21:50your
21:51uh
21:52oh, I'm going to help you make money,
21:53right? I have I already have existing
21:56foot traffic. I have thousands of
21:57people. I have I'm in this giant
22:00behemoth of a company. And if you sell
22:02my product if you sell your product in
22:04my stores, you're going to be awesome.
22:07They're not thinking about that, right?
22:08They are thinking about how they can
22:10increase their sales. And you have to
22:12prove that
22:13they are going to be able to increase
22:14their sales using your product.
22:17Um
22:19Walmart has around 147,000
22:21SKUs. So, again, limited shelf space.
22:26You know, if you want to be one of
22:27those, then you have to um
22:30you have to uh prove them, okay, this
22:33this thing, SKU, I I will do better than
22:36them.
22:38So, you you are going to make a case for
22:40uh your own product.
22:42Uh and you don't have a
22:45a long runway. Once Let's say everything
22:48works out, you know, you convince uh you
22:50hired a consultant, you convinced the
22:52broker, you convinced the Walmart buyer,
22:54everything works out. And they
22:56also, like I said, you need to have a
22:57big team because
22:59it's not going to just going to be the
23:01consultant, you're going to need a
23:02marketer because, you know, uh they're
23:04going to help to get the word out there.
23:06You are going to have some technical
23:08people who can make sure um
23:12you can
23:13uh fulfill the orders from Walmart, that
23:16you have the technical capacity to make
23:18that happen. You also want to uh make
23:21sure you have the legal team because
23:22Walmart may not care about the FTC
23:24regulations, FDA regulations, right?
23:26This is cookies. You need to just uh
23:29nail everything down before going to
23:31Walmart, right? Before having your your
23:34product available on their shelves. If
23:35something is wrong,
23:38uh you are going to deal with the
23:39headache.
23:40So, you have the entire team, you have
23:43everything ready. Even then, you have to
23:45hit the ground running. Your product
23:46should
23:47start flying off the shelves right away,
23:50or they are just going to cut it, right?
23:52You know, they are not going to give you
23:53uh a long runway.
23:55You may not even make a lot of money
23:57right away. Or maybe you are not going
23:58to make a lot of money, period, right?
24:00You're going to have your product
24:01available at Walmart, and then maybe uh
24:04that will give you the reputation to
24:06make money maybe other places.
24:09Uh it's going to be so hard to make
24:11money uh like um I think the rule of
24:13thumb is
24:15five times the market manufacturing
24:17costs, right? Uh now, this may change
24:20for other industries. If you want to
24:22make money at Walmart, you should be
24:23able to sell the product uh five times
24:26the cost.
24:27Uh because everyone will get a cut, the
24:30Walmart will get a cut, uh the your
24:32broker will get a cut, right? Um and you
24:35have your own costs, delivery. So, you
24:38are not going to be able to make money
24:40if you are if you cannot
24:43uh create an asking price
24:45five times more than your manufacturing
24:46cost.
24:48All right. I also want to say a few
24:50things about the wholesale channels.
24:51Okay, so these are different like I said
24:53intermediaries, different channel uh uh
24:56members. I mentioned online uh channels,
24:59I mentioned agents and brokers, I
25:01mentioned the retail channels uh
25:02channels. You can also have wholesale uh
25:05wholesale channels, okay? So, here's how
25:07this works. Let's say you are running a
25:09restaurant. Emma, everything works out.
25:11Maybe Emma runs the
25:14a cafe as well, you know,
25:16created some uh channel integration.
25:19Her business grew so much, she purchased
25:21the
25:23um
25:24cafe around the corner.
25:26Now, she has so many things that she
25:29needs to buy for that cafe. Maybe it's
25:31like a restaurant, right? It's like a
25:32restaurant, there are so many things
25:34that she she needs to buy, uh
25:36procure
25:38to uh to make sure that there's a menu
25:41and the item, right? It's not just like
25:42you cannot just go to the farmers market
25:44and do the groceries every day. It's
25:45it's going to be so much. I mean, there
25:47other things that you need to buy,
25:50food related things.
25:51So, rather than going to different
25:54retailers for each of these products,
25:56she can work with a wholesaler like um
25:59uh
26:01US Foods is one example, right? She can
26:03work with these wholesalers that will
26:05provide her
26:06all of her needs in one uh order, right?
26:10So, they can do different types of
26:12groceries, different types of needs
26:15for a restaurant can come from all that
26:17one wholesaler. A wholesaler is not a
26:19place where you just go as a final
26:21consumer, you just knock on their doors.
26:23That's like Walmart, get inside and buy
26:26products. Another business like uh
26:29Betty's uh I'm sorry, Emma's um,
26:32neighborhood cafe
26:34can place an order through US Foods.
26:37All right, these are wholesalers, then
26:39but there is a convenience factor and
26:42they create value as well because you
26:44don't want to
26:45uh, you don't want to just procure all
26:47of these different products from
26:49different different retailers. You just
26:51work with one wholesaler, that will make
26:53your life a lot easier.
26:56So, wholesalers are an import important
26:58uh, marketing channel as well that can
27:01really add value.
27:03One other thing that I want to mention
27:04about uh, retail channels also, let's
27:06say you are on Walmart.
27:09You are not going to be on
27:11at Target right away because um,
27:15remember I mentioned this at other
27:16places that Nielsen has this uh, scanner
27:19data available. So, all the retail sales
27:22is available to all of these uh,
27:24retailers. Once you are all at Walmart,
27:28everyone will watch how well your
27:29product will do. Let's say they'll give
27:31you give you 6 months or 3 months and
27:34they'll watch your sales. So, if it's
27:37great, then you have a very easy time
27:40convincing Target because Target will be
27:42able to see all of your sales.
27:44Uh, like I said, this is industry
27:46information. Everyone already knows that
27:48information. So, uh, if things work out
27:51well, then you can just um,
27:55you know, get inside of the the other
27:56retailers as well if that's what you
27:58want to. Remember, you also want to
27:59think about it. Maybe the best decision
28:01for Emma was to stay
28:04uh, with a few retailers, maybe with an
28:07online channel. Maybe this is not really
28:10what she wanted, but assuming everything
28:12works out and she wanted to scale, she
28:14wanted to grow her business
28:16and she has the capacity to, you know,
28:18create uh, fulfill large Walmart orders.
28:23Assuming all of these things work, then
28:25Emma can go all the way.
28:28All right, so let me summarize all the
28:30different functions that marketing
28:32channels can play.
28:33And this goes back to that division of
28:35labor example.
28:38Everyone want to do what they are good
28:39at, right? Emma is good at making
28:41cookies. Maybe she's not great at, you
28:43know, finding customers, talking to
28:45customers, convincing customers. Maybe
28:46she's not great great at driving a
28:48truck, you know,
28:52transferring the product, you know,
28:54delivering the product. So, there many
28:56other functions that are played by the
29:00channel members. First, they have the
29:02transactional functions, right? Buying,
29:05selling, risk taking. When they buy your
29:08product, when a retailer buys your
29:09product, they share the risk, right?
29:12That's why Walmart is so
29:15difficult to get in because they buy
29:17your product, they share the risk. You
29:19know, there's a risk for them. Uh or
29:21even the neighborhood cafe, they buy the
29:24product. The agent doesn't share as much
29:27risk because if Bobby
29:28doesn't close a sale, then Bobby won't
29:31get
29:32a cut, but again, there's no investment.
29:35Bobby hasn't taken
29:38um
29:39title of the
29:40products or the goods.
29:42So, um
29:44that these are some of the functions.
29:46They are buy, they sell, they negotiate,
29:48and they take risks for you
29:51uh
29:52as well. They also have play logistical
29:55functions, assorting, storing,
29:57assorting, transporting, right? So,
29:59these are some of the other functions
30:00that channel. I told you how Amazon
30:04uh provides all these services
30:07for their uh sellers.
30:09Uh
30:10So, these are some of the other
30:11functions that are played by the
30:14um
30:15marketing channel members.
30:17Finally, they are facilitating
30:19functions, okay? Financing, grading,
30:21market research. Um so, you know, for
30:24instance, um
30:26Walmart has a credit card. Macy's
30:30has a credit card, right? So, they
30:32finance customer purchases.
30:35So, that's another way to facilitate the
30:39uh
30:40the transaction. They are helping you in
30:42a way to get your products uh to your
30:45customers. So, these are some of the
30:47different functions that marketing
30:49channels
30:51members play, and that's how they add
30:53value.
30:55Now, I want to talk about how um
30:57businesses can really make a difference
31:00in a competitive setting by their
31:02distribution channels, by their uh
31:06channel strategies.
31:08Uh like there are many customers, they
31:10uh many businesses, they really make a
31:12difference by uh their distribution
31:14channels. Like Amazon comes to mind,
31:16right? So, what makes Amazon unique is
31:19the ability to get the product
31:21to you the very next day, right? That
31:24That's how they kind of differentiated
31:25themselves from the custom uh from the
31:28other uh competitors.
31:30Well, Zara is a great example of uh
31:33effective distribution and channel
31:35strategy. So, I want to
31:37uh talk about them a little bit. So, So,
31:39Zara, a retail Spanish retail uh store,
31:43they are in the business in the fashion
31:45and clothing business, the it's the the
31:48timing of delivery is makes a huge
31:51difference.
31:53So, when Zara first started um
31:56in the sector,
31:58uh
31:58their biggest difference maker is to sh-
32:01it was to shortening the time of
32:04something
32:05being popular and and and the st- that
32:09same thing appear on the shelves, right?
32:12Early 2000s, this uh timing was around 6
32:16months.
32:18So, it would take 6 months for a
32:21a product to appear on the shelves
32:24from the time of that being popular.
32:26Let's say a celebrity dresses in a
32:28certain way, or this new design is used
32:32in a um
32:34in a fashion show, and then, you know,
32:37it would take a long time. No, so Zara
32:40reduced this time to 3 weeks.
32:43Right? That was a game-changer for them.
32:45So, a design team designing the uh
32:48clothing
32:49and then sending this uh new designs to
32:52the manufacturers, manufacturers ship
32:56make the products, ship them to the
32:58stores,
32:59they reduced this time to
33:01uh 3 weeks, and that was a big
33:03game-changer that helped them uh
33:06gain a huge market share. Even today,
33:09they are uh known This was, you know,
33:13maybe when they first started
33:15or early 2000s.
33:17Uh but even today, they are known with
33:19the effectiveness and strong integration
33:22of their
33:23um
33:24distribution channels.
33:27All right. Now, let's talk about
33:28strategy a little bit. This the reason
33:30that I why I like marketing, you know.
33:32Um
33:34So,
33:35that could be different channel
33:36strategies that you can uh
33:38use to, you know,
33:40create value, right? So, uh you can have
33:45um
33:45difference in your distribution
33:47intensity, right? You may choose to have
33:50an intensive channel
33:53strategy, which means that you want to
33:55make sure that your product is available
33:59everywhere that's possible. Okay?
34:01Coca-Cola uses this strategy.
34:05Like, they want to be everywhere. Right?
34:06The you in on a university campus, in a
34:08vending machine, at a restaurant, uh all
34:12of these retail stores, Walmart, Target,
34:15doesn't matter, CVS.
34:17They want to be at all of these retail
34:20stores. This is the intensive strategy,
34:22right? Uh
34:23This Another one is selective strategy.
34:26Selective strategy is obviously where
34:29your product appears has an impact on
34:32your branding, right? Because
34:35your uh the val- your brand value will
34:38be associated with the brand value of
34:40the retailer.
34:42Walmart has a certain brand value or
34:45brand identity, a certain brand
34:47identity. Neiman Marcus has a certain
34:50brand identity. Dillard's has a certain
34:53brand identity. Macy's has a certain
34:55brand identity. All of these places,
34:57Marshalls
34:59has a certain brand identity. All of
35:01these different retail stores, they have
35:03a certain brand identity. Now, the
35:04question comes, if you are using a
35:06selective channel strategy, you want to
35:09know which of these places should my
35:12product appear? My
35:14Which of these brand identities are
35:17consistent with my brand identity?
35:20So, Nike, for instance, they'll they
35:23they they use a more selective
35:26strategy cuz they want to be,
35:28you know, at places where it's
35:30consistent with their brand identity.
35:32And also, you know, they're in the
35:34sports sector, right? So, they want to
35:37have
35:38retailers that are consistent with that
35:40with that identity as well. So, that's a
35:42selective
35:44strategy that, you know, that some
35:46businesses may employ employ. And
35:48there's exclusive channel strategy.
35:51Exclusive strategy is you don't you
35:54don't want to be easily accessible. You
35:56just want to maybe in a in a in an area,
35:59you just want to have one store that
36:01gives that exclusivity feeling. These
36:03are luxury cars like Rolls-Royce would
36:05would use
36:06this type of strategy strategy.
36:10Uh I had Godiva here and you might be
36:11thinking, "Well, Godiva is available at
36:13CVS. Like, it's not really an exclusive
36:16strategy."
36:18So, Godiva was purchased in 2008 or 2009
36:23and it they changed their distribution
36:26strategy. The reason I said is I have a
36:28funny story about it. When I first
36:30started
36:31as a doctoral student at Texas Tech
36:33University,
36:34um so, I was in Lubbock, Texas. This is
36:37like a 250,000
36:39people town in West Texas.
36:41And um you know, it's distant from all
36:45large cities like Dallas was 6 hours
36:48away.
36:49Albuquerque was 6 hours away. So we
36:51didn't have a a large city around. You
36:54know, Lubbock was the biggest city
36:56around, right? 250,000 people. And
36:58Godiva was available
37:01only one store when I first got there,
37:03right? So
37:05So I had a professor who would say that
37:08um
37:09since Godiva changed the strategy, so
37:12anytime she had a fight with her husband
37:14her husband would go to that chocolatier
37:17at that one store
37:18in Lubbock, Texas
37:20and then buy her chocolate and she would
37:22forget everything because it was like
37:23this showed
37:25um
37:26a care uh
37:28you know, it would make her feel
37:30special, you know, because it was this
37:32exclusive feeling and she was like, it
37:34doesn't work anymore because she could
37:36go to CVS and grab Godiva chocolate,
37:39right? So you see how the the the value
37:43that customers place on the exclusivity
37:46feeling.
37:47So you know, obviously as a business you
37:50can use this strategy
37:53uh
37:54to you know, to make
37:56intentionally make your product
37:58available at limited uh
38:00number of places.
38:02Next when we talk about um
38:05channel strategy, we have to understand
38:07that these are different
38:09uh
38:10organizations that are trying to create
38:12a win-win situation, right? Like there
38:14are
38:15certain dynamics that this organization
38:17may influence each other or may exert
38:21power over the other channel members.
38:25Because they have to work as a unified
38:27system, right?
38:29Vertical marketing systems are these
38:32systems that you want to have multiple
38:34companies working in unison
38:38to you know, make sure the orders are
38:40timely and accurate. I mean, these are
38:42large large orders, right? That's why
38:45when Walmart talks to you, Walmart got
38:47to make sure why is it so hard? Because
38:50Walmart got to make sure that you can
38:51all if nothing else you have enough
38:53inventory
38:55to
38:56uh fulfill their orders, you know? Like
38:58you don't if they miss if you miss their
39:00orders, they'll uh give you a fine for
39:02it.
39:03Right? So, there are different ways to
39:05create that uh cohesion in a vertical
39:09marketing system.
39:11Uh there are contractual
39:13vertical marketing systems. The
39:15contractual systems are like franchises.
39:17Like McDonald's uses franchises to
39:19create that
39:22cohesion. Uh you know, if you want to uh
39:24be a supplier or a firm or franchise
39:27owner for McDonald's, you have to follow
39:30certain rules. It's a contractual
39:31system. You sign the dotted line and you
39:34have to follow the rules.
39:35Or even without a contract, you can have
39:38administered
39:39uh systems which Walmart uses when one
39:43channel member has so much more power
39:46over others, you basically follow what
39:49they say, right? They are
39:51the administrator of that channel and
39:53you just follow what they are
39:56what their rules are.
39:57So, that's an important dynamic. It's
39:59important to understand this power
40:01dynamics. Like it may not come natural
40:03for some people,
40:04but they they at the end of the
40:06uh usually one person one
40:09uh organization or you know, or business
40:12in that dynamic has a uh
40:14negotiation power. And that will impact
40:17different things. Like you it's
40:18important to understand these things.
40:20Like here's an example. I had a friend
40:22working for Frito-Lay
40:24back in Turkey. So, when
40:26Frito-Lay entered market uh
40:28market in Turkey, they um
40:31they started working with uh stand
40:34maker. Okay? So, the you know, the
40:36potato chip stands. So, they started
40:38working with this stand maker. And um
40:41and obviously Frito-Lay is a huge
40:43company. They are selling so many of
40:45these chips.
40:46And they realized uh and then this stand
40:50maker grew obviously, you know, like it
40:52came a point where
40:54in the entire country
40:57this uh stand maker was or manufacturer
41:00was the only business that was big
41:03enough
41:04to uh fulfill Frito-Lay's needs
41:08in a timely and accurate manner. And
41:10then the the power dynamic start to
41:13shift in the
41:15relationship, right? Because when you
41:17have just one company
41:20who can fulfill your orders
41:23but you need those you need those
41:25stands, right? You need you you know, if
41:26you want your chips to be available in
41:28different
41:30convenience stores, in gas stations, in
41:32these places you need someone to make
41:34the stands.
41:35Uh
41:36and then they I remember like I like I
41:38said, since I had a friend I in the
41:40strategy department
41:41I remember him telling me that they
41:43started working with one of the
41:45competitors of that stand manufacturer.
41:50Even though it was not as profitable,
41:52right? Even though they would make the
41:54stands for a higher cost
41:57they wanted to have some competition in
41:59the market because if you have just the
42:00one company
42:02uh
42:03who's big enough to create or to fulfill
42:06your resources or to to fulfill your
42:08orders, then the the the the power
42:11dynamic may shift in that relationship.
42:15You know, so uh
42:17so it's important to understand these
42:19these different subtleties in um channel
42:23strategy and channel relationships.
42:26You can also have corporate
42:28systems. Corporate systems are Zara is a
42:30good example. So, uh Zara may own, you
42:34know, the designers, the distributors,
42:36the logistic company, right? They own
42:38these companies so to make sure that
42:40there is
42:42a smooth uh
42:44you know, uh connection between these
42:46companies. Remember, it's they are it's
42:49they are making they're in a fashion
42:51industry. They are making a difference
42:53by having their products available at
42:55store at their stores in a timely
42:58manner, right? Something is popular you
43:01got to make sure that your product is on
43:02the on the shelves.
43:05Cuz that's only when it's going to sell.
43:07So, since this dynamic is so important,
43:10they acquire or own some of their
43:13channel members
43:15to create that unified experience.
43:18Now, let me talk about push and pull
43:21strategy, okay? So, that's another
43:23channel strategy that you can
43:25uh
43:26you can use employ.
43:28So,
43:29pu- you know, if you think about the
43:31channel structure like a producer,
43:33retailer, and a consumer, you may
43:36create incentives for pro- from from
43:40producer at the at let's say you are the
43:42Procter & Gamble, you may create an
43:44incentive to to retailer to push your
43:47product. Okay, that's called push
43:48strategy.
43:50You are basically pushing the product
43:51down the the marketing channel. Uh or
43:55you can have a pull strategy where you
43:57create enough demand in the final
44:00consumer that the the final consumer
44:02goes to the retailer and asks for the
44:04product. And then the retailer got comes
44:06to you and says, "Okay, just give me
44:08give me my product."
44:10So, in this sense, Procter & Gamble uses
44:13more like a push strategy and Apple
44:16using more like a pull strategy because
44:19Apple has its own stores. Apple doesn't
44:21go to Best Buy and say, "Look, please
44:22have my product." Right? Apple creates
44:26enough demand
44:28uh at the final consumers to to make
44:32sure that
44:33final the consumers, they go to
44:34retailers and then they ask for Apple
44:37products.
44:39Procter & Gamble, different strategy,
44:41right? So, it's depends on what kind of
44:43a business you are running and how it's
44:45going to affect your uh your strategy.
44:49But again, if you are a a lesser known
44:52brand like Amos Cookies, for instance.
44:56Then, Walmart will want to see
44:59that you are already
45:01you have enough demand and consumers,
45:03right? It's hard to say,
45:06"Walmart, let me incentivize you. Let me
45:08just, you know,
45:10create a unique team for you." Because
45:13Procter & Gamble had they they have a
45:15unique It's Walmart's a key account, you
45:18know, they
45:19dealing They're dealing with Walmart in
45:20a special way.
45:23But, you are not that special. You are
45:25just Emma's Cookies, you know, you just
45:27started a couple years back, and you got
45:29to be able to show that there's enough
45:32demand, you know, you have You show them
45:34your social media, your marketing
45:36efforts, your existing sales, right?
45:39Your story. You show all these things
45:44to convince Walmart you have the You got
45:46to use the pull strategy, right? But,
45:48you are an accomplished uh you know,
45:51large enough business,
45:54or you already have a connection with
45:56Walmart, then maybe you can just do push
45:58strategy, but incentivize retailers, so
46:01they have your uh product
46:04at certain
46:05uh let's say the eye level of the shelf,
46:07right? That's the most valuable
46:09shelf space, because if you're at the
46:11bottom shelf, it's not going to sell as
46:13much as the eye level shelf.
46:16So, uh you know,
46:19there are different These are some of
46:20the different strategies that you can
46:22employ. Are you going to use push
46:23strategy or pull strategy, and which one
46:26is better for your existing
46:28uh business?
46:29To summarize, that there are different
46:31strategic factors, like market factors,
46:33product factors, or producer-related
46:35factors that affect the channel choice.
46:38You know, what are you going to What's
46:39going to be your strategy? What's going
46:41to be your channel structure?
46:43Like the the market factors, for
46:45instance, how
46:46you know, your nature of your customers.
46:49If you're in a B2B sector, you have your
46:52potential customers are in a
46:54located in a downtown area in a more
46:57um
46:58dense manner, then maybe you will just
47:01um
47:02have a salesperson dealing with your
47:04your potential customers.
47:06But if your customers are spread around
47:08the country, maybe you are going to use
47:11a more
47:12retail strategy, right? You need to have
47:13retailers. Like you're I'm just, you
47:15know,
47:16selling a candy bars. Like this is a
47:18product-related factor. The the product
47:21differentiation is low, standardization
47:23is high. I'm just selling a candy bar.
47:25So, if I'm just selling a candy bar, you
47:28know, I got to use retailers because my
47:31potential customers are
47:33all around the country.
47:35If my product is very complex, requires
47:39a lot of attention, maybe I just you
47:41want to have my sales people.
47:44I don't want to have an intermediary
47:47because the product is complex, the
47:48price is high, it's an expensive
47:50product. So, I want to create a
47:53situation where I can talk to the
47:54customers and I explain the situation
47:56myself. I don't need to rely on third
47:58parties.
48:00Tesla experienced this.
48:01Disintermediation is basically
48:03shortening of marketing channels due to
48:05elimination of intermediaries. So, you
48:06may want to eliminate an intermediary
48:08because of a unique product you have.
48:11Tesla, when they first started selling
48:12their products, they wanted to have
48:15their own stores. But
48:18as we all know, in the United States,
48:21auto manufacturers, they work with
48:23dealers, right? They they have an
48:25intermediary, dealers. And dealer
48:28actually dealers, they made a big deal
48:30out of this. You know, they blocked in
48:32in the state of New Jersey, the dealer
48:35lobby blocked Tesla sales. And this was
48:37around 2014. That was when the governor
48:40was Chris Christie.
48:43They pressured the governor and they
48:46blocked Tesla sales for almost a year.
48:49Tesla couldn't sell
48:50in New Jersey
48:52because, you know, they didn't want to
48:54have dealers.
48:55Right? Cuz they wanted to sell their
48:57products
48:59um through their own
49:02um
49:03stores.
49:05Right? It's a complex product. It's a
49:07new product, especially back then,
49:09right? Not as much now, but back then uh
49:11it was a complex product, new product.
49:14So, they want to be able to talk to
49:15customers, address their concerns,
49:18and create disintermediation. So, create
49:21the uh the the the connection, direct
49:23connection uh with the customers. But,
49:26uh you know, that was a big deal for
49:29dealers because they were worried, "What
49:30if Ford does the same thing? What if
49:32Toyota starts selling its cars without a
49:35a dealer?" Right? It would have been a a
49:37big problem
49:40for all the dealers. So, they
49:42I think later on in 2015, they created
49:45an exception for Tesla
49:47uh
49:48since then electric car. Okay, so if
49:49you're an electric car, you can sell
49:51your product. But, um at first, that was
49:54not the case.
49:55So, there are these are these types of
49:58different
49:59um
50:00uh factors they may affect. Like, if
50:02let's say producer-related, that's a
50:03producer-related factor. You have deep
50:05pockets, you have
50:07um
50:09you have the resources
50:10to work to maybe
50:13open up your own stores. Right? If I can
50:16create my own stores, I don't need to
50:18work with the retailers. That might be
50:19an option, right? Zara, for instance,
50:22uh
50:23have its own stores. They don't want to
50:25have their products available in
50:27different retailers. That's, you know,
50:29that's an option. You can also uh
50:31use that kind of a strategy.
50:34So, many of these factors may affect the
50:36decisions like
50:38the market size, you know,
50:41the location of customers, the
50:43complexity of the product, the price of
50:44the product, standardization of the
50:46product, the resource of the uh producer
50:49may all affect channel decisions.
50:52Right? Now, I want to uh discuss a few
50:54important topics that relate to
50:56marketing channels, not exactly
50:57marketing channels, but you know, we
50:59have to kind of touch on these as well.
51:02So, the marketing channels, like I said,
51:04is the connection between producer and
51:06the consumer.
51:07The supply chain has
51:10you know,
51:11looks at the connection between
51:12suppliers and the uh
51:14producers.
51:15There are some similar dynamics like
51:17some of the channel structure or the
51:20power dynamics, the negotiation and
51:22conflict and resolution, these type of
51:24things. But again, at the end of the
51:25day, you are trying to create a system
51:27where
51:28multiple organizations, they act in
51:31unison and they create a cohesive unit
51:33to uh you know,
51:35make sure the product is available for
51:38produ- producers and consumers.
51:41So, here's a definition. Supply chain
51:42management is the coordination of all
51:44activities involved in sourcing,
51:46producing, and delivering a product from
51:49suppliers to the final consumers.
51:52So, for Emma, if you think about it,
51:53Emma needs to buy ingredients, right?
51:55The sugar, the flour, or whatever else
51:57is needed for her cookies.
51:59She needs to uh
52:00have it,
52:01you know,
52:02maybe I don't know, the supplies, the
52:05well-functioning oven, you know, all of
52:07these different things that she needs to
52:09acquire is very important for her
52:12business. She needs to coordinate as
52:15well. Like these different entities,
52:17they need to coordinate well.
52:19There's also logistical functions.
52:23Logistics involves planning and managing
52:25the efficient storage, handling, and
52:27movement of products from their point of
52:29origin to the customer.
52:30Now,
52:31it's not the same thing. Supply chain
52:33management and logistics is not the same
52:35thing, but logistic is part of the
52:37supply chain management. Also, the
52:38marketing channels, so remember I was
52:40talking about the channel functions? And
52:42logistical functions was one of the
52:45uh channel functions. There were also
52:48the facilitating functions for instance,
52:50or you know, there other things that
52:52other roles that are played by marketing
52:54uh channels,
52:56but logistics is one of these
52:57challenges. And it's really important
52:59that you got to make sure the product
53:00goes
53:02to where it needs to go. You know, like
53:03you need you need to have enough in the
53:06inventory. You need to have, you know,
53:07you need to be able to
53:10take the orders in an effective and
53:12accurate way and deliver the products in
53:14a timely manner, right? Because you are
53:16dealing with other businesses, you
53:18really don't want to hurt someone else's
53:20business just because they work with
53:21you,
53:22right? Then
53:24they are going to be really upset. Um so
53:26the point here is that the logistics is
53:28an important function in supply chain
53:30man- chain management. And supply chain
53:33management is a little bit wider than
53:35just moving the product from point A to
53:37point B,
53:39but it's an important way to add value.
53:42We also need to consider um the legal
53:45issues, right? Distribution channel
53:46decisions and agreements must comply
53:49with competition laws and applicable
53:51product regulations. There are
53:54legal concerns like tying contracts, you
53:57cannot do ex- I mean, exclusive
53:59dealings.
54:01The
54:02the strategy that you employ cannot be
54:05in a way
54:07to create a monopoly in a market, right?
54:10Most of the uh laws and regulations in
54:13this field is to
54:14make sure that there is a competitive
54:16landscape. If there's no competition, if
54:19there's no healthy competition, if
54:21there's no chance for
54:24new entrepreneurs to uh create um
54:28uh
54:30a new way to solve existing problems,
54:34then you don't really have capitalism,
54:35right? The capitalism is when you have a
54:37healthy competitive environment, um
54:41which will at the end benefit final
54:43consumers.
54:45This doesn't mean you cannot work with,
54:47let's say, X distributors, right? You
54:49can have a distributor, but but
54:50depending on the situation
54:52or and context, you just don't want to
54:55create a monopoly, so that's the
54:56important part.
54:58I guess one practical advice
55:01from these is that you don't need to try
55:03to do everything by yourself, you know?
55:06If you're an entrepreneur, you are doing
55:07well, the product works,
55:10and the next step is you feel like,
55:11"Okay, how am I going to get the product
55:13like it's important to know that you
55:15don't have to know everything. You don't
55:16have to own everything, right? You can
55:18rent things, you can uh let's say rent
55:20trucks, things like that, or you can
55:22work with other companies that work with
55:25uh that, you know, um
55:28does logistics, right? I mean, think
55:31about Emma. What if Emma wants to buy
55:34a uh a van right away, and okay, I'm
55:37going to drive all my cookies to these
55:39different locations, right? It's going
55:41to be a Do you really want to do that?
55:42Maybe you can use existing
55:45companies that they do this, right? For
55:47Emma. You really need to make sure that
55:50adding this extra layer or extra cost
55:53will make sense for your business.
55:55So, those trade-offs are important in
55:58making these decisions.
56:00To conclude, I wanted to talk uh try to
56:02talk about how to reach more customers
56:05uh
56:06by
56:07uh providing a basic overview of
56:08marketing channels. I mentioned
56:11different channel types and structures
56:14like online channel, retail channel,
56:16wholesaler channel,
56:18broker agent channel.
56:20Uh I also want to discuss the different
56:23channel functions,
56:25um you know, transactional functions, uh
56:27facilitating functions, or logistical
56:29functions that are played by marketing
56:31channel members. Then, I wanted to show
56:33how businesses can create value
56:37uh
56:38just by using their channel strategy,
56:40right? So, we discuss channel strategy,
56:42different types of intensive, exclusive,
56:44selective uh distribution strategy, push
56:48strategy, pull strategy, how to
56:50integrate um marketing channels, how to
56:53create a cohesive unit.
56:55And finally, I touched on some of the
56:57relevant concepts like supply chain
56:59management, logistics, and legal
57:02considerations.
57:03But at the end of the day, the most
57:04important thing here is to understand
57:07that a great product is just a start.
57:10Right?
57:12It's It's important like you don't worry
57:14about the logistics strategy if you
57:16don't have a great product, right? You
57:18got to have a great product, but it's
57:20just a start.
57:22You know, you need the right product at
57:25the right time at the right place.
57:27That's how you create value and
57:28marketing value. You know, by making
57:31sure the right product is a available at
57:35right time and right place.
57:38And you make this happen using the right
57:40marketing channels.
57:42That's all for me. Um
57:44Thank you all listening. Please
57:45subscribe to the channel
57:47for more videos. Thank you.

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