Sales Channel

Posted in Marketing and Strategy Terms, Total Reads: 474

Definition: Sales Channel

Sales channels are the way of getting products or service to customers. It can be direct or in direct.

There is little difference between a sales channel and a distribution channel, except for the fact that distribution channel has more to do with physically getting products across to consumers whereas sales channel is involved mainly in helping to increase sales. The type of sales channel also defines the type of marketing to be done. If the sales channel is direct, then the type of marketing to be done is Business-to-Consumer or B2C marketing.

If the sales channel depends on an intermediary then a Business-to-Business marketing B2B is involved. However, if intermediaries play a major role, but final customer are individual people, then a combination of B2B and B2C marketing is involved.


Source: salesbenchmarkindex

The picture above depicts a typical hierarchy of direct sales channel with respect to value added and cost involved. As we can see, more personalized the channel, higher the cost involved.

Example: for elaborating on sales channel, we can take the example of It is a jewelry website which delivers products to your house as per your order. Here, the website is one sales channel that they use to reach consumers. They also have the offer of trial at home, which is another sales channel- customer service. On confirming, the final order is delivered to the customer. Here caratlane uses different types of sales channel to reach out to the consumer.



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