why the choice of he appropriate channel,of crucial importance to a firm?

Question

marketing:channels and disribution

Answer 1

The channel choice is of strategic importance to a firm. The buying behavior of the target customer requires how the product is sold to that customer - for example, a consumer device such as a cell phone would be sold through a cellular service provider that offered a complete solution to the customer from retail stores to base stations and other infrastructure. Where a company offering machinery for the manufacture of silicon chips would have a direct sales force that acted as a consultant to the semiconductor company and provided application engineering support. The ASP differences are significant between these two products as is the cost difference for the channel type. This sets the investment strategy and margin expectations and volume expectations for the firm.