In addition, with 69% of companies setting aside a budget for digital advertising, and over 60% for email marketing, mobile marketing, and paid search advertising, competition in digital marketing on a global scale is set to become increasingly fierce.
What about in Japan? According to the marketing media MarkeZine 's " Marketing Latest Trends Survey 2021 ," 37.7% of companies responded that their overall marketing and promotional budgets will "increase" over the next three years. The top priority was "company website/company e-commerce site" at 55.2%, followed by "social media (excluding advertising)" at 49.0% (this data includes BtoC).
Nearly 40% of companies plan to accelerate their digital shift. However, seeing as they are starting with expanding their own company websites, it seems that in many cases they turkey b2b leads have been forced to switch to digital, whether they liked it or not, due to the impact of the coronavirus.
Digital marketing and real-world marketing are essentially the same. It is necessary to increase the resolution of potential customers, understand the characteristics of various channels, and communicate the value of your company's products and services along the customer journey .
This article will mainly introduce knowledge on utilizing appropriate channels in digital marketing.
What does a channel mean in marketing?
First, let's explain what we mean by channels in general.
Channel is the Japanese translation of the English word "channel" and has various meanings such as waterway, conduit, canal, TV/radio channel , etc. In business, it refers to "the distribution route, location, function for delivering products/services to customers." Distribution channels can be mainly classified into the following four types.
0-stage channel: Producer → Customer
This is what is known as direct trading. Direct sales by farmers may be the easiest to imagine. Producers provide products and services directly to customers without going through any middlemen (wholesalers, retailers, agents, resellers, etc.). Generally, the selling price is low because there is no middleman margin. Examples include
mail order sales (company websites, direct delivery from catalogs, telephone inquiries, etc.), sales through directly managed stores, and door-to-door sales by salesmen.
One-level channel Producer → Retailer → ConsumerThere is one channel (retailer) between producers and consumers. Retailers purchase products from a variety of manufacturers and create an attractive place for consumers to attract customers. Producers benefit from having their products handled by well-known retailers, as this leads to increased trust, sales, and recognition. Examples include supermarkets , department stores, and mass retailers. When a wholesaler has its own directly managed store and sells there, this is also a one-level channel.
Two-stage channel Producer → Wholesaler → Retailer → Customer Two channels (wholesaler, retailer, etc.) are placed between producers and consumers. Wholesalers can reduce the unit price of products by purchasing products in bulk, and retailers can easily trade in small lots and stock products by going through wholesalers. Warehouse functions can also be relied on by wholesalers.
Three-stage channel Producer → Primary wholesaler → Secondary wholesaler → Retailer → Customer
This is a pattern in which three channels are involved between the producer and the end customer. This channel is common for products such as food and daily necessities that have a low unit price and a large number of retailers, as well as agricultural products and seafood. When a small retailer that cannot have a trading account with a major wholesaler orders goods, a three-stage channel can result.
In addition to the above, a tertiary wholesaler may also be involved . Japan's distribution system is said to be more complicated than other countries, with a large number of wholesalers and business practices such as returns, fixed prices, kickbacks, and affiliations .
There is a term called "channel marketing," which refers to effective marketing achieved by manufacturers influencing distribution channels in which they have greater influence.
