Which of the Following Statements Is True About Marketing Channels and Intermediaries?
Which of the following statements is true regarding marketing channels and channel intermediaries? This is a difficult question for anyone who is selling affiliate products. First, you must determine if your company has an appropriate marketing mix (i.e. what percentage of sales are made by a full-time funnel and what percentage are made by mostly-occasional cost-per-impression, or CPC).
The first two statements above are an attempt to answer the age-old question, “What is the point of marketing?” In fact, marketing is not a function of dollars, it is a function of quality. There is no single marketing strategy that will apply universally to all companies, and what works for one company might not be effective for another.
A marketing focus is necessary because it drives sales. When a company is profitable, marketing is one of the top priorities. However, if a company is generating revenue but is losing money on the front end of its sales cycle, it is likely that the marketing mix is misaligned. Sometimes, the marketing mix includes too many costs and not enough returns. This results in an ineffective marketing position and, consequently, profit levels are not aligned with company needs.
Another aspect of this second statement is that marketing is not a single function or action. For example, consider the following scenario: A company is generating high profits but also loses a large amount of money on the front end of its sales cycle. The primary driver of this loss is the fact that not enough sales are generated by the marketing activities. This type of situation is common when salespeople do not properly coordinate their efforts with marketing.
Finally, a third aspect to consider is whether the marketing activities generate good direct and residual income. Good marketing activities generate income before the products or services are sold. This aspect is important because it allows companies to realize residual income through the value of the products or services sold.
The above statements allow for a clear understanding of the value of marketing. It is important to have a good understanding of marketing so that business owners can determine whether to utilize marketing activities or channel intermediaries. By taking the time to consider all of these factors, it will be easier for business owners to determine which of the following statements is true regarding marketing channels and intermediaries.