What is Channel Strategy and its Importance?

A channel strategy is one of the finest marketing strategies that expose the company’s products and services in front of the customers. In the B2B world, every company is using this strategy because it serves them potential audiences and generates leads.

A company that launches simple products that are easy for the customers to use and implement requires less support may focus on online sales or retail sales that come under the channel strategy. Whereas if a company launches complex products, it requires expertise like value-added resellers or system integrators that also come under the channel strategy. All in all, the channel strategy is the best way to expose the products and services like how to use, benefits, features, and implementation in front of the customers.

In a broader context, the channel strategy is a go-to-market strategy of the businesses that target the market, determine buyers, expose the products, and generate sales.

Types of Channel Strategies

Businesses have several channel options to choose from, below we have mentioned the most common channel strategies.

Direct Sales

Direct sales are the simplest approach to target customers directly. When a vendor or a seller sells the products to the customers directly like person to person or via catalog is known as direct sales. This type of channel strategy is used by top global retailers and smart marketers. There are so many independent direct marketing consultants who take the responsibility to sell the company’s products directly to the customers and earn a commission. The direct selling is not by an e-commerce site, telephone, or email, it is the marketing of products and services directly to the customers on person to person basis. In which companies offer customers the opportunity to see, test, and judge the products physically in their homes or any physical location.

Indirect Selling

Indirect selling is the type of selling that is done by the third party. Affiliate marketing is the best example of indirect selling. The third party is wholesalers, distributors, and resellers. There are so many independent direct marketing consultants who take the responsibility to sell the company’s products directly to the customers and earn a commission.

E-commerce sites are the best example of direct sales. Here you integrate your products, and people who like the products will buy them. Even if your company does a successful direct selling program, you need to take the help of indirect selling to expand your network. The lower sales and marketing trust established reputation and lower risk are some common benefits of indirect selling.

To further distinguish the types of channel strategies, we have uniquely described each strategy

Retail: Retail is the indirect channel strategy a company needs to open a physical store to reach the targeted audience.


Opening a sales office close to the targeted customers is known as camping. For example, a juice company sets its camping in front of schools, colleges, and IT companies.



It is one of the most popular and effective channel strategies that allow businesses to showcase their products effectively.

Personal selling

Using a sales force who can sell your products and services in the market is known as personal selling.

Value-Added Reseller

Partners that incorporate in your products and services of your company. When you launch some complex products and need the expertise to sell in the market, you take the help of a value-added reseller.


Franchising channel strategy is for the reputed and well-settled companies that allow individuals to sell the company company’s products and services and have no control over it.



Wholesale is traditional marketing, which still helps businesses to sell the products and services. Customers buy the products in bulk from the wholesaler at the discounted prices.

Distribution Partners


Partners that help companies in distributing products, services to new regions, and expand networking are the distribution partners.

Importance of the Channel Strategy

In today’s competitive world, if you want to get the attention of the targeted audience you need to take the help of channel strategy that not only expand your network but also generate credibility in the market.

Whether you take the help of the direct channel marketing or indirect channel marketing, if you execute either of them in the right way, you will get the attention of the consumers. You can also take the help of a third-party marketing agency or business agency that will help companies in expanding their networks and sales. The importance of channel strategy is like the importance of oxygen in humans’ life because no business can retain without taking the help of the channel strategy in today’s world.

Final Say:

We hope this comprehensive guide on the channel strategy helps you. If you are looking for a company that helps you in building a marketing strategy, then get in touch with Edenred.