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Marketing Channels by Mind Map: Marketing Channels
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Marketing Channels

Value-Added-Reseller (VAR)

Combines commercially available products with specialty hardware or software to create a computer system designed to meet the needs of a specific industry.

If you own a video rental store and wan to automate the rental process, the best type of vendor may be a VAR that offers a complete hardware and software package package tailored to the video rental business.

VARs are the most expensive channel for hardware and software, but their expertise can be crucial to ensure that the hardware and software work right, in a specific environment.

Mail Order

Vendor takes orders from telephone or internet sites, then ships the products to the customers' homes.

Generally offer low prices, but are limited in services and support.

Best source for buyers who are unlikely to need assistance with their products.

Experienced users who can install and setup software, and do their own trouble-shooting would benefit most.

Computer Retail Store

A computer retail store is often the best shopping option for buyers who wil need assistance after their purchases.

A huge disadvantage would be the retail-stores' prices on hardware would reflect the stores' purchasing of merchandise from distributors, maintaining a retail storefront, and hiring a technically qualified staff.

Manufacturer Direct

Hardware manufactures who sell their products directly to their consumers.

Usually targets large corporate or educational consumers.

For example, Dell allows customers to configure their own builds, then Dell ships the custom machines to their customers. Manufactures can make more profit this way.

Manufacturers must provide customers with tech-support, a costly service.