Product channeling Essay Example | Topics and Well Written Essays - 500 words

Product channeling - Essay Example These systems can be integrated vertically or as separate, independent entities. Insurance distribution can be found using any or all of these methods collectively. The ability to navigate distribution channels would require understanding of optimal timing. "Choosing the right channel for the life cycle stage of the product can have a dramatic impact on sales, and often it determines the success or failure of any new or existing product." (Combs, L. S.; The Right Channel at the Right Time; Industrial Management; 46(4); July -August 2004) But in essence, there are many methods toward choosing either a singular channel or multiple channels for distribution purposes, especially in the world of insurance. "The proliferation of disconnected distribution channels is a product of the competitive nature of the insurance industry." (Toth, W.; Navigating Distribution Channels; Insurance & Technology, 30(7), S6-S8; 2005) This alone speaks volumes in the realm of the life cycle considered to be prominent in insurance sales, that during peak times the effectiveness of disconnected distribution channels, or independent distributors or contractors, would in f act be of benefit toward the industry. The most effective channels for insurance would have to be independent marketing organizations for two reasons; this gives the co