What are the advantages of the long channel of financial marketing?

Long channel means that financial institutions use two or more middlemen to deliver financial products to target customers in the process of selling financial products. The long channel has long channels, dense distribution and many tentacles, which can effectively cover the market, expand the sales of financial products, make full use of the functions of middlemen, and have little market risk. However, the shortcomings are that the long channel makes the market information transmission of financial institutions lag behind; The relationship among financial institutions, middlemen and consumers is complex and difficult to coordinate; The prices of financial products are generally high, which is not conducive to market competition.

Long channel has two forms: second-order channel and multi-order channel.

(1) second-order channel. Second-order channel means that financial institutions use two middlemen to deliver financial products to target customers in the process of selling financial products. These two middlemen are generally a wholesaler and a retailer or an agent and a wholesaler. In this distribution channel of financial products, agents or wholesalers usually buy financial products from financial institutions, resell them to retailers, and finally the retailers sell them to the final target customers. For example, after obtaining the exclusive right to sell the company's shares, a securities company can sell its own shares, or sell them through intermediaries, and sell them through secondary channels of financial products.

(2) Multi-level channels. Multi-level channel means that financial institutions use three or more middlemen to deliver financial products to target customers in the process of selling financial products.