Identifying and Developing Referral Channels

A referral channel is a special type of information channel, one that is missing in standard discussions of the promotional mix. In a referral channel, one firm is in a position to give information about another firm′s products to potential customers of the latter. Qualitatively different types of referral channel exist and must be managed by different forms of co‐operative strategy. Points out the significance of referral channels to a firm′s environmental analysis and business‐unit strategic planning.