Distribution Systems: Multi-Channel (Hybrid)

In cases where a marketer utilizes more than one distribution design the marketer is following a multi-channel or hybrid distribution system. As we discussed, Starbucks follows this approach as their distribution design includes using a direct retail system by selling in company-owned stores, a direct marketing system by selling via direct mail, and a single-party selling system by selling through grocery stores (they also use other distribution systems).

The multi-channel approach expands distribution and allows the marketer to reach a wider market, however, as we discussed under Channel Relationships, the marketer must be careful with this approach due to the potential for channel conflict.

Comments  

 
#2 Riyaj 2011-10-01 22:34
Adopting more than one distribution channel helps to avoid chaos and maximize efficiency. Responsibilitie s, relationships and compensation among various channel members must be clear.
 
 
#1 Sakib 2010-08-08 13:01
This cleared my concept on hybrid marketing system. Thanks alot!
 

Add comment

 

Security code
In the space below enter the code found in the above box.
Click for New Code