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.

2 Comments

  1. Adopting more than one distribution channel helps to avoid chaos and maximize efficiency. Responsibilities, relationships and compensation among various channel members must be clear.
  2. This cleared my concept on hybrid marketing system. Thanks alot!

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