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Principles of Marketing

Distribution Decisions

Tutorial Contents

Multi-channel or Hybrid System

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.



 

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