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.

Distribution Systems: Indirect
Establishing Channel Relationships