Multichannel Distribution System

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1. A distribution system that uses more than one distribution channel.

The motive for using multichannel distribution systems is generally to reach the same customers in different buying situations or to reach multiple market segments. Textbook publishers frequently follow this model, offering direct sales to consumers through corporate websites or Amazon stores and selling through University bookstore retail channels.

The primary concern in establishing an effective multichannel distribution system is minimizing channel conflict and cannibalization (especially if adding a new distribution channel to an existing system). Secondary concerns include complexity, demand management, pricing, and allocating overhead.

Author Marketsaurus

The marketing tyrannosaurus.

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