The
Definition Of

Multichannel distribution system

Multichannel distribution system is a distribution system in which a single firm sets up two or more marketing channels to reach one or more customer segments. The use of multichannel systems has increased greatly in recent years.

Multichannel distribution systems offer many advantages to companies facing large and complex markets. With each new channel, the company expands its sales and market coverage and gains opportunities to tailor its products and services to the specific needs of diverse customer segments. But such multichannel systems are harder to control, and they generate conflict as more channels compete for customers and sales.

Share it:  Cite

More from this Section

  • Marketing segmentation
    Marketing segmentation is the process of aggregating individuals or businesses along similar ...
  • Shopping center
    shopping center is a group of retail businesses built on a site that is planned, developed, ...
  • New product development
    New product development refers to the development of original products, product improvements, ...
  • Segmented pricing
    Segmented pricing refers to sell a product or service at two or more prices, where the ...
  • Innovative marketing
    Innovative marketing refers to a principle of sustainable marketing that requires a company ...