Definition

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

  • Self regulation
    Self regulation is the private sector’s ability to rapidly identify and resolve problems ...
  • Brand variants
    Brand variants are specific brand lines uniquely supplied to different retailers or distribution ...
  • Conventional distribution channel
    A conventional distribution channel consists of one or more independent producers, wholesalers, ...
  • Parent brand
    Parent brand is an existing brand that gives birth to a brand extension or sub brand. ...
  • Product Mix Pricing Strategy
    Product Mix Pricing Strategy is the strategy for setting a product’s price often has ...