Dual distribution
In dual distribution, the same products are offered to the same target audience through two different sales channels. This can increase market reach and increase sales. By increasing reach, more profits can be made at lower marketing costs.
An example of dual distribution is an eletronic brand that has its products sold through both physical stores and Web stores. The customer has a choice of either the local store or an online store on the Internet for their purchase. Another example is the same cosmetics products available in both a drugstore and a supermarket. If a supplier uses both retailers and its own sales channel (such as a web shop) for sales, then this is also dual distribution.
Because the channels target the same audience, conflicting interests may arise. This is especially true for indirect distribution channels. Retail chains and entrepreneurs incur costs for local service in the form of store premises and personnel but find it difficult to compete on price with the more efficiently organized web shops that fish in the same pond. If a manufacturer also uses direct distribution, it is also a direct stakeholder.
When two or more channels are used, it is also referred to as multiple or multichannel distribution. The field of trademark marketing deals with marketing activities aimed at increasing demand and visibility within external channels.
