Multiple distribution
Also called: multichannel distribution or multichannel distribution
In multiple distribution, the same products are offered to multiple market segments through two or more different sales channels. This can expand market reach and increase sales potential. By increasing reach, more profits can be made at lower marketing costs.
An example of multiple distribution is a cosmetics brand that has products sold both in supermarkets, through drugstores, online and by beauty shops. In this example, shoppers, online shoppers and beauty salon customers constitute different audiences.
Because the target audiences of different distribution channels may overlap, conflicting interests may arise. This is particularly true with 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. Service providers that sell an item as a by-product will want to make a higher margin on it than stores that focus on larger volumes.
Using two marketing channels for a market segment is dual distribution.
Like multichannel distribution, marketing often occurs through multiple channels. Multichannel marketing involves the use of multiple forms of media. The field of trademark marketing deals with marketing activities aimed at increasing demand and visibility within external channels.
