Dual distribution
In dual distribution, the same products are offered to the same target audience through two different marketing 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 online stores. The customer has the choice of either the local store or a Web 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 channels target the same audience, conflicting interests can arise. This is especially 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 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 known as multiple or multichannel distribution. The field of trademark marketing deals with marketing activities aimed at increasing demand and visibility within external channels.
