Multiple distribution
Also called: multichannel distribution or multichannel distribution
Multiple distribution involves offering the same products through two or more different marketing channels to multiple market segments. This can increase 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 brand of cosmetics that has products sold both in supermarkets, through drugstores, online and by beauticians. In this example, shoppers, online shoppers and beauty salon customers are different target groups.
Because the target groups of different distribution channels can overlap, 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 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 runs through multiple channels. In multichannel marketing, multiple forms of media are used. The field of trademark marketing deals with marketing activities aimed at increasing demand and visibility within external channels.
