Marketing Management, 16th Edition

Multichannel Distribution

Today’s successful companies typically employ multichannel distribution, using two or more marketing channels to reach customer segments in one market area. HP uses its sales force to sell to large accounts, outbound telemarketing to sell to medium-sized accounts, direct mail with an inbound phone number to sell to small accounts, retailers to sell to still smaller accounts, and the internet to sell specialty items. Each channel can target a different segment of buyers, or different need states for one buyer, to deliver the right products in the right places in the right way at the least cost.3

When different channels target the same customers, channel conflict, excessive cost, or insufficient demand can result. Dial-a-Mattress ...