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Multichannel distribution is regarded as an essential element in todays marketplace because it uses one or more sales approaches to reach target customer segments. The benefits of using several channels, such as the Internet, call centers, direct marketing, catalogs, and home networks, to increase market outreach include creating more ways in which products reach buyers. This approach brings about a higher generation of revenues through increased consumer engagement and conversion rates (Kotler & Keller, 2016). Multichannel marketing also enables organizations to keep up with todays on-the-go users because they can reach clients on many platforms via mobile phones, computers, and tablets, among other digital devices. Besides, it plays a significant role in catching up with the real market statistics and staying ahead of competitors. The challenges of multichannel distribution include its increased complexity in the management of numerous outlets, which makes it difficult to establish proper pricing strategies, especially when using both direct and indirect approaches.
Channel conflict is a phenomenon that occurs due to existing competition among retailers, wholesalers, and manufacturers in which one of the parties inhibits the sale of a particular product. Distributors engage in unethical practices by selling products directly to consumers through conventional marketing approaches (Kotler & Keller, 2016). It is categorized into vertical, horizontal, or multichannel disputes. In a one-channel distribution system, a conflict may occur among vendors, production, sales, and the management of the organization.
Proper management of channels is essential in bringing members within the distribution system together rather than letting them operate independently (Kotler & Keller, 2016). This underpinning resonates with the importance of marketing in promoting sound communication within the channels to ensure clarity of goals and anticipations. Marketers can use two or more channels and minimize the possibility of channel conflict by examining and aligning their pricing structure with the market rates. Additionally, they can establish assigned territories to ensure the segmentation of products.
Reference
Kotler, P. T., & Keller, K. L. (2016). Framework for marketing management (6th ed.). Pearson.
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