Marketing strategy fundamentals and implementation

Marketing Strategy: Multiple Distribution Channels

The smartest and fastest growing Fortune 500 companies and above uses multiple channels of distribution to integrate processes within their company and provide consistent methods of delivery and service to customers. This paper will provide a detailed analysis of this hypothesis. The case study will include an overview of IBM and CHANEL Inc., as two primary companies using multiple distribution channels and technology successfully in the global marketplace to provide lower cost and services that are more convenient to internal and external customers.

By utilising multiple distribution challenges, companies can streamline business processes and create interactive Web applications throughout the company. This integrates web-based operations of a company with in-house company operations and manufacturing processes. In the global marketplace we all live in today, it is more important than ever companies look at multiple distribution as a means to provide services that are more efficient and provide interactive applications to their partners and their consumers (WebCollage, Inc., 2006, p.306). An example of a company that has streamlined this process more so than any other is IBM; another is SOA (WebCollage, Inc. 2006, p. 306).

The use of multiple distribution channels allow companies like IBM to interact with channel partners. They can also interact with internal and external customers including vendors and suppliers. This enables customers to configure their own equipment if necessary, allowing manufacturers to provide product information by online processes and applications using tools including "appliance selectors," and allow manufacturers to provide extensive services to global retailers and customers (WebCollage, Inc. 2006, p. 306).

Another company using technology to create opportunities for multiple distributions is CHANEL, Inc., a company producing fragrances, skin care essentials and other luxury items (WebCollage, Inc., 2006). They created global and national distribution and advertising channels by moving their technological operations to the Internet and by creating an intranet, so that all customers can be involved in the retail, manufacturing and distribution processes.

More and more distribution is something that is primarily technology based (Anderson, et al., 1996, p.180). Anderson et al. (1996) note relying on one channel for distribution may prove disastrous in today's global economy, especially if one finds fault with a channel. Today, with multiple channels available including by the Internet, most retailers and business organisations can cater to the needs of the public by providing "low-cost" distribution channels, providing automated services that cost the company less and improve customer satisfaction tenfold (Anderson, et al., 1996, p. 180). Further, by looking into alternative channels for distribution, companies including IBM and CHANEL, Inc. can ensure they provide all customers, internal and external, the opportunity for expressing their personal preferences. This is important whether those preferences relate to personal interaction, the convenience associated with doing business with a company, or the ability to keep costs minimal when interacting with their preferred clientele and customers (Anderson et al., 1996).

Thanks to the advent of modern technology, there is more competition than ever before in the global market. The only companies that will succeed are those that open the doors of business by engaging the possibility of low-cost and multiple distribution channels. Each channel offered should provide its own unique advantages. All will carry some disadvantage, so it is the job of the company utilising such systems to decide which channels are likely to produce the most benefit while minimising the risk associated with doing business.

Comprehensive or multiple distribution channels are essential for any company engaged in global business today. Not everyone has access to the same channels of distribution. By utilising more than one channel, companies invite new customers to engage in business with them. They enable the opportunity for greater convenience, satisfaction and lower costs. This occurs for internal customers, for external customers, for the retailers themselves and for any and all other entities associated with the organisation or enterprise in question.