Peer Discussion
I agree that using multiple channels (direct and indirect) can be useful, given that in a crowded information marketplace, consumers will often not even register that a product exists unless they are bombarded with advertisements for it, including seeing the product on Amazon as well as Google or Facebook advertisements that direct the consumer to click on the company website. Also, with products that have multiple marketing segments, different channels may be essential. For example, while younger consumers may prefer to buy online, older consumers may demand the ability to access a tangible item to hold or try on in a retail store. But no company’s budget is limitless, and the value of the greater number of sales accessed via multichannel distribution must be weighed against the costs of entering into relationships with retailers. Some companies minimize channel conflict, as described in Kotler & Keller (2016) by beginning selling through one channel (such as a website) and then branching out as the company grows more solvent and popular.
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