Multichannel distribution

• What does the term "multi-channel distribution" refer to?

  Using more than one channel
• A distribution channel is the route a product takes between the producer and the end customer
• A direct distribution channel involves selling directly from the producer to the consumer.
• What is an example of a company that uses multi-channel distribution?

  Apple
• Apple operates hundreds of branded retail stores to sell physical products and provide customer service
• Apple only sells its products through its own retail stores.

  False
• Steps in a multi-channel distribution process using Apple as an example.

  1️⃣ Producer manufactures Apple products

  2️⃣ Apple sells products in retail stores

  3️⃣ Apple sells products online

  4️⃣ Authorized distributors sell Apple products
• Why do businesses use multi-channel distribution strategies?

  Reach more target markets
• The use of distributors overseas allows businesses to reach market segments they would otherwise struggle to access
• Customers expect to be able to buy products through multiple channels.
• What happens if a product is out of stock in a retail store but available online?

  The sale is still closed
• Multi-channel distribution helps businesses close sales by providing alternative purchasing options
• Channel conflict occurs when a producer sells directly to consumers and competes with distributors.
• Why do intermediaries like retailers and wholesalers earn a profit margin?

  To cover their costs
• Using more types of distribution channels can lead to confusion in pricing
• Apple spends time ensuring consistent pricing across all its distribution channels.