When several distribution channels are used simultaneously to market a product, we speak of multi-channel marketing.
The distribution channel is defined by the distribution policy. This is a strategy that takes into account a number of factors, such as distribution cost, brand image, associated services and so on.
The distribution policy can vary according to the size of the company, its business model (e.g., B2B, B2C, etc.), and its financial resources. Some will prioritize a cross-channel or multi-channel strategy, for example.
Similarly, the production method also has an impact on the distribution channel.
The choice of distribution channel must be consistent with the 4P marketing mix.
In fact, the chosen distribution channels will vary according to product price. Generally speaking, luxury products are distributed by quality retailers with a good brand image.
Similarly, distribution channels must be consistent with product communication and packaging. Last but not least, competitive practices are also an important consideration.
The type of distribution is a highly influential factor when it comes to distribution channels.
- With intensive distribution, there are many distribution channels, and the idea is to target as many points of sale as possible throughout the territory.
- Exclusive distribution, on the other hand, is reserved for a network of very specific outlets.
- Selective distribution targets a very specific and restricted clientele. This distribution method is often reserved for luxury products.
