Discussion – Multichannel Distribution
A multichannel system involves using several ways to deliver products to intended customers. As firms expand, they rely on more than one channel to relay goods and services to customers (Hufford, 2016). The use of a multichannel system has various benefits. First, it grows sales for a firm because, through multiple channels, the number of customers increases, leading to increased profits. For instance, some channels establish a direct link between the producer and customers, cutting the costs of intermediaries. Second, a multichannel system provides a better experience for the customer. Notably, this is the case with indirect channels. Customers can compare various available options and select suitable ones to purchase commodities. Third, the multichannel system expands the reach to more customers because, in every channel, there will be customers gained. Finally, serving the same customer using various options under the multichannel system is possible.
In contrast, a multichannel system can have a share of challenges. For instance, the system is complex, and management problems, such as sharing data between channels, can become hard to manage successfully. Further, a multichannel system can become challenging due to the cannibalization of sales, whereby the initial channels may incur reduced sales when new ones are introduced.
A channel conflict is a situation where partners in a distribution channel compete. Normally, it occurs when producers utilize the available channels to sell directly to consumers while disinter-mediating channel partners such as sales representatives, dealers, and retailers. According to Kotler & Keller (2016), marketers can use two or more channels and minimize channel conflict through the following ways. First, marketers should consider avoiding direct sales because they are the major cause of channel conflicts. Second, they should create assigned territories or segments to be served by each channel. Finally, they should adjust their pricing structure to accommodate the multichannel system.
References
Hufford, J. (2016, August 31). Your complete guide for understanding multichannel distribution systems. eCommerce, ERP, POS & 3PL System Integration | channel. https://www.nchannel.com/blog/multichannel-distribution-systems-guide/
Kotler, P., & Keller, K. L. (2016). A framework for marketing management (6th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.
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Question 
Discussion – Multichannel Distribution
Using the resources on multichannel distribution, summarize the benefits and challenges of using more than one channel, specifically direct, indirect, and multichannel. What is channel conflict? How can marketers use two or more channels and minimize the potential for channel conflict?