Hybrid Distribution Channels

Running head: HYBRID DISTRIBUTION CHANNELS
Hybrid distribution channels
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1HYBRID DISTRIBUTION CHANNELS
Question 1
The dynamic market conditions at present have forced a number of companies around the
world to adopt strategies that involve multiple channels of distribution. This has often led to a
conflict between the various individual channels, giving rise to a need for a hybrid distribution
channel. Such a strategy is expected to reduce the conflicts caused due to internal coalitions
within individual channels.
In the last few years, marketers have developed a number of complex channels which
have helped in responding to ever changing customer buying behavior. When it comes to multi
channel arrangements, most firms prefer to use strategies which would help in increasing market
share but at lower costs. This strategy has come to be known as the hybrid distribution strategy
(Webb & Hogan, 2002). Earlier on, companies mostly preferred to use one channel while
penetrating the market. However, the increasing competition has compelled people to opt for a
number of channels which would expand the market coverage for the company. This would help
firms tap into previously unexplored market potential, by targeting newer market segments. Most
firms have thus combined the traditional and existing market channels with the new, emerging
trends. For instance, these firms have combined distributors with direct sales, direct mail with
retail sales and so on (Frazer & Stiehler, 2014). By adding more and more channels of marketing
and communication, firms have embraced a hybrid distribution strategy.
Most of the high technology industries like metal fabrication, textiles and even insurance
today rely on hybrid distribution channels for smooth and seamless functioning. The concept of
using a hybrid distribution strategy has altered the way marketing and distribution channels
function within a firm.