Hybrid Distribution Strategy: Importance, Positive and Negative Effects on Firms

Running head: MARKETING AND MANAGEMENT
Marketing and Management
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MARKETING AND MANAGEMENT
Description
Hybrid distribution strategy is the method of multiple channel distribution that is done
to serve a specific product market. The reason for the establishment of hybrid channels by
firms is to meet the customer desire with reduction in costs and further increasing the market
share. This method had been adopted by IBM with a view to meet the current trend by
intensely alternating the demands of the channel managers (Webb & Hogan, 2002).
Importance of Hybrid distribution strategy to Firms
Firms have adopted this strategy not to benefit the coalition of individual channel
within the firm but even serve the needs of diverse market segments. The adaptability of the
changing customer needs and shopping patterns ascertain the response to new distribution
channels and the development of internet. This enables the new channels to focus on target
markets with involvement of competitiveness. Also, the use of different channels in
distribution caters to broad product lines for optimal utilization which is not possible from
one type of channel. It even help firms with excess manufacturing capacity concerning
additional outlets so that the supply does not turn out to be saturated for the existing channels
(Webb & Hogan, 2002).
Positive and Negative Effects of Hybrid Distribution Strategy on Firms
Many distributors maintain “creative control” with the help of hybrid distribution
strategy through using resources and maximising distribution by choosing partners
(Indiewire, 2009). Additional to this, ideally, the firms establish the strategy for corporate
motivation with three advantages:
 Cost – Minimizing the sales expense through hybrid resource count relative to cost of
those accounts
 Coverage – The quantity of customers with various distribution of channels