Multi-channel Hybrid System Essay Example | Topics and Well Written Essays - 1750 words

Multi-channel Hybrid System - Essay Example "The multi-channel approach expands distribution and allows the marketer to reach a wider market." ("Principles") In addition, a wider market provides more room for the company to explore the consumer needs and cater to a wide variety of customers, hence a wider distribution of products. Thus, the possibility having a sustainable market is higher. Both the local and the global markets are segmented. The needs of each segment in the market are differentiated; therefore an equal need in addressing these needs require different strategies as well as individual channels of product distribution. Concentrating with only one channel limits the market range that the company or the business may be able to cater. Customer needs and wants continue to change over time. In the most recent years, market trends has put more emphasis on delivering to the customers the products with superior quality as well as the superior services that the suppliers could offer. Moreover, a consistent delivery of high-quality products and services must be tracked down all the time, as well as analyzed, in order to become responsive to the constantly changing needs in the market. Suppliers are required to be market-oriented to become familiar with the newest marketing trends in order to remain competitive. However, market orientation does not stop in the company's awareness of the trends in the market. They need to acquire the organization-wide generation of market intelligence, its appropriate dissemination strategies across various departments, and the proper response to these new trends in the market. (cited in Jaworski & Kohli, 1993) Multi-channel/Hybrid System as a Distribution Strategy The needs of the consumers constantly changes through time. As a result, the question of whether a company should use a single-channel strategy or a multiple-channel strategy is no longer a question that needs to be answered. The markets in the future are expected to have a mix of different channels that would need to be explored by the companies in order to attain global competitiveness. The customers' increasing preferences of different channels when searching and buying products or services that depend on their characteristics, the nature of the product they buy and the transaction process are just two of the reasons of the consumers' preferences of having a multiple channel of marketing and distribution. (cited in Schijns & Groenewoud, 2002) The increasing technological developments at the same time are deemed as the reasons for this growing multi-channel distribution strategy in the market. These technological advancements offer the suppliers the opportunity to meet the preferred channel of the customers wherein it would be comfortable with him. (cited in Schijns & Groenewoud, 2002)There are, however, other distribution channels that need to be further explored by the suppliers in order to meet the demands of the customers. These consumer trends, along with the technological innovations, contribute to the decision-making of the companies with regards to the use of multi-channel or hybrid distribution that would increase production and distribution, that will eventually lead them to global competitiveness. Businesses and companies' need to add more channels are brought about by competitive pressures in the market. In the event that they refuse to accept this new trend in the market - attempting not to utilize new channels - the risk of