Alternative Channel Arrangements

A producer uses several different or alternative channels, which include multiple channels, nontraditional channels, and strategic channel alliances. Each of these channels can be used to its own advantage.

Multiple channels is when a producer selects two or more channels to distribute the same product to target markets. This channel can be used to its advantage because more people are shopping online, therefore the number of retailers that are using multiple distribution channels are increasing. For example, Victoria's Secret sells their products in stores, online, and even through catalogs. This is very beneficial to their company because they are selling their products in different ways. Therefore, they have the ability to get more customers to buy their products because they are technically selling in three different areas.

Nontraditional channel arrangements help differentiate a firm's product from the competition. These include the Internet, mail-order channels, or even infomercials. An example of this is Redbox because you can find them in different stores such as Walmart, Walgreens, and they are even installing them in local gas stations too. Customers can also reserve their movies online in order to see which movies are available at the time being. Redbox has become very popular over the years and people don't go to different stores to rent their movies anymore because Redbox has come to the point where they are only charged $1.00 a night and it is much cheaper then renting a movie.

Strategic channel alliance is a cooperative agreement between business firms to use the other's already established distribution channel. For example, there was a signed contract between Verizon Wireless and the National Football League in allowing Verizon to broadcast live Sunday afternoon football games to their fans. This is becoming more successful in the business because sometimes working together can be very beneficial.

In my opinion, I believe that all three of these channels are beneficial in their own ways. But, I feel as if multiple channels is the one that I would choose because I am a typical girl who likes to shop. With the producer selecting two or more channels to distribute the same product to target their marketers I think that this is their most strong point because they are thinking of what is best for their company and how they can target their customers more and more. Making their products available in store, online, and even through catalogs is superb because everyone has their own preference and they have the ability to choose how to purchase their product.

Which alternative channel arrangement would you prefer and why? Do you think that one is more effective over the other? How so?