The Role of Channel Alignment Capabilities in Effective Multiple- Channel Distribution Systems

This research addresses multiple channel distribution (MCD) strategies, in which the same product line is sold to the same target market by more than one channel. While MCD provides important benefits, it also entails a variety of serious challenges, particularly with regard to established channel relationships. Because of these challenges, firms vary in the success with which they implement MCD strategies. In the study, a survey of marketing and sales managers was combined with secondary data from a market research firm to examine the impact of superior channel alignment capabilities on MCD strategy success. Results suggest that capabilities related to both tracking and rewarding downstream channel intermediary activities lead to improved outcomes in terms of market coverage and firm performance. By tracking and compensating downstream intermediaries appropriately, suppliers can successfully implement MCD strategies while minimizing their destructive effects on downstream relationships.