Multichannel marketing


Multichannel marketing is the blending of different distribution and promotional channels for the purpose of marketing. Distribution channels include a retail storefront, a website, or a mail-order catalogue.
Multichannel marketing is about choice. The objective of the companies doing the marketing is to make it easy for a consumer to buy from them in whatever way is most appropriate.
To be effective, multichannel marketing needs to be supported by good supply chain management systems, so that the details and prices of goods on offer are consistent across the different channels. It might also be supported by detailed analysis of the return on investment from each different channel, measured in terms of customer response and conversion of sales. The contribution each channel delivers to sales can be assessed via Marketing Mix Modeling or via attribution modelling. Some companies target certain channels at different demographic segments of the market or at different socio-economic groups of consumers.
Multichannel marketing allows the retail merchant to reach its prospective or current customer in a channel of his/ her liking.

Coordination of online and offline channels

Companies that sell branded products and services through local businesses market over both online and offline channels to local audiences. Online and offline multichannel marketing campaigns can either inform one another or are executed in isolation. A proportion of companies use their online marketing efforts to inform their offline advertising.

Comparison with traditional forms of marketing

While multichannel marketing focuses primarily on new media platforms in marketing, traditional approaches use old media such as print sources, telemarketing, direct mail and broadcasting stations such as radio and television. Multichannel marketing does not only use web 2.0 forms but also integrates media convergence models, targeting customer interaction through different platforms such as via text messaging, on a website, email, online video campaigns, GPS to track the location of a customer and their proximity to the product or service. Being able to reach out to customers directly is an important marketing strategy because it is convenient and enhances direct customer interaction.

Benefits

Some of the long term benefits of this style of marketing include: