passage below require analyis and breakdown

A marketing channel is a network of interdependent institutions that perform the logistics necessary for consumptions to occur. Distribution involves the marketing channels that will physically distribute products from a producer to a consumer. A direct marketing channel has no intermediary levels. It consists of a company selling directly to consumers. The major examples are mail order, online selling, TV selling, telemarketing, door-to-door sales, home parties, and manufacturer-owned stores (Kotler &Keller, 2016). Indirect distribution involves third parties, like warehouses, wholesalers, and retailers(Kotler &Amstrong,1996). A multichannel distribution system then is when a merchant decides to strategically distribute their products to customers via multiple channels, such as directly through physical stores, an online marketplace like Amazon, or through another large retail chain. There are benefits and challenges when using multiple channels in marketing. The challenge is using the most effective blend to reduce the chances of channel conflict. Channel conflict is generated when one channel members actions prevent another channel from achieving its goal (Kotler & Keller, 2016, p. 233).

Benefits: Consumers believe that they can get the product from a mixture of channels, and they can then purchase regardless of their situational constraints such as geography. It allows consumers to shop in multiple ways (Hufford, 2016). As an example, if it is not available in the retail environment, it may be available online. Multichannel marketing allows more segments to be in the market. Consumers in the current market place shop in multiple channels for the sake of convenience and to get the best price and as a merchant. This is causing merchants to expand their business to new channels and benefit from its advantages (Hufford, 2016). One channel may not be profitable while another may be the reason for increased sales. Some consumers become more attracted to a product; the more times they are exposed to it. Consumers expect products to be available through more than one avenue (Riley, n.d.).

Challenges: Target marketing becomes difficult when using multiple channels for marketing since the consumer receives the message from multiple mediums, which could confuse the consumer, and the point of target marketing will lose. It can become difficult to know which channels are the most effective when the direct and indirect channels used jointly. Pricing strategy may become confusing to the consumer as they research across multiple channels (Riley, n.d.). Multichannel marketing is very difficult to manage, especially for the start-ups, dedicated marketers needed for this purpose.

Channel conflict is disagreement among marketing channel members on goals and roles who should do what and for what rewards (Kotler & Armstrong, 1996). Horizontal conflicts occur among firms at the same level of channels. Vertical conflicts are more common and refer to conflicts between different levels of the same channel. Multichannel conflicts exist when the manufacturer has established two or more channels that sell to the same market, and it gets intense when the members of one channel get a lower price or work with a lower channel (Kotler &Keller,2016). A competent marketer uses the multichannel steps to resolve the conflicts, which includes: strategic justification - different market channel operators may decide a subordinate goal to be achieved and demonstrate how each serves a different market. Dual compensation existing channels are paid on new sales through other channels. Different channels should switch the employees from one channel to another so they will know the working and challenges of both the channels as well as more and also there will be more clearness. Every channel should make a trade association and decide they have to work following the regulations of each other and like one group. When conflict arises, there should be the use of tact, mediation, and arbitration (Kotler & Keller, 2016, p. 204).