Question

Rather than compete with large greeting card companies for shelf space in supermarkets, several smaller card companies place their cards in pack-and-ship stores where the customer can mail a card on the spur of the moment, and in racks in car washes where customers who are waiting for their cars can browse and purchase cards. this is an example of which type of marketing channel strategy?

Answer 1

This marketing channel strategy is called Dual Distribution. Dual Distribution allows for the manufacturer to sell directly to the customer or to sell to other companies for resale. Using the example above, the greeting card company sold the greeting cards to the car wash company for possibly a smaller profit than they might have made at a supermarket or small greeting card store so that the car wash company could sell the greeting cards and make a small profit as well. This allows for the greeting card company to have 2 or more channels of selling their product.