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multi-channel marketing systems are becoming very common and frequently used. Some companies added new channels (e.g....

multi-channel marketing systems are becoming very common and frequently used. Some companies added new channels (e.g. WalMart selling products online), while others added traditional channels (e.g. Amazon.com opening up mini-retail stores). Discuss some of the challenges and benefits of expanding multi-channel systems in today's services and digital economy.

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Benefits of expansion into multi channels includes that retailer can tap small and medium business and attract customers from rural and untapped geographical areas and ultimately leverage economies of scale and thus make affordability and accessibility easier for customers.

However challenges and impediments like increasing tax compliance, higher legal recoup and corporate governance costs, additional manpower management and industrial relations, higher marketing spends and brand cannibalization cause the expansion to become questionable.

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