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Channel Saturation
The point at which additional spending on a particular marketing channel yields little or no additional benefit.
Implications
The point at which a sales or distribution channel reaches its maximum capacity or potential, where additional efforts or resources may yield diminishing returns, often indicating the need for diversification or optimization.
Example
Example: A clothing retailer experiences channel saturation in its physical stores as sales growth plateaus, prompting the company to explore online sales channels and international markets.
Related Terms
Different from market saturation, which refers to the overall market being fully served, channel saturation focuses on the limits of a specific sales or distribution pathway.
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