Channel Segmentation
The division of sales channels into different segments based on criteria like size, customer base, or geographic location, to tailor strategies and resource allocation.
Implications
The division of a company�s sales or distribution channels into distinct groups based on characteristics like target market, geographic location, or product type, often used to tailor strategies and optimize channel performance.
Example
Example: A food and beverage company uses channel segmentation to differentiate its approach to grocery stores, convenience stores, and online retailers, offering customized promotions and product assortments for each segment.
Related Terms
Different from customer segmentation, which focuses on dividing the customer base, channel segmentation divides the sales and distribution network into manageable and strategically distinct groups.
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