4. Intensive distribution
aims to provide saturation coverage of the market by
using all available outlets. For many products, total
sales are directly linked to the number of outlets used
(e.g. cigarettes, beer).
5. Intensive distribution
Intensive distribution is usually required where
customers have a range of acceptable brands to chose
from. In other words, if one brand is not available, a
customer will simply choose another
6. Intensive distribution
Manufacturer placing goods or services in as many
outlets as possible.
Used for soaps, snack foods.
Increases product coverage and sales.
Results in retailing competing aggressively.
7. Selective distribution
Selective distribution works best when consumers are
prepared to "shop around" - in other words - they
have a preference for a particular brand or price and
will search out the outlets that supply.
8. Selective distribution
involves a producer using a limited number of outlets
in a geographical area to sell products. An advantage
of this approach is that the producer can choose the
most appropriate or best-performing outlets and
focus effort (e.g. training) on them.
9. Selective distribution
Uses a few but less than all the intermediaries.
Used by new companies seeking distribution and also
established companies.
Cost effective.
Can give adequate market coverage with more
control.
Titan Watches.
10. Exclusive distribution
is an extreme form of selective distribution in which
only one wholesaler, retailer or distributor is used in a
specific geographical area.
11. Exclusive distribution
Used when producer wants to maintain control
over the service level and output offered by the
reseller.
Involves exclusive dealing arrangements.
To obtain more dedicated and knowledgeable
selling.
Requires greater partnership
Used in automotives, appliances.
12. Legal problems of exclusiveLegal problems of exclusive
distributiondistribution
Exclusive-dealing agreement: arrangement between
manufacturer and e-marketing intermediary that
prohibits the intermediary from handling competing
product lines
Closed sales territories: exclusive geographic selling
region of a distributor
Tying agreement: Arrangement that requires a
marketing intermediary to carry items other than those
they want to sell
