This document discusses different types of channel intensity and distribution patterns for products and services. It defines intensive, selective, and exclusive distribution, which vary based on the number of intermediaries and outlets used. Intensive distribution uses all suitable outlets for complete market coverage, while selective distribution limits outlets to select good partners. Exclusive distribution gives protected territories to distributors. The document also discusses integrated distribution, dual distribution, and the increasing role of e-commerce in product sales. It notes services typically use direct distribution from provider to consumer or industrial user.

1. 1
Intensity of Channel Structure
• Channel intensity: the number of intermediaries at
each level of the marketing channel.
All Possible
Intermediaries
Relatively Few
Intermediaries
Just One
Intermediary
Intensive ExclusiveSelective

2. 2
Intensive Distribution
• = the use of all suitable outlets to sell a product.
• The objective is complete market coverage and the
ultimate goal is to sell to as many customers as possible,
wherever they choose to shop.
• Ex. FMCG goods of HUL

3. 3
Selective Distribution
• = a limited number of outlets in a given geographical area
are used to sell the product.
• Very important to select channel members that maintain
the image of the product & are good credit risks,
aggressive marketers & good inventory planners.
• Ex. LEVIS sell through megastores i.e. BIG BAZAR or
SHOPPERS STOP

4. 4
Exclusive Distribution
• = protected territories for distribution of a product in
a given geographic area; business maintains tight
control over a product
• Ex. Franchisor legally requires a franchisee to sell
only the franchisor’s products

5. 5
Integrated Distribution
Manufacturer acts as wholesaler and retailer
for its own products.
• EX. KEIHIN FIE for BAJAJ motorcycles

6. 6
Dual distribution
• A manufacturer may sell its products
through multiple outlets at the same time:
– Toll-free phone system
– Company website
– Multiple retailers

7. 7
4. Involvement in E-commerce
• = means by which products are sold to
customers and industrial buyers through the
Internet.
• Consumers have also become accustomed to
buying products online.
• one-stop shopping and substantial savings for
industrial buyers.
• E-marketplaces provide smaller businesses with
the exposure that they could not get elsewhere

8. 8

9. 9

10. 10
Pattern of distribution for
SERVICES
• Consumer services = DIRECT
Service Provider >>> Consumer
• Industrial services = DIRECT
Service Provider >>> Industrial User

11. 11