How will you determine the intensity of distribution?
Answer: Determining intensity of Distribution: At this point in designing a channel, a firm knows what role has been assigned to distribution within the marketing mix, and which types of middlemen will be used. Next the company must decide on the intensity of distribution—that is, how many middlemen will be used at the wholesale and retail levels in a particular territory.
1. Intensive distribution: Under intensive distribution, a producer sells its product through every available outlet in a market where a customer might reasonably look for it. Ultimate consumers demand immediate satisfaction from convenience goods and will not defer purchases to find a particular brand. Thus incentive distribution is often used by manufacturers of this category of the product. for convenience goods
2. Selective distribution: In selective distribution, a producer sells its product through multiple, but not all possible, wholesalers and retailers in a market where a consumer might reasonable look for it. Selective distribution is appropriate for consumer shopping goods, such as various types of clothing and appliances, and for business accessory equipment, such as office equipment and handheld tools. Shopping goods
3. Exclusive Distribution: Under exclusive distribution, the supplier agrees to sell its product only to a single wholesaling middlemen and/or retailer in a given market. At the wholesale level, such an arrangement is normally termed an exclusive distributorship and at the retail level, an exclusive dealership. Specialty goods
