Name and briefly describe the three levels of distribution intensity. Give examples of two products that logically would be distributed at each level of intensity.

Question

What will be an ideal response?

Answer 1

INTENSIVE DISTRIBUTION is aimed at maximum market coverage. The manufacturer tries to have the product available in every outlet where the potential customer might want to buy it. If a buyer is unwilling to search for a product, the product must be placed closer to the buyer. If the product is of low value and is frequently purchased, a lengthy channel may be required. Candy, gum, cigarettes, soft drinks, and any other type of convenience good or operating supply would be distributed intensively.

SELECTIVE DISTRIBUTION is achieved by screening dealers to eliminate all but a few in any geographic area. Because only a few retailers are selected, the consumer must be willing to seek out the product. Shopping goods such as electronic equipment and appliances and some specialty products are distributed selectively. Accessory-equipment manufacturers in the business-to-business market usually follow a selective distribution strategy.

EXCLUSIVE DISTRIBUTION entails establishing one or a few dealers within a given geographic area. This is the most restrictive form of market coverage. Because buyers may have to search or travel extensively to purchase the product, exclusive distribution is usually limited to consumer specialty goods, a few shopping goods, and major industrial equipment. Some products distributed exclusively include Rolls Royce automobiles, Anna Pavlov perfume, Pettibone tower cranes, and Steinway pianos.