Marketing Distribution

A few of the different types of distribution are intensive distribution, selective distribution, and

exclusive distribution. They represent the level of availability selected for a particular product

by the marketer, its level of intensity chosen will depend on factors such as production

capacity, size of the target market, pricing and promotion policies and the amount of product

service required by the end-user.

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 like for

beer or cigarettes. Intensive distribution is usually required where customers have a range of

acceptable brands to choose from. In other words, if one brand is not available, a customer will

simply choose another. This alternative involves all the possible outlets that can be used to

distribute the product. This is useful in products like Coca Cola, where distribution is a key

success factor. Coke distributes its brands through multiple outlets to ensure their easy

availability to the customer. It is available in restaurants, hotels, countless soft drink machines

and convenience stores. Any possible outlet where the customer is expected to visit is also an

outlet for a Coke product.

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 outlet and focus efforts like product training on them. Selective distribution works

best when consumers are prepared to “shop around” or they have a preference for a particular

brand or price and will search out the outlets that supply. This alternative is the middle path

approach to distribution. Businesses like Whirlpool or General Electric who sell their major

appliances through dealer networks and large retailers select the outlets to distribute its

products....