What Is Intensive Distribution Strategy?

What is the purpose of intensive distribution?

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).

Intensive distribution is usually required where customers have a range of acceptable brands to choose from..

What is meant by selective and intensive distribution strategy?

An intensive distribution strategy involves selling a product in as many outlets as possible. Selective distribution involves selling a product at select outlets in specific locations. Exclusive distribution involves selling a product through one or very few outlets.

What is an example of intensive distribution?

Soft drinks and cigarettes are some of the examples on which intensive distribution is followed. Description: Under the intensive distribution strategy, all the possible outlets can be used by a company to distribute the product. … This method is particularly useful for products like soft drinks, cigarettes etc.

What are distribution channels examples?

Distribution channels include wholesalers, retailers, distributors, and the Internet. In a direct distribution channel, the manufacturer sells directly to the consumer. Indirect channels involve multiple intermediaries before the product ends up in the hands of the consumer.

How does a distribution company work?

Distributors, also known as a stockist, are basically someone who makes a partnership with the manufacturer, purchases products, stores them & sell them through a distribution channel. … The right distributor enhances a company’s exposure in the product market and can give an edge in terms of speed and efficiency.

What is the physical distribution?

Physical distribution (P.D) is the set of activities concerned with efficient movement of finished goods from the end of the production operation to the consumer. … Physical distribution involves the handling and moving of raw materials and finished products from producer to consumer often via an intermediary.

What is extensive distribution?

What is Extensive Distribution? It’s a distribution strategy that aims to spread the word about a specific product or product line to multitudes of people. Because of its complexity, this distribution strategy is able to target a number of delivery channels for maximum results.

Why is selective distribution good?

Selective distribution is a useful tool at the disposal of the supplier since it can refuse to sell to those dealers that do not comply with the set criteria. This system is therefore interesting since it allows the supplier of products to organise its distribution according to its wishes and strategy.

How do distribution channels add value?

Intermediaries Add Value to Products Distributed If selling directly from the manufacturer to the consumer was the most efficient or profitable way, there would be no need for channels of distribution. Intermediaries create a win-win situation by providing benefits to both manufacturers and consumers.

What is intensive?

(Entry 1 of 2) : of, relating to, or marked by intensity or intensification: such as. a : highly concentrated intensive study. b : tending to strengthen or increase especially : tending to give force or emphasis intensive adverb.

What are intensive strategies?

Intensive strategies are those strategies, which demand furthermore intensive efforts to improve the performance of existing products in the market. … Intensive efforts are needed to employ when intensive strategies are exercised by the organization.

What companies use exclusive distribution?

Some companies that often use exclusive distribution are:Samsung.Gucci.Lamborghini.Apple.BMW.Mercedes.

What are the 3 distribution strategies?

At the strategic level, there are three broad approaches to distribution, namely mass, selective and exclusive distribution.

What are the three major distribution strategies?

There are three methods of distribution that outline how manufacturers choose how they want their goods to be dispersed in the market.Intensive Distribution: As many outlets as possible. … Selective Distribution: Select outlets in specific locations. … Exclusive Distribution: Limited outlets.

What are the 5 channels of distribution?

Types of Distribution ChannelsDirect Channel or Zero-level Channel (Manufacturer to Customer)Indirect Channels (Selling Through Intermediaries)Dual Distribution.Distribution Channels for Services.The Internet as a Distribution Channel.Market Characteristics.Product Characteristics.Competition Characteristics.More items…•Dec 18, 2020

When should marketers use intensive distribution?

The objective of intensive distribution is providing a vast coverage of the existing market by using all available outlets. Intensive distribution is most commonly used when the product is a very common product in the market and there are many different alternatives available.

What are the levels of distribution?

Channels of distribution can be divided into the direct channel and the indirect channels. Indirect channels can further be divided into one-level, two-level, and three- level channels based on the number of intermediaries between manufacturers and customers.

What is intensive retail distribution strategy?

Intensive distribution is a marketing strategy that places products in many retail stores in many regions. Manufacturers use an intensive distribution strategy with products that need to be quickly replenished. The advantages of this strategy include money, product awareness, and impulse buying.

What are the 4 types of distribution?

There are four types of distribution channels that exist: direct selling, selling through intermediaries, dual distribution, and reverse logistics channels. Each of these channels consist of institutions whose goal is to manage the transaction and physical exchange of products.

What are the 3 levels of distribution intensity?

There are three main levels of distribution coverage – mass coverage, selective and exclusive.

What are the advantages and disadvantages of using a multichannel distribution system?

Overview: advantages and disadvantages of multichannel marketingAdvantagesDisadvantages✔ Better market coverage, development of new target groups✘ Possibility of a “cannibalization effect“✔ Business risk is distributed further✘ Individual sales channels aren’t connected3 more rows•Aug 28, 2018