What is selective distribution intensity?

Asked By: Bela Boeker | Last Updated: 24th June, 2020
Category: business and finance food industry
4.6/5 (106 Views . 35 Votes)
Various factors affect a company's decisions about the intensity of a product's distribution. 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.

Click to see full answer

Also, what is a selective distribution?

Selective Distribution is a type of distribution strategy that lies and operates between intensive and exclusive distribution. Selective Distribution involves using more than one, but lesser than all the intermediaries and distributors who carry the company's products on a basis of a company specific set of rules.

Additionally, what are the three types of distribution intensity? There are three broad options:

  • Intensive Distribution: Intensive distribution aims to provide saturation coverage of the market by using all available outlets.
  • Selective Distribution:
  • Exclusive Distribution:

Thereof, what is distribution intensity?

Distribution Intensity. the level of availability selected for a particular product by the marketer; the level of intensity chosen will depend upon factor such as the production capacity, the size of the target market, pricing and promotion policies and the amount of product service required by the end-user.

Why selective distribution is important?

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.

26 Related Question Answers Found

What are the 4 types of distribution?

There are basically four types of marketing channels:
  • Direct selling;
  • Selling through intermediaries;
  • Dual distribution; and.
  • Reverse channels.

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 the different types of distribution channels?

While a distribution channel may seem endless at times, there are three main types of channels, all of which include the combination of a producer, wholesaler, retailer, and end consumer. The first channel is the longest because it includes all four: producer, wholesaler, retailer, and consumer.

What is the difference between exclusive and selective distribution?

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 exclusive distribution?

Exclusive distribution definition is a kind of distribution a manufacturer or supplier authorizes only one distributor to carry out within a definite region. An example of exclusive distribution is Apple solely authorizing AT&T to be the distributor of the iPhone to end users.

Does Apple use selective distribution?

Apple has adopted the selective distribution strategy with exclusiveness,In this push strategy is used (Wilkinson 2013). Android phone of google with tripled market share in just 3 months is the main competitor of apple in Us but still it dominates the market.

What is intensive distribution?

A marketing strategy under which a company sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations, and the like. Soft drinks are generally made available through intensive distribution.

What is integrated distribution?

Integrated Distribution. An integrated business model is when the vendor provides transportation and distribution, warehousing and value-added services all bundled into a single contract.

What options do companies have for intensity of distribution?

Factors That Affect a Product's Intensity of Distribution
  • Firms that choose an intensive distribution strategy try to sell their products in as many outlets as possible.
  • By contrast, selective distribution involves selling products at select outlets in specific locations.
  • Exclusive distribution involves selling products through one or very few outlets.

What are the three degrees of distribution density?

Terms in this set (4)
  • Three Degrees of Distribution Density. intensive distribution, exclusive distribution, selective distribution.
  • Intensive distribution. firm tries to place its products in as many outlets as possible.
  • Exclusive distribution.
  • Selective distribution.

What is distribution level?

When there are two levels of different kinds of intermediaries between the producer and the consumer. In other words, under this channel, the manufacturer sells the product to the retailer and who finally sells to the consumer. This is also called as distribution through wholesalers and retailers.

What is a selective distribution agreement?

Selective distribution. Distribution system whereby a supplier enters into (vertical) agreements with a limited number of selected dealers in the same geographic area. Selective distribution agreements, on the one hand, restrict the number of authorised distributors.

What is indirect distribution?

A chain of intermediaries through which a product moves in order to be made available for purchase by a consumer. An indirect channel of distribution typically involves a product passing through additional steps as it moves from the manufacturing business via distributors to wholesalers and then retail stores.

What is selective coverage?

Under selective coverage, the marketer deliberately seeks to limit the locations in which this type of product is sold. Products with selective coverage appeal to smaller, more focused target markets (see Consumer Shopping Products) compared to the size of target markets for mass marketed products.

What is direct distribution?

Definition: Direct distribution is a supply chain strategy that delivers products directly from producer to end consumer without any intermediaries. This term applies when the manufacturer takes the product directly to the consumer with its own transport and logistics network.

Where does intensive distribution take place?

Intensive distribution is when a business ignores market segmentation and decides to supply their product to every market available. The idea of intensive distribution is that your product can be found anywhere where a person shops, so that the product will be available for as many customers as possible.

What are the criteria for selecting channel of distribution?

We have to consider the following factors for the selection of channel of distribution:
  • (i) Product:
  • (ii) Market:
  • (iii) Middlemen:
  • (iv) Company:
  • (v) Marketing Environment:
  • (vi) Competitors:
  • (vii) Customer Characteristics:
  • (viii) Channel Compensation: