(17) 3. ?Distribution intensity is commonly divided into three levels. They are
A primary, secondary, ?and tertiary.
local, regional, and national.
intensive, exclusive, and selective.
standard, limited, ?and exclusive.
The correct answer and explanation is:
The correct answer is: intensive, exclusive, and selective.
Explanation:
Distribution intensity refers to how widely or narrowly a product is made available to consumers. The three levels of distribution intensity—intensive, exclusive, and selective—are determined based on the product type, the target market, and the company’s marketing strategy.
1. Intensive Distribution
This approach involves placing a product in as many outlets as possible to maximize its availability and exposure. It is commonly used for convenience goods like snacks, soft drinks, and toiletries, which customers buy frequently and with minimal effort. The goal is to saturate the market, ensuring the product is readily accessible at supermarkets, gas stations, and convenience stores.
2. Exclusive Distribution
This strategy limits the availability of a product to a single retailer or distributor within a specific geographic area. It is typically used for high-end or luxury products, such as designer clothing, premium automobiles, or exclusive electronics. By restricting access, companies maintain a sense of exclusivity and brand prestige, which helps justify higher prices. Exclusive agreements often foster stronger relationships between manufacturers and retailers.
3. Selective Distribution
Selective distribution falls between intensive and exclusive strategies. It involves carefully choosing a limited number of outlets to distribute a product. This strategy is commonly used for shopping goods like electronics, furniture, and mid-range fashion. It allows manufacturers to maintain better control over the brand image while reaching a broader audience than exclusive distribution. Selective distribution also ensures retailers are knowledgeable about the product, enhancing customer experience.
Conclusion
The choice of distribution intensity depends on the product’s nature, customer expectations, and the company’s branding goals. For example, a luxury watch brand would benefit from exclusive distribution, while a beverage company would rely on intensive distribution to dominate the market. Selective distribution works well for products requiring informed purchasing decisions.