Question

MARKETIG QUESTION: Describe the three levels of distribution intensity. Include in your discussion, an explanation of the relationship between the choice of distribution intensity and the classification of consumer products.

Answer 1

The level of distribution intensity the marketer chooses is often dependent on factors such as the size of the target market, pricing and promotion and production capacity, in addition to the amount of service the product will need after its purchase if applicable.

Levels of Distribution Intensity::-

There are three different intensity levels of distribution

1) Intensive

With an intensive level of distribution, a company aims having their product available at every outlet. The level of customer service needed to sell this product is reduced. Products that are distributed intensively often become convenience items. Some products that are distributed intensively are chips, soft drinks, magazines, etc.

2)selective

With a selective level of distribution products are distributed by screening dealers to eliminate all but a few in a selective area. Products distributed at a selective level become specialty items. Some products that are distributed at a selective level are televisions, computers, iPods, and telephones.

3)Exclusive

With an exclusive level of distribution products are distributed by one (or very few) dealers in a given area. Products distributed at an exclusive level are usually specialty/luxury items. Some products that are distributed at an exclusive level are Rolex watches and Rolls Royce vehicles.

Choice of distribution Intensity and consumer products::-

Consumer goods are products that are purchased for consumption by the average consumer. Alternatively called final goods, consumer goods are the end result of production and manufacturing and are what a consumer will see on the store shelf. Clothing, food and jewelry are all examples of consumer goods. Basic materials such as copper are not considered consumer goods because they must be transformed into usable products.

When a product being manufactured and sold which is industrial nature, direct channel of distribution is useful because of the relatively small number of customers need for personal attention, salesman technical qualifications after sale servicing etc. However in case of a consumer product, indirect channel of distribution, suggest to wholesalers and retailers is the most suitable..