Question

Indicate the level of market coverage—intensive, selective, or exclusive—that is best suited for the following products, and explain why that level is appropriate ?

Personal computer

Deodorant

Collector baseball autographed by Roberto Clemente 3

Windows computer software (latest version)

Orbit chewing gum

Pair of jeans

Answer 1

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.

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 or best-performing outlets and focus effort (e.g., training) on them. Selective distribution works best when consumers are prepared to “shop around” – in other words – 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. Here, the firm selects some outlets to distribute its products. This alternative helps focus the selling effort of manufacturing firms on a few outlets rather than dissipating it over countless marginal ones.

It also enables the firm to establish a good working relationship with channel members. Selective distribution can help the manufacturer gain optimum market coverage and more control but at a lesser cost than intensive distribution. Both existing and new firms are known to use this alternative.

Exclusive distribution is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.

Personal computer- Intensive

Deodorant- Intensive

Collector baseball autographed by Roberto Clemente 3- Exclusive

Windows computer software (latest version)- Selective

Orbit chewing gum- Intensive

Pair of jeans- Intensive