Question

Target Market Coverage refers to the number of distributive channels or outlets needed to effectively serve a targe market for a product. The textbook specifies three types of coverages as shown in the slides below: Intensive-, Exclusive-, Selective-Distribution.  

For this discussion board, you are required to:

1. Choose at least two (2) coverages (e.g. Intensive distribution and selective distribution).

2. Identify two products that each represent one coverage (e.g. bottled water for intensive distribution and Maytag washer for selective distribution).

3. Discuss why you think these two products use their respective coverage. ( In other words, why you think it makes sense that bottled water uses intensive distribution.) Your discussions should focus on buyer needs/requirements and profitability. Refer to pages 426-428 of your textbook.

Answer 1

1. Intensive distribution - intensive distribution include high saturation coverage of the market with all possible alternative outlets. In this type of distribution alternative outlets are available for every product or services. Product awareness can be achieved in less time for such type of distribution.

Selective distribution - selective distribution include Limited number of outlets in any given geographical area for any product or services. The biggest advantage of selective distribution is that the producer of any product may choose its best outlet place for its products in order to make full focus on that outlet for high productivity and profitability as well.

2. Soft drink represent intensive distribution as soft drinks have many alternatives and have many brand in the same product line so it is very easy for a customer to shift from one ring to other depending upon his taste and preference. Some other example of intensive distribution are newspaper, bottled water etc.

Car represent selective distribution as as-it-is luxurious cars and not available at any place so it comes under selective distribution.

3. Soft drinks uses intensive distribution as it have wide range of alternative in the market. The price range for soft drinks are also so cheap so that everyone can afford it so it is being available at most of the place and there are wide range of soft drinks in the market.

Cars uses selective distribution as it is from the category of luxury and the manufacturer or producer of such cars want to make their full focus on those outlets which will give them high sale of cars. So cars uses selective distribution and being available at Limited outlets only.