Distribution Arrangement

-         In intensive distribution, the product is sold to as many appropriate retailers or wholesalers as possible. Intensive distribution is appropriate for products such as chewing gum, candy bars, soft drinks, bread, film, and cigarettes where the primary factor influencing the purchase decision is convenience.

-         In selective distribution, the number of outlets that may carry a product is limited, but not to the extent of exclusive dealing. By carefully selecting wholesalers or retailers, the manufacturer can concentrate on potentially profitable accounts and develop solid working relationships to ensure that the product is properly merchandised. The producer also may restrict the number of retail outlets if the product requires specialized servicing or sales support. Selective distribution may be used for product categories such as clothing, appliances, televisions, stereo equipment, home furnishings, and sports equipment.

-         Exclusive distribution occurs when a single outlet is given an exclusive franchise to sell the product in a geographic area. Products such as specially automobiles, some major appliances, certain brands of furniture, and lines of clothing that enjoy a high degree of brand loyally are likely to be distributed on an exclusive basis.

-    Integrated marketing is a strategy aimed at unifying different marketing methods such as mass marketing, one-to-one marketing, and direct marketing. Its objective is to complement and reinforce the market impact of each method, and to employ the market data generated by these efforts in product development, pricing, distribution, customer service, etc

Why is the choice of distribution channel so important? 

 1. It affects sales - if it's not available it can't be sold. Most customers won't wait.

 2.Distribution affects profits and competitiveness since it can contribute up to 50 percent of the final selling price of some goods. This affects cost competitiveness as well as profits since margins are squeezed by distribution costs.

 3.Delivery is seen as part of the product influencing customer satisfaction. Distribution and its associated customer service play a big part in relationship marketing. 

What issues must be considered when choosing a distribution channel?

- cost, nature of the product, distance

What are some of the things you must consider about selecting a channel partner?

- channel partner’s target market, their focus, their customer base and their marketing strategy

- business stability

- skills and experience