Intensive Distribution
Advantages
This type of distribution takes advantage of the intensity of the product distribution. Businesses are trying to get as many retailers and shelf space as possible. The advantage is that wherever people go, they will see the product and therefore to be reminded to buy it.
Products that are most likely effected
This distribution concerns mainly everyday products that have to be routinely replaced. For example, soap is made in a factory but a common brand can be found in any grocery, retailer store like Walmart, gas stations or drug store. Among items that use intensive distribution belong chewing gums, cigarets, soaps, shampoos, deodorants and soft drinks.
Issues that must be considered
Retailers may give little shelfspace to the product, don't advertise it or make price too high.
Things to be considered about choosing a channel partner
Advantages
Selective distribution means that a product is sold only to some retailers covering specific geographical area. Fewer intermediaries means less money spent for retailers.
Products that are most likely effected
Few retailers carry specific product, these are usually of specific brand or designer products.
Issues that must be considered
Since only few retailers in the same geographical area are selling this product, manufacturer must consider money issue such as having higher prices and how to make people come to the store where his product is sold.
Things to be considered about choosing a channel partner
Exclusive Distribution
Advantages
In exclusive distribution manufacturer and one specific retailer make an agreement about selling the product. This retailer covers specific area and since this product is most cases special (and expensive) customer service is extra good.
Products that are most likely effected
As mentioned before, expensive products usually use this type of distribution. New technologies are very common to distribute its products in this way, for example Apple has agreement with AT&T to sell iPhones.
Issues that must be considered
Since only one retailer sells the product, the manufacturer has to get his money back. Also, the product is expensive and its manufacturing costs tend to be more expensive too. The final price of the product must be high enough to cover these costs yet appealing enough to the people.
Things to be considered about choosing a channel partner
Integrated Distribution
Advantages
Products that are most likely effected
Issues that must be considered
Things to be considered about choosing a channel partner
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