Intensive distribution

(noun)

a channel structure where the producer's products are stocked in the majority of outlets

Related Terms

Examples of Intensive distribution in the following topics:

  • Distribution Intensity

    • Product distribution intensity refers to the scale of the distribution network as well as the appropriate selection of location.
    • Product distribution intensity refers to the scale of the distribution network as well as the appropriate selection of location.
    • In intensive distribution, a producer's products are stocked in the majority of outlets.
    • In exclusive distribution,the producer selects only very few intermediaries.
    • Snack food is a good example of a product that is intensively distributed.

  • Channel Member Characteristics

    • Every company must decide on the correct distribution method for its products.
    • Marketers must carefully evaluate how their products fit into different distribution channels.
    • There are three basic types of distribution for a marketer to consider: Intensive, selective, and exclusive.
    • Intensive distribution means the producer's products are stocked in the majority of outlets.
    • Candy uses an intensive distribution channel, meaning it is widely available at a low cost.

  • Selecting Marketing Channels

    • In intensive distribution (such as candy) the manufacturer attempts to get as many intermediaries of a particular type as possible to carry the product
    • How many retailers and wholesalers in a particular market should be included in the distribution network?
    • The objective is to gather enough information to have a general understanding of the distribution tasks these intermediaries perform.

  • Competitive Priorities in Marketing Channels

    • An alternative term is distribution channel or 'route-to-market'.
    • These distribution types include:
    • Intensive distribution - this channel allows the producer's products to be stocked in major, mainstream outlets.
    • Selective distribution - producers rely on a few intermediaries to carry their product.
    • Exclusive distribution - producers select only very few intermediaries.

  • Product, Placement, Promotion, and Price

    • Intensive distribution means the producer's products are stocked in the majority of outlets.
    • Selective distribution means that the producer relies on a few intermediaries to carry their product.
    • Exclusive distribution means that the producer selects only very few intermediaries.
    • The decision regarding how to distribute a product has, as its foundation, basic economic concepts, such as utility.
    • Understanding the utility a consumer expects to receive from a product being offered can lead marketers to the correct distribution strategy.

  • Streamlining Distribution

    • Streamlining distribution involves the efficient use of all technologies included in the work of logistics and distribution centers.
    • It should be mentioned that the scope of the planning of logistics and distribution processes is not limited only to the planning of production, transportation, or distribution.
    • It covers the entire logistics and distribution process with all the elements.
    • The developed master plan spans the points of production and the distribution destinations, with the goal of synchronizing and optimizing production, distribution, and transportation.
    • Distribution planning means the development of a feasible and viable plan of distributing end products from the producers (via logistics and distribution centers, warehouses, or crossdocking) to end users.

  • Changes in Placement

    • Although product development, promotional tactics and pricing mechanisms are the most visible during the marketing process, placement is just as important in determining how the product is distributed.
    • Placement determines the various channels used to distribute a product across different countries, taking in factors such as competition and how similar brands are being offered to the target market.
    • These attributes span the range of the marketing mix, including price, promotion, distribution, packaging and competition.
    • Regardless of its size or visibility, a global brand must adjust its country strategies to take into account placement and distribution in the marketing mix.
    • A global luxury brand would not want to be distributed via a "dollar store" in the United States.

  • Factors Affecting Channel Choice

    • In order to do this, these firms must be assured that their products are distributed to their intended markets.
    • Achieve a pattern of distribution - structure the channel in order to achieve certain time, place, and form utilities.
    • After the distribution objectives are set, it is appropriate to determine the specific distribution tasks or functions to be performed in that channel system.
    • An ability to do this requires the channel manager to evaluate all phases of the distribution network.
    • Managers have many factors to consider when choosing a product distribution channel.

  • Distribution Centers vs. Direct Store Delivery

    • Depending on customer needs, marketing channel strategies can utilize distribution centers or move products directly to a store.
    • Depending on the product being sold and ultimate end user, companies can choose a marketing channel strategy that involves utilizing distribution centers (wholesalers) or moving their products directly to a store, or retailer.
    • Wholesalers perform a number of useful functions within the channel of distributions.

  • Influence on the Entire Supply Chain

    • A brand's entire supply chain also includes marketing, which can impact other functions such as sales, manufacturing, and distribution.
    • In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product or service is a vital part of each channel participant's marketing effort.
    • By coordinating with product developers, plant managers (manufacturing), and logistics partners (distribution), companies can use this synergy between its departments to compete effectively in the marketplace and help drive firm revenue.
    • For example, in July 2009, Wal-Mart announced its intentions to create a global sustainability index that would rate products according to the environmental and social impacts of their manufacturing and distribution.
    • For instance, some of the world's largest consulting firms estimate that up to 60% of marketing costs are related to non-product ancillary areas (distribution, people, freight, storage, obsolescence, technology, and inventory management).