Podcast
Questions and Answers
What is the purpose of selling through a reseller?
What is the purpose of selling through a reseller?
What is a potential disadvantage of selling through resellers?
What is a potential disadvantage of selling through resellers?
What requirement may resellers have before handling a product?
What requirement may resellers have before handling a product?
How does intensive distribution affect pricing?
How does intensive distribution affect pricing?
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Which type of market coverage aims for the widest distribution possible?
Which type of market coverage aims for the widest distribution possible?
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What is a potential disadvantage of selective distribution?
What is a potential disadvantage of selective distribution?
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How does intensive distribution impact availability?
How does intensive distribution impact availability?
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What is a key consideration for selecting a market coverage strategy?
What is a key consideration for selecting a market coverage strategy?
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What is an outcome of resellers requesting products under their own brand?
What is an outcome of resellers requesting products under their own brand?
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Why might a business consider selling through intermediaries despite production constraints?
Why might a business consider selling through intermediaries despite production constraints?
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Study Notes
Distribution Strategies
- Intensive distribution: used for low-priced products or impulse purchases, where products are stocked in as many sales outlets as possible, including traditional and non-traditional markets.
- Exclusive distribution: involves limiting distribution to a single outlet, typically for high-priced products that require detailed sales efforts, and may involve exclusive sales agreements with intermediaries.
- Selective distribution: involves selecting a small number of retail outlets to distribute products, often used for products that require a large geographical spread, such as computers and household appliances.
Market Coverage
- Market coverage refers to the width or variety of product distribution, applying to both direct sales and intermediaries.
- Intensive distribution: aims to achieve the widest distribution possible, often requiring lower prices.
- Selective distribution: selects a limited number of retail outlets to distribute products, allowing for more focused sales efforts.
- Exclusive distribution: restricts distribution to a single outlet, enhancing the product's prestige and exclusivity.
Selling Through Intermediaries
- Selling through intermediaries, such as retailers or wholesalers, can increase product distribution and reduce pressure on the distribution system.
- Intermediaries may request product exclusivity, specific supply flows, and year-round product availability.
- Selling through intermediaries can lead to loss of personal contact and company identity with customers.
- Resellers may request product branding under their own label.
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Description
Discover how intensive distribution is used to distribute low-priced products or impulse purchases in the market. Learn about stock-up strategies by drug companies in various sales outlets, including traditional and non-traditional markets.
