Wednesday, April 3, 2013

Levels of Distribution Intensity

There are three different intensity levels of distribution.

The first level is intensive.  With an intensive level of distribution, a company aims having their product available at every outlet.  The level of customer service needed to sell this product is reduced.  Products that are distributed intensively often become convenience items.  Some products that are distributed intensively are chips, soft drinks, magazines, etc.

The second level of distribution is selective.  With a selective level of distribution products are distributed by screening dealers to eliminate all but a few in a selective area.  Products distributed at a selective level become specialty items.  Some products that are distributed at a selective level are televisions, computers, iPods, and telephones.

Finally, the third level of distribution is exclusive.  With an exclusive level of distribution products are distributed by one (or very few) dealers in a given area.  Products distributed at an exclusive level are usually specialty/luxury items.  Some products that are distributed at an exclusive level are Rolex watches and Rolls Royce vehicles.

What are some more products distributed at any of these given levels of intensity?  What are some advantages/disadvantages to items being distributed at each level of intensity.

2 comments: