What are the three degrees of distribution intensity explaining each one?
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journal article Determinants of Distribution IntensityJournal of Marketing Vol. 60, No. 4 (Oct., 1996) , pp. 39-51 (13 pages) Published By: Sage Publications, Inc. https://doi.org/10.2307/1251900 https://www.jstor.org/stable/1251900 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $41.50 - Download now and later Abstract Within many categories of consumer products, manufacturers differ markedly in how intensively they distribute their brands among retailers. The authors enhance understanding of why such differences in distribution intensity occur. Literature in the marketing and economics disciplines on brand and channel management, agency theory, and credible commitments, combined with extensive field interviews, provides the foundation for a conceptual framework that centers on proposed moderator effects. Data collected from manufacturers in the consumer electronics industry are used to test the conceptual framework. Credible commitments by retailers in the form of contractual agreements and investments are shown to moderate the relationships of manufacturer brand strategy and channel practices with distribution intensity. Journal Information The Journal of Marketing (JM) develops and disseminates knowledge about real-world marketing questions relevant to scholars, educators, managers, consumers, policy makers and other societal stakeholders. It is the premier outlet for substantive research in marketing. Since its founding in 1936, JM has played a significant role in shaping the content and boundaries of the marketing discipline? Publisher Information Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com Rights & Usage This item is part of a JSTOR Collection. INTRODUCTION TO MARKETING PRACTICE SHORT ANSWER QUESTION Explain, using your own examples (fictional or real companies), the levels of distribution intensity. Organisations have three options for intensity of distribution: intensive, selective or exclusive distribution. These distribution intensities refer to the degree to which a product is made physically available in the market. Intensive distribution is a form of distribution “aimed at having a product available in every outlet at which target customers might want to buy” (Lamb et al. 2018, p. 173). Simply, it is a form of distribution that aims to maximise market coverage. Typically, intensive distribution is reserved for convenience products, those products that are frequently consumed out of necessity and which require little customer decision making. An example of a brand that is distributed intensively is Coca Cola. Coca Cola is a product that is made available everywhere drinks are sold, including supermarkets, service stations, restaurants and bars. This intensive distribution has enabled Coca Cola to become a market leader as a result of the benefits of high market spread and subsequent relatively low product price. Selective distribution is a form of distribution which eliminates all but a few retailers in the distribution channel. Compared to intensive distribution, products sold through selective channels are typically harder to access, but are not difficult to access. A characteristic of selective distribution is that consumers must actively seek out the product, but not in a way that causes issues in purchasing out of scarcity. Selective distribution is typically employed by those organisations that sell shopping products, as it is too costly to distribute these items intensively but are demanded too heavily to employ exclusive distribution. An example of a product that uses selective distribution is Levi’s jeans. While Levi’s does not stock their products in almost every store that sells jeans, they still have a significant presence with their own storefronts as well as select retailers like Myer and David Jones. Finally, exclusive distribution is a form of distribution which offers the most restrictive form of market coverage. It eliminates all but one retailer in specific geographic region, meaning that customers must actively seek out the product to a much higher degree than selective distribution. Exclusive distribution benefits organisations by applying a prestigious element of the brand through scarcity, however this can backfire if demand for a product is high and distribution is so exclusive that customers cannot actually purchase the product. As a result, exclusive distribution is typically reserved for specialty products and some shopping products which have very specific target markets. An example of this is Beyonce’s Lemonade album. Originally, and for two years after its launch, Lemonade was only available through Tidal’s streaming service. This exclusive agreement with Tidal saw subscriptions skyrocket during the launch of Lemonade. What are the 3 levels of distribution intensity?The Three Types of Distribution. Intensive Distribution: As many outlets as possible. The goal of intensive distribution is to penetrate as much of the market as possible.. Selective Distribution: Select outlets in specific locations. ... . Exclusive Distribution: Limited outlets.. What are the 3 types of distribution?The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales. Wholesalers are intermediary businesses that purchase bulk quantities of product from a manufacturer and then resell them to either retailers or—on some occasions—to the end consumers themselves.
What are the intensities of distribution?the level of availability selected for a particular product by the marketer; the level of intensity chosen will depend upon factor such as the production capacity, the size of the target market, pricing and promotion policies and the amount of product service required by the end-user.
What are the three levels of distribution intensity quizlet?Terms in this set (3). Intensive Distribution. distribution aimed at maximum market coverage. ... . Selective Distribution. a form of distribution achieved by screening dealers to eliminate all but a few in any single are. ... . Exclusive Distribution. establishes one or a few dealers within a given area.. |