What is one of the advantages of using the intensive distribution strategy?
Definition: Intensive distribution is a form of marketing strategy under which a company tries to sell its product from a small vendor to a big store. Virtually, a customer will be able to find the product everywhere he goes. Soft drinks and cigarettes are some of the examples on which intensive distribution is followed. Show Description: Under the intensive distribution strategy, all the possible outlets can be used by a company to distribute the product. It creates brand awareness of the product as well as boost sales. This method is particularly useful for products like soft drinks, cigarettes etc. There are various advantages of intensive distribution. First, it increases the supply of the product which raises the chances of more sales. More sales mean more revenues for the company. Another advantage is that a company is able to analyse the source of sale, whether a product is more in demand from local vendors or hypermarket type stores. With this data, the company can further plan out its promotional efforts to boost sales and increase the presence of the product. Looking at the data, a company can also analyse the causes of its failure in increasing its sales at some locations. In that case either it can cut down on the distribution or increase marketing efforts to build brand awareness. Intensive distribution is a kind of marketing strategy that focuses on maximizing product availability. This MarketingWit post highlights the advantages and disadvantages of intensive distribution. Most Common ExampleCompanies manufacturing fast-moving consumer goods (FMCGs) use a heavy intensive distribution strategy. The goods include over-the-counter medication, toiletries, chocolates, soft drinks, toys, etc. When a company/business manufactures a product, it adopts various methods and techniques to make the product easily available to the consumer. One such marketing technique is distribution. Without a well-laid distribution plan, no product or service reaches the desired customer. To make the product available to the target audience, companies use distribution channels. While selecting the right distribution channel, marketers use distribution strategies, which are heavily influenced by the structure of the market and the company’s resources. There are three main types of distribution strategies―intensive, selective, and exclusive strategies. The paragraphs below will explain the characteristics of the intensive distribution strategy along with its pros and cons. What is Intensive Distribution?
Advantages
Increased Sales and Earnings
Marketing Efficiency
Impulsive Purchase
Huge Customer Recognition
Disadvantages
Difficulty in Managing Retailers
Dependence on the Middleman
Low Price Products
Examples
Marketers must know when to use the right distribution strategy. For instance, when the firm’s goal is to have a widespread product coverage, intensive strategy must be employed. When the firm wants to maintain a brand image, exclusive strategy works best, while selective strategy must be used when the company requires a mixture of the two―an average market coverage and some amount of brand awareness. What are the advantages of an intensive distribution strategy?Manufacturers use an intensive distribution strategy with products that need to be quickly replenished. The advantages of this strategy include money, product awareness, and impulse buying. The disadvantages include sales vary, low prices/low margins, and lack of retailer control.
What is an intensive distribution strategy?An intensive distribution strategy involves selling a product in as many outlets as possible. Selective distribution involves selling a product at select outlets in specific locations. Exclusive distribution involves selling a product through one or very few outlets.
What are the benefits of a distribution strategy?Distribution strategy helps to improve the way customers interact with your business, leading to customer satisfaction and repeat business. It can also help you streamline your business to make it more efficient.
What are the advantages and disadvantages of distribution strategies?Advantages & Disadvantages of Direct Distribution. Advantage: Eliminates Intermediary Expenses. ... . Advantage: Increases Direct Customer Contact. ... . Advantage: Provides More Control. ... . Disadvantage: Reduces Distribution Channel Options. ... . Disadvantage: Increases Internal Workload. ... . Disadvantage: Raises Fulfillment Costs.. |