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Distribution channel

STRATEGY IN SELECTING

DISTRIBUTION CHANNEL

1 EXCLUSIVE 2 SELECTIVE 3 INTENSIVE

DISTRIBUTION DISTRIBUTION DISTRIBUTION

Exclusive Selective Intensive

distribution distribution distribution

means severely limiting the involves the use of more consists of the

number of intermediaries. It than a few but less than all manufacturer placing the

is used when the seller of the intermediaries who goods or services in as

wants to maintain control are willing to carry a many outlets as possible.

over the service level and particular product. Most This strategy is generally

products offered. Granting products like television, used for items such as

of exclusive rights is furniture, and some of the tobacco products, gas,

normally evident in electrical appliances snack food and soap.

distribution of new normally involve retailers or

automobiles and a few selected agents only.

prestige goods.

Discussion

Question

1) Discuss the direct and indirect channels of distribution.

2) What is the optimal amount of marketing channels for a business?

3) List five (5) items that you use daily. Are there any that you'd want to purchase

through different marketing channels? Do you believe the items can be effectively

sold in this manner? Discuss in class.

4) Decide which channels should be used to distribute each of these

products.

a)Burger

b)Car

c)Homestay

d)Theme park

Present your findings to your class and see if they agree with you.

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