Marketing Speech Notes: Distribution Channels

1379 Words Apr 14th, 2005 6 Pages
Hi, my name is xxxxxxx and this is xxxxx. Our talk is on Topic 10: Distribution strategies. The first question asked us to examine Marketing Distribution Channels.

Identify and describe the marketing distribution channel system currently being used by the company and product and highlight the types of wholesalers and/or retailers used.

A distribution channel can be defined as a set of interdependent organisations and firms that are involved in the process of directing products from producers to end consumers.

Marketing Intermediaries are an integral part of this process and can be seen as 'middlemen'. They are used to help the company promote, sell, and distribute its goods to other necessary intermediaries or ultimately - the final
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Exclusive distribution involves a limited number of intermediaries given exclusive rights to distribute the company's products, so as to limit number of channel members to one intermediary in each geographic territory. An example of this type of distribution can be easily found in the automotive industry, with prestigious brands such as Porsche, Ferrari, Jaguar and Maseratti all having a limited number of dealerships.

Selective distribution involves the use of more intermediaries than that used on an exclusive basis, but still fewer than all possible intermediaries. A limited few intermediaries are used to sell the product within a given geographic region. This is a technique employed by many television or furniture companies. Clothing companies such as country road and Tommy Hilfiger as distribute in this manner. Using selective methods enables means company does not have to spread it efforts out over a large area, this gives a higher amount of control and usually results in lower costs. Companies can then concentrate on relationships and interactions with intermediaries so as to maintain a good image and to improve the overall selling effort.

Intensive distribution is used by producers of convenience goods and common raw materials. Intensive distribution is a strategy which entails the use of all possible and suitable outlets for the product. This type of distribution is highly competitive and is often sought by manufacturers of high-volume,
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