Question

Study the concepts of Intensive Distribution, Selective Distribution, and Exclusive Distribution and the find an example of each type. Substantiate your examples with evidence consistent with the definitions of each type of distribution.

Answer 1

Intensive Distribution

Intensive distribution is the type of distribution when a business ignores market segmentation and decides to supply their product to every market available. The logic behind this idea is to present their products in each and every corner of the market or shops.

For example, soft drinks and cigarettes are the main products which satisfy intensive distribution. These are the products which readily available in every shops.

Selective Distribution

Selective distribution is a type of distribution strategy that lies between intensive and exclusive distributions. It involves using more than one, not lesser than all the intermediaries who carry the company’s product on the basis company’s rules.

For example, furniture and home appliances. The home appliances company Whirlpool sells their products through dealer networks and selected large retailers.

Exclusive Distribution

Distribution is exclusive when only certain dealers are given the option of carrying that particular product in the store. Exclusive distribution is an agreement between the supplier and the retailer. And the retailer is only has the right of carrying the supplier’s product with in the specified area.

For example, Apple is solely authorizes AT&T company to sell the iPhones to the end users.