Types of Distribution

Question 1

What are the different Distribution Intensity Strategies?

Answer 1

Intensive Distribution, Selective Distribution, Exclusive Distribution, Gray Market

Question 2

Intensive Distribution Strategy

Answer 2

offering their products in as many outlets as possible

• typically sell products with many competitors or weak brand loyalty so that customers won’t go to another store to buy the product

ex. chocolate bars and soft drinks

Question 3

Selective Distribution Strategy

Answer 3

selling products at select outlets in specific locations

• typically for products that appeal to different target markets with varying price points and features

ex. Sony TVs can only be purchased at a number of outlets such as Best Buy or Walmart

Question 4

Exclusive Distrbution Strategy

Answer 4

selling products through one or very few outlets

• typically for products that use scarcity to create a sense of quality or exclusivity

ex. Ellen Degeneres’s furniture line is sold at Wayfair

Question 5

Gray Market

Answer 5

a market in which a producer hasn’t authorized its products to be sold