Compare and contrast the different types of distribution.

Answer 1

There are three main types of distribution:

1. Intensive Distribution: This distribution strategy is employed when a company wants to saturate the market with its products and make them available in as many sales outlets as possible. The aim is to ensure the maximum number of people can access the products. Intensive distribution is best for low cost, fast-moving consumer goods, such as snacks and soft drinks, which require high visibility and accessibility.

2. Selective Distribution: Selective distribution involves distributing products to a limited number of outlets, but still enough to meet customer demand. This distribution strategy is suitable for products that require some customization, such as cars or technology products, which require specialist knowledge and support. Selective distribution allows for more control over the product presentation and experience, leading to a more personalized customer experience.

3. Exclusive Distribution: Exclusive distribution is used when a company wants to distribute its products through a single outlet or a small group of outlets. This approach is commonly used by luxury brands, such as high-end fashion retailers and luxury car manufacturers. The strategy is designed to help maintain brand exclusivity and ensure the highest level of customer service and satisfaction.

In summary, while all three distribution strategies aim to get the product to the customer, the key difference lies in the number and type of outlets through which the product is distributed. Intensive distribution seeks maximum availability and accessibility, Selective distribution creates a bespoke experience suitable for specialized products, and Exclusive distribution prioritizes selling through select outlets that help maintain brand exclusivity.