Definition
Intensive distribution is a strategy used by companies to distribute their products through as many retail outlets as possible. The goal is to make the product readily available to consumers, typically for products that are considered convenience goods such as soft drinks, snack foods, and household items. This method focuses on large market coverage and high visibility.
Examples
- Soft Drinks: Beverages from companies like Coca-Cola and Pepsi are found in numerous outlets ranging from supermarkets and convenience stores to vending machines and restaurants.
- Snack Foods: Products from brands like Frito-Lay are distributed widely in various grocery stores, convenience stores, and even gas stations.
- Household Items: Products like toothpaste, soap, and cleaning supplies from brands like Procter & Gamble are placed in multiple retail stores to ensure easy access for consumers.
Frequently Asked Questions (FAQ)
What types of products benefit most from intensive distribution?
Products that benefit the most from intensive distribution are typically low-cost, high-frequency purchase items like snacks, beverages, and personal care items. These products need to be easily accessible to consumers.
What are the main benefits of intensive distribution?
The main benefits include increased product availability, higher sales volumes, broad market reach, and enhanced brand visibility.
Are there any disadvantages to intensive distribution?
Yes, disadvantages can include higher distribution costs, potential for channel conflict, and the challenge of maintaining consistent product quality and brand image across numerous outlets.
How does intensive distribution differ from selective and exclusive distribution?
Intensive distribution aims for maximum market coverage by placing products in as many outlets as possible. In contrast, selective distribution involves choosing specific retailers to carry the product, and exclusive distribution restricts the number of retailers to just one or a few in a specific area.
What kind of companies typically use intensive distribution?
Companies that manufacture and sell convenience goods or non-durable products often use intensive distribution to ensure their products are available to consumers at multiple touchpoints.
- Selective Distribution: A distribution strategy where a company selects a limited number of retailers to handle its product.
- Exclusive Distribution: A distribution strategy where a company restricts the number of outlets that can carry its product.
- Distribution Channel: The pathway through which goods and services travel from the producer to the consumer.
- Retailer: A business that sells consumer goods directly to customers.
- Market Coverage: The extent to which a product is available to consumers in a certain market area.
Online References
Suggested Books for Further Studies
- “Marketing Channels” by Bert Rosenbloom: An in-depth look into the various types of marketing channels, including intensive distribution.
- “Distribution Strategy: Marketing’s New Frontier” by Lynda Applegate: A comprehensive guide on distribution strategy.
- “Marketing Management” by Philip Kotler and Kevin Lane Keller: Covers various marketing strategies, including distribution methods.
Fundamentals of Intensive Distribution: Marketing Basics Quiz
### What is the primary goal of intensive distribution?
- [ ] To selectively choose retail outlets.
- [x] To ensure product availability in as many outlets as possible.
- [ ] To limit the product to exclusive, high-end retailers.
- [ ] To focus solely on online distribution.
> **Explanation:** Intensive distribution aims to maximize product availability by positioning it in numerous retail outlets, enhancing convenience and market coverage.
### Which product is most likely to use an intensive distribution strategy?
- [x] A popular soft drink
- [ ] High-end smartphones
- [ ] Luxury car brand
- [ ] Rare collectibles
> **Explanation:** A popular soft drink exemplifies the type of convenience good that benefits from intensive distribution, ensuring that it can be purchased at many locations.
### What is a potential disadvantage of intensive distribution?
- [ ] Increased product exclusivity
- [ ] High costs due to limited availability
- [x] Higher distribution costs and potential channel conflict
- [ ] Decreased product visibility
> **Explanation:** Intensive distribution can lead to higher distribution costs and potential conflicts among retail channels due to the widespread placement of the product.
### Which distribution method involves restricting the number of retailers in a specific area to just a few?
- [ ] Intensive Distribution
- [ ] Online Distribution
- [x] Exclusive Distribution
- [ ] Multi-channel Distribution
> **Explanation:** Exclusive distribution restricts the number of retailers to one or a few in a specific area to maintain a high-end, exclusive image.
### Intensive distribution is best suited for which type of goods?
- [ ] Durable goods
- [ ] Luxury goods
- [ ] Specialty goods
- [x] Convenience goods
> **Explanation:** Intensive distribution is ideal for convenience goods, which are often low-cost, high-turnover items that need to be easily accessible to consumers.
### What does market coverage refer to in the context of distribution?
- [ ] The number of retailers selling a product
- [ ] The percentage of market segments aware of a brand
- [ ] The promotional strategies of a company
- [x] The extent to which a product is available to consumers in a certain market area
> **Explanation:** Market coverage refers to how broadly a product is available to consumers within a specific geographic or demographic market.
### Who benefits directly from an intensive distribution strategy?
- [ ] Only manufacturers
- [ ] Only retailers
- [x] Both manufacturers and consumers
- [ ] Only wholesalers
> **Explanation:** Both manufacturers and consumers benefit from intensive distribution. Manufacturers gain wider market reach and higher sales volume, while consumers enjoy greater accessibility to the product.
### How does intensive distribution enhance a brand's market presence?
- [x] By ensuring the product is available in numerous outlets
- [ ] By limiting the product to premium channels
- [ ] By focusing mainly on online sales
- [ ] By primarily using direct-to-consumer sales strategies
> **Explanation:** Intensive distribution enhances brand market presence by ensuring that the product is available in numerous, easily accessible retail outlets.
### Which of the following is NOT a typical channel for intensive distribution?
- [ ] Supermarkets
- [ ] Convenience stores
- [ ] Vending machines
- [x] Specialty boutique shops
> **Explanation:** Specialty boutique shops are typically not used for intensive distribution as they do not cater to mass-market convenience goods that need widespread accessibility.
### Which product category is least likely to use an intensive distribution strategy?
- [ ] Snack foods
- [ ] Household items
- [ ] Basic personal care products
- [x] High-end fashion apparel
> **Explanation:** High-end fashion apparel is least likely to use an intensive distribution strategy as these products are typically marketed through selective or exclusive distribution channels to maintain their luxury status.
Thank you for exploring the concept of intensive distribution in marketing and taking on the quiz. Keep pushing the boundaries of your marketing knowledge and strategy!
