Distribution Channel and Distribution Strategies
Define the term Distribution Channel and what are the types of Distribution Strategies?
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A marketing channel comprises one or more marketing intermediaries who perform a variety of functions. Each channel member:-
• Provides value;• Performs a function; and,• Expects an economic return.
Types of Distribution Strategies:
• Exclusive distribution: is the distribution strategy in which the distribution is limited to one intermediary in the territory.
E.g. LEICA officially appointed Jebsen & Jebsen Marketing as the exclusive distributor for Singapore, Malaysia, Indonesia, Thailand, and Brunei.• Intensive distribution: in this distribution strategy, distribution is done from as many as outlets as possible to provide location convenience.
E.g. L&T regularly gives its ad in the newspaper
• Selective distribution: in this strategy several retailers are appointed for distribution. All the retailers of that location shall not be appointed.
E.g. Daewoo have 2 distributors in Singapore, “Starsauto, portion of a larger Indonesian group, symbolize Daewoo’s traditional line of sedans. Second is Homegrown family-owned JTA Motors markets Daewoo’s off road vehicles like Musso and Korando, and an up market model called the Chairman.
Capacity Planning: This is any strategy which is employed to identify the quantity of production needed to satisfy the demand for the services and goods produced by a business. The thought is to balance the buy of resources, the maintenance of product
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