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.
International Marketing: It is also termed as global marketing. It merely refers to the marketing taken out by organizations, across the national borderlines. This strategy fundamentally uses an extension of different techniques which are used in home
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