Intensive Distribution

Definition

Intensive distribution is a marketing strategy where a product is made available in as many retail outlets as possible, maximizing its presence and accessibility to consumers. This approach aims to ensure that the product is readily available to the target market, making it convenient for them to purchase the item when the need or desire arises.

5 Must Know Facts For Your Next Test

1. Intensive distribution is a key component of the marketing mix, specifically the 'Place' element, which focuses on making products widely available to consumers.
2. Intensive distribution is often used for low-cost, frequently purchased consumer goods, such as snacks, beverages, and household items, to ensure they are readily accessible to the target market.
3. The use of intensive distribution can help increase brand awareness, as the product is visible in a large number of retail outlets, and can also lead to higher sales volumes due to improved accessibility.
4. Factors that influence the choice of an intensive distribution strategy include the nature of the product, the target market, and the competitive landscape, as well as the availability and cost of retail space.
5. Retailers play a crucial role in the success of an intensive distribution strategy, as they provide the physical outlets through which the product is made available to consumers.

Review Questions

• Explain how an intensive distribution strategy aligns with the 'Place' element of the marketing mix.
  • An intensive distribution strategy directly supports the 'Place' element of the marketing mix by ensuring that a product is widely available and easily accessible to the target market. By making the product available in as many retail outlets as possible, the company can maximize its visibility and convenience for consumers, ultimately increasing the likelihood of purchase. This strategy is often employed for low-cost, frequently purchased items where the goal is to have the product readily available when the consumer needs or desires it.
• Describe how the choice of an intensive distribution strategy may be influenced by the nature of the product and the target market.
  • The decision to use an intensive distribution strategy is often influenced by the characteristics of the product and the target market. For low-cost, frequently purchased consumer goods, such as snacks, beverages, and household items, an intensive distribution approach is typically preferred, as it ensures the product is readily available to the target market when the need or desire arises. In contrast, products that are more specialized or targeted to a niche market may be better suited for a selective or exclusive distribution strategy, where the focus is on maintaining brand exclusivity and prestige. The target market's shopping habits, preferences, and accessibility to retail outlets are also key factors that can influence the choice of an intensive distribution strategy.
• Analyze the role of retailers in the success of an intensive distribution strategy and how this strategy may impact the relationship between manufacturers and retailers.
  • Retailers play a crucial role in the success of an intensive distribution strategy, as they provide the physical outlets through which the product is made available to consumers. Manufacturers employing an intensive distribution approach must work closely with retailers to secure shelf space and prominent product placement, ensuring the product is visible and accessible to the target market. This relationship can be mutually beneficial, as retailers benefit from the increased foot traffic and sales generated by the widespread availability of the product, while manufacturers gain access to a larger consumer base. However, the high number of retail outlets involved in an intensive distribution strategy can also create challenges, such as maintaining consistent pricing, branding, and product quality across all outlets. Effective communication, collaboration, and alignment of incentives between manufacturers and retailers are essential for the successful implementation of an intensive distribution strategy.

Related terms

Exclusive Distribution: A distribution strategy where a product is made available through a limited number of authorized retailers, often with the goal of maintaining brand exclusivity and prestige.

Selective Distribution: A distribution strategy that falls between intensive and exclusive, where a product is made available through a limited but larger number of retailers compared to exclusive distribution.

Product Placement: The strategic positioning of a product in a retail environment, such as at eye level or in high-traffic areas, to increase its visibility and likelihood of being purchased.