What are the distribution marketing strategies?

1. Intensive distribution strategy

In intensive distribution, any channel member who meets the manufacturer's minimum credit standards can participate in the distribution of its products or services. Intensive distribution means fierce competition among channel members and high product market coverage. Intensive distribution works best for convenience goods. It drives sales by maximizing convenience for consumers. Adopting this strategy will help to occupy the market extensively, facilitate purchasing, and sell products in a timely manner. The disadvantage is that the number of dealers that can provide services in intensive distribution is always limited. Manufacturers sometimes have to evaluate dealer training, distribution support systems, transaction communication networks, etc. to identify obstacles in a timely manner. In a certain market area, competition among dealers will cause a waste of sales efforts. As intensive distribution intensifies competition among dealers, their loyalty to the manufacturer decreases, price competition intensifies, and dealers are no longer willing to treat customers reasonably.

2. Choose a distribution strategy

Manufacturing companies select a group of middlemen to promote their products in a specific market. Using this strategy, manufacturing companies do not have to spend too much energy contacting numerous middlemen, and it is easy to establish good cooperative relationships with middlemen, and it can also enable manufacturing companies to obtain appropriate market coverage. Compared with the intensive distribution strategy, adopting this strategy has stronger control and lower costs. A common problem in selecting distribution is how to determine the extent of dealer territory overlap. The amount of overlap in selective distribution determines how close selective distribution and intensive distribution are in a given area. Although the market overlap rate will facilitate customers' purchasing, it will also cause some conflicts among retailers. Low overlap increases dealer loyalty but also reduces customer convenience.

3. Exclusive distribution strategy

That is, the manufacturer only chooses one middleman to sell its products in a certain area and at a certain time. Exclusive distribution is characterized by a low level of competition. Typically, exclusive distribution is used only when a company wants to develop a long-lasting and close relationship with a middleman. Because it requires more alliances and cooperation between enterprises and dealers than any other form of distribution, its success is interdependent. It is more suitable for professional products with higher service requirements.