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Do Now Exercise

Learn about Exclusive, Selective, and Intensive distribution strategies in Lesson 44. Explore benefits and challenges of satisfying industrial customer needs. Document your distribution intensity theory for a new product. Understand the importance of E-Commerce in modern distribution planning.

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Do Now Exercise

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  1. Do Now Exercise With a partner, discuss the challenges of satisfying the needs of an industrial customer. What are the benefits? Document your ideas.

  2. Marketing I Mr. Gallucci Lesson 44

  3. Distribution Intensity • How wide will your product be distributed? • Exclusive • Selective • Intensive Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

  4. Distribution Intensity • Exclusive Intensity • Protected territories for manufacturer in a given geographic area • By contract – dealer has right to sell product – no competition • Prestige, Image, Channel Control, and high profit margin for manufacturer and intermediaries. Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

  5. Distribution Intensity • Selective Intensity • Limited outlets in a geographic area • Competition in region – intermediaries pressured to push products • Increased advertising for products • Image important – Choose retailers wisely! Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

  6. Distribution Intensity • Intensive Distribution • Use of all suitable outlets to sell products • Complete market coverage • Sell to as many customers as possible, regardless of where they shop • Use of the Internet Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

  7. Activity • Develop a theory on distribution intensity for the new “energy shot” product, “Signal.” Exclusive, Selective, or Intensive? • Come up with two existing products (other than signal) for each Exclusive, Selective, and Intensive Distribution. Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

  8. Examples – Dist. Intensity • Exclusive: NAPA Auto Parts • Retailers must buy stock from NAPA and participate in their promotions • Selective: Ralph Lauren – Image! • Top department/specialty stores • Intensive: Motor Oil • Marketed in oil shops, auto retailers, supermarkets, drugstores, hardware… Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

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