Producers of convenience goods typically prefer
Intensive distribution
The intensity of distribution a producer chooses depends on how consumers shop for the product, so the nature of convenience goods settles the answer.
Convenience goods are low-priced items bought frequently, quickly and with minimum effort or comparison - soap, biscuits, newspapers, soft drinks. Because the buyer will not search for them and will readily accept a substitute if the preferred brand is not on the shelf, availability is decisive. Producers therefore prefer intensive distribution, placing the product in as many outlets as possible so that it is within easy reach wherever the consumer happens to be.
Exclusive distribution gives a single dealer the sole right to sell the product in a territory, which suits luxury goods, automobiles and designer products where image and dealer support matter more than reach. Selective distribution uses a limited number of chosen outlets and suits shopping goods such as appliances and furniture, where buyers compare before purchase and some dealer expertise is needed. Intermittent distribution is not a recognised category of distribution intensity at all.
Hence producers of convenience goods typically prefer intensive distribution.
Similar Questions
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Important Questions from Marketing channels
A manufacturer, to market its products, focuses on the following marketing channel alternatives :
(i) Telemarketing
(ii) Distributors
(iii) Sales force
(iv) Internet
(v) Retail stores
(vi) Value-added partners
Select the code of correct sequence of the channel alternatives in order of increasing cost per transaction.
Which of the following marketing channel function helps to fulfil the completed transactions?
- A price ending in an odd number or a price just under a round number.
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'The manufacturer threatens to withdraw a resource or terminate a relationship if intermediaries fail to cooperate', refers to which one of the following channel power?
