Distinguish between intensive and exclusive distribution?

Intensive and exclusive distribution are the policies which are there with the manufacturer.

Intensive distribution policy: In intensive distribution policy, the manufacturers make use of-more than one channel to distribute their products and reach the target audience or customers. This policy is used when the manufacturers make a decision to distribute their products through as many mats as possible. Large number of retailers and wholesalers are involved to distribute the consumer goods that are used frequently by consumers like pens, paper, soap, shampoo, oil, biscuits, bread etc, through this policy. Businessmen make use of this policy to make the product available to the consumers as near as possible. Small shops are located almost in every street so that buyers don’t have to travel long distances in search of their product.

Exclusive distribution policy: Manufacturers make use of a single outlet in order to distribute their products through this policy. Companies that deal in manufacturing complex machinery, scientific instruments etc, involve particular distribution agents in order to distribute their products. Because of the technical knowledge.and experience of dealing in a particular product line, agents or distributors become .the only and exclusive dealers of the items. Such items are not available in every street. People have to travel is order to get the product. Therefore, the choice of distribution channel depends on the distribution policy adopted by the producer of goods.

 

Tags: B.Com

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