Page 407 - Foundations of Marketing

374 Part 5 | Distribution Decisions

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Intensive and Selective Distribution Grocery products, like Fage yogurt, are usually sold through intensive distribution. Consumers can
find such products in a variety of different outlets. Furniture is marketed through selective distribution and is not available in as many
retail stores.

distributed selectively, such as Apple products, which are only distributed through authorized
Apple dealers and Apple stores, and some cosmetics, which are only available in certain
department stores.

Exclusive Distribution

Exclusive distribution uses only one outlet in a relatively large geographic area. This method
is suitable for products purchased infrequently, consumed over a long period of time, or
requiring a high level of customer service or information. It is used for expensive, high-quality
products with high profit margins, such as Porsche, BMW, and other luxury automobiles. It is
not appropriate for convenience products and most shopping products because an insufficient
number of units would be sold to generate an acceptable level of profits on account of those
products’ lower profit margins.
Exclusive distribution is often used as an incentive to sellers when only a limited mar-
ket is available for products. Consider Patek Philippe watches that may sell for $ 10,000 or
exclusive distribution Using more. These watches, like luxury automobiles, are available in only a few select locations.
a single outlet in a fairly large A producer using exclusive distribution expects dealers to carry a complete inventory, train
geographic area to distribute a personnel to ensure a high level of product knowledge and quality customer service, and par-
product ticipate in promotional programs.

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