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Types Of Distribution System

Types Of Distribution System. Intensive distribution Exclusive distribution Selective distribution. Intensive system: Characteristics. Involves a large number of middleman. Widespread coverage. Catering of a large number of consumers. Generates high sales volumes and profits.

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Types Of Distribution System

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  1. Types Of Distribution System • Intensive distribution • Exclusive distribution • Selective distribution

  2. Intensive system: Characteristics • Involves a large number of middleman. • Widespread coverage. • Catering of a large number of consumers. • Generates high sales volumes and profits. • Distribution of low value items. • Limited channel controllers with manufacturer. • Examples – soap, newspaper etc.

  3. Exclusive distribution: Characteristics • Involves limited number of middleman. • Well established outlets. • Exclusive image and prestige for product and manufacturer. • Higher profit margins and lower total sales. • Distribution of mass consumption items, with lower values. • Greater channel controllers with manufacturers. • Example– Adidas, Reebok, PP Jewellers etc.

  4. Selective Distribution: Characteristics • Moderate number of retailers. • Caters to brand conscious consumers. • Creates a premium image for product. • Channel control by manufacturer is not absolute. • Its examples include – household appliances and clothing.

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