WEEK 1 & 2
WELCOME TEST/ DISTRIBUTION
TYPES OF DISTRIBUTION
Students should be able to:
– Explain the term Distribution.
– List types of Distribution.
Presents their views on distribution.
-Ask and answer questions.
– write down points.
EMBEDDED CORE SKILLS
Critical thinking and problem solving.
– Collaboration and communication.
– Web resource (www.businessdictionary. com)
-Other instructional materials (Charts and diagram of Distribution channels.)
WEEK 1 AND 2
Distribution is the process of making a product or service available for use or consumption by a producer or business provider.it is the movements and services from the source through a distribution channel,right up to the final customer.
TYPES OF DISTRIBUTION
INTENSIVE DISTRIBUTION; In intensive distribution,the product is sold to as manyappropriate retailers or wholesalers as possible,intensive distribution is appropriate for products such as chewing gum,candy bars,soft drinks,bread,film and cigarettes where the primary factor influencing the purchase decision is convenience,industrial products that may require intensive distribution include pencils,paperclips,transparent tape,file folders,typing paper,transparency masters,screws and nails.
SELECTIVE DISTRIBUTION; In selective distribution,the number of outlets that may carry a product is limited,but not to the extent of exclusive dealing,by carefully selecting wholesalers or retailers,the manufacture can concentrate on potentially profitable accounts and develop solid working relationship to ensure that the product is properly merchandised.The producer also may restrict the number of retail outlets if the product requires specialized servicing or sales support,selective distribution may be used for product categories such as clothing,appliances,television,stereo equipment,home furnishing and sports equipment,
EXCLUSIVE DISTRIBUTION; When a single outlet is given an exclusive franchise to sell the product in a geographic area ,the arrangement is referred to as exclusive distribution,products such as special automobiles,some major appliances,certain brands of furniture and lines of clothing that enjoy a high degree of brand loyalty are likely to be distributed on an exclusive basis,This is particularly true,if the consumer is willing to overcome the inconvenience of travelling some distance to obtain the product,usually exclusive distribution is undertaken when the manufacture desires more aggressive selling on the part of the wholesaler or retailer,or when channel control is important,exclusive distribution may enhance the products image and enable the firm to charge higher retail prices,
sometimes manufacturers use multiple brands in order to offer exclusive distribution to more than retailer or distributor.Exclusive distribution occurs more frequently at the wholesale level than at the retail level,in general,exclusive distribution lends itself to direct channels intensive distribution is more likely to involve indirect channels with two or more intermediaries.
identify the three types of distribution, and explain one
State some of the channels of distribution
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