Do Now Exercise With a partner, discuss the challenges of satisfying the needs of an industrial customer. What are the benefits? Document your ideas.

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Presentation transcript:

Do Now Exercise With a partner, discuss the challenges of satisfying the needs of an industrial customer. What are the benefits? Document your ideas.

Marketing I Mr. Gallucci Lesson 44 Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

Distribution Intensity How wide will your product be distributed? Exclusive Selective Intensive Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

Distribution Intensity Exclusive Intensity Protected territories for manufacturer in a given geographic area By contract – dealer has right to sell product – no competition Prestige, Image, Channel Control, and high profit margin for manufacturer and intermediaries. Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

Distribution Intensity Selective Intensity Limited outlets in a geographic area Competition in region – intermediaries pressured to push products Increased advertising for products Image important – Choose retailers wisely! Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

Distribution Intensity Intensive Distribution Use of all suitable outlets to sell products Complete market coverage Sell to as many customers as possible, regardless of where they shop Use of the Internet Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

Activity Develop a theory on distribution intensity for the new “energy shot” product, “Signal.” Exclusive, Selective, or Intensive? Come up with two existing products (other than signal) for each Exclusive, Selective, and Intensive Distribution. Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”

Examples – Dist. Intensity Exclusive: NAPA Auto Parts Retailers must buy stock from NAPA and participate in their promotions Selective: Ralph Lauren – Image! Top department/specialty stores Intensive: Motor Oil Marketed in oil shops, auto retailers, supermarkets, drugstores, hardware… Obj. Introduce distribution planning and “Distribution Intensity” and “E-Commerce”