Definition of Extensive distribution:
- Extensive distribution Sales strategy that uses multiple logistics channels and high volume sales to reach as many potential customers as possible. A comprehensive sales strategy is used to enter a market, providing a large audience with information about a product or product line as well as its products. In contrast to the selected distribution.
Meaning of Extensive distribution & Extensive distribution Definition
What is extensive distribution?
It is a distribution strategy aimed at disseminating information about a particular product or product line to a large number of people. Due to its complexity, this distribution strategy can target many distribution channels for maximum results.
Choosing the right distribution strategy is a crucial decision that can lead your business to success or plunge it. Large-scale distribution strategies may sound like a good idea at first, but they require a lot of resources to execute and are not suitable for small businesses.
Your decision ultimately affects how your product is received in the market.
Here are some factors to keep in mind when choosing a distribution strategy:
Product Type: Companies dealing with daily necessities may be better off with this type of strategy, as opposed to companies selling designer wear.
Budget: Budget is probably one of the most important factors to consider when choosing the best strategy. Be prepared to make some savings elsewhere, as implementing a large distribution strategy can require a large budget.
Broker: Depending on how things work, you may need to hire a broker to ensure the quick and efficient distribution of goods and services. However, before making a decision, you must first check your budget.
Ideally, this strategy is suitable for large enterprises that have easier control over multiple channels.
Companies such as The Coca-Cola Company and PepsiCo are known for implementing a wide range of distribution strategies.
Due to their consistent efforts and enviable marketing tactics, both brands are highly competitive with other soft drink brands.
Choosing the right distribution strategy is a critical decision that could either lead your business to success or bring it down. While an extended distribution strategy initially seems like a good idea, executing it requires a plethora of resources, which makes it not a suitable choice for small businesses.
Your decision will ultimately have an impact on how your product is received in the market.
3 types of distribution
Intensive distribution: as many outlets as possible. The goal of centralized distribution is to penetrate as many markets as possible.
Selective distribution: Select an outlet in a specific location.
Exclusive sale: Limited store.
Advertising: Exclusive distribution is an extreme form of selective distribution that is used by only one wholesaler, retailer, or distributor in a particular region. This is a common form of distribution for products and brands that seek a first-class image.
Types of distribution channels – 4 important types: direct sales, retailers, wholesalers, sales through distributors
Sold by retailers
Sold by wholesalers
Sales through agents
Intensive, selective, exclusive distribution
Manufacturers have adopted a strategy of centralized distribution of products that need to be replenished quickly. Benefits of this strategy include money, product awareness, and impulse purchases. Disadvantages include fluctuations in sales, low prices / low margins, and lack of retailer control.
The advantage of applying a focused distribution strategy is to generate revenue, raise product awareness and drive impulse purchases. The more products you sell, the more money you make. As more places carry products, manufacturers have more opportunities to make a profit.
Types of distribution channels
Direct channel or zero level channel (from manufacturer to customer)
Indirect channels (sale through intermediaries)
Service distribution channels.
Internet as a distribution channel.
Some companies that often use exclusive distribution are:
Six Ways to Improve Channel Performance
Make it a priority.
Develop metrics and monitor performance.
Generate income through the channel.
Avoid price conflicts.
Deal with conflicts quickly.
A distribution strategy is a method of delivering goods or services to end users. Implementing the most efficient method of distribution for your business is essential for earning revenue and retaining customers. Some companies choose to use more than one distribution method to join different consumer bases.
Sales strategy that uses multiple logistics channels and high volume sales to reach as many potential customers as possible. A comprehensive sales strategy is used to enter a market, providing a large audience with information about a product or product line as well as its products. In contrast to the selected distribution.