Target Market Coverage Refers To The Number Of Distributors

Target Market Coverage Refers To The Number Of Distributive Channels O

Target Market Coverage refers to the number of distributive channels or outlets needed to effectively serve a target market for a product. The textbook specifies three types of coverages: Intensive Distribution, Exclusive Distribution, and Selective Distribution. For this discussion, you are required to select at least two (2) coverage types (e.g., Intensive distribution and Selective distribution). Identify two products that exemplify each chosen coverage (for example, bottled water for intensive distribution and Maytag washer for selective distribution). Discuss why these products utilize their respective distribution coverage, focusing on buyer needs and requirements as well as profitability considerations. Refer to pages of your textbook relevant to different distribution strategies and their impacts on market effectiveness and business success.

Paper For Above instruction

Distribution strategy is a crucial element in marketing that significantly influences how a product reaches its target market. The choice of distribution coverage impacts not only consumer convenience and satisfaction but also the profitability and efficiency of operations for the manufacturer or distributor. This essay explores two primary types of distribution coverage—intensive and selective—illustrating their application through specific products and discussing the rationale behind these choices based on buyer needs and profitability.

Intensive distribution is a strategy where a product is placed in as many outlets as possible within a given market. This approach is typically used for convenience products that consumers purchase frequently and with minimal effort, such as bottled water. An exemplary product of intensive distribution is bottled water, such as brands like Dasani or Aquafina. These products are aimed at maximizing availability and accessibility to meet consumer demand for quick, easy, and constant replenishment. The primary reasons for using intensive distribution with bottled water relate to consumer needs for convenience, quick access, and brand recognition. Since bottled water is a low-involvement product that consumers purchase regularly, making it available at numerous locations—grocery stores, convenience stores, and vending machines—ensures that the product is within easy reach of consumers whenever they need it. From a profitability standpoint, widespread distribution aids in maximizing sales volume, driving higher revenue through high turnover rates. Furthermore, the high frequency of purchase justifies extensive distribution costs as they are offset by the volume of sales generated.

In contrast, selective distribution involves selling a product through a limited number of carefully chosen outlets. This approach is suitable for products that require a certain level of service, prestige, or specialized knowledge from sales personnel. An example of a product using selective distribution is a Maytag washer. These appliances are considered durable consumer goods that entail a higher purchase price and involve consumers in a more considered buying process. The use of selective distribution allows the manufacturer to maintain control over the retail outlets, ensuring that the product is sold by knowledgeable sales staff that can emphasize its features and benefits. Buyer needs for such products include reassurance about quality, service support, and expert guidance, which are best provided through select, authorized dealers or authorized retailers. From a profitability perspective, selective distribution enables the brand to position itself as a high-quality product and maintains a certain prestige. It also reduces distribution costs by limiting the number of outlets, thereby allowing the company to focus on outlets that align with its brand image and profit margins. Additionally, this strategy can create a sense of exclusivity that enhances the perceived value of the product.

The decision to employ intensive or selective coverage hinges on various factors, including the nature of the product, buyer needs, and profitability considerations. For convenience products like bottled water, extensive availability is crucial to meet consumer demands efficiently and generate higher sales volumes, making intensive distribution the logical choice. Conversely, for durable and high-involvement products like washing machines, a selective approach ensures that consumers receive adequate information, service, and brand positioning, aligning with their needs for quality assurance and expert guidance. Both strategies aim to optimize the balance between satisfying customer needs and maximizing profitability for the manufacturer.

In conclusion, understanding the differences between distribution coverages is vital for designing effective marketing strategies. The selection of intensive or selective distribution depends on product characteristics, consumer behavior, and profit objectives. By tailoring distribution strategies accordingly, companies can enhance customer satisfaction, strengthen brand positioning, and improve overall business performance.

References

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