Monday, April 15, 2019

Distributors Essay Example for Free

Distributors EssayManufacturers determination a number of alternative intermediaries to make their products available to their order customers effectively and efficiently. These intermediaries sh be the different trade activities with the manufacturers. Distributors are very popular intermediaries both in consumer marketing and business to business marketing. The three ordinarily used dissemination strategies by manufacturers are easy lay statistical distribution, selective distribution and intensifier distribution.In sole(a) distribution the distributors are given sole rights to distribute the company products in a given geographical area. This type of distribution is favored when the products being marketed are exclusive, unique or prestigious. In intensive distribution the company sells its products through a large number of distributors and dealers to reach maximum number of consumers in the target segments. It is favored by companies that operate in intensively co mpetitive sectors like the FMCG markets.In selective distribution companies use very few distributions to sell their products in a given geographical area. Of late manufacturers are constantly tempted to shift from an exclusive or selective distribution strategy to a more intensive distribution strategy to reach more number of potential customers for their unique, exclusive and prestigious products. However though this shift may help the manufacturer to increase the sales in the short run it leave alone have a major impact on long term results.Because of this shift the product go away loose its uniqueness, exclusivity and prestige of possession and the potential target customer may shift to more exclusive brands offered by the competitor. The company may also loose the loyalty and support of its existing distributors in marketing and service activities. The customers may also refuse to pay a higher price once the exclusivity is missed thus impacting the financial performance of t he company in the long run.

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