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Retail Marketing Essay

2283 words - 10 pages



1) Intensive Distribution:

Intensive distribution aims to provide saturation coverage of the market by using all available outlets. For many products, total sales are directly linked to the number of outlets used (e.g., cigarettes, beer). Intensive distribution is usually required where customers have a range of acceptable brands to choose from. In other words, if one brand is not available, a customer will simply choose another.

This alternative involves all the possible outlets that can be used to distribute the product. This is particularly useful in products like soft drinks where distribution is a key success factor. Here, soft drink firms ...view middle of the document...

Selective distribution can help the manufacturer gain optimum market coverage and more control but at a lesser cost than intensive distribution. Both existing and new firms are known to use this alternative.
3) Exclusive Distribution:

Exclusive distribution is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.

When the firm distributes its brand through just one or two major outlets in the market, who exclusively deal in it and not all competing brands, it is said that the firm is using an exclusive distribution strategy. This is a common form of distribution in products and brands that seek a high prestigious image.

Typical examples are of designer ware, major domestic appliances and even automobiles. By granting exclusive distribution rights, the manufacturer hopes to have control over the intermediaries price, promotion, credit inventory and service policies. The firm also hopes to get the benefit of aggressive selling by such outlets.

8. Impulse purchase is Spur of the moment, unplanned decision to buy, made just before a purchase. Research findings suggest that emotions and feelings play a decisive role in purchasing, triggered by seeing the product or upon exposure to a well crafted promotional message. Such purchases ranges from small (chocolate, clothing, magazines) to substantially large (jewelry, vehicle, work of art) and usually (about 80 percent of the time) lead to problems such as financial difficulties, family disapproval, or feeling of guilt or disappointment. there are four types of impulse pur hase;

1.Pure impulse buying — you make a true novelty purchase, or escape purchase, that’s very different from your typical purchasing pattern
2. Reminder impulse buying — you see an item or remember something that reminds you that you need an item
3. Suggestion impulse buying– you see a product for the first time and imagine a need for it
4. Planned impulse buying — (isn’t this label an oxymoron? oh well) you make a purchase based on price specials, coupons, etc.
Impulse Purchase Lesson 1: Demonstrate an impressive, relevant feature.

If the product is chocolate, sold at a retail checkout stand, you have no need for this one. Human nature takes over. When you are selling unrecognizable cylinder things, people need some encouragement.

You would never know it to look at them, but these things were super absorbent shammies. They can suck 8 - 10 ounces of soda out of your carpet in nothing flat AND it makes for an impressive demonstration. When the demonstrator mentioned they could dry a sweater in three hours, I was hooked. Never mind we have about two spills a year in my house and I don't own any 'lay flat to dry' sweaters.

This ability to get people to 'live in the moment' is one key to a successful impulse purchase demonstration. The salesperson has a lot to do with it, of course. Repetition of an incredible, attractive...

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