In intensive distribution, all channel members who meet the manufacturer's minimum credit standards can participate in the distribution of their products or services. Intensive distribution means fierce competition among channel members and high product market coverage. Intensive distribution is most suitable for convenient products. It promotes sales by maximizing the convenience for consumers. Adopting this strategy is conducive to widely occupying the market and facilitating the timely purchase and sale of products. The disadvantage is that the number of dealers who can provide services in intensive distribution is always limited. Manufacturers sometimes have to evaluate the training of dealers, distribution support systems, transaction communication networks, etc. In order to find obstacles in time. However, in a certain market area, the competition among dealers will lead to the waste of sales efforts. Because intensive distribution intensifies the competition among dealers, their loyalty to manufacturers decreases and the price competition is fierce, dealers are no longer willing to receive customers reasonably.
2. Choose a distribution strategy
Manufacturers choose some middlemen in specific markets to promote their products. By adopting this strategy, production enterprises do not have to spend too much energy to contact a large number of middlemen, and it is also convenient to establish good cooperative relations with middlemen, so that production enterprises can obtain appropriate market coverage. Compared with intensive distribution strategy, this strategy has stronger control and lower cost. A common problem in selecting dealers is how to determine the regional overlap of dealers. The overlap in the selective distribution determines how close the selective distribution is to the dense distribution in a given area. Although the market overlap rate will be convenient for customers to buy, it will also cause some conflicts between retailers. Low overlap rate will increase the loyalty of dealers, but it will also reduce the convenience of customers.
3. Exclusive distribution strategy
That is, the production enterprise only chooses one middleman to sell its own products in a certain area and for a certain time. Exclusive distribution is characterized by low competition. Generally speaking, only when the company wants to establish a long-term close relationship with the middlemen will it use exclusive distribution. Because it needs the cooperation and cooperation between enterprises and distributors more than any other distribution form, its success is interdependent. It is more suitable for professional products with higher service requirements.