Factors Of Channel Intensity Decisions
Factors of Channel Intensity Decisions
There are eight factors for channel intensity decisions and the first is channel competition to prevent complacency in this a manufacturer has to place its brand or product in different stores. This helps the business to expand its profits, and keeps them in competition with other brands. The book tells us how weaker brands may do this by contracting with large retailers such as Wal-Mart in order for their product to be show cased; but this may not always be wise due to over saturation of a product. The book also gave an example of how a store like Best-Buy bought another local company and didn’t change the name and kept all of its locations this helped them to sell their products in both stores and enabled them to prevent another third party company from moving in allowing them to have a competitive edge.
Factor two is Product category. This helps a company decide on how intensely they will distribute their products by the type of goods they are such as convince goods, shopping goods, or specialty goods. This is useful because if the product is a convince good such as milk, printing paper etc., buyers are more likely to just get it from the first place they can find it and less likely to go from store to store to find their favorite brand. These products are also bought often on a regular basis so they should be distributed as intensely as possible and stocking out of these products are unacceptable. But when distributing shopping goods and specialty goods the manufacturer is less worried about how many stores they can place their products in but what stores in a policy of selective distribution.
Brand Strategy: Premium and Niche Positioning is the third factor to consider when deciding on how intensely to distribute a product. In premium positioning manufactures such as Mercedes-Benz seek to show that their product has superior abilities and are of higher quality. This makes them a premium product and so it is sold at a
There are eight factors for channel intensity decisions and the first is channel competition to prevent complacency in this a manufacturer has to place its brand or product in different stores. This helps the business to expand its profits, and keeps them in competition with other brands. The book tells us how weaker brands may do this by contracting with large retailers such as Wal-Mart in order for their product to be show cased; but this may not always be wise due to over saturation of a product. The book also gave an example of how a store like Best-Buy bought another local company and didn’t change the name and kept all of its locations this helped them to sell their products in both stores and enabled them to prevent another third party company from moving in allowing them to have a competitive edge.
Factor two is Product category. This helps a company decide on how intensely they will distribute their products by the type of goods they are such as convince goods, shopping goods, or specialty goods. This is useful because if the product is a convince good such as milk, printing paper etc., buyers are more likely to just get it from the first place they can find it and less likely to go from store to store to find their favorite brand. These products are also bought often on a regular basis so they should be distributed as intensely as possible and stocking out of these products are unacceptable. But when distributing shopping goods and specialty goods the manufacturer is less worried about how many stores they can place their products in but what stores in a policy of selective distribution.
Brand Strategy: Premium and Niche Positioning is the third factor to consider when deciding on how intensely to distribute a product. In premium positioning manufactures such as Mercedes-Benz seek to show that their product has superior abilities and are of higher quality. This makes them a premium product and so it is sold at a