Preview

Market Coverage Decisions

Powerful Essays
Open Document
Open Document
1195 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Market Coverage Decisions
1.

Question 1

Introduction

Marketing distribution channels play a big role in the marketing process, the marketing team will have to decide to what extent they want to distribute the product and in what market segment they wan to place it. Packaging has the duel function of protecting the product and also of advertising the product, thus it is of great importance to use the right type of packaging.

a. Market coverage decision

• Intensive coverage; is where the manufacturer of a particular product requires that the product receives maximum market exposure in the specific geographic domain. (Strydom & Jooste, 2007:418) Thus the manufacturer will try exposing it to as many as possible outlets to optimize sales. The products that are usually sold thru intensive market coverage is inexpensive, often purchased and requires little shopping effort- thus it is also a convenience product.

• Selective coverage; when a channel strategy is followed that limits the availability of the products to certain outlets it is called selective coverage. (Strydom & Jooste, 2007:418) Certain outlets will be selected considering they comply with a certain pre-set criteria. The products used in the selective coverage channel are usually more expensive and are mostly in the shopping products category.

• Exclusive coverage; is products that are only sold to a single or a few selected outlets in a large geographic region. The main advantage of exclusive coverage is that it reduces intra branding, a certain outlet will only be responsible for a single brand, and thus only that particular brand or product is promoted. On the outlets side, the supplier would usually give a certain domain right to that outlet, thus only that outlet promote that certain brand in that certain geography.

b. I would suggest that Cadburys use the intensive coverage distribution channel.
The reason for that is because the Cadburys Boost is a Convenience product; it should be available to



Bibliography: • Cant, M.C, Strydom, J.W, Jooste, C.J and du Plessis, P.J.2007.Marketing Management (5th ed.) Cape Town:Juta • Cant, M. and Machado, R.1999.Marketing Success Stories (3rd ed.) Goodwood, Western Cape: Thompson Publishing. • Armstrong, G and Kotler, P.2000.Marketing An Introduction. (5th ed.) Upper Saddle River, New Jersey: Prentice Hall

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Unit 29 Task 2 guidance

    • 372 Words
    • 2 Pages

    Distribution channels: availability of products (time, place, quantity); movement of goods from manufacturer to retailer to consumer; distribution channels for different…

    • 372 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    mkt311 tb chap15

    • 17312 Words
    • 169 Pages

    Manufacturers might use selective distribution by granting exclusive geographic territories to a few retailers so no other retailers in the territory can sell a particular brand.…

    • 17312 Words
    • 169 Pages
    Satisfactory Essays
  • Best Essays

    Mkt571 Week 6 Product Launch

    • 4265 Words
    • 18 Pages

    Kotler, P., & Keller, K. L. (2006). Marketing management (12th ed.). Upper Saddle River, NJ:…

    • 4265 Words
    • 18 Pages
    Best Essays
  • Satisfactory Essays

    Unit 3 P1

    • 492 Words
    • 2 Pages

    Cadbury Enterprises pte Ltd, commonly known as ‘Cadbury’ is a British confectionery company, which is best known for their confectionary products such as ‘Dairy Milk’ chocolate, ‘Crème Eggs’ and the ‘Roses’ chocolate selection box.…

    • 492 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    M2 Unit 29

    • 1506 Words
    • 4 Pages

    Different retailing businesses have very different distribution methods based on the types of product that they sell, some arguably more effectively than others.…

    • 1506 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    BUSI 520 Faith Int 2

    • 503 Words
    • 2 Pages

    Promotions – referring to any special deals to end users or distribution channels that would promote the movement of the product through the supply chain either from the “pull” side or on the “push” side…

    • 503 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Mkt 421 W2 Marketing Mix

    • 1487 Words
    • 6 Pages

    References: Armstrong, G. & Kotler, P. (2009). Marketing: An introduction (9th ed.). Upper Saddle River, NJ: Pearson Education.…

    • 1487 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Intensive distribution is designed to have as many products in as many outlets as possible.…

    • 2546 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    AMB335 Wk 6 Lecture 1

    • 1603 Words
    • 9 Pages

    We look at promotion more in Ch 8 & 9, wk 7 Evaluate the opportunities that the Internet makes available for varying these elements of the marketing mix. Distribution Channel Overview The element of the marketing mix that involves distributing products to customers in line with demand and minimising: Costs to company (Inventory, Transport, Storage) Costs to consumer (Time between purchase and fulfilment; Price of item) A distribution channel is a group of interdependent firms that work together to transfer products and information from the supplier to the consumer.…

    • 1603 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    Kotler, P. & Keller, K. (2012). Marketing Management. (14th ed., p. 242). Upper Saddle River, NJ: Pearson Education, Inc.…

    • 2398 Words
    • 10 Pages
    Best Essays
  • Better Essays

    Btec Business Unit29 P2

    • 841 Words
    • 4 Pages

    Distribution is the way in which a product is spread over an area. This shows that the store operations management will share and pass on their information process to the forecasting, replenishment and promotions management to the right time for the logistics and warehouse management to the right place for the supplier management to the right products for the category management to the right customers for the customer management.…

    • 841 Words
    • 4 Pages
    Better Essays
  • Best Essays

    Consulting Firm-Gen 480

    • 2777 Words
    • 12 Pages

    Kotler, P., & Keller, K. L. (2009) Marketing Management (13th ed.). Upper Saddle River, NJ:…

    • 2777 Words
    • 12 Pages
    Best Essays
  • Satisfactory Essays

    Homework 2

    • 950 Words
    • 4 Pages

    5. When a firm provides a specialized product or service for a narrow target market better than competitors, they are using a (Points : 1)…

    • 950 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    |Creation of value through marketing and sales approaches by |Area of business coverage is limited. To reduce risk diversification |…

    • 1096 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    There are many procedures and guidelines that have been put into place to enable every employee including myself to be able to proceed with my job in a professional manner and also to make sure that I can complete every job to the best of my abilities. As I am working in human resources there are different procedures, guidelines and codes that need to be followed by every employee working in the council, but every procedure varies as there are a lot of different aspects to the job, some of these procedures are subjects like first aid procedures, booking meeting rooms for senior staff and colleagues working in HR and also meeting new interviewees and bringing them to do there Mcquaig tests, dealing with incoming phone calls, to promote privacy and dignity as with working in human resources you are able to access personal files and accepting responsibility for your own work and it’s delivery. All of the main procedures are in the employee handbook which employees can find on the councils intranet (hub) or through the dynamic learning courses, this means that the employees should be able to read through all of the procedures when they need too.…

    • 4199 Words
    • 17 Pages
    Powerful Essays

Related Topics