Essay: Channels of distribution

After production of goods and services, it is important that a company comes up with a reliable system of distribution so that the products may reach all its consumers. There are three levels of distribution which may be applied; intensive, selective and exclusive.

Intensive distribution entails selling a given product to a huge number of distributors such as wholesalers and retailers. This would ensure that the product is available to as many potential consumers as possible. In this kind of distribution, the aim is to achieve maximum sales and saturate the market with the particular product leading to attractive returns for the manufacturer and its distributors.

The products distributed using this level are those that customers purchase for convenience and many varieties are available, giving the consumers the opportunity to choose their preferred brand. Most of the items are also small and relatively affordable hence the need to reach as many consumers as possible (Dent, 2008).

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