유통관리 9 2

Summary

This video script explores the process of designing a distribution channel, focusing on the development of the distribution channel structure. It introduces three market coverage strategies: exclusive, selective, and intensive distribution. Exclusive distribution involves working with a single distributor, fostering strong relationships but reducing competition. Selective distribution strikes a balance by choosing a few qualified distributors. Intensive distribution, on the other hand, focuses on maximizing product availability through numerous distributors, increasing sales but leading to potential price competition and low margins. The script also touches on promotional strategies like pull and push, impacting both consumer demand and retailer relationships.

Takeaways

• 😀 The distribution channel design process includes several steps, with the fourth step being the development of the distribution channel structure.
• 😀 A channel coverage strategy must decide on the number of stores, which distributors to use, and the level of service each distributor will provide.
• 😀 The market coverage strategy refers to how many stores will handle a company's products in a specific area, with three types: exclusive, selective, and intensive distribution.
• 😀 Exclusive distribution is a strategy where only one distributor has the exclusive rights to sell a product in a specific area, making it easier to control the channel.
• 😀 This strategy is suitable for high-end products, like flagship furniture, where there is less competition among retailers and a closer manufacturer-distributor relationship.
• 😀 Selective distribution is a middle-ground strategy where a limited number of qualified distributors are chosen to handle a product, offering more intimacy than intensive distribution.
• 😀 Intensive distribution uses as many distributors as possible to make products available widely, suitable for frequently purchased products like soap or gum.
• 😀 In intensive distribution, manufacturers rely on pull strategies and contracts with distributors to maintain product supply and generate consumer demand.
• 😀 The pull strategy promotes products by creating consumer demand through advertising and brand awareness, giving manufacturers more influence over retailers.
• 😀 Intensive distribution can lead to issues such as price competition among distributors and low margins, which could negatively affect both manufacturers and retailers.
• 😀 While intensive distribution increases visibility and sales in the short term, the relationship between manufacturers and retailers tends to be weaker due to the high competition among distributors.

Q & A

What is the fourth step in the distribution channel design process?

The fourth step is the development of the distribution channel structure, specifically focusing on the channel coverage strategy.

What factors must be considered when deciding on a distribution channel coverage strategy?

Distributors must decide which distributors to use, how many stores are needed, and how much channel service each distributor should provide.

What is a market coverage strategy?

A market coverage strategy refers to the number of stores that handle the company's products in a specific area, and there are three types: exclusive, selective, and intensive distribution.

What is exclusive distribution, and why is it used?

Exclusive distribution is a strategy where a product is sold through only one distributor with exclusive rights in a certain area. It is used because it allows better control over the distribution and creates an intimate relationship between the manufacturer and retailer.

What is the primary advantage of exclusive distribution?

The primary advantage is that it strengthens the bond between the manufacturer and the distributor, concentrating resources and enhancing interbrand competition.

What is selective distribution, and how does it differ from exclusive distribution?

Selective distribution is a strategy where a product is sold through a few distributors who are chosen for their ability to handle the product. It offers a middle ground between exclusive and intensive distribution in terms of the level of intimacy between the manufacturer and the distributor.

What types of products typically use selective distribution?

Products like TVs and cosmetics often use selective distribution because they require careful selection of distributors with certain qualifications.

What is intensive distribution, and when is it used?

Intensive distribution is a strategy to sell products through as many distributors as possible. It is often used for convenience products like soap, gum, and detergent, which customers want to buy with minimal effort.

What challenges might arise from using an intensive distribution strategy?

Intensive distribution can lead to high competition among distributors, price wars, and low margins. It may also reduce the uniqueness of a product, as competitors can offer the same product.

What is a pull strategy in distribution channel management?

A pull strategy is when the manufacturer promotes products directly to consumers, creating demand, which then influences the retailer to carry the product. It helps reduce the manufacturer's control over the retailer.