Distribution Channels and Communication 360: A Comprehensive Guide

Distribution Channels

Exclusive Distribution (Lamborghini)

• Intermediary gains exclusive rights to sell product in specific geographic area.
• Limited number of intermediaries.
• Stronger distributor support.
• Greater control over product.
• Enhanced brand image.
• Higher markups.
• Exclusive dealing arrangements.

Selective Distribution (Apple)

• Manufacturer selects limited number of stores to sell product.
• Selection based on objective criteria.
• Maintains relative control.
• Expects above-average sales effort.

Intensive Distribution (Hacendado Products)

• Producer uses as many specialized outlets as possible to provide:
• Maximum brand exposure.
• Consumer convenience.

Extensive Distribution (Kit Kat)

• Producer uses as many outlets as possible (of any category) to provide:
• Maximum brand exposure.
• Consumer convenience.

Types of Channel Levels

Every channel includes the producer and final consumer.

• Zero-level channel (direct-marketing channel): Manufacturer sells directly to consumer.
• One-level channel: One selling intermediary (e.g., retailer).
• Two-level channel: Two intermediaries (wholesaler and retailer).
• Three-level channel: Three intermediaries (wholesaler, jobber, and retailer).

Communication 360

Marketing communication activities must be integrated to deliver a consistent message and achieve desired strategic positioning.

Marketers must identify the experiences and impressions that influence consumers at each stage of the buying process.

This understanding helps allocate communication resources efficiently and design effective communication programs.

Marketers can evaluate marketing communications based on their ability to build brand equity and drive sales.

Brand Awareness

Brand awareness is influenced by the number of brand-related exposures and experiences a consumer has.

Anything that attracts consumer attention to the brand can increase awareness.

Brand Recall

To enhance brand recall, more intense processing may be necessary to establish stronger brand links to product category or consumer needs.

All possible marketing communication options should be considered to create the desired brand image and knowledge.