3 Strategies to Determine the No. Of Marketing Intermediaries

Name And Describe the Three Strategies Available When Determining the Number Of Marketing Intermediaries.

A marketing intermediary which is also referred to as a marketing agency usually forms an important part of the distribution channel.  An intermediary tends to be an individual or business that is able to market or sell the product from the manufacturer to the end consumer (Armstrong & Opresnik, 2017).  There are various strategies that are used to determine the number of marketing intermediaries these strategies include: first, the selective distribution strategy which involves using a less number of intermediaries as compared to the actual number of intermediaries who may be willing to sell the companies products.  Selective distribution mainly focuses on the agents who tend to be an independent individual or company whose main role is to act as the main distributor of the products and also act as a representative of the producer.  The selective distribution strategy helps to develop a good working relationship with the approved channel members and also assures the producers of better market coverage.

Secondly, the exclusive distribution strategy that involves offering a minimal number of dealers the right to distribute or sell specific companies products in their specific territories or areas.  The exclusive distribution strategy has two main advantages that include: first,  it enables the producer to have a strong dealer selling support and also gain greater control over the dealer’s prices and promotions. Secondly,  it helps to enhance the brand image and also makes room for higher makeups.

Thirdly, the intensive distribution strategy,  this strategy involves stocking the company’s products in many outlets. Intensive distribution requires the product to be available where and when the customer needs it. For example, Commodities such as candy, toothpaste are sold in large quantities in various outlets with the intention of creating maximum customer convenience and brand exposure.

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