Distribution decisions - The structure of the channel

6 important questions on Distribution decisions - The structure of the channel

What is the definition of market coverage

Coverage can relate to geographical areas or number of retail outlets. Three approaches are available: intensive, selective or exclusive coverage

What is intensive coverage:

Calls for distributing the product through the largest number of different types of intermediary and the largest number of individual intermediaries of each type

What is selective coverage:

Entails choosing a number of intermediaries for each area to be penetrated
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What is exclusive coverage

Involves choosing only one intermediary in the market

What is meant by the control/cost?

The control of one member in the vertical distribution channel means its ability to influence the decisions and actions of other channel members.

What is the definition of horizontal integration

Seeking control of channel members at the same level of the channel, e.g. Manufacturer's acquisition of the competitor

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