Question

• Analyze the three (3) different distribution systems and determine in which it would be easiest for retailers to buy directly from sources (as opposed to intermediaries). Explain your reasoning.
• Select a product you use every day (or almost every day) and trace its progress through the distribution chain, explaining when and how value is added to the product.

Answer 1

Answer:- The three distributions systems include intensive distribution, selective distribution, and exclusive distribution. Intensive distribution is a marketing strategy under which a company sells through as many outlets as possible so that the consumers encounter the product virtually everywhere they go: supermarkets, drug stores, gas stations, and the like. Soft drinks are generally made available through intensive distribution. Selective Distribution is a type of distribution strategy that lies and operates between intensive and exclusive distribution. Selective Distribution involves using more than one, but lesser than all the intermediaries and distributors who carry the company's products on the basis of a company-specific set of rules. Exclusive distribution is when only certain retailers are given the opportunity of carrying a product in its store. Exclusive distribution is an agreement between a supplier and a retailer granting the retailer exclusive rights within a specific geographical area to carry the supplier's product.

Answer:- A product that I use every day would be that of a cell phone. The cell phone is made by a manufacturer who gets raw materials from a supplier, the manufacturer produces the good and send it to a retailer, the retailer then offers the phone for purchase to consumers. The adding of value would be when the manufacturer gets the raw materials to produce the phone from other suppliers, since the materials come from all over the world this makes it much easier for the manufacturer to provide then getting it myself, the other value-added section is when it is provided to the retailer, this allows me to pick up the product or get additional information by visiting any retailer selling the product (also no waiting on shipping for my item).

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