Types of Distribution Lesson Note
Learning Objectives
This SS2 Marketing lesson note covers Types of Distribution for First Term, Week 2.
Lesson Note
Learning Objectives
By the end of the lesson, students should be able to:
Explain the meaning of distribution.
Identify the types of distribution.
Explain each type of distribution.
Give examples of each type.
Introduction
Different products are sold in different ways. Some products can be found in almost every shop, while others are sold only in selected shops. These methods are called types of distribution.
Meaning of Types of Distribution
Types of distribution are the different ways businesses make their products available to consumers.
There are three main types of distribution:
1. Intensive Distribution
This is when a producer makes a product available in as many shops and outlets as possible.
The aim is to make the product easy for customers to find.
Examples: Biscuits, bottled water, soft drinks and sweets.
2. Selective Distribution
This is when a producer chooses only some selected shops or dealers to sell the product.
The product is not sold everywhere.
Examples: Electronics, furniture and some clothing products.
3. Exclusive Distribution
This is when a producer gives only one or very few dealers the right to sell a product in a particular area.
It is usually used for special or expensive products.
Examples: Luxury cars, expensive watches and some designer products.
Simple Difference
| Type | Meaning |
|---|---|
| Intensive | Product is sold in many outlets. |
| Selective | Product is sold through selected outlets. |
| Exclusive | Product is sold through one or very few outlets. |
Summary
The three main types of distribution are intensive, selective and exclusive distribution. The choice of distribution depends on the type of product and the customers the producer wants to reach.
Evaluation
OBJECTIVE Questions
Which of the following is a type of distribution? A. Intensive distribution B. Product distribution C. Price distribution D. Market distribution
Intensive distribution aims at making a product available: A. In only one shop B. In as many outlets as possible C. Only in supermarkets D. Only to wholesalers
Which type of distribution involves selling a product through a limited number of carefully selected outlets? A. Intensive distribution B. Exclusive distribution C. Selective distribution D. Direct distribution
Exclusive distribution involves: A. Using many retailers B. Using one or very few outlets in a particular area C. Selling only to consumers D. Selling goods without transport
Which type of distribution is commonly suitable for everyday goods such as bread and soft drinks? A. Intensive distribution B. Exclusive distribution C. Selective distribution D. Limited distribution
Luxury products are often sold through: A. Intensive distribution B. Exclusive distribution C. Mass distribution D. Random distribution
Selective distribution is between: A. Import and export B. Intensive and exclusive distribution C. Production and consumption D. Wholesale and retail
Which type of distribution gives a producer greater control over where a product is sold? A. Intensive distribution B. Exclusive distribution C. Mass distribution D. Open distribution
A producer using many wholesalers and retailers to reach consumers is practicing: A. Intensive distribution B. Exclusive distribution C. Selective distribution D. Direct distribution
Which of the following is NOT a type of distribution? A. Intensive distribution B. Selective distribution C. Exclusive distribution D. Financial distribution
Theory Questions
1a. What are types of distribution?
1b. Mention the three main types of distribution.
2a. What is intensive distribution?
2b. Give two examples of products sold through intensive distribution.
3a. What is selective distribution?
3b. Give two examples of products sold through selective distribution.
4a. What is exclusive distribution?
4b. Give two examples of products sold through exclusive distribution.
State one difference between intensive and selective distribution.
State one difference between selective and exclusive distribution.