Answer to Question #195843 in Management for kavita

Question

1) Why is it often necessary and advantageous to have intermediaries in a marketing or distribution channel?

2) How would you distinguish between exclusive and selective distribution?

Answer 1

1. Intermediaries help to promote products of a firm using marketing channels, which helps to build customer relationships. This ultimately increases brand loyalty and awareness. The proper development of a marketing plan, promotion and packaging ensures repeat customers and can affect the success or failure of a commodity.
2. Selective distribution entails selling commodities at selected outlets in specific regions while exclusive distribution involves distribution of commodities through one or very few outlets