Market Coverage Decisions
1.
Question 1
Introduction
Marketing distribution channels play a big role in the marketing process, the marketing team will have to decide to what extent they want to distribute the product and in what market segment they wan to place it. Packaging has the duel function of protecting the product and also of advertising the product, thus it is of great importance to use the right type of packaging.
a. Market coverage decision
• Intensive coverage; is where the manufacturer of a particular product requires that the product receives maximum market exposure in the specific geographic domain. (Strydom & Jooste, 2007:418) Thus the manufacturer will try exposing it to as many as possible outlets to optimize sales. The products that are usually sold thru intensive market coverage is inexpensive, often purchased and requires little shopping effort- thus it is also a convenience product.
• Selective coverage; when a channel strategy is followed that limits the availability of the products to certain outlets it is called selective coverage. (Strydom & Jooste, 2007:418) Certain outlets will be selected considering they comply with a certain pre-set criteria. The products used in the selective coverage channel are usually more expensive and are mostly in the shopping products category.
• Exclusive coverage; is products that are only sold to a single or a few selected outlets in a large geographic region. The main advantage of exclusive coverage is that it reduces intra branding, a certain outlet will only be responsible for a single brand, and thus only that particular brand or product is promoted. On the outlets side, the supplier would usually give a certain domain right to that outlet, thus only that outlet promote that certain brand in that certain geography.
b. I would suggest that Cadburys use the intensive coverage distribution channel.
The reason for that is because the Cadburys Boost is a Convenience product; it should be available to
Question 1
Introduction
Marketing distribution channels play a big role in the marketing process, the marketing team will have to decide to what extent they want to distribute the product and in what market segment they wan to place it. Packaging has the duel function of protecting the product and also of advertising the product, thus it is of great importance to use the right type of packaging.
a. Market coverage decision
• Intensive coverage; is where the manufacturer of a particular product requires that the product receives maximum market exposure in the specific geographic domain. (Strydom & Jooste, 2007:418) Thus the manufacturer will try exposing it to as many as possible outlets to optimize sales. The products that are usually sold thru intensive market coverage is inexpensive, often purchased and requires little shopping effort- thus it is also a convenience product.
• Selective coverage; when a channel strategy is followed that limits the availability of the products to certain outlets it is called selective coverage. (Strydom & Jooste, 2007:418) Certain outlets will be selected considering they comply with a certain pre-set criteria. The products used in the selective coverage channel are usually more expensive and are mostly in the shopping products category.
• Exclusive coverage; is products that are only sold to a single or a few selected outlets in a large geographic region. The main advantage of exclusive coverage is that it reduces intra branding, a certain outlet will only be responsible for a single brand, and thus only that particular brand or product is promoted. On the outlets side, the supplier would usually give a certain domain right to that outlet, thus only that outlet promote that certain brand in that certain geography.
b. I would suggest that Cadburys use the intensive coverage distribution channel.
The reason for that is because the Cadburys Boost is a Convenience product; it should be available to
Bibliography: • Cant, M.C, Strydom, J.W, Jooste, C.J and du Plessis, P.J.2007.Marketing Management (5th ed.) Cape Town:Juta • Cant, M. and Machado, R.1999.Marketing Success Stories (3rd ed.) Goodwood, Western Cape: Thompson Publishing. • Armstrong, G and Kotler, P.2000.Marketing An Introduction. (5th ed.) Upper Saddle River, New Jersey: Prentice Hall