Target Market Coverage: Distribution Density

This activity is important because marketing managers must create marketing channels that provide the best coverage for the target market. Marketing managers design efficient channels by choosing the proper density $($number of stores in the geographical area$)$ as well as the proper type of intermediaries to be used.

The goal of this activity is to demonstrate your understanding of the three primary types of distribution density used to achieve target market coverage: intensive, exclusive, and selective distribution.

For each scenario, select the appropriate distribution density classification.

$1.$ Snack Time$$Frito$-$Lay knows that hunger can strike at any time and hungry consumers want snacks quickly. Thus, Frito$-$Lay places its snacks in vending machines, convenience stores, grocery stores, and other retail outlets.

$($Click to select$)$

$2.$ Handbag Heaven$$Coach handbags can be purchased in many, but not all, mid$-$ to high$-$end retailers. Coach limits the number of retailers authorized to sell its line of leather goods to manage the demand for the brand.

$($Click to select$)$

$3.$ Clean Up$$Households use one to two rolls of paper towels each week. To make replenishment easy, P&G makes sure consumers can buy its Bounty towels in grocery stores, discounters, warehouse clubs, convenience stores, and pharmacies.

$($Click to select$)$

$4.$ British Invasion$$The British luxury brand Burberry can only be purchased at a few high$-$end retailers like Nordstrom and Saks Fifth Avenue, in addition to Burberry retail stores. JC Penney and Kohl's are not authorized to carry the brand.

$($Click to select$)$

$5.$ iDistribution$$Apple products have high brand equity but in a category that is very competitive. To optimize its market coverage, Apple computers are available at Apple retail stores and authorized electronics retailers.

$($Click to select$)$

$6.$ Luxury Ride$$There are only $54$ Bentley dealerships in the entire United States. The ultra$-$luxury car brand comes with an exorbitant starting price of $$180,195$ and is only