Marketing Exclusive Vs. Intensive Distribution Term Paper

Total Length: 336 words ( 1 double-spaced pages)

Total Sources: 1

Adding additional distributors in the regions that were once exclusive and highly selective leads to price cutting, a quick loss of gross margin, channel conflict, and over the long-term, one or more distributors refusing to carry a given manufacturers' products due to a lack of profits being available ion their sale. This is what happened with certain PC manufacturers during the 1990s when over-distribution was a common problem, spurred by cross-channel conflict and rounds of severe price cutting (McKinsey 2003).

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When manufacturers add in distributors to areas previously exclusive, the entire dynamic of selling across all indirect channels changes, specifically in the area of distributor loyalty as well. It is a best practice to specifically stay focused on one distribution strategy and work to increase distributor loyalty first before ever adding additional distributors to cover the same markets......

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"Marketing Exclusive Vs Intensive Distribution", 21 July 2007, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/marketing-exclusive-intensive-distribution-36584