Channel Choice

Channel Choice: 

The number of outlets a firm choose to make its product available. 

Retail outlets should have similar brand positioning (eg Prada is not sold via K-Mart).

• Intensive Distribution: Widespread availability aiming for market saturation

• Selective Distribution: Use of limited outlets

• Exclusive Distribution: Very limited number of outlets (high degree of control)

This decision needs to be in alignment with a firm's brand, product range, the positioning and pricing of their offering.

Also at play is the quality of service at these downstream retailers, and the degree of knowledge of and commitment to selling your product. Over this you have little control - unless your promotional campaigns and communications go 'over' these downstream firms and 'pull' the merchandise through the stream.