What does 'distribution intensity' refer to?

Distribution intensity refers to the number of channel members utilized to make a product available to consumers. It focuses on how widely a product is distributed across various channels, which can affect the product's availability and market reach.

In marketing, there are generally three levels of distribution intensity: intensive, selective, and exclusive. Intensive distribution aims to place products in as many outlets as possible, ensuring maximum exposure. Selective distribution involves a few selected channels to maintain a certain image or brand quality. Exclusive distribution restricts a product to a single retailer in a specific area, often used for high-end or niche products.

Understanding distribution intensity is crucial for companies to effectively reach their target market while adhering to their brand strategy. It influences decisions regarding inventory management, marketing strategies, and customer accessibility. The other choices, while related to marketing, address different aspects such as budget allocation, pricing strategies, and geographic reach, none of which directly define the concept of distribution intensity.