Friday, December 10, 2010

Distribution Segmentation

Different markets can be reached through different channels of distribution. For example, a company
might segment the “tick and flea collar” market by selling the product to supermarkets under one
brand name, to mass merchandisers under another brand, to pet stores under another brand name,
and to veterinarians under yet another brand name. This type of distributional segmentation is
common, especially among small companies that grant each channel a unique brand to gain distribution
within that channel. Other examples of distributional segmentation would be an upscalline of clothing sold only in expensive department stores, or a hair shampoo sold only through upscale beauty salons.

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