What is the Ideal Market Exposure?

Ideal market exposure is the level of product availability that balances the costs of inventory and storage with customer convenience. The key to ideal market exposure is finding a balance. 

If we want to make product available to customers, we could put it on every shelf everywhere. That would increase customer convenience, because they can get the product wherever they go. The downside there is we have to invest an awful lot of money in inventory. 

Further, we have to find a way to store that inventory (it takes up space when it's sitting on a shelf). That costs money to somebody in our channel system.

What are the Levels of Market Exposure? 

The levels of market exposure are:

• Intensive Distribution
• Selective Distribution
• Exclusive Distribution

Intensive Distribution

 This is where we put product all over the place and make it available to as many people as possible. For example, products like Coca-cola pursue this strategy. The product is available in so many places because we want to have an ultimate level of convenience. Learn more about Intensive Distribution.

Selective Distribution

This means that the product is in selective outlets (fewer outlets). There are fewer places where customers can buy our product. The upside of course is that we have lower inventory costs and less storage costs that we have to cover. Learn more about Selective Distribution.

Exclusive Distribution

The next level of market exposure is exclusive distribution. Here's where we're going to have the fewest outlets in which to purchase our product. There is an attempt to create an exclusive aura around our product. This means less customer convenience but relatively lower costs for inventory and storage. Learn more about  Exclusive Distribution.

How to Determine the Ideal Level of Market Exposure?

The ideal level of market exposure depends on the product. Convenience products need to be available,. Luxury items don't necessarily need to be as available because they need some level of exclusivity. 

Related Topics

• What Does "Place" or "Placement" Mean?
• What is a Distribution Channel?
• What is Direct Distribution and Indirect Distribution
• What is Multi-Channel Distribution?
• What is a Channel System?
• Vertical Market
• Vertical Integration
• Ideal Market Exposure
• Intensive Distribution
• Selective Distribution
• Exclusive Distribution
• Discrepancy of Assortment
• Discrepancy of Quantity
• Channel Conflict
• Channel Stuffing