After producers have selected distribution channels, they must determine the intensity or policy of market coverage they wish to use, ensuring that it corresponds closely to the product. Producers must choose outlets that suit the buying patterns and preferences of their customers.

The distribution policy, or intensity, is determined by the producer and defines the type and number of outlets for the product.

  • Extensive distribution is used mostly for mass-produced goods; it places the product in as many locations as possible.
  • Selective distribution generally is used for products that people do not purchase regularly.
  • Exclusive distribution is used for high-end products purchased infrequently and consumed during extended periods.