What distribution method is characterized by a limited number of outlets?

What distribution method is characterized by a limited number of outlets?

• A. Exclusive distribution
• B. Selective distribution
• C. Intensive distribution
• D. Indirect distribution

Answer: (B)

The correct answer, selective distribution, is characterized by a strategy where a company chooses a limited number of intermediaries or outlets for its products. This approach allows the manufacturer to maintain a level of control over how their products are marketed and sold, while still reaching a wider audience than exclusive distribution. Selective distribution is often utilized for products that have a certain level of brand reputation, quality, or price point. By limiting the number of retail outlets that carry the product, companies can ensure that their products are sold in environments that align with their brand image. This can also help in fostering better relationships with the selected retailers, allowing for better promotion and sales techniques tailored to their specific market. In contrast, exclusive distribution involves a single distributor or retailer for a product, while intensive distribution aims to have products available in as many outlets as possible. Indirect distribution refers to selling through intermediaries rather than directly. These alternatives do not align with the characteristics of selective distribution, where the focus is on a carefully chosen group of outlets rather than a broad or singular approach.

The correct answer, selective distribution, is characterized by a strategy where a company chooses a limited number of intermediaries or outlets for its products. This approach allows the manufacturer to maintain a level of control over how their products are marketed and sold, while still reaching a wider audience than exclusive distribution.

Selective distribution is often utilized for products that have a certain level of brand reputation, quality, or price point. By limiting the number of retail outlets that carry the product, companies can ensure that their products are sold in environments that align with their brand image. This can also help in fostering better relationships with the selected retailers, allowing for better promotion and sales techniques tailored to their specific market.

In contrast, exclusive distribution involves a single distributor or retailer for a product, while intensive distribution aims to have products available in as many outlets as possible. Indirect distribution refers to selling through intermediaries rather than directly. These alternatives do not align with the characteristics of selective distribution, where the focus is on a carefully chosen group of outlets rather than a broad or singular approach.