What is the primary purpose of selective distribution?

What is the primary purpose of selective distribution?

• A. To limit competition
• B. To maximize brand exposure
• C. To develop customer relationships
• D. To ensure product quality

Answer: (A)

Selective distribution focuses on choosing specific retailers or outlets to carry a product rather than distributing it through all possible channels. The primary purpose of this strategy is to maintain a certain level of brand prestige and to ensure that the product is being sold in environments that align with its positioning. This method helps manage how a product is perceived by consumers and maintains the brand's image by limiting the number of outlets that sell the product. By being selective about distribution channels, a company can create a perception of exclusivity and quality, which can strengthen its brand identity and market position. In doing so, the approach is not solely about reducing competition in a direct sense but more about controlling the brand experience and ensuring that it is represented in a way that matches the desired market segment. This is essential for products that may be luxurious or niche, allowing businesses to maintain higher profit margins and achieve a strong perceived value in their offering.

Selective distribution focuses on choosing specific retailers or outlets to carry a product rather than distributing it through all possible channels. The primary purpose of this strategy is to maintain a certain level of brand prestige and to ensure that the product is being sold in environments that align with its positioning.

This method helps manage how a product is perceived by consumers and maintains the brand's image by limiting the number of outlets that sell the product. By being selective about distribution channels, a company can create a perception of exclusivity and quality, which can strengthen its brand identity and market position.

In doing so, the approach is not solely about reducing competition in a direct sense but more about controlling the brand experience and ensuring that it is represented in a way that matches the desired market segment. This is essential for products that may be luxurious or niche, allowing businesses to maintain higher profit margins and achieve a strong perceived value in their offering.