Selective Distribution is a type of distribution strategy that lies and operates between intensive and exclusive distribution . Selective Distribution involves using more than one, but lesser than all the intermediaries and distributors who carry the company’s products on a basis of a company specific set of rules.
What is an example of selective distribution?
A good example for products for which selective distribution is used is cars . ... For the low-end range and mid-level range cars, selective distribution is used. You would have observed that multiple, but not all, dealers in a certain locality deal in certain cars. Another example for this could be clothing.
What is a selective distribution system?
Related Content. A system in which a supplier agrees to supply only approved distributors who meet specified minimum criteria , and the distributors themselves agree only to supply end users or other distributors or dealers within the approved network.
What is a selective distribution in business?
making a product available in more than one outlet, but not in as many as are willing to stock it ; also referred to as Selective Selling.
Why do people use selective distribution?
Selective distribution is a useful tool at the disposal of the supplier since it can refuse to sell to those dealers that do not comply with the set criteria. ... Selective distribution allows to differentiate between luxury products and potentially competing – albeit more “common” – products.
Is Nike selective distribution?
On Appeal. ... In its July ruling, the appeals court confirmed the lower court’s decision, holding that Nike’s selective distribution agreement is, in fact, in line with EU competition law, and thus, valid in the case at hand.
What is the selective distribution strategy?
Selective distribution involves a producer using a limited number of outlets in a geographical area to sell products . An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focus effort (e.g., training) on them.
What is distribution strategy example?
Distribution strategy is the method used to bring products, goods and services to customers or end-users. ... For example, a product might sell better online to one demographic and via a mail-to-order catalog to another target audience group .
What are selective products?
Selective product advertising — more often referred to as selective demand advertising — involves ad placements with messages that distinguish the advertiser’s specific product or brand from competitors.
Does Samsung use selective distribution?
In what is being called a “soft launch”, Samsung is only distributing the new range of notebooks through four retail organisations , each one chosen to target a specific demographic. ...
What is the difference between selective and exclusive distribution?
Selective distribution refers to a product distribution strategy that involves more than one distributor in a specific geographic location. On the other hand, exclusive distribution refers to a distribution strategy that only involves one distributor, retailer or wholesaler in a specific geographic location .
What is the physical distribution concept?
Physical distribution refers to the movement of finished goods from a company’s distribution and fulfillment network to the end user . In ecommerce, physical distribution involves several ecommerce supply chain activities including warehousing, inventory control, order processing, retail fulfillment, and shipping.
What is the advantages & disadvantages of intensive distribution?
Manufacturers use an intensive distribution strategy with products that need to be quickly replenished. The advantages of this strategy include money, product awareness, and impulse buying . The disadvantages include sales vary, low prices/low margins, and lack of retailer control.
What is intensive distribution strategy?
Definition: Intensive distribution is a form of marketing strategy under which a company tries to sell its product from a small vendor to a big store . ... This method is particularly useful for products like soft drinks, cigarettes etc. There are various advantages of intensive distribution.
Does Apple use an intensive selective or exclusive distribution strategy?
The Exclusivity Technique
Since the introduction of the iPhone in 2007, a product that accounts for 65 percent of Apple’s sales, Apple has intentionally limited the amount of available stock to create a sense of exclusivity among technology savvy consumers.
What companies use exclusive distribution?
- Samsung.
- Gucci.
- Lamborghini.
- Apple.
- BMW.
- Mercedes.
