Selective Distribution
What is Selective Distribution
Selective distribution refers to a distribution strategy in which a company uses a limited number of intermediaries or channels to distribute its products. This means that the company's products are not available through every possible channel or retailer, but are instead sold through a specific group of intermediaries that are carefully chosen by the company.
There are a few reasons why a company might choose to use selective distribution:
- To maintain control over the distribution of its products: By limiting the number of intermediaries that can sell its products, a company can better control the way its products are presented to customers and maintain a consistent brand image.
- To ensure high-quality service: By choosing intermediaries that meet certain standards or criteria, a company can ensure that its products are sold in a professional and high-quality manner.
- To target specific customer segments: Selective distribution can allow a company to focus on specific customer segments or geographic areas and tailor its distribution strategy accordingly.
However, selective distribution can also have some potential drawbacks. It can limit the company's reach and prevent it from taking advantage of multiple distribution channels. It can also make it more difficult for customers to purchase the company's products, especially if the chosen intermediaries are not conveniently located.
Selective distribution can be a useful strategy for companies that want to maintain control over their distribution channels and ensure high-quality service to customers, but it may not be the best choice for every company.
See Also
- IT Strategy (Information Technology Strategy)
- IT Governance
- Enterprise Architecture
- Chief Information Officer (CIO)
- IT Sourcing (Information Technology Sourcing)
- IT Operations (Information Technology Operations)
- E-Strategy