Selective Distribution

(noun)

a channel structure where the producer relies on a few intermediaries to carry their product

Related Terms

Examples of Selective Distribution in the following topics:

  • Distribution Intensity

    • Product distribution intensity refers to the scale of the distribution network as well as the appropriate selection of location.
    • Product distribution intensity refers to the scale of the distribution network as well as the appropriate selection of location.
    • In selective distribution, the producer relies on a few intermediaries to carry their product.
    • In exclusive distribution,the producer selects only very few intermediaries.
    • Retailers such as Lowe's are commonly utilized in selective distribution for large appliances.

  • Channel Member Characteristics

    • There are three basic types of distribution for a marketer to consider: Intensive, selective, and exclusive.
    • Selective distribution means that the producer relies on a few intermediaries to carry their product.
    • Exclusive distribution means that the producer selects only very few intermediaries, such as is often the case with luxury goods.
    • A marketer will consider the three types of distribution and select the one that most closely fits the overall marketing strategy.
    • Generally, as one moves from intensive to selective to exclusive distribution channels, the more that company can charge for its products.

  • Competitive Priorities in Marketing Channels

    • An alternative term is distribution channel or 'route-to-market'.
    • These distribution types include:
    • Selective distribution - producers rely on a few intermediaries to carry their product.
    • Exclusive distribution - producers select only very few intermediaries.
    • During the marketing planning stage, marketers must choose and incorporate the most suitable channels for the firm's products, as well as select appropriate channel members or intermediaries.

  • Selecting Marketing Channels

    • In intensive distribution (such as candy) the manufacturer attempts to get as many intermediaries of a particular type as possible to carry the product
    • Once the specific channel tasks have been determined, the evaluation and selection process can begin.
    • How many retailers and wholesalers in a particular market should be included in the distribution network?
    • The objective is to gather enough information to have a general understanding of the distribution tasks these intermediaries perform.
    • Regardless of the channel framework selected, channels usually perform better if someone is in charge, providing some level of leadership.

  • Product, Placement, Promotion, and Price

    • Intensive distribution means the producer's products are stocked in the majority of outlets.
    • Selective distribution means that the producer relies on a few intermediaries to carry their product.
    • Exclusive distribution means that the producer selects only very few intermediaries.
    • The decision regarding how to distribute a product has, as its foundation, basic economic concepts, such as utility.
    • Understanding the utility a consumer expects to receive from a product being offered can lead marketers to the correct distribution strategy.

  • Impact of the Product Life Cycle on Marketing Strategy

    • Distribution channels are added as demand increases and customers accept the product.
    • Distribution becomes more intensive, and incentives may be offered to encourage preference over competing products.

  • Selecting Target Markets

    • Strategic targeting can optimize the return on investment through selecting the best segments in the market for return on investment.
    • These groups of interested consumers within the broader market is usually referred to as a target market, and should be a much more strategic place to invest capital in terms of marketing distribution.
    • The key here is to get the greatest return on marketing spend through strategically selecting the appropriate channels and using the ideal messaging to reach the selected segment.

  • Distribution Centers vs. Direct Store Delivery

    • Depending on customer needs, marketing channel strategies can utilize distribution centers or move products directly to a store.
    • Depending on the product being sold and ultimate end user, companies can choose a marketing channel strategy that involves utilizing distribution centers (wholesalers) or moving their products directly to a store, or retailer.
    • Furthermore, chains are able to attract many customers because of their convenient locations, made possible by their financial resources and expertise in selecting locations.
    • Wholesalers perform a number of useful functions within the channel of distributions.

  • SIVA: Solution, Incentive/Information, Value, and Access

    • Many factors affect value, including the customer's cost to change or implement the new product or service and the customer's cost for not selecting a competitor's product or service.
    • Access → Place (Distribution) The "Place" in the four Ps model is replaced by "Access. " With the rise of the Internet and hybrid models of purchasing, geography is becoming less relevant.
    • Access also refers to the channels of distribution associated with a product.
    • Distribution channels move products and services from businesses to consumers and to other businesses.

  • Encouraging Product Trials

    • Adjusting these three variables – price, product, and place (distribution or location) – enhances both the trial offer and the appeal of the final product or service.
    • Developing communications for selected audiences most receptive to the brand's offer, reduces time and money spent on implementing promotional programs.