What Is Selective Distribution Strategy?

What is meant by selective and intensive distribution strategy?

An intensive distribution strategy involves selling a product in as many outlets as possible.

Selective distribution involves selling a product at select outlets in specific locations.

Exclusive distribution involves selling a product through one or very few outlets..

What are the 3 types of distribution?

There are three methods of distribution that outline how manufacturers choose how they want their goods to be dispersed in the market.Intensive Distribution: As many outlets as possible. … Selective Distribution: Select outlets in specific locations. … Exclusive Distribution: Limited outlets.

What is Apple’s distribution strategy?

Apple distribution strategy in a nutshell. When it comes to distribution channels companies, usually use a direct or indirect approach. In many other cases through a mixture of direct and indirect channels make more sense. For instance, the Apple business model leverages both on direct and indirect channels.

What are the different levels of distribution?

While a distribution channel may seem endless at times, there are three main types of channels, all of which include the combination of a producer, wholesaler, retailer, and end consumer. The first channel is the longest because it includes all four: producer, wholesaler, retailer, and consumer.

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. Virtually, a customer will be able to find the product everywhere he goes.

Does Apple use selective distribution?

Apple has adopted the selective distribution strategy with exclusiveness,In this push strategy is used (Wilkinson 2013). … Android phone of google with tripled market share in just 3 months is the main competitor of apple in Us but still it dominates the market.

Why selective distribution is important?

Selective distribution allows to differentiate between luxury products and potentially competing – albeit more “common” – products. It mainly allows to manage scarcity and prestige, which constitute two of the essential characteristics of luxury products.

What is an example of exclusive distribution?

Exclusive distribution definition is a kind of distribution a manufacturer or supplier authorizes only one distributor to carry out within a definite region. … An example of exclusive distribution is Apple solely authorizing AT&T to be the distributor of the iPhone to end users.

What is direct distribution strategy?

Direct distribution is a direct-to-consumer approach, where the manufacturer controls all aspects of distribution. Indirect distribution involves third parties, like warehouses, wholesalers, and retailers. Direct distribution gives companies more control over the whole process.

Does Apple use a push or pull strategy?

Apple no longer appears to be relying so much on a pull system when it comes to advancing its product line. Instead, a push system is being utilized, and every major product category is being pushed forward simultaneously.

What are the advantages and disadvantages of using a multichannel distribution system?

Overview: advantages and disadvantages of multichannel marketingAdvantagesDisadvantages✔ More flexibility for the company✘ Complex logistics, higher control effort✔ Improves customer satisfaction and customer loyalty✘ Risk that the individual channels are not perceived as part of the same company3 more rows•Aug 28, 2018

What is an example of selective distribution?

Selection Distribution Examples High-end companies that produce exceptional quality clothing and accessories are likely to use selective distribution. For example, you may find Dolce & Gabbana products in stores like Neiman Marcus but not at JC Penneys or Wal-Mart.

What are the 3 distribution strategies?

At the strategic level, there are three broad approaches to distribution, namely mass, selective and exclusive distribution. The number and type of intermediaries selected largely depends on the strategic approach. The overall distribution channel should add value to the consumer.

Which of the following is a benefit of channels of distribution?

Channels of distribution benefit consumers by making a variety of products available to them. Without these channels, consumers could only buy products directly from producers, which would be impractical. Channels may lower some but not all consumer product prices.

What are the two types of distribution?

As mentioned above, the two main types of distribution strategies are direct and indirect. There are also more nuanced types of distribution that fall into these categories — intensive, selective and exclusive distribution.

How do you distribute your product?

There are three basic ways to sell your product:Sell directly to customers via your website.Sell to retail stores, which then sell to customers.Sell to a distributor, which sells to retail stores that then sell to customers.

What is a selective distribution system?

Distribution system whereby a supplier enters into (vertical) agreements with a limited number of selected dealers in the same geographic area. Selective distribution agreements, on the one hand, restrict the number of authorised distributors.

What are the 4 types of distribution?

Types of Distribution Channels – 4 Important Types: Direct Sale, Sale through Retailer, Wholesaler, AgentDirect Sale: This is the simplest form of distribution channel which involves the manufacturer and the consumers. … Sale through Retailer: … Sale through Wholesaler: … Sale through Agent:

What are intensive strategies?

Intensive strategies include. Market Penetration, Market Development and Product Development. Market Penetration is. implemented when an organization wants to increase its market share for the existing products or. services in the existing markets.

What is Apple’s pricing strategy?

Retail pricing Apple uses a MAP (minimum advertised price) retail strategy. MAP policies prohibit resellers or dealers from advertising a manufacturer’s products below a certain minimum price. MAPs are usually enforced through marketing subsidies offered by a manufacturer to its resellers.