{"id":14739,"date":"2018-03-02T10:48:17","date_gmt":"2018-03-02T15:48:17","guid":{"rendered":"https:\/\/www.advergize.com\/?p=14739"},"modified":"2018-03-02T10:48:17","modified_gmt":"2018-03-02T15:48:17","slug":"selective-distribution-examples-strategy-explanation","status":"publish","type":"post","link":"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/","title":{"rendered":"Selective Distribution Examples, Strategy &amp; Explanation"},"content":{"rendered":"<p>Selective distribution is the most effective distribution strategy for high-end brands that want to set up a limited number of outlets in a particular geographical location. This is quite different from exclusive distribution (which can be a little too extreme) and is considered as a middle path approach to distribution.<\/p>\n<p>This type of strategy works best when dealing with consumers that like to \u201cshop around\u201d. Or simply put, it&#8217;s ideal for customers who may have special brand preferences when they are purchasing a specific product.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-flat ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-662dbf7b7c257\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662dbf7b7c257\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#What_is_Selective_Distribution\" title=\"What is Selective Distribution?\">What is Selective Distribution?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Why_do_Companies_opt_for_selection_distribution_strategies\" title=\"Why do Companies opt for selection distribution strategies?\">Why do Companies opt for selection distribution strategies?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Selection_Distribution_Examples\" title=\"Selection Distribution Examples\">Selection Distribution Examples<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Selective_Distribution_Advantages_and_Disadvantages\" title=\"Selective Distribution Advantages and Disadvantages\">Selective Distribution Advantages and Disadvantages<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Advantages_of_Selective_distribution\" title=\"Advantages of Selective distribution\">Advantages of Selective distribution<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Optimum_Market_Coverage\" title=\"Optimum Market Coverage \">Optimum Market Coverage <\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Consumer_Satisfaction\" title=\"Consumer Satisfaction\">Consumer Satisfaction<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Better_Communication\" title=\"Better Communication\">Better Communication<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Disadvantages_of_Selective_distribution\" title=\"Disadvantages of Selective distribution\">Disadvantages of Selective distribution<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Decreased_market_penetration\" title=\"Decreased market penetration\">Decreased market penetration<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/#Can_lead_to_costly_disputes\" title=\"Can lead to costly disputes \">Can lead to costly disputes <\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"What_is_Selective_Distribution\"><\/span>What is Selective Distribution?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For better clarity, selective distribution occurs when a company resorts to opening up a limited number of outlets in a specific geographical location.<\/p>\n<p>Sure, this may sound restrictive at best but it actually helps the producer filter out the best-performing outlets. This yields better results and allows the company to put in all their focus effort (training facilities and resource) to better use.<\/p>\n<p>It functions as a favorable alternative for manufacturing firms that would rather focus on a few outlets instead of dissipating their energies and resources on countless marginal ones.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_do_Companies_opt_for_selection_distribution_strategies\"><\/span>Why do Companies opt for selection distribution strategies?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A selection distribution strategy allows companies to select appropriate outlets according to different locations.<\/p>\n<p>Additionally, it\u2019s highly beneficial for manufacturers since they\u2019re able to choose price points based on their consumers. This eventually leads to a more <a href=\"https:\/\/www.forbes.com\/sites\/shephyken\/2017\/10\/29\/personalized-customer-experience-increases-revenue-and-loyalty\/\">personalized shopping experience<\/a> that encourages consumers to come back again and again.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Selection_Distribution_Examples\"><\/span>Selection Distribution Examples<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Since this form of distribution caters to the needs of consumers of a specific geographical area, its best suited for companies that want to maintain quality. This is why it\u2019s no surprise that luxury goods manufacturers often opt for selective distribution.<\/p>\n<p>High-end companies that produce exceptional quality clothing and accessories are likely to use selective distribution. For example, you may find Dolce &amp; Gabbana products in stores like Neiman Marcus but not at JC Penneys or Wal-Mart. This is done set standards and keep a close eye on distributors.<\/p>\n<p><a href=\"https:\/\/www.advergize.com\/marketing\/exclusive-distribution-examples-strategy-explanation\/\">Exclusive distribution<\/a> is a more extreme type of selection distribution. It usually involves just one or two distributors in a specific area.<\/p>\n<p>Television, home appliances, and furniture brands are also popularly distributed using this method.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Selective_Distribution_Advantages_and_Disadvantages\"><\/span>Selective Distribution Advantages and Disadvantages<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Depending on the organization and its goals, selective distribution offers its own set of advantages and disadvantages.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Advantages_of_Selective_distribution\"><\/span>Advantages of Selective distribution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Some major advantages include:<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Optimum_Market_Coverage\"><\/span><strong>Optimum Market Coverage <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Selective distribution allows companies to garner optimum market coverage, that too at a relatively lower price. Best of all, both new and existing firms can experiment with this alternative to see if they are able to get the best results.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Consumer_Satisfaction\"><\/span><strong>Consumer Satisfaction<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Since a number of distributors are handpicked by the company, consumers are likely to benefit from better quality services and products. Manufacturers also have better control in terms of how the product is handled by distributors.<\/p>\n<p>This reduces the risk of fumbles, leading to increased consumer satisfaction.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Better_Communication\"><\/span><strong>Better Communication<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Because there are only a few number of outlets to oversee, manufacturers are able to establish good working relationships with channel members. Better communication and coordination ultimately leads to an <a href=\"https:\/\/www.forbes.com\/sites\/forbescoachescouncil\/2017\/04\/20\/16-unique-strategies-to-improve-your-brand\/#5fd435615ec5\">improved brand image<\/a> which is what most leading companies desire.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Disadvantages_of_Selective_distribution\"><\/span>Disadvantages of Selective distribution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On the flip side, here are a couple of disadvantages that are associated with selective distribution:<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Decreased_market_penetration\"><\/span><strong>Decreased market penetration<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Since products sold via selection distribution aren\u2019t available everywhere, you may not be able to achieve increased market penetration. But of course, that depends on the goals of the organization.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Can_lead_to_costly_disputes\"><\/span><strong>Can lead to costly disputes <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Disputes with distributors can lead to hefty losses. In this case, companies must ensure that there are no problems in communication and that all conflicts are resolved immediately.<\/p>\n<p>For maximum results, companies should conduct a\u00a0 detailed market research. This&#8217;ll help determine what kind of distribution strategy would be best suited for their products.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Selective distribution is the most effective distribution strategy for high-end brands that want to set up a limited number of outlets in a particular geographical location. This is quite different from exclusive distribution (which can be a little too extreme) and is considered as a middle path approach to distribution. This type of strategy works <\/p>\n","protected":false},"author":537,"featured_media":14740,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4611],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Selective Distribution Examples, Strategy &amp; Explanation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.advergize.com\/marketing\/selective-distribution-examples-strategy-explanation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Selective Distribution Examples, Strategy &amp; Explanation\" \/>\n<meta property=\"og:description\" content=\"Selective distribution is the most effective distribution strategy for high-end brands that want to set up a limited number of outlets in a particular geographical location. 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