Exclusive Distribution

Posted in Marketing and Strategy Terms, Total Reads: 8137
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Definition: Exclusive Distribution

Basically any product can be distributed to consumers through three types of distribution:

(1) Intensive distribution

(2) Selective distribution

(3) Exclusive distribution

An Exclusive Distribution system is one in which a company grants exclusive rights on its products or services to one of two distributors or retailers only on a local area. The most common characteristic are

  • Single branding
  • Exclusive territory rights

Thus a single distributor only has the right to market that product in its specific territory. The rationale behind granting exclusive rights to the distributor is

  • To incentivize better promotion of the product
  • Provide better customer service

 

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