Posted in Operations and Supply Chain Terms, Total Reads: 15567
Definition: Selective Distribution
Selective Distribution is a type of distribution that lies between intensive and exclusive distribution. This basically involves using more than one, but lesser than all the intermediaries who carry the company’s products. Mostly furniture, television and home appliance brands are distributed in this manner.
The best examples would be of Whirlpool and General Electric who sell their major appliances through dealer networks and selected large retailers. They develop a good working relationship with these selected channel partners and expect a better-than-average selling effort.
The advantages of selective distribution are good market coverage, increased control and reduced costs as compared to intensive distribution.