Exclusive Distribution

Published by MBA Skool Team, Last Updated: April 24, 2012

What is 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

 

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 6 categories.

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