Selective Distribution

Posted in Operations and Supply Chain Terms, Total Reads: 39013

Definition: Selective Distribution

Selective Distribution is a type of distribution strategy that lies and operates between intensive and exclusive distribution. Selective Distribution involves using more than one, but lesser than all the intermediaries and distributors who carry the company’s products on a basis of a company specific set of rules. Mostly furniture, television and home appliance brands are distributed in this manner.

There are total 3 major distribution strategy types: Selective Distribution, Intensive Distribution and Exclusive Distribution

Selective Distribution Example

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.

Advantages of Selective Distribution

The advantages of selective distribution are

1. good market coverage,

2. increased control and

3. reduced costs as compared to intensive distribution.

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