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The answer would be B, image. By choosing one specific distributer you limit distribution but you increase the value perception of that product through the lack of mass availability.
Exclusive distribution generally only works for products that have a high price and high profit margin. Using this method focuses on one dealer, which is a major disadvantage.
selective distribution is used with "hard products" like furniture and stereos for instances. granting more rights to the producer exclusive distribution is used for expensive or upscale products like cars or jewelery. Granting more rights to the distributor. Hope this helps.
The advantage of having exclusive distribution with your fmcg product is that you will have focus on your products and no other priorities getting in the way of you selling more. The disadvantage is that it will cost you more and may end up as a fixed cost which you can not manage if the turnover goes down. If you can afford exclusive - go for it
selective refers to few selected retail customers in a territory to sell products. exclusive refers to selling product to a specific stores. intensive refers to place products in an many outlets as possible.
Exclusive distribution intensity refers to a distribution strategy where a manufacturer grants exclusive rights to a limited number of retailers or distributors to sell its products within a specific geographic area. This approach aims to create a sense of prestige and brand exclusivity, often resulting in higher perceived value among consumers. By limiting the number of outlets, brands can maintain tighter control over their product presentation and customer experience. This strategy is commonly used for luxury goods or high-end products.
Selective distribution occurs when manufacturers distribute products through a limited, select number of wholesalers and retailers. Under exclusive distribution, only a single wholesaler or retailer is allowed to sell the product
Sole distribution is the only retailer in one area allowed to sell a product. Exclusive distribution is where a seller carries only one producer's product and excludes similar products of different brand.
A distribution center is responsible for packaging products. They are also in charge of sending products to businesses that sell the products.
A retailer may seek to be part of an exclusive distribution channel to differentiate itself from competitors and enhance its brand image by offering unique products that are not widely available. This exclusivity can attract a specific customer base, create a sense of prestige, and foster customer loyalty. Additionally, being part of an exclusive channel often allows for better pricing strategies and higher profit margins due to reduced competition.
The type of distribution system would be largely related to the marketing strategy of the company. Looking at the company as a general manufacturer of consumer goods the most likely system would be one of "selective distribution." In selective distribution the company would target their products to specific outlets where their products would best fit. Other types of distribution would be "intensive distribution" where the company would try to sell their products to as many different outlets as possible and "exclusive distribution" whereby the company would look to a very limited number of outlets that would most likely specialize in a specific niche. "Selective distribution" falls in between these two types. APEX... :) Standardization
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