STUDENTS' CORNER - 164

Now, we will deal with another Distribution Strategy: Selective Distribution.

Selective Distribution as the name suggests is carried out through some selected outlets. This kind of distribution is for some select products. First of all, the products marketed through Selective Distribution are not common products but some special products. In other words, the select products are generally luxury products or some rather too expensive products.

In a way, Selective Distribution of select products has its appeal to the customers; by implication, the customers are made to feel that they are distinguished from the other customers, the common customers, so to say. They are impressed by the fact that they are considered by the company as privileged customers. The products they are going for are not available everywhere but only in select outlets; they are rather ‘privileged’ products suggesting they cost more and all cannot afford it. Here, the influence of ‘Brands’ can be felt.

The companies adopt different methods to impress the market as well as the customers that they are dealing with some special goods that need some special skill and knowledge of the product. A good example is orthopedic sandals which are sold through pharmacies. And buying these sandals make the customers different from the buyers of ordinary sandals in the sense that they care for every aspect of their wellness, and sandals are their special choice. You might have heard of diabetic sandals.

Selective Distribution has certain advantages. Since the products are distributed through selective channels, the company has the chance of developing good contact with them thereby establishing a better working relationship. After all, it is the effective working relationship that promotes the sale of a product. The final phase where the product goes into the hands of the customer is the outlet where the seller sells the product.  Practically speaking if the relationship is not smooth and friendly, but simply commercial, however good your product might be, remember, the seller can say the product is not now available or he can try to introduce some other product with which company he has a better working relationship.  Selective distribution helps promote this relationship. Through this working relationship, you can have good control over the distribution and sale of your product. Moreover, it is pointed out that it reduces cost compared with intensive distribution.

In our next session we shall deal with the other type of distribution: Exclusive Distribution.