Which placement strategy involves manufacturers granting sole geographic territories to one or very few retailers so that no other retailers in the territory can sell a particular brand?

Question

BlackTom AI · Accepted Answer

In this question, we are asked to identify which distribution strategy assigns exclusive geographic territories to one or very few retailers, preventing others in the same area from selling that brand.
Option 1: Exclusive distribution. This choice describes the practice of granting exclusive rights to a single retailer or a very small number of retailers within a territory, ensuring that no other retailers in that area carry the brand. This aligns exactly with the definition of exclusive distribution.
Option 2: Retentive distribution. This term is not a standard classification in distribution strategy literature; it sounds like a distractor and does not correspond to the well-known models of exclusive, selective, or intensive distribution.
Option 3: Selective distribution. While selective distribution involves choosing a limited number of retailers to carry a product, it does not necessarily grant exclusive rights to a territory. Multiple retailers within the same area may still be allowed to stock the brand, which contradicts the idea of exclusivity.
Option 4: Intensive distribution. This approach aims to maximize product availability by placing the product with as many outlets as possible, often across broad geographic areas. It directly contrasts with exclusivity, since many retailers can sell the brand, not just a few.
By comparing these, the statement that best matches granting sole geographic territories to a few retailers—and restricting others in the territory from selling the brand—fits the concept of exclusive distribution, while the other options describe different approaches to retailer coverage and territory rights.

Which placement strategy involves manufacturers granting sole geographic territories to one or very few retailers so that no other retailers in the territory can sell a particular brand?

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