Methods for Distribution Channels

Source: brgfx / Freepik
Source: Mihimihi / Flaticon

Intensive distribution is a type of promotion in which a corporation attempts to sell its goods to a major store by selling it to a small trading company. A customer will, for all intents and purposes, want to find the item wherever they travel.

Selective distribution is a structure and strategy for selling a company's products through a chosen group of intermediaries. Different exceptions and competition rules govern such vertical relationships between firms to ensure that no organization has an unfair advantage over another.

Source: Freepik / Flaticon
Source: Freepik / Flaticon

Exclusive distribution is an agreement between a dealer and a manufacturer that the producer will not sell the item to anyone else and will only sell it to the elite distributor with whom they have signed an agreement. At the same time, the selective distributor must make the decision that they will only sell the producer's products and not those of the rivals.