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Distribution strategy in which company limits its outlets in different regions or buyer can buy in only company's territory is classified as :

  • A.Intensive territorial agreement
  • B.Selective territorial agreement
  • C.Inclusive territorial agreement
  • D.Exclusive territorial agreement

Answer: D

This is an exclusive territorial agreement.

In exclusive distribution the producer gives a single dealer the sole right to sell its products in a territory, and often requires buyers in that territory to buy only from that dealer. It is common for luxury cars and premium brands, where the producer wants close control over pricing, service and image.

Intensive distribution places the product in as many outlets as possible, as with soft drinks. Selective distribution uses more than one but fewer than all willing outlets in an area. 'Inclusive' is not a recognised distribution strategy.

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