Business Degree Certification Practice Test

What is the main purpose of selective distribution in marketing?

1. To maximize market coverage

2. To control product positioning

3. To create high brand loyalty

4. To develop direct customer relationships

The correct answer is: To control product positioning

Selective distribution is a strategy where a company chooses a limited number of intermediaries to sell its products rather than distributing them through all possible outlets. The main purpose of this approach is to control product positioning within the market. By selectively distributing products, a brand can carefully choose retail partners that align with its image and values. This allows them to maintain a certain level of exclusivity and create a desired perception among consumers. Controlling product positioning helps to ensure that the product is presented in a specific manner that resonates with the target audience, strengthens the brand’s identity, and aids in maintaining price integrity. While maximizing market coverage, creating high brand loyalty, and developing direct customer relationships can also be secondary outcomes of selective distribution, the primary focus remains on controlling how the product is presented and perceived in the market. This ensures that the product reaches the right consumers through the right channels, ultimately enhancing brand value and customer experience.