Question

What are some brands that you think use selective or exclusive channels? How does channel choice, in those instances, influence consumer perceptions of value? In what situations might selective or exclusive channels add real value?

Answer 1

Selective or exclusive channels are being used by some of the renowned brands such as Mercedes, Apple Inc, Gucci, Toyota, and Adidas and so on,

Channel selection lays a very significant role in the perception of the brand value for the customer. There are many customers who look for a status symbol in a certain product, for them if the product is available everywhere, this will lose the exclusiveness or the value of the brand. Selective distribution involves the use of more than a few, but less than all, of the intermediaries who are willing to carry a particular product. These customers think that if the product is availed a limited location, this will have a better reputation or brand image.

Selective distribution: selling only through those middlemen who will give the product special attention. Selective distribution means “sell it where it sells best.” This exposure is typically associated with shopping products. Selective distribution can reduce costs and get better partners. Selective distribution often moves to intensive as the market grows.

Exclusive distribution means selling through only one middleman in a particular geographic area. Exclusive distribution sometimes makes sense, especially when dealing with specialty products.

The selection of the distribution channel has a greater impact on the perception of brand value. Lesser the place where products are available, greater will be the brand value.

Selective or exclusive channels can add values when:-

The product is targeting a certain or specific customer group

The price of the product is relatively high

Product is associated with a renowned brand name

Only a few customers are willing to buy the product as a status symbol