In distribution strategy, if Ford allows only one retailer in a territory to sell its brand, this is known as a(n) ______ distribution strategy.

• A. Exclusive
• B. Selective
• C. Intensive
• D. Limited

Answer: (A)

Exclusive distribution is when a manufacturer grants the rights to sell its product to only one retailer within a geographic area. This arrangement helps protect brand image and control by ensuring consistent service, pricing, and in-store presentation, since the retailer becomes a dedicated partner. It often allows stronger collaboration on marketing and after-sales support. This differs from selective distribution, where a few carefully chosen retailers carry the product, and from intensive distribution, where the product is placed in as many outlets as possible to maximize reach. The term limited isn’t the standard label for this approach, while exclusive clearly describes the one-retailer-per-territory setup.