Prepare for UCF MAR3023 Exam 4. Study effectively with quizzes and flashcards. Enhance understanding with multiple choice questions, each featuring hints and explanations. Be confident and exam-ready!

Exclusive distribution involves granting geographic territories to one or very few retailers. This strategy limits the number of outlets that can sell a product, allowing the manufacturer to maintain greater control over the brand's distribution, pricing, and marketing efforts. By restricting distribution to a select few retailers, the brand can create a perception of exclusivity and enhance its prestige, which can be particularly effective for luxury or high-end products.

This approach also encourages retailers to invest more resources into selling the product since they have a unique offering that differentiates them from competitors. Retailers may be more inclined to provide better service and promotional support for products that are not available through many other outlets.

In contrast, the other options describe different marketing or distribution strategies. The first option refers to intensive distribution, where a product is made available through many retailers. The third choice discusses a low-cost marketing strategy, which is unrelated to the concept of distribution exclusivity. Lastly, the focus on online sales only does not encapsulate the broader nature of exclusive distribution, which can include both physical and online retailers, but emphasizes the importance of having limited distribution points.