Exclusive distribution refers to a type of agreement where one company is given the sole right to sell, market and distribute another company's product or service in a specific geographic region. This means that no other competitor will be able to offer the same product or service within that area during the term of the exclusive distribution agreement. The purpose of this type of arrangement is usually to increase sales by giving one distributor complete control over the market, while also providing the manufacturer with a guaranteed outlet for their products.