Final answer:
The distribution strategy that sends products to few preferred retailers within a geographic area is known as exclusive distribution.
Step-by-step explanation:
The distribution strategy that sends products to a limited number of preferred retailers in a specific geographic area is known as an exclusive distribution strategy. This method can be advantageous for high-end or specialized products where the producer wants to maintain a certain level of prestige or where the product requires a specific retail environment for sales.
Understanding the preference for exclusive distribution can be informed by various economic models. For example, the Hotelling Model suggests that companies may cluster in certain locations to maximize potential customers, while Von Thünen's model and others emphasize the importance of location in relation to both natural resources and the market.