Channels of distribution are the ways in which a manufacturer uses to penetrate into the consumer market. In many distribution processes around the world like Orange County distribution process, the main and important market components are consumers and manufacturers. In between consumers and manufacturers there exist middlemen or intermediaries which are crucial in reducing the gap between the two. It is however, not clear if the distance is actually reduced or not.
A successful strategy of distribution channel generally depends on your go to-reach-market strategy or your effectiveness. Optimization of channel of distribution is therefore, important toward the achievement of growth through an accurate consumer focus Small business is always limited on financial and logistics resources. In the Orange County distribution, there exists an organized channel distribution network that is used by small business to make their products available to retailers. Marketing, financial and logistical assistance are some of the benefits that small business enjoys through Orange County distribution channels.
The following are some of the advantages that small business gets from channel of distribution;
- Network; channel distributor will always coordinate a large group of retailers within a large area. It can also reach as many consumers as possible. Through the use of channel of distribution, small business gets access to these retailers without spending money and time to make relationship with each and every retailer.
- Core skills; small business is supposed to take its time on generating revenue and also developing products. Through channel of distribution, small business get to major on those core skills without spending on hiring personnel for assistance.
- Effectiveness; consider situation where a small business has decided to sell direct to their consumers, this will mean that the business have to develop a direct link with each and every individual consumer. That link will comprise of collection of payment, order placement, product returns among others For example, if they have 10000 clients to serve, then it will mean that they will be linked to 10000 clients that they have to serve and maintain. This will be a burden to the business. Channel of distributor reduces this burden by cutting down the link between the business and their customers.
- Growth; small business products will automatically get exposure given that the channel of distribution network is growing. If the small business is using an international channel distribution a part from that of Orange County distribution network, then it will enjoy the benefits of its products reaching customers internationally and even all over the world.
- Channel of distribution will also enable small business to improve on its image and value, in that it will be growing and also the goods are supplied by professional intermediaries who help to sell the business to the consumers. It will also help small business to improve on its channel of distribution strategy in the sense that it will be able to know which strategy is more beneficial towards achieving it goals and objectives.
- Distributions channel will also help a small business to consolidate on its products market leadership and also help it on its organic expansion.