Not all channels will therefore be equally effective for all businesses. Distribution may for example occur by means of intermediaries, as in the case of Xerox above, or directly from the business itself, which also occurs at Xerox in some cases.
On-site, direct sales usually occurs when small businesses are established, and the product or service is sold directly to the customer from the premises of the business. The target consumers are then also located within the immediate vicinity of the business. When target consumers find themselves in a wider geographical area, direct mail is another channel that can be followed. Particular customers are targeted by means of flyers, brochures, etc. In order to sell the product. Orders can then be made via mail. A drawback of this distribution channel is that, while less costly than many other ways of advertising, it may damage the image of the company when poorly targeted.
When a business is huge, like Xerox, it is best to seek partners or other intermediaries for the purpose of product distribution. These intermediaries have to be chosen with great care, in order to provide the best benefit for the business involved. In this, Xerox appeared to have made a wise decision, by choosing an existing and trusted partner. The partner in turn has chosen an implicitly trusted distributor, thereby providing Xerox with the...
Telemarketing and the Internet as useful tools to reach wider audiences when a business begins to grow and the customer base becomes larger. The Internet is especially useful, as it reaches wider audiences, and purchasing is made simpler by means of this.
Agents, wholesalers and retailers are then mostly used by the larger businesses, such as Xerox. Agents can also be extremely useful in product or service distribution. These can be appointed in any location to distribute the product or service involved. When a business begins to expand beyond the borders of a city or specific region, agents can help with the growth of the company, after which the next step is wholesalers and retailers.
Not all businesses will expand beyond a certain margin of growth. It has to be kept in mind that for certain business a limited number of distribution channels is most beneficial. The way in which these channels is used is also vitally important for the particular venture. Currently, technologies such as the Internet make it easier for businesses to grow with the least amount of capital. Distribution channels should then be researched and used with care and wisdom in order to provide the business owner with the maximum benefit.
