Transcript Slide 1

PHYSICAL DISTRIBUTION
Choosing the right channel of distribution is crucial in getting products to
the target market’s place.
Physical Distribution is the transporting and storing of goods to match
target customers’ needs with a firm’s marketing mix.
A marketing manager may have to make many decisions to ensure that
the physical distribution system provides utility and meets customers’
needs with an acceptable service level and cost.
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Logistics and
Distribution Customer Service
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TRANSPORTING FUNCTION
Transporting is the marketing function of moving goods. Transportation
provides time and place utilities at a cost.
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ECONOMIES OF SCALE IN TRANSPORTING. STORRING.
Storing is the marketing function of holding goods. It provides time utility.
It can increase the value of goods and make them more available when
customers want them.
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PHYSICAL DISTRIBUTION CHALLENGES AND OPPORTUNITIES
Marketing managers who push for innovations in logistics are likely to
win customers away from firms and whole channel systems that are
stuck on doing things in the old ways. Effective marketing managers
make important strategy decisions about physical distribution.
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