Functions of physical distribution. Marketing Management Physical Distribution 2019-03-02

Functions of physical distribution Rating: 7,2/10 1274 reviews

PHYSICAL DISTRIBUTION

functions of physical distribution

It is the aim of Articlesng. The decision to open an own depot in a zone depends on the turnover in that zone is at least equal to break-even sales values to justify the setting up of a depot. These independent organizations are usually made of the manufacturers, intermediaries wholesaler, retailer, specialized and end users. The sedentary trader offers fewer services to the farmers and therefore his margin tends to be lower than that of other types of trader. This definition to the researcher is marketing oriented in that it re-organizes that the physical transfer of product be organize to enhance customers research customers satisfaction at a profit. The channels of distribution used by an organisation must be capable of assisting in reaching these targets. Consequently, Wakomet convinced their dealers to stock 3 popular screen sizes for every hammer mill.

Next

The Effectiveness of Physical Distribution

functions of physical distribution

Brought to you by Inventory Policies There is a trade-off for a firm between having too much inventory on hand, with its incurred additional costs, and not having enough inventory on hand to satisfy shifting customer demand. Each of these is aimed at reducing the time and cost of delivery and the improvement of customer service levels. This happens, for example, with agricultural equipment. It includes following two functions: i Storage: Storage is considered to be main activity of marketing these days. For higher demand, the products can move into the warehouse and be prioritized on store delivery trucks without being stored in the warehouse the flow through approach.

Next

Physical Distribution in Marketing: Definition, Functions & Importance

functions of physical distribution

Growers wanted to mass market their produce and so department stores and food chains were targeted because these outlets enjoyed much higher levels of customer traffic. Demand-oriented marketing functions relating to the search for and stimulation of buyers are quite risible to consumers. Sachet are man made product in the market which have gained ground so much due to the condition of bad drinking water in the world. It became clear that the emphasis in these organisations was upon selling large volumes of low cost foodstuffs. There are several key decision areas pertaining to the appointment of intermediaries. Actually, production is not complete until the goods get to the consumers usually involves designing a system of intra- company and inter- company relationship that would satisfactory arrange for and deliver goods to consumers. Other wholesalers provide only a limited service.

Next

Marketing Management Physical Distribution

functions of physical distribution

Caterpillar pursues a dealer policy with the twin objectives of assisting in strengthening the profit performance of these independent businesses and enabling them to deliver an outstanding level of service to their customers. So that he may issue instructions, receive the reactions of the subordinates, and guide and motivate them. Computerised scanners: Modern retail supermarkets and wholesalers are increasingly using electronic scanners at the checkout to speed up customer flow and improve inventory management. Some authors have viewed physical distribution as a process, some as a set of interrelated activities, whereas some regard it as a both. For example, if the handbag business has an error in the processing of a customer order, the business has to turn to premium transportation modes, such as next day air or overnight, to meet the customer service standard set out, which will increase the transportation cost.

Next

Physical Distribution Management (Transportation)

functions of physical distribution

These include: price policy, terms and conditions of sale, territorial rights and the definition of responsibilities. Planned and integrated management of physical distribution has assumed unique importance in marketing management since a customer gives top preference to reliable and punctual delivery of goods and expects minimum time interval between the date of placing an order and the date of receipt of goods. As the company grows, more shares are offered and the price fluctuates based on what the people buying the stock think the company is going to do. Some authors have shown concern for the concept of physical distribution. Putting freight on pallets or using bubble wrap or paper to hold the products in place are common approaches to securing the value of the goods. Understand their relationship in the channel distribution During the mid 1980s Lesotho began to export canned white asparagus. Costs include inventory carrying costs, depreciation and fall in the demand for products, etc.

Next

PHYSICAL DISTRIBUTION

functions of physical distribution

Dealer diversification also strengthens the financial base of those dealerships. Research also revealed that many consumers considered the unit price too high for them to purchase cut flowers regularly. This is common in fruit and vegetable wholesale markets where sales agents sell produce, on a commission basis, on behalf of growers. The auction company makes its profits from facilitating the purchase and sale of the commodity. Part of logistics management, physical distribution is concerned with the transporting of merchandise, raw materials, or by-products, such as hazardous waste, from the source to the customer. In many cases, the producer or supplier will find it difficult to find market oriented intermediaries and in these instances will have to embark on training and education programmes.

Next

Objectives for Physical Distribution

functions of physical distribution

The primary market performs the crucial function of facilitating capital formation in the economy. Market information includes the collection of data regarding trend of market, government policy, price policy of different business enterprises, tastes of consumers, change in fashion, scientific development, channels of distribution, media of advertisement etc. There is likely to be no discernible difference in the service levels of two suppliers, one of whom is able to immediately supply a spare part from stock on 99 of 100 occasions and another who is able to supply from stock on 97 of 100 occasions. If successful, he keeps the difference between the floor-price and the actual price as his margin. Customer service means several things i. In a similar attack on physical distribution Edoga and Ani 2000:209 first describe physical distribution as a very important element of marketing mix because of the utilities it creates for consumers.


Next

Marketing Management Physical Distribution

functions of physical distribution

Distribution as an integral part of marketing has a role to play bringing the required goods and services to the end user. A six-step procedure is recommended as follows: 1. Many marketing boards, for example, have discovered just how great a financial burden pan territorial distribution can be and have found their role in basic food security incompatible with the objective of breaking even in their finances. These were considered inappropriate when the objective was to expand demand for cut flowers. A large consumer goods company having all India marketing network spends following percentages of market price of goods on: 1 Transport 1. Some goods are produced only in certain season and are use for whole year. The system is what moves the products from the production line to the end consumer.


Next

Physical Distribution Functions

functions of physical distribution

Other decisions related to transportation include how often to transport goods, or the frequency of transportation, and the transportation route. Instead, a forecast is made of demand over the next lead time and the size of the order to be placed is determined accordingly. Transportation- shipping of products on time and right place 3. The broker then attempts to sell the animal above this price. Transportation The firm also has to make decisions relating to what mode of transportation to use for its physical distribution. As a consequence, computer generated vehicle schedules were sometimes sub-optimal, sometimes unrealistic and often resented by those who had to implement them. The solution was for the milk processor to make several deliveries during the day.

Next