PHYSICAL DISTRIBUTIONPHYSICAL 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 FUNCTIONTRANSPORTING 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.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 OPPORTUNITIESPHYSICAL 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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