Physical Distribution
INTRODUCTION
After products are produced and priced, they must be distributed to the marketplace.
All organizations perform a distribution function. The distribution function is vital to the economic well-being of society because it provides the goods and services desired by the consumer. Economists often describe the value of distribution in terms of ownership, place, and time utility. The marketer contributes to the product's value by getting it to the right place at the time the consumer wants to buy it and by providing the mechanism for transferring ownership. Firms that do not perform the distribution function effectively usually fail.
Distribution also provides employment opportunities. Salespeople, warehouse managers, truck drivers, stevedores, and forklift operators are all involved in distribution. Others service the products provided through a distribution network. Most people involved in distribution are classified as service personnel: Their role is to provide service to some other sector of the economy.
DEFINITION OF KEY TERMS.
Physical distribution
Is the actual movement of goods and services from the producer to the user. Physical distribution covers a broad range of activities. These tasks include customer service, transportation, inventory control, materials handling, order processing, and warehousing.
Distribution channels Define as paths that goods and services and title to them follow from producer to consumer. Distribution channels are composed of marketing intermediaries, the persons or firms that operate between the producer and the consumer or industrial user. The two main categories of marketing intermediaries are wholesalers and retailers.
Marketing intermediaries
Channel members operating between the producer and the consumer or industrial purchaser.
Wholesaling intermediaries
Channel members selling primarily to retailers, other wholesalers, or industrial users.
Retailers
After products are produced and priced, they must be distributed to the marketplace.
All organizations perform a distribution function. The distribution function is vital to the economic well-being of society because it provides the goods and services desired by the consumer. Economists often describe the value of distribution in terms of ownership, place, and time utility. The marketer contributes to the product's value by getting it to the right place at the time the consumer wants to buy it and by providing the mechanism for transferring ownership. Firms that do not perform the distribution function effectively usually fail.
Distribution also provides employment opportunities. Salespeople, warehouse managers, truck drivers, stevedores, and forklift operators are all involved in distribution. Others service the products provided through a distribution network. Most people involved in distribution are classified as service personnel: Their role is to provide service to some other sector of the economy.
DEFINITION OF KEY TERMS.
Physical distribution
Is the actual movement of goods and services from the producer to the user. Physical distribution covers a broad range of activities. These tasks include customer service, transportation, inventory control, materials handling, order processing, and warehousing.
Distribution channels Define as paths that goods and services and title to them follow from producer to consumer. Distribution channels are composed of marketing intermediaries, the persons or firms that operate between the producer and the consumer or industrial user. The two main categories of marketing intermediaries are wholesalers and retailers.
Marketing intermediaries
Channel members operating between the producer and the consumer or industrial purchaser.
Wholesaling intermediaries
Channel members selling primarily to retailers, other wholesalers, or industrial users.
Retailers