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Marketing management class lectures_226330031-Marketing-Management

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Definition Physical distribution is the group of activities associated with the supply of finished product from the production line to the consumers. The physical distribution considers many sales distribution channels such as wholesale and retail, and includes critical decision areas which include customer service, inventory, materials, packaging, order processing, and transportation and logistics. You often will hear these processes be referred to as distribution which is used to describe the marketing and movement of products. Accounting for nearly half of the entire marketing budget of products, the physical distribution process typically garnishes a lot of attention from business managers and owners. As a result, these activities are often the focus of process improvement and cost saving initiatives in many companies. Importance of Physical Distribution The importance of physical distribution to a company can vary, and is typically associated with the type of product and the necessity it has to customer satisfaction. Strategically staging products in locations to support order shipments and generating a rapid and consistent manner to move the product enables companies to be successful in dynamic markets. Physical distribution is managed with a systems approach and considers key interrelated functions to provide efficient movement of products. The functions are interrelated because any time a decision is made in one area it has an effect on the others. For example, a bus ...
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