This approach of breaking down a problem has been appreciated by majority of our students for learning Functions Distribution Channel concepts. A can be as short as a direct from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers. The distribution function of marketing is comparable to the place component of the marketing mix in that both center on getting the goods from the producer to the consumer. Will it help he sell more? For example, a business that is providing custom handbags would consider shipping finished products via air freight versus rail or truck in order to expedite shipment time. Time to store the product 3. However, carrying costs and ordering costs are more important, and if they are balanced, the total costs can be effectively reduced. Awareness regarding products and other offers should be created among the consumers.
As stated earlier the 5 components of. Note that order processing affects customer service in two ways — reordering time interval between two orders and consistency of delivery time delivering products within the fixed time. The goal of the physical distribution function is to produce a specified level of customer service while minimizing the costs involved in physically moving and storing the product from its production point to its ultimate purchase. For instance, the lumber manufacturer sells lumber to the furniture maker, who then makes the furniture and sells it to retail stores, who then sell it to the final customer. Marketing managers generally take three decisions while conducting inventory management, viz, i how can the track be kept, on a day-to- day basis of location, amount and the condition of the inventory? Once these customer service standards are set, the physical distribution system is then designed to attain these goals. You need to be aware of them all.
After proper analysis of various relevant variables, the suitable structure of organisation should be created and implemented. Software: the internal instructions used by computers to do their job correctly. Expressed as a percentage, the typical value is 95% or 0. Thus, order processing becomes very important. Simply put, distribution is the process of delivering the products manufactured or service provided by a firm to the end user.
It is the physical location of salient features of a place. A firm can provide satisfaction to consumers by making available right quantity of right goods at right place and time, at lowest costs. Goods are stored in warehouses to be released in time of demand. Objectives and Importance : Market logistics system is aimed at offering the right products to the right customers, at the right place, at the right time, in the right pattern, and at the least costs. This type of allocation is generally given to very large networks such as multi-national companies. The users use the database access language to enter new data, change the existing data in database and to retrieve required data from databases. The modern mechanised handling services and protective packaging have improved the level of customer service and at the same time lowered physical distribution costs.
Such warehouses are well-equipped with human and mechanical devices. Logistics means a detailed organisation of large and complex exercise. Physical distribution is an important element of marketing mix; it involves physical handling and movement of goods from the place of production to the place of consumption. It is an important part of marketing activity and a major component of marketing mix. Warehouses offer a number of direct advantages to manufacturers and sellers, and indirect advantages to customers.
Market logistics involves: 1 Estimating target markets requirements, 2 Procuring necessary inputs for producing the right products, 3 Converting inputs into finished products production process , and 4 Systematically distributing the products to ultimate users. This type of organisation is typically portrayed in Figure 1. Warehousing provides the storage function. Default Network: The special network 0. Does it really make the product that much better? Even before we can analyze the distribution costs by evolving proper criteria we face a major difficulty.
Therefore, it needs to be properly managed and controlled. But, the use of computer and computer networks, for speedy and accurate order processing, can save time, money and efforts for the company and increases customer satisfaction. The common bases adopted are product groups, market segments, geographic location, etc or a combination of these. He works under marketing manager. Executing order or assembling of products for dispatch 5.
However, maintaining warehouses involves its own cost. So, the primary purpose of holding inventory is to meet market demand continuously. Here the marketing functions are carried out by the manufacturer of product by him. Definition Physical distribution is the group of activities associated with the supply of finished product from the production line to the consumers. The importance of this decision would offset the cost of inventory control, which could be much more costly. The administrators may also use the database access language to create and maintain the databases.