Directorate of distance education

Importance of Physical Distribution 
Buying a computer in the post, petrol at a supermarket, mortgages 
over the phone and phones themselves from vending machines are just 
some innovations in distribution which create competitive advantage 
as customers are offered newer, faster, cheaper, safer and easier ways of 
buying products and services. 

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Notes
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Without distribution even the best product or service fails. Author 
Jean-Jacques Lambin believes a marketer has two roles: 
(1) To organise exchange through distribution and 
(2) To organise communication. 
Physical distribution, or Place, must integrate with the other ‘P’s 
in the marketing mix. For example, the design of product packaging must 
fit onto a pallet, into a truck and onto a shelf; prices are often determined 
by distribution channels; and the image of the channel must fit in with 
the supplier’s required ‘positioning’. You can see how Coca Cola further 
integrate the timing of distribution and promotion in the Hall Of Fame 
later. In fact, they see distribution as one of their “core competencies”. 
Marketing Logistics: Managing Supply Chains

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Notes
10
Distribution is Important Because
Firstly, it affects sales - if it’s not available it can’t be sold. Most 
customers won’t wait. 
Secondly, distribution affects profits and competitiveness since it 
can contribute up to 50 percent of the final selling price of some goods. 
This affects cost competitiveness as well as profits since margins are 
squeezed by distribution costs. 
Thirdly, delivery is seen as part of the product influencing customer 
satisfaction. Distribution and its associated customer service play a big