Microsoft Word marketing doc

4.6
 
 
P
HYSICAL 
D
ISTRIBUTION
 
In the process of movement of goods, there are two important tasks 
which make the flow of goods from manufacturer to the ultimate consumer.
They are physical distribution and channel management. 
The meaning of physical distribution can be understood with the help of 
the following definitions.

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According to Candiff and Still - 
“Physical Distribution involves the actual movement and storage of 
goods after they are produced and before they are consumed”. 
According to Philip Kotler - 
“Physical Distribution involves Planning, implementation and 
controlling the physical flow of materials and finished goods from paints of 
origin to pints of use to meet customer needs at a profit”. 
According to William J. Stanton - 
“Physical 
Distribution 
involves the Management of Physical flow of 
Products and establishment and operation of flow systems”. 
The above definitions clearly indicate that physical distribution is a 
marketing activity which is concerned with the handling and movement of 
goods. It includes all those activities connected with the efficient movement of 
goods from the place of production to the place of consumption. 
Objectives of Physical Distribution 
Physical distribution has two broad objectives i.e., consumer satisfaction 
and profit maximisation. These objectives may be further analysed as follows. 
a)
To make available the product at the right place and at the right time. 
b)
To attract additional customers by lower price through improvement in 
physical distribution. 
c)
To improve the profit margin for the producers by making the physical 
distribution more effective and efficient. 
d)
To improve the consumer services such as timely delivery, quality, 
dependability, communication, availability and convenience. 
e)
To increase the market share of the marketing unit by adopting efficient 
physical distribution system. 
f)
To prevent price fluctuations and distortions by using available transport 
and warehouse facilities. 
Thus, the physical distribution is an important area of marketing, which 
has received considerable attention in the recent years. 

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