Physical Distribution in Marketing management.pptx

Place in marketing

1. Physical Distribution in Marketing Physical distribution is a critical component of marketing that involves the movement and storage of goods from the producer to the consumer. It encompasses the various channels, modes of transportation, and warehousing strategies used to efficiently deliver products to customers. by Pavman Pahuja

2. Definition and Importance 1 Definition Physical distribution refers to the logistical processes involved in delivering goods from the point of production to the point of consumption. 2 Importance Effective physical distribution ensures timely, cost-efficient, and reliable delivery of products to customers, enhancing customer satisfaction and overall business competitiveness.

3. Types of Physical Distribution Direct Distribution Products are delivered directly from the manufacturer to the end consumer, without the use of intermediaries. Indirect Distribution Products are distributed through one or more intermediaries, such as wholesalers, retailers, or agents, before reaching the final consumer. Hybrid Distribution A combination of direct and indirect distribution, leveraging both manufacturer-owned and intermediary channels.

4. Channel Intermediaries Wholesalers Purchase products in bulk from manufacturers and sell them to retailers or other businesses. Retailers Purchase products from wholesalers or manufacturers and sell them directly to consumers. Brokers Act as intermediaries between buyers and sellers, facilitating transactions and distribution. Agents Represent manufacturers or suppliers in the distribution of their products to customers.

5. Transportation Modes Road Trucks and vans for local and regional distribution. Rail Efficient for long-distance, high-volume transportation of goods. Water Ships and barges for international and coastal distribution. Air Fastest mode for time-sensitive or perishable goods.

6. Warehousing and Storage 1 Receiving Goods are unloaded, inspected, and prepared for storage. 2 Storage Products are organized and placed in designated storage areas. 3 Picking and Packing Orders are fulfilled by retrieving and packaging the required goods.

7. Inventory Management Demand Forecasting Predicting future customer demand to optimize inventory levels and reduce waste. Inventory Control Monitoring and adjusting stock levels to meet customer needs efficiently. Order Processing Streamlining the order fulfillment process to ensure timely delivery.

8. Strategies for Effective Physical Distribution Route Optimization Identifying the most efficient transportation routes to minimize costs and delivery times. Multimodal Integration Combining different transportation modes (e.g., truck, rail, air) to leverage their respective strengths. Collaborative Partnerships Forming strategic alliances with logistics providers and intermediaries to improve distribution efficiency.