MEANING AND COMPONENTS OF PHYSICAL DISTRIBUTION

Ø  PHYSICAL DISTRIBUTION

MARKETING MGMT/PRINCIPLE OF MARKETING MGMT

MARKETING MGMT/PRINCIPLE OF MARKETING MGMT
MARKETING MGMT/PRINCIPLE OF MARKETING MGMT

·          CONTENTS

a)     MEANING OF PHYSICAL DISTRIBUTION

b)     DEFINITION

c)     OBJECTIVE

d)     SIGNIFICANCE

e)     COMPONENTS OF PHYSICAL DISTRIBUTION

f)      CHECK PLAYLIST FOR MARKETING  ON YOU TUBE SHASHI AGGARWAL FOR ANY TOPIC RELATED TO MARKETING

v     MEANING OF PHYSICAL DISTRIBUTION

·         PHYSICAL DISTRIBUTION S CONCERNED WITH THE PHYSICAL MOVEMENT OF GOODS FROM THE PRODUCER TO THE CONSUMER.

·         IT INCLUDE ALL THOSE ACTIVITIES WHICH HELP IN EFFICIENT MOVEMENT OF GOODS FROM PRODUCER TO THE CONSUMER,SUCH AS TRANSPORTATION,WAREHOUSING,MATERIAL HANDLING,INVENTORY CONTROL,ORDER PROCESSING,MARKET FORECASTING,PACKAGING AND WAREHOUSING LOCATION AND CUSTOMER SERVICE.

·         DEFINITION OF PHYSICAL DISTRIBUTION

·         ACCORDING TO PHILIP KOTLER,” PHYSICAL DISTRIBUTION INVOLVES PLANNING,IMPLEMENTING AND CONTROLLING THE PHYSICAL FLOW OF MATERIALS AND FINAL GOODS FROM THE POINT OF ORIGIN OF USE TO MEET CONSUMER NEEDS AT PROFIT.

·         MANAGEMENT OF THE PHYSICAL FLOW OF PRODUCTS AND OPERATIONS OF FLOW SYSTEM. IT IS A PROCESS OF MANAGING THE MOVEMENT OF GOODS.

Ø  OBJECTIVES OF PHYSICAL DISTRIBUTION

a)    CUSTOMER SATISFACTION

b)    PROFIT MAXIMIZATION

c)    TO MAKE THE RIGHT GOODS IN RIGHT QUANTITY AT RIGHT TIME AND RIGHT PLACE AT LEAST COST

d)    TO ACHIEVE MINIMUM INVENTORY LEVEL AND SPEEDIER TRANSPORTATION

e)    TO ESTABLISH PRICE OF PRODUCTS BY EFFECTIVE MGMT OF PHYSICAL DISTRIBUTION ACTIVITIES

f)     TO GAIN COMPETITIVE EDGE

v     SIGNIFICANCE OF PHYSICAL DISTRIBUTION

1)    CREATING TIME AND PLACE UTILITY

2)    HELP IN REDUCING DISTRIBUTION COST

3)    HELP IN STABILIZATION OF PRICE

4)    IMPROVED CONSUMER SERVICES

v     COMPONENTS OF PHYSICAL DISTRIBUTION

• ORDER PROCESSING: RECEIVING THE ORDER,HANDLING THE ORDER,BILLING,DISPATCHING AND COLLECTING BILLS. IT IS VERY IMPORTANT. EFFORT SHOULD BE MADE TO MAINTAIN THE ORDER CYCLE TIME
• STORAGE AND WAREHOUSING:-STORAGE MEANS PROPER ARRANGEMENT FOR RETAINING THE GOODS IN PROPER CONDITIONS TILL THEY ARE DEMANDED BY CUSTOMERS. WAREHOUSING PROVIDE THE STORAGE FUNCTION AND THEY ALSO PERFORM OTHER FUNCTION LIKE MARKETING,ASSEMBLING THE GOODS.STORAGE WAREHOUSE FOR STORING AND DISTRIBUTION WAREHOUSING IS USED FOR ASSEMBLING AND REDISTRIBUTING

  

• INVENTORY CONTROL: REFERS TO EFFICIENT CONTROL OF GOODS AND SERVICES STORED IN WAREHOUSE. INVENTORY ACTS AS BRIDGE BETWEEN THE ORDERS OF CUSTOMERS AND PRODUCTION. MAINTAINING ADEQUATE INVENTORY IS VERY ESSENTIAL FOR THE SMOOTH FLOW OF GOODS AND SERVICES.
• MATERIAL HANDLING:-INCLUDE ALL THOSE ACTIVITIES WHICH ARE ASSOCIATED IN MOVING PRODUCTS WHEN IT LEAVES THE MANUFACTURING PLANT BUT BEFORE IT IS LOADED ON THE TRANSPORT.MATERIAL HANDLING IS SUB PART OF THE TOTAL PHYSICAL DISTRIBUTION SYSTEM AND HELPS IN REDUCTION IN COST AND BETTER SERVICE TO CONSUMERS. EFFECTIVE MGMT OF MATERIAL HANDLING SYSTEM LEADS TO EFFECTIVE MGMT OF TOTAL PHYSICAL DISTRIBUTION SYSTEM AND THEREBY MAKES IT ECONOMICAL.

• TRANSPORTATION: MOVEMENT OF THE GOODS FROM  THE
• WAREHOUSE TO CUSTOMER DESTINATION. INCLUDES LOADING AND UNLOADING OF GOODS AND THEIR MOVEMENT FROM ONE PLACE TO ANOTHER. IT PROVIDES TIME AND PLACE UTILITY,
• RIGHT FORM OF TRANSPORTATION IS VERY ESSENTIAL AS IT DIRECTLY AFFECT THE PRICE OF THE PRODUCT. THE TRANSPORTATION MODE NEED TO BE ADEQUATE,REGULAR AND DEPENDABLE

·         COMPONENTS OF TRANSPORT MODE

1)    ROAD TRANSPORT

2)    RAILWAYS

3)    WATER TRANSPORT

4)    AIR TRANSPORT

5)    PIPELINES