Question

explain the function of physical distribution? (5-10 marks) ​

Answer 1

Answer:

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Physical distribution is an important marketing function describing the marketing activities relating to the flow of raw materials from the suppliers to the factory and the movement of finished goods from the end of production line to the final consumer or user.

Answer 2

Answer:

Physical distribution is an important marketing function describing the marketing activities relating to the flow of raw materials from the suppliers to the factory and the movement of finished goods from the end of production line to the final consumer .

According to Philip Kotler, physical distribution “involves planning, implementing and controlling the physical flows of materials and final goods from place of production to the place of end use to satisfy buyers’ needs.”

The key functions within the physical distribution system are:

Customer service

Order processing

Inventory control

Transportation and logistics

Packaging and materials

The customer service function is a strategically designed standard for consumer satisfaction that the business intends to provide to its customers.

Order processing is designed to take the customer orders and execute the specifics the customer has purchased. The business is concerned with this function because it directly relates to how the customer is serviced and attaining the customer service goals.

Inventory control is a major role player in the distribution system of a business. Costs include investment into current inventory, loss of demand for products, and depreciation. There are different types of inventory control systems that can be implemented, such as first in-first out (or FIFO) and flow through, which are methods for businesses to handle products.

Transportation and logistics costs are a large component of the marketing budget for a product. The system is what moves the products from the production line to the end consumer. This system includes transportation over land, sea, and air and the storage and processing of goods through warehouses and distribution centers.

The packaging and materials function includes all of the activities that are related to maneuvering products through the production facility and transportation and logistics terminals.