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Physical distribution functions influence
  • a)
    primarily pricing and product decisions
  • b)
    primarily promotion and pricing decisions
  • c)
    all elements of the marketing mix
  • d)
    primarily pricing decisions
Correct answer is option 'C'. Can you explain this answer?
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Physical distribution functions refer to the activities involved in the movement and storage of goods from point of production to point of consumption. These functions have a significant impact on various aspects of the marketing mix. Let's discuss the influence of physical distribution functions on each element of the marketing mix:

Product:

- Physical distribution functions influence product decisions by determining the availability of products in the market.
- The efficiency and effectiveness of the distribution system affect the product's reach and lead time to the market.
- The availability of products in the market affects the demand, which in turn influences the product's features, design, quality, and packaging.

Price:

- Physical distribution functions have a direct impact on pricing decisions.
- The cost of transportation, storage, and handling of products has a significant impact on the product's price.
- The efficiency of the distribution system also affects the pricing strategy, as a more efficient system can lead to cost savings that can be passed on to customers.

Promotion:

- Physical distribution functions indirectly influence promotion decisions by determining the availability of products in the market.
- The efficiency of the distribution system affects the lead time of products, which in turn influences the promotional activities.
- A more efficient system can lead to timely delivery of products, which can help in executing promotional campaigns effectively.

Place:

- Physical distribution functions are an integral part of the place or distribution element of the marketing mix.
- The physical distribution system determines the availability of products in different geographical locations, which influences the choice of distribution channels.
- The choice of distribution channels has a significant impact on the reach and availability of products in the market.

In conclusion, physical distribution functions have a significant influence on all elements of the marketing mix. A well-designed and efficient distribution system can help in achieving marketing objectives by ensuring timely delivery of products, reducing costs, and improving customer satisfaction.
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Physical distribution functions influencea)primarily pricing and product decisionsb)primarily promotion and pricing decisionsc)all elements of the marketing mixd)primarily pricing decisionsCorrect answer is option 'C'. Can you explain this answer?
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