Physical distribution functions influencea)primarily pricing and produ...
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.