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PRINCIPLES OF MARKETING
DISTRIBUTION—CHAPTER 27
Example
Order processing*
Transporting goods*
Storing goods in warehouses*
Stock handling
Inventory control
*Covered in this slide show
Components of Physical Distribution
1—Products to be shipped
Raw materials
2—Channel Members
The businesses that need to distribute their products
Trucks Planes
Advantages Advantages
Speed
Can deliver door to door
Often used for high-value, low-
Flexible to deliver at a
weight items
specific place and time Perishable goods
Can be modified to carry a Saves on inventory costs
specific type of cargo
Disadvantages
Disadvantages Most expensive mode
Advantages
Large quantities of goods can be moved great distances at a low per
item cost
The U.S. has huge ports where imports arrive
Can be modified to suit cargo (i.e. tankers)
Barges can towed or pushed
Disadvantages
Ship delivery is very slow
Delivered to a port and then transported by another mode
Security programs are used to eliminate import fraud and terrorism
Aka freighters haul large containers (8 ft X 8 ft X 40 ft)
of products which is easier than many small boxes
Pipelines
Services
“Transported” by individuals, through their performance of the
service
Ideas
Carried by media to their target market
Radio stations, television channels. Internet Web sites,
newspapers, magazines, outdoor billboards, and other types of
communication
Target market is aka audience
The Distribution Process