Distribution and Logistics Management
This book will discuss the concept of distribution. Distribution is one of the elements of the Marketing Mix, which is often called the 4Ps. The Marketing Mix is made up of the Product, Promotion, Price and Place. Distribution is the Place in the Marketing Mix, and does literally mean where or what place will the customer go to buy the product or service the firm is trying to market and sell. These four elements are manipulated by managers in an attempt to attract more people to buy their company's goods and services.
It is often the least understood of the 4Ps. This book will seek to discuss the importance of distribution to companies, the different distribution channels and strategies. It will discuss the concept of logistics and how logistics management is an integral part of a firm's distribution strategy, and is tied to customer service. It will also explain how distribution can provide firms with a competitive advantage.
This book is ideal for undergraduate business management students and marketing majors.
An Introduction to Distribution and Logistics Management
Imagine that you have just seen an exceptionally persuasive advertisement for a new Android tablet. The price is just what you can afford and it is chock full of features that you love. You quickly type in the tablet s name in your Google search engine so that you can locate where you can buy it. Alas, your search reveals that you can only purchase it at the manufacturer s headquarters. The headquarters is a three hour drive from your house, you cannot order by telephone or online. You think what a waste of twenty minutes of your life.
If we review the above scenario we can see that all the other elements of the mix were just right. The promotional tool used was a television advertisement that created a perceived need for the Android tablet. The price was affordable and seemed a value for the product considering all of its high tech features. The one missing element was the place where can it be bought? What good then are all the other elements if the customer cannot or is not willing to purchase the product where the manufacturer has placed it? Multiply this concept across many customers and you will quickly see how this concept of ease of possession leads to increased sales for the company.