Maximizing Market Effectiveness: Place Decisions

Distribution is an integral part of marketing and involves much more than physical distribution alone. It has the potential to negate or reinforce other aspects of the marketing effort, and it also can stimulate demand. Management must develop a distribution channel policy that ensures that channels match customers' requirements and the firm's capabilities in the most cost-effective way. Properly defined, customer service can be an effective marketing tool. The level of service to be provided depends on achieving a satisfactory cost-benefit balance. Getting the product to the customer cannot be viewed by marketing management as the concern of others, since physical distribution can have a major impact on marketing performance. It is suggested that the key to the successful development of a firm's physical distribution effort is the adoption of a total systems approach, where an integrative view is taken of the various activities involved.