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Physical Distribution

Physical Distribution. Distribution is Place in the 4 P's of Marketing. 1.9%. 1.3%. 4%. 5.6%. 87.1%. Definition. Physical Distribution ~ all the activities that help to ensure that the right amount of product is delivered to the right place at the right time .

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Physical Distribution

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  1. Physical Distribution Distribution is Place in the 4 P's of Marketing

  2. 1.9% 1.3% 4% 5.6% 87.1% Definition • Physical Distribution ~ all the activities that help to ensure that the right amount of product is delivered to the right place at the right time. • Also known as logistics

  3. Types of Transportation Systems • Trucking • Most frequently used • Usually used for local deliveries • Advantages: convenient, fast • Disadvantages: traffic jams, weather • Railroad • Traditionally used for heavy, bulky equipment • Ton-mile: movement of one ton (2,000 lbs) of freight one mile • Advantages: low costs • Disadvantages: not as much access as other ways

  4. Transportation Systems - continued • Marine Shipping - Waterways • Oldest method used; usually agricultural products • Advantages: inexpensive • Disadvantages: slow • Air Cargo Services • Advantages: fast • Disadvantages: can be expensive

  5. Transportation Systems - continued • Pipelines • Usually owned by companies using them • Advantages: speed • Disadvantages: cost

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