The physical distribution functions of marketing include transportation and storage of goods. Until the goods have been sold out they should be kept safe and after selling they should be transported from one place to another. For this, arrangement transport becomes necessary. Therefore, physical distribution function of marketing includes transportation and storage.
1. Transportation
Transport is the means to carry goods from one place to another. It creates place utility of goods. Transportation in marketing becomes necessary because the goods are not used in the place of production. The goods produced at one place should be carried thousands of miles away for selling. Transport is very important means to expand market and seek opportunities of new markets.
In fact, trade and market have been developing at a faster pace with the development in the means of transportation, their speed and increase in security. Because of the transport facility, mass production of goods and wider distribution has become easy. Transportation has played a significant role to increase time utility of goods, to minimize price fluctuation and to provide better services to customers at lower cost.
1. Transportation
Transport is the means to carry goods from one place to another. It creates place utility of goods. Transportation in marketing becomes necessary because the goods are not used in the place of production. The goods produced at one place should be carried thousands of miles away for selling. Transport is very important means to expand market and seek opportunities of new markets.
In fact, trade and market have been developing at a faster pace with the development in the means of transportation, their speed and increase in security. Because of the transport facility, mass production of goods and wider distribution has become easy. Transportation has played a significant role to increase time utility of goods, to minimize price fluctuation and to provide better services to customers at lower cost.
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2. Storage
In marketing process, it becomes necessary to make proper storage of goods and warehouse management. There remains long interval between the time of production of goods and their use. Some goods are produced only in certain season and are use for whole year. After the goods have been produced, they should kept safe in store until consumers make demand. Storage or warehouse management helps to keep the supply of goods stable as well as regular in market. This creates time utility of goods.
