CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
In many marketing
science, the effective management distribution of product are essential to
those that determine the extent of product availability at consumption point. Channel
analyses is important in evaluating marketing system because it indicates how
the various market participants are organize to accomplish the movement of
products from the producer to the final consumer.
Distribution channel according to
Philip, Kotler and Garry Armstrong (1999:362) is viewed as an interdependent
organization involved in the process of making a product or service available
for use or consumption by the consumer or business user.
Channels of
distribution are management tools used in moving goods from the point of
production to that of consumption. This function of getting goods into the
hands of consumers is often referred to as
„‟distribution„‟. Hence physical distribution
involves planning, implementing and controlling the physical flow of materials,
final goods and
related information from point of origin to point of consumption to meet
customer requirements and satisfactorily.
Distribution channels however, play major roles in
the marketing of goods and in the business sector as a whole. Williams {1984:
38} stated the following as the usefulness or the importance of distribution
channels to include: firstly, it gives place utility i.e. by moving goods from
one place to another. Secondly, by bringing goods to the place of consumption
when needed, it adds time utility.
Also by bringing the goods to the consumer in
convenient shape, unit size and packaging, it adds convenient value. Thirdly,
by making it possible for consumers to obtain goods at a price he is willing to
pay and under condition which brings satisfaction and ownership. Efficient and
effective distribution system is particularly essential in moving perishable
products from the points of production to the point of consumption due to the
nature of the products.
Physical distribution
has impacted greatly in ensuring that goods and services are made available
when and where they are desired and in safe conditions.
But due to the rise in technological development and global marketing, the
process however, is not without problems as many companies and business people
still lack adequate physical distribution facilities leading to the spoilage of
these products before getting to their destination points.
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