Page 1 - Lesson Note 5
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SAI INTERNATIONAL SCHOOL
CLASSS XII
SUBJECT: BUSINESS STUDIES
CHAPTER -11, MARKETING MANAGEMENT
Topics: Place-Physical distributions, Channel of distributions.
(Lesson Notes-44)
PHYSICAL DISTRIBUTION
The fourth important element of marketing mix is the physical distribution of
products and services. It is concerned with making the goods and services
available at the right place, so that people can purchase the same.
There are two important decisions relating to this aspect—one regarding physical
movement of goods from producers to consumers or users and two, regarding
the channels or using intermediaries in the distribution process.
These are described as follows:
Channels of Distribution
In case of large number of consumer products, the potential buyers are scattered
over a wide geographical area. In order to contact these people efficiently and
effectively, it is important to take the help of number of intermediaries as
contacting them directly may not be cost effective and may be difficult even
otherwise.
The important functions performed by middlemen are as follows:
1. Sorting: Middlemen procure supplies of goods from a variety of sources,
which is often not of the same quality, nature, and size.
