Module 5

Distribution Channels

Meaning:It indicates the path in which the goods and services flow or move from producers to consumers.

Nature:Movement of goods/services from producers to consumersSet of interdependent organizationsAffect market decisionsCompetitive advantage

Definition:Distribution channel can be defined as a set of interdependent marketing institutions, participating in the marketing activities involved in the movement or flow of goods or services from the primary producer to ultimate consumers.

A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user.

Channel decisions are the most important decisions that management faces and will directly affect every other marketing decision.

What is a Distribution Channel?

Why To Use Marketing Intermediaries?

Producers establish marketing channels for a variety of reasons:◦ Producers lack financial resources necessary for

direct marketing◦ Direct marketing is not feasible for many offerings◦ Using channels frees money for investment in main

business◦ Intermediaries are more efficient

Advantages Of Using Intermediaries

Selling through wholesalers and retailers usually is much more efficient and cost effective than direct sales

Intermediaries achieve superior efficiency in making goods widely available and accessible to target markets.

Through their contacts, experience, specialization and scale of operation, intermediaries offer the firm more than it can achieve on its own.

Contact

Financing

InformationRisk Taking

Promotion

MatchingNegotiation

PhysicalDistribution

Distribution Channel Functions

Information: gathering and distributing marketing research and intelligence information about the marketing environment

Promotion: developing and spreading persuasive communications about an offer

Distribution Channel Functions

Contact: finding and communicating with prospective buyers

Matching: shaping and fitting the offer to the buyer’s needs, including such activities as manufacturing, grading, assembling, and packaging

Distribution Channel Functions

Negotiation: agreeing on price and other terms of the offer so that ownership or possession can be transferred

Physical distribution: transporting and storing goods

Distribution Channel Functions

Financing: acquiring and using funds to cover the costs of channel work

Risk taking: assuming financial risks

such as the inability to sell inventory at full margin

Distribution Channel Functions

Consumer Marketing Channels and Levels

M Indirect

R Indirect

C

M Direct C

M W R C

M W A R C

0-Level

1-Level

2-Level

3-Level

Business Marketing Channels

M Indirect

Manf.Rep Indi

rect

IndCust

M Direct Ind Cust

M Manf.Rep

Ind.Dist

Ind Cust

M Indirect IndDist

Ind.Cust

0-Level

1-Level

2-Level

3-Level

All kinds of merchants middlemen such as wholesalers & retailers.

All kinds of agent middlemen such as commission agents, brokers, warehouse keepers & so on.

All other facilitating agencies such as bankers, advertising agencies & so on.

Components of Distribution Channel

1. Merchant Middlemen: These are the middlemen who take the title of goods and resell them. These get the bonuses and margin as compensation. They share the risk with manufacturers. They are of 2 types:

i. Wholesalers ii. Retailers

2. Agents: They do not take the title of goods and services but help in identifying the potential consumers and negotiating. They act on behalf of the producers by prospecting, warehousing etc and do not take risk. They earn commissions. Some type of agents are brokers, jobbers etc.

Nature Type Of Middlemen

3. Facilitators: These are independent business units that facilitate the flow of goods and services from the producer to the customer without taking a title to them or negotiating on the behalf of the producer. These institutes are paid service charges. Some of the institutes are transport companies, banks and independent warehouses.

Intermediaries play an important role in moving the product in a market. Making the product available to the customers is done by the intermediaries.

They buy in large quantities and compete with other middlemen in the market hence they fix prices to the product at an affordable level. If there were no middlemen then the prices of the product would have been high.

Middlemen or Intermediaries

1. Provide information: Middlemen provide information about the market to manufacturers about the changes in demography, psychographs, media habits and the entry of new competitors in the market.

2. Price Stability: Maintaining a price stability in the market is another function. Even though at times when there is an increase in prices in the product, they continue to charge the same old prices to the customers.

3. Promotion: They design their own sales programs in order to improve sales and attract customers in their own territory

Role of Middlemen or Intermediaries in distribution

4. Financing: They finance the manufacturers’ by providing working capital in the form of advances for goods and services.

5. Title: Most of the middlemen take title to the goods and services and trade in their own name in order to reduce the risk between manufacturers and the middlemen. It also enables them to have the physical possession of goods and meet consumers demand whenever needed.

Wholesaling is concerned solely with the distribution of large quantities of goods received directly from the manufacturers and sold in small quantities to the retailers. The wholesalers form an important first link in the field of distribution.

Wholesaling

i. He deals in large quantities & generally sells goods to the retailers.

ii. His business is a specialized one because he deals with a particular commodity.

iii. Sometimes he also arranges to warehouse, finance, transport etc and render services to manufacturers & retailers

iv. The wholesaler is mainly concerned with assembling and dispensing function in marketing.

Characteristics Of A Wholesaler

It involves all the activities involved in selling products or services directly to the final consumers for their personal and non business use. The Wal-Mart, Home Depot and target are some of the retailers. The retailing is done in retail stores.

There are some non-retail stores which sell to the final customers through direct mail, catalogues, telephone, internet, door-to-door contact, etc.

Retailing

1. Specialty Stores: These are the ones which carry a narrow product line with a deep assortment within that line.

A store like Shoppers Stop that retails ready made garment for their family is a single-line store.

Raymond show shops that retail men clothing & accessories is a limited line store.

2. Department Stores: These stores carries several product lines required by a household. They may be the provision stores or the departmental stores etc.

Types of Retail Stores

3. Supermarkets: This is a relatively large, low cost, low margin, high volume, self service operations designed to serve the customers need for food, household maintenance products. Some of these similar kinds of stores exists in India like Foodland, etc.

4. Convenience Stores: These are food stores relatively smaller than supermarkets and are located near residential areas. These are opened for long hours, seven days a week. In Indian context these are the food stores, grocery stores etc.

5. Discount Stores: These are the ones which sells the standard merchandise at lower prices than conventional merchants or stores by accepting lower margins but pushing for higher sales volume. These stores usually sells reputed brand. Wal-Mart are good examples.

Channel LevelsA channel level is a distinctive layer or tier of marketing intermediary which functions as a channel member ,doing fully or partially the work of bringing products and their ownership closer to the customer.The number of intermediary levels indicates the ‘length’ of a channel. The channel level is short if there is only one intermediary and long if there are more levels.

Types of Channels of Distribution• Zero Level or Manufacturer:

Consumer Channel- E.g.: Bata shoe company showrooms. This is the shortest channel and its

popular in industrial goods mostly.

• One Level Channel:– Manufacturer-Wholesalers/Agents-CustomerFor e.g the Government, educational institutes, hospitals, business houses, etc.– Manufacturer-Retailer-CustomerE.g.: Cement industry where sometimes the goods are distributed

directly to the retailers

Types of Channels of Distribution• Two Level or Manufacturer:

Wholesaler-Retailer-Consumer.Ex: This is a regular & a popular channel used for the distribution of

groceries, drugs & other consumer goods.

• Three Level or Manufacturer: Agent-Wholesaler-Retailer-Consumer.

1. Zero Level or Manufacturer-Consumer Channel:There are 3 alternatives in a direct sale to consumers. They are:

i). Sale through advertising.ii). Sale through traveling sales force.iii). Sale through retail shops of manufacturers.

E.g.: Bata shoe company showrooms. This is the shortest channel and its popular in industrial goods mostly.

Types of Channels of Distribution

Representation of Zero-Level Distribution

Manufacturers

Consumers

One Level a. Manufacturer-Wholesalers-Customer

A wholesaler may bypass a retailer when there are large & institutional buyers.

For e.g the Government, educational institutes, hospitals, business houses, etc.

a.

Manufacturers

Wholesalers/Agents

Customers

One Level Channelb. Manufacturer-Retailer-Customer

This is a channel where there are no wholesalers and the customers buy from the retailers directlyE.g.: Cement industry where sometimes the goods are distributed directly to the retailers

Manufacturers

Retailers

Customers

b.

3. Two Level or Manufacturer-Wholesaler-Retailer-Consumer:This is a regular & a popular channel used for the distribution of groceries, drugs & other consumer goods.Its suitable for the producer in the following conditions:

a. If he has a narrow product line. b. If he has a limited finance. c. If there are wholesalers who are

specialized and can provide a strong promotional support.

d. If products are durable & are not subjected to physical deterioration.

Representation of Two level Distribution

Manufacturers

Wholesalers/Dealers

Retailers

Consumers

4. Three Level or Manufacturer-Agent-Wholesaler-Retailer-Consumer:In this channel the producer uses the services of an agent middlemen for the initial distribution of goods. The agent in turn distributes to the wholesalers who in turn sells it to the retailers. Agent middlemen generally operate at the wholesale level. They are common in agricultural marketing

Representing Three Level Distribution

Manufacturers

Agents

Wholesalers

Retailers

Consumers

Management of distribution is called third ‘P’ (place) in marketing.

This involves processes to place finished goods from a manufacturer to a customer for final consumption and usage.

This encompasses flow of goods and ownership from a manufacturer to a customer.

Physical Distribution System or Marketing Logistics

Transportation.

Warehousing.

Inventory Management.

Component Functions Of Physical Distribution / Marketing Logistics

Warehousing management has two distinct & equally important parts :

i). The physical job of creating & running the network of storage points.

ii). The managerial task of controlling inventory levels without sacrificing service levels.

Warehousing

1. Ensures the physical flow of the products from the producer to consumer.

2. Confers place and time utility of the products.

3. Helps build clientele.

4. Where production locations & markets are distanced, physical distribution becomes crucial.

5. A promising area for cost reduction.

Importance of Physical Distribution System

1. Articulating distribution objectives & specifying the minimum service level desired in product delivery.

2. Finding out what consumers want: The expectations of consumers should be identified and also products should be delivered on time.

3. Finding out what competitors do: The firm must also find the advancements of the competitors, their levels of service in product delivery.

Steps Involved in Designing a Physical Distribution System.

4. Optimizing Costs: The firm has to evolve an economical system without sacrificing the minimum guaranteed service in delivery. Service level & cost should be taken in broad sense & its feasible to measure distribution service levels.

5. Keeping the System Flexible: Marketing is never static & it keeps changing. Hence physical distribution should be flexible. Even at the cot of economy, some flexibility must be retained.

Steps Involved In Designing A Channel SystemFormulating channel objectives *Effective coverage of he target market.*Efficient and cost-effective distribution.*Partnering the firm infinancing and sub- distribution costs.

Linking channel

design to product

characteristics.*Match the channel system with the product best.

Identifying Channel

functions*It must be identified in specific context of the firm

Evaluation of the distribution environment.

Evaluation of competitor’s channel designs

Evaluation of competitor’s channel designs

Matching the channel design to company resources

Evaluating the alternatives and selecting the best.

1. Formulating channel objectives

Ensuring that consumers incur minimum exertion in procuring the product.Helping the firm carry on manufacturing uninterrupted, confident that the channels will take care of sales.Partnering the firm in financing and sub-distribution costs.

2.Identifying channel functions Identification of the functions to be

performed by the channel . The channel functions must be identified in specific context of the firm in order to get practical direction in designing the channel system.

3.Linking channel design to product characteristics.

The firm should analyze the characteristics of the product and choose the channel system that matches the product best.

4.Evaluation of the distribution environment.

While selecting the channel design, the firm should take into account the distribution environment obtaining in the country/territory.

5.Evaluation of competitor’s channel designs

The firm should also study the competitor’s channel patterns before deciding its channel design. Quite a number of firms do settle down for a ‘follow the leader’ policy in channel design but this deprives them of a chance to score an edge over competition through the channel strategy.

6.Matching the channel design to company resources.

Choice of channel is also governed by the resources available with the organization.

Firms with limited resources settle for conventional channels.

Firms with larger resources have more options.7.Evaluating the alternatives and selecting

the best. The firm must choose the alternative designs available

and choose the best among them .There are two alternatives:-

Economic evaluation Conceptual evaluation

Factors Influencing Distribution Decisions

Market characteristics (Automobile

servic-24/7 basis)

Company characteristics

(selective distribution)

Product characteristics

(precious stones )

Middleman characteristics (negotiations,

storage, contract and credit)

Intensity of competition- distb varies

Environmental characteristics(government

policies)

Market Characteristics.For example, if the customer wants a high level of service, the manufacturer will have to ensure that its channel members are able to provide it or else the firm will have to provide it. The latter alternative may be costly but may ensure a high level of customer confidence.

• Customer characteristics also involve attitude towards waiting time, expectations with regard to special convenience and preference for buying in a comfortable and more relaxed environment. In an automobile dealership, for example, the automobile manufacturer insists on investment in tools, equipments, and manpower training ensuring a high level of precision in servicing. Therefore, the manufacturer trains the dealer’s employees in servicing the automobiles.

Likewise, firms have today opened call centers which respond to customer’s service calls on a 24/7 basis. Not only so, they have appointed independent service agents who receive these calls in a seamless manner.

The key issues for analysis are product value, perceived risk, and the nature of the product.

If the product value and the perceived risk is high, as in the

case of capital equipment, precious stones and gems, shorter channel or rather direct marketing is the most preferred alternative.

Here the firm sells product through its own sales force. Likewise, if the product is perishable in nature direct

distribution or shorter channel is advisable. For example milk, bread, fruits, flowers etc.

Product Characteristics

The next variable is the company characteristics and objectives. The channel design is influenced by the company's long term objectives, financial resources manufacturing capacity, marketing mix and even its philosophy.

◦ For example, if the firm’s manufacturing capacity can meet only 25% of the total market demand it may be well advised to either follow selective distribution, i.e. distribute only through selected outlets in few markets or adopt an intensive distribution, i.e. cater to all outlets in a given geographical market or exclusively distribute it all over the country.

Company Characteristics

This refers to middleman’s aptitude for service, promotion and handling negotiations, storage, contract and credit. Channel design reflects the strength and weakness of different intermediaries.

Middleman Characteristics

Intensity Of Competition The nature and intensity of competition in the industry will determine the distribution pattern adopt by a firm. Some firms may adopt an intensive distribution strategy and be indifferent to multiple brand outlets. Here, these firms aim at getting the highest share from such outlets. Other firms may have the policy of exclusive distribution, i.e. insisting that the intermediary deals in no other brand.

Environmental Characteristics Environmental characteristics like government policies, statutory provisions, state of the economy, technological and infrastructure developments also affect distribution in the firms.

Distribution Alternatives

The three major distribution alternatives are:

• Intensive distribution

• Selective distribution

• Exclusive distribution

This alternative involves all the possible outlets that can be used to distribute the product.

This is employed when the price of the product is low, frequency of buying is more and brand switching is a common phenomena.

Intensive Distribution

This method generally secures high sales, wide consumer recognition and considerable impulse purchasing.

This is particularly useful in products like soft drinks where distribution is a key factor of success. Here, the soft drink firms distribute their brands through multiple outlets to ensure their availability at an arm’s length to the customer.

Intensive Distribution

Selective Distribution

• This alternative is the middle path approach to distribution. Here, the firm selects few outlets to distribute its products.

• This alternative helps focus the selling effort of the manufacturing firms on a few outlets rather than dissipating it over countless marginal ones.

• Selective distribution has a limited number of middlemen, they can spend more on sales promotion and offer maximum co-operation in the promotion campaign.

• Selective distribution can help the manufacturer gain optimum market coverage and more control but at a lesser cost than intensive distribution.

Selective Distribution

When the firm distributes its brand through just one or two major outlets in the market who exclusively deal in it and not all competing brands, we can say that the firm is using an exclusive distribution strategy.

This is a common form of distribution in products and brands that seek high prestigious image.

Exclusive Distribution

Exclusive distribution offers tremendous loyalty of dealers and substantial sales support from the dealers.

Typical examples are designer wares, major domestic appliances, and even automobiles. By giving exclusive distribution rights, the manufacturer hopes to have control over the intermediaries price, promotion, service policies etc.

Exclusive Distribution

Franchise Selling

• Franchise means a privilege or an exceptional right granted to a person.• It is term to describe with effect to selective or exclusive distribution policies.• Franchise selling is any contract under which independent retailers or wholesalers are organized to act in close co-operation with each other or with the manufacturer to distribute given products or services.

• The franchiser i.e.. the parent company provides equipment, the products or services to the franchisee who is the owner of a business unit. Under this system the owner of the product issues a license to the independent dealers in certain areas and encourages them to make profit for themselves.

The owner retains the control over the technique or style with which the goods or services are sold.

Franchise Selling

It is a distribution channel structure in which producers, wholesalers and retailers act as a unified system .

One channel member owns the others, has contracts with them, or has so much power that they all cooperate

Vertical Marketing System

Vertical marketing systems are of three types namely

1. Corporate vertical marketing systems2. Administered vertical marketing systems3. Contractual vertical marketing systems

In the corporate VMS, the successive stages from production to distribution are under single ownership of any of the channel members

Vertical integration is achieved through forward or backward integration Example: Bata and Carona

1. Corporate vertical marketing systems

Administered VMS seeks to control the successive stages from production to distribution not through ownership but through the size and power of one of the channel members

Brand leaders or firms that are market leaders are able to obtain trade cooperation

2. Administered vertical marketing systems

Ex. HUL, Lipton, Proctor and Gamble, Nestle, TELCO, Maruthi are able to get shelf space and promotional support and also support for price policies from the trade mainly because their brands are market leaders.

This consists of independent firms at different levels of production and distribution integrating their programs on a contractual basis to obtain larger economies of scale and or sales impact they could achieve alone

3. Contractual vertical marketing systems

Two or more companies at one level join together to follow a new marketing

opportunity

By working together, companies can combine their financial, production, or marketing resources to accomplish more than any one company could

alone

Horizontal Marketing Systems

In the past, many companies used a single channel to sell to a single market or market segment . But now firms have been realizing that one system or a single channel system is not able to deliver the desired results.

Here the firm uses two or more channels to reach one or more market segments.

Multichannel Marketing Systems

Channel conflict refers to the disagreement among the channel members over goals, roles and rewards.

They should understand & accept their roles, coordinate their activities & cooperate to attain overall channel goals.

CHANNEL CONFLICT

The type Nature or the cause Magnitude of the conflict He should also understand that conflict

cannot be totally eliminated. It can only be minimized.

To manage channel conflict a marketer has to understand:

In any channel arrangement there can be three types of conflict :

1. Vertical level conflict2. Horizontal level conflict3. Multichannel level conflict

TYPE OF CONFLICT :

1. Vertical level conflict : This conflict occurs when the channel

member at one level is in conflict with another member at the higher or lower level.

Eg: A conflict between the wholesaler & the manufacturer.

2. Horizontal level conflict : This occurs at the same level between the

channel members.Eg: Conflict among the retailers on issues like

pricing.

3. Multichannel level conflict : Sometimes the middlemen come in

conflict with the manufacturer using both direct & indirect means of distribution.

Eg: When a firm retails larger range of products through its own outlet than the wholesalers

A major factor causing conflict between manufactrers & wholesalers is the preceived goal incompatiablity between them.

As For a manufacturer, his goals are to be market share & profit maximization in the long run, for wholesalers their goals to be sales maximization & inturn profit maximization.

NATURE OR CAUSES OF CONFLICT:

Many a time conflict has occurred because of role ambiguity. This is a common cause in multichannel conflict. Lack of role clarity of any of the channel members can be a source of potential conflict.

Different perceptions of the market & economy may also create a conflict between the manufacturer and the middlemen.

This refers to the seriousness of the conflicts. At times the conflict may not be of a magnitude demanding the manufacturer’s attention.

Eg: inter-dealer conflict in the territory over prices.

moreover, a highly serious conflict will effect his market share in the territory.

MAGNITUDE OF THE CONFLICT:

To minimize the conflict, the manufacturer may take the following steps:

1. COMMUNICATION: One of the effective way to minimize channel conflict is to have regular communication between the manufacturer and the channel members.

MANAGING THE CONFLICT:

2. Dealer councils: Another way to resolve a conflict is through formation of dealer councils. Such councils can resolve issues in horizontal level & vertical level conflict.

Eg: The dealers join together & form a council to tell out their problems which they are facing with the respective manufacturers.

3. Superordinate goals: Another way of resolving the conflict is to evolve superordinate goal of maximising customer satisfaction.

4. Arbitration & Mediation: The conflict can be resolved through arbitration & mediation among the channel members. In case of vertical or horizontal conflict, the manufacturer can resolve the conflict.

Designing a marketing channel system involves analyzing customer needs, establishing channel objectives, identifying major channel alternatives, and evaluating major channel alternatives.

Channel-Design Decisions

Analyzing Consumer Service Needs

Setting Channel Objectives & Constraints

ExclusiveDistribution

SelectiveDistribution

IntensiveDistribution

Identifying Major Alternatives

Evaluating the Major Alternatives and Selecting the suitable one

Channel Design Decisions

In designing the marketing channel the marketer must understand the service output levels desired by target customers. Channels provides five service outputs. These are :

Analyzing consumer service Needs

1.Lot Size – Lot size refers to the total number of units of a product that a customer acquires during a transaction period.

Ex: A car rental agency prefer a channel from which it can buy a large lot size, on the other hand individual customer would prefer to purchase a car in a lot size of one. So car manufacturing companies provide different distribution channels to meet the demand of these different sets of customers.

2.Waiting and delivery time:The time for which customer must wait to receive

the product or service. Normally customers prefer faster delivery channels. This in turn necessitate higher service levels.

3.Spatial convenience :The degree to which the marketing channels

makes it easy for customers to purchase the product.

Ex: Maruti’s wide dealer network allows it to offer greater spatial convenience than its competitors and helps the customers to save a lot on search and transportation cost.

4.Product variety:Marketing channels offers a wide variety of

products to its customers. Normally customers prefer a greater assortment (Collection of different products) because more choices increases the chances of finding what they need.

Ex: Super markets – They not only carry a wider assortment of products but also offers a greater variety in each product category.

5.Service Back upIt refers to the value added services offered

by the channel members. Services such as credit facility, free home delivery, installations, repairs etc.

Companies channel objectives and constraints are influenced by the characteristics of product, company size, middlemen, and environmental factors.

Characteristics of product – Ex: If the product is highly perishable in nature or having high –unit value or custom-built products etc the company will sell directly to the customers.

Setting the channel objective and Constraints

Company Size- A manufacture who is new to the industry might want to initially serve a limited market with few intermediaries. But a large firm may use different categories of intermediaries to serve different market.

Middlemen- While designing a channel system a manufacturer must conduct SWOT analysis of its prospective intermediaries in terms of sales volume, product portfolio, managerial capabilities, attitude etc.

Environment factors – A manufacturer must consider the environment factors while designing the channel.

Ex: When economic conditions are depressed it is wise for a manufacturer to go for shorter channels.

Identify the major alternatives in terms of types of middlemen, Number of marketing intermediaries ( intensive, selective, exclusive – distribution), and Responsibilities of channel members.

Identifying Major Alternatives

Intensive Distribution :Stocking the products in as many outlets as possible.

Ex: FMCGsSelective Distribution : The use of more than

one, but fewer than all of the intermediaries who are willing to carry the company’s product.

Ex : Home appliances, Branded menswear like color Plus, Arrow, Zodiac etc.

Exclusive Distribution : Giving a limited number of dealers the exclusive right to distribute the companies product’s in their territories.

Ex : Automobiles, Branded diamonds and watches etc.

Responsibilities of channel members :The producer must determine the rights and

responsibilities of participating channel members.

The trade- relation mix consists of Price policies Conditions of sales Territorial rights Mutual services and responsibilities

A company should select those channels which will best satisfy its long term objectives. The firm must evaluate each alternative against Economic criteriaControl CriteriaAdaptive Criteria

Evaluating the Major Alternatives and Selecting the suitable one

Selecting

Training andMotivating

Evaluating

FEED

BACK

Channel Management Decisions

Selecting channel members :Recruiting and selecting the right channel

partners is a crucial managerial aspect of any firm. The manufacturer should do the selection process on the basis of various parameters like

Number of years in business Financial strength, growth and profit record Cooperativeness, service reputation ,sales

efficiency, product knowledge, number of product line carried etc.

Training :Training of the channel members is important

since they are the actual people who deals with the end customers. Hence most of the manufacturers offer distributor training programs to help the channel members increase their efficiency in performing the various business activities.

Motivating:The various strategies used to motivate the

channel members are providing training the distributors sales force market research programs Commission on higher sales Advertising allowance Payments for displays etc

Evaluating channel members:Manufacturers must periodically evaluate the

intermediaries performance against certain standards like sales-quota attainment, co-operation in promotional and training programs, customer delivery time etc. In this process good performers should be rewarded and underperformer need to be counseled, retrained, motivated or terminated.

Modifying channel arrangements:Manufacturer must periodically review and

modify its channel arrangements. Modification becomes necessary when the distribution channels is not working as planned, consumer buying patterns change, the market expands, innovative channels emerge etc.

Transportation.

Warehousing.

Inventory Management.

Component Functions Of Physical Distribution / Marketing Logistics