Distribution and Logistics Strategy

Abstract

Making sure that products reach customers cannot be regarded by marketing managers as simply the concern of someone else. The distribution activity is as much part of the company’s marketing mix as are product, pricing and promotion decisions. In fact in some markets, the impact of the distribution element on sales can exceed that of the other mix elements. Seen in this light, the means whereby the product reaches the customer assumes a vital importance in marketing strategy. The implications of this view of distribution’s marketing role are therefore far-reaching, and can involve a considerable reappraisal of attitudes as well as of the means of distribution used. Moreover, as studies have estimated that the average European manufacturing company spends 15 per cent of its sales revenue on distribution-related activities, it is not difficult to contemplate the benefits of such a reappraisal.