8.2 Definition of distribution
Distribution is the process of getting the right products to the right places, at the right time, in the right size or quantities and in the condition expected by the consumer, yet at the lowest possible cost. Placing the product is the bridging of the gap between the producer and consumer, a gap that can be vast, such as with petroleum that is shipped across oceans.
Although distribution is the most commonly used term, there are a number of other terms that are used to describe the process of getting the product to the customer:
- physical distribution
- marketing logistics
- market channels
- materials management
- supply chain management.
Familiarise yourself with these terms, each of which has a slight difference of emphasis. For the present, however, you may treat them as virtually synonymous. The Kotler et al. (2004) text provides other terms and justifies its use of marketing logistics networks as you will read in the next reading. Then compare your textbook's view with that of the article by Walters and Rainbird (2003) which looks at the relationship between marketing and managing supply and demand chains.
In your text
Kotler et al. (2004) Chapter 14, pp. 530-536, 'Marketing logistics networks' and 'The nature of marketing logistics network management'.
Reading 8.1
Walters, D. and Rainbird, M. 2003, 'Living with tension: Linking demand and supply chains', Management Today , June, pp. 33-34.
Activity 8.1
In your own words, write a paragraph explaining what is meant by 'marketing logistics networks'.
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