IMPACT OF EFFECTIVE DISTRIBUTION MANAGEMENT IN A MARKETING COMPANY

The executives have devoted the bulk of their time to the stimulation function because of the increased competition in the market. Their attention has been given over to developing a cause of product, price, promotion and channel that would keep demand high and growing.

          More recently, several development have awakened management interest in the logistic problem which enabled them to wonder whether they were not over looking many opportunities and not only for cost saving but also for improved demand stimulation.

          They have viewed physical distribution on the logistics of getting goods to the buyers as a supportive and subsidiary attractive.

          One of the factors is the steady champs in the bills for such physical distribution services such as right, ware housing and inventory freight and ware housing bills are rising as a result of increased labour, because buyers are tending to place smaller over more frequently and manufacturers are tending to expand the width and depth of their lines.

Furthermore, physical distribution is potent instrument in the demand stimulation process; companies can gain by offering more in the way of services or physical distribution cost.

          Many executive are of the opinion that the total cost of storing, moving and handling their products are anywhere between 15 and 30 percent of sales

The effective planning of distribution networks tends to reflect the means by which company’s product are moved from the manufacturers to the final consumers.

          The reasons for effective distribution are of great economy significant in marketing of goods and services, because of the expenses involved.

          It goes a long way in determine not only the price of goods but also the success of any market activities.

          Therefore, many market failure can be traced to the inability of distribute the product effectively, that is logistic problem in which the goods and services will be distributed to the buyers, through which channels of distribution which this goods will be distributed to the place of users. Lack of support facilities or lack  of storing of goods. The facilities need for smooth hand undisturbed operation of distribution are not available i.e ware housing and irregular supply of goods that is inventory control problem. Problem of social and political manner i.e the operational routes, fares through which the goods are been carried.

          The problem of channels members are too many that caused increased in price of product.

          More so, problem of distribution management is very poor. Customers are also objected to dictates of distributors since goods are very few. The distribution either adopt other means of exploiting hoard goods to initiate prices, which are of important on distribution and too few to make any meaningful impact.