IMPACT OF PHYSICAL DISTRIBUTION CHANNELS IN MARKETING OF AGRICULTURAL PRODUCE

CHAPTER ONE

1.1 INTRODUCTION

In many marketing science, the effective management distribution of product are essential to those that determine the extent of product availability at consumption point. Channel analyses is important in evaluating marketing system because it indicates how the various market participants are organize to accomplish the movement of products from the producer to the final consumer.

Distribution channel according to Philip, Kotler and Garry Armstrong (1999:362) is viewed as an interdependent organization involved in the process of making a product or service available for use or consumption by the consumer or business user. Channels of distribution are management tools used in moving goods from the point of production to that of consumption. This function of getting goods into the hands of consumers is often referred to as „‟distribution„‟. Hence physical distribution involves planning, implementing and controlling the physical flow of materials, final goods and related information from point of origin to point of consumption to meet customer requirements and satisfactorily.

Distribution channels however, play major roles in the marketing of goods and in the business sector as a whole. Williams {1984: 38} stated the following as the usefulness or the importance of distribution channels to include: firstly, it gives place utility i.e. by moving goods from one place to another. Secondly, by bringing goods to the place of consumption when needed, it adds time utility. Also by bringing the goods to the consumer in convenient shape, unit size and packaging, it adds convenient value. Thirdly, by making it possible for consumers to obtain goods at a price he is willing to pay and under condition which brings satisfaction and ownership. Efficient and effective distribution system is particularly essential in moving perishable products from the points of production to the point of consumption due to the nature of the products.

1.1 STATEMENT OF PROBLEM

Physical distribution has impacted greatly in ensuring that goods and services are made available when and where they are desired and in safe conditions. But due to the rise in technological development and global marketing, the process however, is not without problems as many companies and business people still lack adequate physical distribution facilities leading to the spoilage of these products before getting to their destination points. Appropriate strategies for efficient and effective distribution of these products are required in distributing agricultural products in Boki local government area. In Boki L.G.A lack of adequate and efficient distribution system has badly affected marketing of perishable products in the area as many of them perish on their way before getting to their consumption point.

1.2 OBJECTIVE OF THE STUDY

The following are objectives of the study:

i. To determine the problems that affects the selection of channels of distribution for agricultural products.

ii. To identify the basic components of physical distribution of agricultural marketing used in the area.

iii. To identify physical distribution strategies necessary or applicable for perishable agricultural products

iv. To make recommendation that could help to improve the efficient and effective physical distribution of agricultural products.