Marketing logistics refers to the management of the flow of goods, information, and resources between the point of origin and consumption to meet customer needs. Geographical distribution consists of the physical handling activities related to goods movement. Logistics originated in the military, and the logistics system includes the physical supply of raw materials and components as well as the physical distribution of completed products to customers. Physical distribution involves activities like order processing, inventory management, materials handling, warehousing, and transportation. When evaluating channel alternatives, companies consider economic, control, and adaptive factors to minimize total distribution costs while providing optimal customer service levels.

1. Marketing logistics/Geographical
distribution

2. Meaning of marketing logistics
• It is the management of the flow of
goods, information and other resources in a
repair cycle between the point of origin and
the point of consumption in order to meet the
requirements of customers.

3. Meaning of geographical/physical
distribution
• PD consist of marketing activities which are
related to physical handling of goods.

4. Relationship of logistics and physical
distribution.
• Logistics originated in the military
• Logistic system as two major product
movement:
1. Physical supply, consisting of raw
materials, components ,
2. Physical distribution, consisting of delivering
the completed products to customers and
intermediaries.

5. Nature of physical distribution
• It includes activities like order
processing, inventory management,materials
handling, warehousing and transportation.

6. Evaluating the channel alternatives
• Economic factor:- economic performance of
each channel alternative should be compared
sales revenue, total selling cost.
• Control factor:-the degree of control that the
industrial marketer can exercise over the
channels is an important factor.
• Adaptive factor:-the industrial marketer must
be able to control and modify the channel
structure.

7. Total cost approach
• Focuses on balancing the two important
elements.
• Total distribution cost
• The level of service provided to the
customers.- customer service
needs, competitors levels, company
profitability objective.

8. Minimizing the total distribution cost
• An attempt to minimize any single cost
element can actually increase the total cost.
• Hence the company must consider the total
distribution cost of the proposed distribution
systems and select the system that minimizes
the total distribution cost.

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