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Wednesday, 12 September 2018

Physical Distribution and International Marketing Logistics

  When a firm venturing abroad has chosen a strategic entry mode into the foreign market and a suitable channel of distribution ,the next crucial decision to take is how to physically move its products abroad through an efficient and affective logistics management system.

  To succeed in this ,the firm will take note of the nature of wholesaling and retailing for its product category,laws and regulations guiding distribution in the foreign target market coupled with the infrastructural facilities capable of enhancing warehousing and transportation in the country involved. Physical distribution usually referred to as market logistics is principally concerned with movement of goods, storage,handling and continues movement until it is made available to consumers at the right time and place.

  However,there is more need to make a distinction between physical distribution and marketing logistics. Kotler and Amstrong as cited by Okpara (2002:282) Defined marketing logistics as the planning, implementation and controlling of the physical flow of materials finished goods and related information from point of origin to points of consumption to meet consumer requirement at a profit.

  On the other hand, physical distribution involves actual movement of goods from the producer to the consumer through logistic channels. With the definations above ,it is important for the reader to note that the marketing logistics is a more encompassing system beginning from inbound supply if raw materials to the factory and physical distributions.

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