Marketing and sales depend largely on the means of transport. Transportation helps in marketing functions by creating place utility. It also helps in manufacturing activities. Thus, transportation is a productive function.
Transportation is products in motion. It is moving a product from where it is made to where it is purchased and used.
Role and Functions of Transportation in Marketing and Sales
The different functions of transportation in sales and marketing can be discussed under the following headings:
1. Helps in Marketing
Markets are located far from the areas of production.
All goods manufactured in the factories are to be transported to the places of consumers.
Minerals or other raw materials are to be transported from the place of extraction or production to the factory, crops are to be accessed from the farm to the local market or primary market and from there to the places of consumption.
Finished products are to be transported from the warehouse to the wholesale warehouse, from the warehouse to the dealer, and from the dealer to the ultimate consumer.
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2. Directly Affects Customer Service
Because product availability and timely deliveries are dependent on transportation functions, the choice of transportation directly affects customer service.
3. Basis of Marketing Strategy
A firm may even build its distribution and marketing strategy around a unique transportation system if one time deliveries, which that system ensures, give the firm a competitive edge.
4. Quick Marketing
Transportation performs quick marketing in such industries whose products are perishable like fish and green vegetables.
Through transportation, these products are carried to various consumers quickly event in distant markets.
5. Creates Utilities
Transportation helps in effecting utility to goods and contributes to production activities.
It adds time and place utility to a product by moving it, from where it is made to where it is purchased and used.
Related: How to Select a Suitable Marketing Strategy for Market Segmentation.
6. Can be Costly
Transportation is the most expensive physical distribution function.
Transportations costs may limit the target markets a marketing manager can consider.
Shipping costs increase delivered cost and that is what really interests customers.
Transport costs add little to the cost of products that are already valuable relative to their size and weight, transportation costs can, however, be a large part of the cost for heavy products of the low value, such as many minerals and raw materials.
7. To Promote Demand
Through transportation, it is possible to contact new customers in new places and to introduce products to them.
Related: 15 Key Benefits of Sales Training or Coaching.
8. To Widen Markets
Today markets have become wide nations and global only because of transportation.
9. To Create Place Utility
Due to geographical and climatic factors industries are located in particular places far away from the markets or places where there may not be any demand for the product.
Transport moves products from factories to the places where they are purchased and consumed.
10. Helps in Distribution
Transport plays a prominent part in the distribution of goods.
It reduces the distance between producers and consumers, between markets.
It has shaped and influenced the entire structure of the physical distribution system.
In fact, it is the lifeline of the marketing and distribution system.
11. To Create Time Utility
Transport also creates time utility.
With high-speed means of transportation, it is possible to distribute goods in the minimum possible time.
12. Stabilization of Prices
Transport helps to stabilize the prices of several commodities by moving them from surplus to deficit areas.
This balances the supply and demand factors.
This makes the prices commodities stable and uniform.
13. To Maintain Flow of Commodities
Transport ensures quick, regular, and even flow of commodities into the hands of consumers throughout the period of consumption.
14. To Provide Benefits to Consumers
Transport also enables consumers to enjoy the benefits of goods not produced locally.
This increases the quality of life and consumption, which is an essential factor for the further growth of marketing and economy.
15. To Intensify Competition
Transport intensifies competition which, in turn, reduces prices.
Prices are lowered and controlled due to the facilities offered by transport for large scale production.
Transport also helps to provide the economies of large scale business.
16. Increase in Mobility of Labor and Capital
Due to quick and regular transport, people migrate to various places in search of jobs.
This helps to create employment.
17. Import of Machines and Tools
Even capital, technology, machines, and tools are imported from foreign countries through transport alone.
18. Aids in Economic Development and Exchange
Transportation is the marketing function for moving goods. Transportation provides time and place utilities, at a cost.
The cost is less than the value added to products by moving them or there s little reason to ship in the first place.
Transportation can help to achieve economics of scale in production.
If producing larger quantities in one location can transporting the finished products to customers.
Without low-cost Transportation, both within countries and internationally, there would be no mass distribution as we know it today.
How does transportation affect the business?
Marketers need to be concerned with their company’s transportation decisions. Transportations choices will affect product pricing, on-time delivery performance, and the condition of the goods when they arrive, all of which will affect customer satisfaction.
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