The Physical Distribution Concept as a Philosophy of Business

In: International Journal of Physical Distribution & Materials Management, Band 17, Heft 6, S. 32-37

Abstract

It is commonly held that there are four economic utilities which need to be created in relation to a product before it has any value to the ultimate consumer. These are form, time, place and possession utilities. The creation of form utility, or the conversion of raw materials into finished products, is traditionally the responsibility of the production function. The creation of possession utility, on the other hand, is the responsibility of marketing which does this by identifying the needs and wants of consumers and by informing consumers both of the availability of products, as well as of their merits.