Suchergebnisse

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.

The physical distribution concept is a customer‐oriented business philosophy supported by integrated physical distribution activities aimed at generating customer satisfac‐tion as a means of satisfying fundamental organisational goals, of which profit is perhaps the most important. It can therefore be expected that those companies whose chief executives support this business philosophy and who consequently ensure that their organisations are physical distribution oriented, will perform better financially than similar organisations which are not physical distribution oriented.