Marketing Concept

1. The phrase, “Physical Distribution [PD] is customer service” is based on meeting the customers’ needs. Basically, the customer does not care about the logistics side of how, when, and from where the product they want is being provided to them. The main concern to the customer is that the product is there when they want to purchase it- no excuses. A fine balance of customer service and the logistic service level (PD) play an important role because if the company offers such a high level of PD with expensive, expedited shipping and other upgraded levels of logistics, then in turn their prices towards customers may rise do to the more costly level of logistics they provide. This might force some customers to buy from other competitors.

2. Customers view a “product” as a need-satisfying physical good or service, or a blend of both that will provide total satisfaction to the customer. The customer views the product