Perreault−McCarthy: Basic

Marketing: A

Global−Managerial

Approach, 14/e

12. Distribution Customer
    Service and Logistics

Text © The McGraw−Hill

Companies, 2002

Coke works with many different

channels of distribution. But that’s

just the start. Think about what it

takes for a bottle, can, or cup of

Coke to be there whenever you’re

ready. In warehouses and distribu-

tion centers, on trucks, in gyms

and sports arenas, and thousands

of other retail outlets, Coke han-

dles, stores, and transports over

250 billion servings of soft drink a

year. Getting all of that product to

consumers could be a logistical

nightmare, but Coke does it

effectively and at a low cost.

Think about it: A can of Coke

at the store costs only about

15 cents more that it costs

you to have the post office

deliver a letter.

Fast information about what the

market needs helps keep Coke’s

328

Chapter Twelve

Distribution

Customer Service

and Logistics

328

When You
Finish This Chapter,
You Should

1.Understand why
logistics (physical dis-
tribution) is such an
important part of
Place andmarketing
strategy planning.

2.Understand why
the physical distribu-
tion customer service
level is a key market-
ing strategy variable.

3.Understand the
physical distribution
concept and why it
requires coordination
of storing, transport-
ing, and related
activities.

4.See how firms can
cooperate and share
logistics activities to
improve value to the
customer at the end
of the channel.

5.Know about the
advantages and dis-
advantages of the
various transporting
methods.

6.Know how inven-
tory decisions and
storing affect market-
ing strategy.

7.Understand the
distribution center
concept.

8.Understand the
important new terms
(shown in red).

If you want a Coca-Cola, there’s

usually one close by_no matter

where you might be in the world.

And that’s no accident. An execu-

tive for the best-known brand

name in the world stated the

objective simply: “Make Coca-Cola

available within an arm’s reach of

desire.” To achieve that objective,

place

price

promotion

produc