Answer to Question #262088 in Marketing for james

Question

discuss the role of marketing in transport management in an organization

Answer 1

Discussion

Transportation is indispensable function of marketing. It creates place utility and regularizes supply from one place to another. Transportation greatly facilitates the performance of marketing functions like buying, assembling, selling, storage and warehousing etc. Transportation is among the more vital economic activities for a business. By moving goods from locations where they are sourced to locations where they are demanded, transportation provides the essential service of linking a company to its suppliers and customers. Transportation helps in mass production. Whether it is to purchase and bring raw materials or it is to distribute finished goods, one or the other means of transport is necessary. This expands old markets and creates new ones. As a result, demands for goods increases and production should also be increased. Without development of transportation neither mass production nor distribution is possible. Below are some roles and importance of transportation;

• Physical Supply of Products

Transportation carries necessary raw materials to factory for production of goods and supplies finished goods to consumers. It creates place and time utility of goods by transporting from one place to another. It easily carries finished products to the hands of those who need and use them. This significantly increases aggregate sales of goods. Transport is such a key of marketing, which helps in carrying goods to the scattered consumers in different places, narrows the gap between producers and consumers and facilitates to distribute goods to the consumers at minimum cost and time.

• Specialization

Transportation facility encourages division of labour and specialization on geographical or regional basis. Transportation cost highly affects localization of industries. Production of goods may center at such place where the environment is the best and production cost is minimum. This makes maximum utilization of local resources possible, which is both economically and socially necessary.

• Mobility of Labour and Capital

Transportation facility provides mobility to labour and capital. If more labour force is available at any place, transport helps to carry it economically to necessary place. The means of transport carry labourers from one place to another. This encourages labour and capital to use and invest in more productive sectors.

• Stabilization in Price

Transportation helps to bring stability in price of different products. It transports goods from more supplied places to scarcely supplied areas. This establishes coordination between demand and supply, and brings stability in prices. It helps to supply necessary goods regularly to the consumers. Besides this, consumers get necessary goods at lower prices, because it encourages competition among producers and makes mass production at lower cost possible.

 

Transportation plays an important role in physical distribution system. It has also an important role in marketing function. In the lack of transportation, neither mass production nor distribution is possible. Transportation is important in social, economic, political and cultural aspects.

 

Reference

Kinsey, J. (1982). The role of marketing in economic development. European Journal of Marketing.