Page 417 - Foundations of Marketing

384 Part 5 | Distribution Decisions

Marketing Debate

Which Are More Earth-Friendly: Online or Traditional Channels?

ISSUE: Are online channels of distribution easier on online, their purchases have to be wrapped for shipment
the environment than traditional channels? and delivered by mail or by package carrier. Shipping
containers are often recyclable but still consume natural
On two of the biggest shopping days of the year— resources when manufactured. Most deliveries of online
Black Friday and Cyber Monday, the first Friday and purchases rely on gasoline-powered vehicles or even jet
Monday after Thanksgiving—the outdoor apparel mar- fuel, adding to pollution. Moreover, online marketers con-
keter Patagonia ran online and newspaper ads headlined, sume considerable energy, keeping their websites and
“Don’t Buy This Jacket.” Patagonia, known for its envi- warehouses running around the clock.
ronmental protection policies, wanted consumers to stop Traditional channels use lots of energy in lighting,
and think before they buy, even when choosing products heating, and cooling local stores. Their many employees
made from recycled materials. use fuel commuting to and from store locations, and
The ads rekindled debates over marketing’s environ- their many customers use fuel when they visit different
mental impact, including the question of whether online stores. Transporting merchandise to warehouses and
channels (the focus of Cyber Monday promotions) are then individual stores eats up fuel and adds to pollu-
more earth-friendly than traditional channels (the focus tion—as does returning unsold inventory to the manu-
d
of most Black Friday promotions). When customers buy facturer or sending it to other outlets for sale.

© iStockphoto.com/CRTd

Product characteristics often determine handling. For example, the characteristics of bulk
liquids and gases determine how they can be moved and stored. Internal packaging is also an
important consideration in materials handling—goods must be packaged correctly to prevent
damage or breakage during handling and transportation. Many companies employ packaging
consultants during the product design process to help them decide which packaging materials
and methods will result in the most effi cient handling.
Unit loading and containerization are two common methods used in materials handling.
With unit loading, one or more boxes are placed on a pallet or skid. These units can then
be loaded efficiently by mechanical means, such as forklifts, trucks, or conveyer systems.
Containerization involves consolidating many items into a single, large container that is
sealed at its point of origin and opened at its destination. Containers are usually 8 feet
wide, 8 feet high, and 10 to 40 feet long. Their uniform size means they can be stacked and
shipped via train, barge, or ship. Once containers reach their destinations, wheel assemblies
can be added to make them suitable for ground transportation by truck. Because individual
items are not handled in transit, containerization greatly increases efficiency and security in
shipping.
Warehousing

Warehousing , the design and operation of facilities for storing and moving goods, is another
important physical distribution function. Warehousing creates time utility by enabling firms to
compensate for dissimilar production and consumption rates. When mass production creates
a greater stock of goods than can be sold immediately, companies warehouse the surplus until
customers are ready to buy it. Warehousing also helps to stabilize prices and the availability
of seasonal items.
Choosing appropriate warehouse facilities is an important strategic consideration
warehousing The design and because they allow a company to reduce transportation and inventory costs and improve
operation of facilities for storing service to customers. The wrong type of warehouse can lead to ineffi cient physical distri-
and moving goods bution and added costs. Warehouses fall into two general categories: private and public.

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