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Chapter 8 MARKETING EFFICIENCY AND THE PRINCIPLE OF POSTPONEMENT Wroe Alderson Marketing efficiency within a complete system of distribution can be pro- moted through application of the principle of postponement. Distribution cost analysis has been successfully applied in the past to problems of efficiency for individual marketing units. Less progress has been made in evaluating the efficiency of a complete system or marketing flow such as the movement of a major agricultural crop from grower to consumer. 1. Postponement in Product Differentiation Changes in form may occur along the way, varying from elaborate fabrication and combination of raw materials to mere cleaning or packaging of a product which is to reach the consumer in essentially the same form as that in which it was produced. Changes in location of inventory occur as the product moves from farm to elevator, to factory, to warehouse, to retail store. Efficiency in the basic marketing processes depends on a proper ordering of these related steps involving changes in form, identity, or place. The marketing process, like any other process, is extended in time. It can be viewed as a series of steps which need to be arranged in the most effective sequence. The
Published: Jan 1, 2006
Keywords: Individual Consumer; Inventory Location; Marketing System; Consumer Purchase; Marketing Agency
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