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Diversification

2nd May 1975, Page 72
2nd May 1975
Page 72
Page 72, 2nd May 1975 — Diversification
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Which of the following most accurately describes the problem?

Mr Pregle described concepts of physical distribution managemeat and commended hauliers who diversified their services in distribution and warehousing He urged hauliers to accept the idea that distribution improvement could influence demand for a product. If the customer could be convinced of this then by spending more on distribution, to improve existing services, sales revenue would be boosted sufficiently to pay for increased distribution costs.

Much of what Mr Pregle said about market research techniques — sources of information etc— can be gleaned without difficulty from any good textbook on the subject. He rightly stressed that a road transport marketing man must expect a buyer of transport services to be tough and astute. Buyers seek objective proof of gain from a buying decision; somehow they must be convinced that the service offered will be reliable, economic and competitive.

A haulage company's "image" should not need refurbishing in current conditions of competition, but Mr Pregle reminded course members that customers are impressed by the condition of vehicles, ropes, sheets, etc, and the cleanliness of paintwork and cabs. The driver's appearance and 'behaviour is important. Documentation should be submitted promptly and accurately and it should be easy to understand. Polite and effective telephone contacts will pay dividends. The handling of complaints should be courteous and expeditious.

Selling

Who should " sell " road haulage services ? The course members seemed to be well aware J:hat this vital job should not be devolved upon a man or woman With little training. The ideal person in a small firm is the managing director or traffic manager. Firms big enough to afford a fulltime marketing manager should ensure that he is properly brained and knows enough about the industry to quote rates which will provide an adequate profit margin. Marketing, in short, is not a job for amateurs, or junior traffic clerks.

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