Transportation in Marketing: Importance, Road and Rail Transportation

Content

i. Meaning of transportation

ii. Importance of transportation in marketing.

Meaning of Transportation

Transportation can be described as the physical movements of products from places of manufacturing to other channels of distribution to get to the hands of the ultimate users.

This connotes the physical carriage of finished products from the place of manufacturing to the place where it would be accessible and available to the target audience either wholesaler, sales agent, retailers and ultimately to the final consumer. Production of goods and services might not have completed until the goods and services get to ultimate consumers and consumed by the buyers of the product. It is otherwise known as routes of marketing products.

Importance of transportation in marketing

1. It generates employment for different categories of skilled and semi-labour such as commercial drivers, mechanics, dealers and suppliers of motor spare parts etc.

2. It helps to bring products nearer to the consumer.

3. It helps to stabilize the exchange process.

4. It enhances social interaction.

5. It helps in sustaining the economic activities of a nation.

6. It promotes business transaction and negotiation efficiency.

7. It promotes international trade and relations.

8. It facilitates and enhances the exchange process.

9. It helps in the exchange of foreign currencies.

10. It promotes transnational and cultural relationships and languages.

Content

I. Mode of transportation

– Land

ii. Forms of land transport

– Road

– Rail

iii. Advantages and disadvantages of each form of land transport.

Land

Land transport is the transport or movement of people, animals or goods from one location to another location on land. The two main forms of land transport are rail transport and road transport.

Forms of Land Transport

Road Transport

These include vehicles such as trailers, buses, cars, etc. that carry products from one place to another. The road is a route between two destinations, which has been either paved or worked on to enable transportation by way of motorised and non-motorised carriages.

Advantages of Road Transport

1. Less Capital Outlay:

Road transport required much less capital investment as compared to other modes of transport such as railways and air transport. The cost of constructing, operating and maintaining roads is cheaper than that of the railways. Roads are generally constructed by the government and local authorities and only a small revenue is charged for the use of roads.

2. Door to Door Service:

The outstanding advantage of road transport is that it provides door to door or warehouse to warehouse service. This reduces cartage, loading and unloading expenses.

3. Service in Rural Areas:

Road transport is most suited for carrying goods and people to and from rural areas which are not served by rail, water or air transport. Exchange of goods, between large towns and small villages, is made possible only through road transport.

4. Flexible Service:

Road transport has a great advantage over other modes of transport for its flexible service, its routes and timings can be adjusted and changed to individual requirements without much inconvenience.

5. Suitable for Short Distance:

It is more economic and quicker for carrying goods and people over short distances. Delays in transit of goods on account of intermediate loading and handling are avoided. Goods can be loaded directly into a road vehicle and transported straight to their place of destination.

6. Lesser Risk of Damage in Transit:

As the intermediate loading and handling are avoided, there is lesser risk of damage, breakage etc. of the goods in transit. Thus, road transport is most suited for transporting delicate goods like chinaware and glassware, which are likely to be damaged in the process of loading and unloading.

7. Saving in Packing Cost:

As compared to other modes of transport, the process of packing in motor transport is less complicated. Goods transported by motor transport require less packing or no packing in several cases.

8. Rapid Speed:

If the goods are to be sent immediately or quickly, motor transport is more suited than the railways or water transport. Water transport is very slow. Also, much time is wasted in booking the goods and taking delivery of the goods in case of railway and water transport.

Road transport not only requires less initial capital investment, the cost of operation and maintenance is also comparatively less. Even if the rate charged by motor transport is a little higher than that by the railways, the actual effective cost of transporting goods by motor transport is less. The actual cost is less because the motor transport saves in packing costs and the expenses of intermediate loading, unloading and handling charges.

Disadvantages of Road Transport

1. Seasonal Nature:

Motor transport is not as reliable as rail transport. During rainy or flood season, roads become unfit and unsafe for use.

2. Accidents and Breakdowns:

There are more chances of accidents and breakdowns in case of motor transport. Thus, motor transport is not as safe as rail transport.

3. Unsuitable for Long Distance and Bulky Traffic:

This mode of transport is unsuitable and costly for transporting cheap and bulky goods over long distances.

4. Slow Speed:

The speed of motor transport is comparatively slow and limited.

5. Lack of Organisation:

The road transport is comparatively less organised. More often, it is irregular and undependable. The rates charged for transportation are also unstable and unequal.

Rail Transport

These involve trains that carry heavy plants and machinery. Rail transport is a means of transferring passengers and goods on wheeled vehicles running on rails, which are located on tracks.

Advantages of Rail Transport

1. Dependable:

The greatest advantage of the railway transport is that it is the most dependable mode of transport as it is the least affected by weather conditions such as rains, fog etc. compared to other modes of transport.

2. Better Organized:

Rail transport is better organized than any other form of transport. It has fixed routes and schedules. Its service is more certain, uniform and regular as compared to other modes of transport.

3. High Speed over Long Distances:

Its speed over long distances is more than any other mode of transport, except airways. Thus, it is the best choice for long-distance traffic.

4. Suitable for Bulky and Heavy Goods:

Railway transport is economical, quicker and best suited for carrying heavy and bulky goods over long distances.

5. Cheaper Transport:

It is a cheaper mode of transport compared to other modes of transport. Most of the working expenses of railways are in the nature of fixed costs. Every increase in railway traffic is followed by a decrease in the average cost. Rail transport is economical in the use of labour also as one driver and one guard are sufficient to carry much more load than the motor transport.

6. Safety:

The railway is the safest form of transport. The chances of accidents and breakdowns of railways are minimum as compared to other modes of transport. Moreover, the traffic can be protected from exposure to sun, rains, snow etc.

7. Larger Capacity:

The carrying capacity of the railways is extremely large. Moreover, its capacity is elastic which can easily be increased by adding more wagons.

Disadvantages of Rail Transport

1. Loss of Goods:

Because goods in bulk quantities are carried chances of goods getting lost are high in the case of railway transport as compared to air and road transport.

2. Unsafe for Fragile Items:

Railway transportation is particularly unsafe for carrying fragile items like glass because these items can easily break at times when a train halts unexpectedly of when the train is speeding up at times.

3. Late Bookings:

Because the railway is the cheapest medium of transport, it is hard to find suitable bookings for the transportation of your goods. Railway transport is not suitable in cases of emergency.

4. Unsuitable for Short Distances:

Railway transport is unsuitable for carrying goods at shorter distances; road transport is most suitable in this case.

5. Unsuitable for Rural Areas:

The proper railway system is not build up in the Indian villages as a result of which railway transport is unsuitable in the villages of India. Whatever be the disadvantages of railway transport it was, it is and it will always be the safest and the best means for the transportation of goods.