What's the point of Physical and Magic Damage Types

[Hasrat]

Circle of Scorn has your PLD slam their sword into the ground causes beams of blue energy to erupt from the earth damaging all enemys and causing them to suffer a DOT. One would naturally assume it's a spell, right?

But it's not a spell, it's an ability. Is this physical or magical? You tell me. Because the game sure as hell doesn't and I sure as hell don't know if my physical dmg buff has any impact on it.

Circle of Scorn tooltip: "Delivers an attack..."

Compare with

Holy Spirit tooltip: "Deals unaspected damage..."

The former is physical, the latter is magical.