Logistics plays a significant role in the supply chain management processes and it makes sure that the goods should keep flowing in the SC processes within the specific time frame. Marketing of logistics delivers information from the manufacturers to the target market. When you apply marketing strategies in logistics, then it helps you to find out the demand and Increase Company’s profitability. Today, we’ll discuss logistic management in marketing; marketing logistic management; its key elements, and functions.
What is Logistic Management in Marketing?
Logistic management is a systematic method of managing the flow of finished inventory, parts, storage and movement of material, and procurement processes throughout the organization and marketing channels. It has to make sure of the cost-effectiveness in the fulfillment of orders and increasing the company’s profitability currently and in the future.
Marketing Logistic Management
Marketing logistic management is the method of controlling, executing, and strategizing the movement and flow of material, components, and information from the supplier to the end customer. It comprises communicating the most relevant information throughout the supply chain processes from the production facility to the end consumers.
In other words, we can say that marketing logistic management means delivering products and services from manufacturers to the end consumers at the right time, the right price, and the right place without disruption.
The objective of marketing logistic management is to establish a comprehensive and well-detailed ecosystem that would make sure the following;
- Delivering customer orders on time
- Developing a proper transportation system
- Employing the speedy and cost-efficient medium
Key Elements of Logistic Management in Marketing
Some of the key elements of logistic management in marketing are as follows;
The first and most important element in logistics is the product, and now you need to define the right product. The right product is one of the four Ps of the marketing mix and it is such an item that meets the needs, wishes, demands, and expectations of customers. However, it is the obligation of logistics managers to deliver the right product to the end consumers based on their relevant demands. If they don’t, then they aren’t meeting the goals and objectives of logistics.
Price is the second Ps of marketing mix and the price of the product is based on various factors like delivery, labor expense, material used, and various other elements. While setting the price, you should make sure that it is competitive and acceptable to the target customer market. The price suggests the product quality, features, benefits, and status of the customers.
The place is the third Ps of the marketing mix and it outlines the location where the target customers are residing. In order to increase the profitability of logistics activities, it is significant that you should select the right and most suitable place for distribution. The supplier should collect information about the customers’ location, ID number, and address; it would them in delivering the product to the right place. If they don’t have the proper information, then suppliers won’t deliver the product to the exact location of customers.
Quantity outlines the measuring unit in terms of the number and amount of product customer demand. The suppliers would deliver the right quantity of products to the end consumers based on their requirements. The right quantity also means that you should add the right amount of ingredients to the product. If they take a clear and comprehensive customer order, then delivering the right quantity of product to the end consumers becomes possible.
Timing plays a significant role in the delivery of products; delay in product delivery would disrupt various production and operational processes of the supply chain. The delivery of products at a predefined time is highly important in logistics management. Late delivery would carry huge losses to marketers, manufacturers, and suppliers.
The condition of the product and packing should be free from all types of scratches while delivering the products to the end consumers. The packing should clarify the safety of the product inside and the delivery service provider should employ the right methods to safely deliver the product. If the damaged and scratched product reaches the door of customers, then they won’t accept it and blame the company.
The consumer or customer is the end user of the product that places the order. In order to find the right customers, it is the job of logistics managers to carefully analyze the market based on supply, demand, and product quality. For instance, if you are producing a quality product for a price-conscious market, then it would impact the demand for the product.
Roles and Functions of Logistic Management in Marketing
Some of the main roles and functions of logistic management in marketing are as follows;
Warehousing plays a significant role in marketing logistics management; because companies have to store and maintain inventory in the warehouses. The size of the warehouse would be different depending on the inventor, and the logistics managers should make sure the following things;
- The right location of the warehouse
- Near to the production and manufacturing facility
- Keep in delivery and cost
- Choosing the right design of the warehouse for inventory
- Number of shelves and efficiently using the space
Inventory management is necessary for the supply chain processes of e-commerce stores. They have to make sure that they have got sufficient stock of goods in the warehouse to meet the demands of products. The market logistics managers need to carry out the following activities;
- Estimating inventory carrying cost
- Ordering the raw material
- Managing the inventory cost
Transportation & Shipment
Transportation and shipment comprise selecting the best route for the delivery of the product and employing the most effective delivery service provider.
Communication plays a key role in logistic management in marketing; it comprises customer service and promotional campaign messaging. The logistics managers perform the following communication activities;
- Sending tracking information to customers
- Answering customer issues relevant to delivery
- Managing product returned
Conclusion: Logistic Management in Marketing
After an in-depth study of logistic management in marketing; we have realized that integrating marketing strategies in logistics is highly beneficial for the company. If you are learning about marketing logistics management, then you should keep in mind the above-mentioned roles, functions, and elements.
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