First of all, one of the major objectives of both logistics and marketing is to maintain or strive for the lowest cost. The best marketing is always free marketing, if the company does not have to pay for any promotion and sales budget, customers and clients will still come in, and the profit margin of the whole business will rise obviously. (FreeTrainer.com, 2001)
In the aspect of logistics, warehousing and transportation costs are the main components. In short, the unavoidable cost spent on these two areas is occupying a very large portion of the totally expenditure.
In marketing field, sales and promotions are necessary evils because a huge amount of capital must be invested into the sales and promotion department, if the investment is failed, the whole business will collapse due to lacking of product awareness. As a result, one of the major objectives must be looking for ways to minimize the cost but not affect the profit of the company. Such concept is very similar to the costs appeared in logistics, but the key components changed from sales and promotions to warehousing and transportation.
Besides lowering the cost, another similar feature is the enhancement of reputation. In marketing aspect, a company must have to build up its own reputation and brand name, in other words, to build and maintain a good relationship with its clients. This part of marketing is similar to sourcing suppliers, retailers and transportation partners in logistics. In logistics, in order to...