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Marketing Strategy in Logistics

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Marketing Strategy in Logistics

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VILNIUS GEDIMINAS TECHNICAL UNIVERSITY
BUSINESS MANAGEMENT FACULTY
DEPARTMENT OF INTERNATIONAL ECONOMICS AND BUSINESS MANAGEMENT

COURSE WORK ON MARKETING STRATEGY IN LOGISTIC SECTOR

Prepared by st. S.Druskinis, TVMu-07

Checked by lect. N. Ambrusevič

Vilnius

2008

Introduction

MARKETING AND LOGISTIC INTERFACE

The interface between logistics and marketing is critical to the delivery of customer service. Practitioners and researchers have long recognized the importance of customer service in achieving customer satisfaction. Indeed, organizations often succeed or fail depending on their levels of customer service.

However, achieving outstanding customer service levels is complex and challenging because it involves interfunctional co-ordination, especially between the logistics and marketing functions. Without the successful link of logistics and marketing customer services, the firm may be unable to meet customer expectations, resulting in a dissatisfied customer or a lost sale. Logistics customer service activities provide place, time, and form utility, by ensuring the product is at the right place, at the time the customer wants it, and in an undamaged condition. Marketing customer services facilitate possession utility by creating awareness of the product, offering a mechanism such as price, by which the buyer-seller exchange can take place, and often offering follow-up service and warranty on the product. Interfunctional co-ordination is important since outstanding customer service requires all of the above activities. Logistics is usually concerned with satisfying the supply of the customers’ needs and wants in the marketing channel (or a distribution channel or a supply channel), while marketing usually focuses on satisfying the demands of customers’...

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