Logistics Role in Marketing
The importance of Logistics in Marketing nowadays
In a first moment it is important to understand what is the main role of each departments, Logistics’ aim is to make products available in the market according to the customer’s demands, in terms of delivery time, volume, as well as, the efficient managing of the inventory (SEZEN, 2005) and the Marketing role is to generate and deliver value to the consumers of a determined market. To generate value consists in expressing characteristics, attributes, benefits and objectives, in form of products, to motivate consumers for buying (KOTLER, 2000).
The Marketing Mix is constituted mainly for the 4 P’s (Price, Promotion, Place, Product), so it is important to understand the importance of Logistics in the four different P’s of Marketing.
PRICE
This is the factor that usually as more importance for the company because it is the factor that contributes to its revenue. The size of the manufacturing run, labour costs and the types, quantities and quality of the materials used in the manufacturing process as well as shipping costs for instance, can affect price. By understanding and combining Logistics with the Marketing department the company is able to understand where it can reduce the costs, which will affect the price and make it lower for the customer.
PROMOTION
Promotion is another important aspect of an organization’s Marketing process. For example, the Marketing department might design the shape for the product's box and an outside supplier is going to manufacture the boxes with the specific shape. The Logistic department can help to ensure that all of these entities work together and produce the marketing materials needed to sell the product. Another example is to use labeled cars and trucks with the company’s brand, as well as carriers and trucker’s uniforms, to promote the brand.
PLACE
“Any product or service loses almost all of its value when it is not available for its customers in time and place
In a first moment it is important to understand what is the main role of each departments, Logistics’ aim is to make products available in the market according to the customer’s demands, in terms of delivery time, volume, as well as, the efficient managing of the inventory (SEZEN, 2005) and the Marketing role is to generate and deliver value to the consumers of a determined market. To generate value consists in expressing characteristics, attributes, benefits and objectives, in form of products, to motivate consumers for buying (KOTLER, 2000).
The Marketing Mix is constituted mainly for the 4 P’s (Price, Promotion, Place, Product), so it is important to understand the importance of Logistics in the four different P’s of Marketing.
PRICE
This is the factor that usually as more importance for the company because it is the factor that contributes to its revenue. The size of the manufacturing run, labour costs and the types, quantities and quality of the materials used in the manufacturing process as well as shipping costs for instance, can affect price. By understanding and combining Logistics with the Marketing department the company is able to understand where it can reduce the costs, which will affect the price and make it lower for the customer.
PROMOTION
Promotion is another important aspect of an organization’s Marketing process. For example, the Marketing department might design the shape for the product's box and an outside supplier is going to manufacture the boxes with the specific shape. The Logistic department can help to ensure that all of these entities work together and produce the marketing materials needed to sell the product. Another example is to use labeled cars and trucks with the company’s brand, as well as carriers and trucker’s uniforms, to promote the brand.
PLACE
“Any product or service loses almost all of its value when it is not available for its customers in time and place