This paper aims to study about market logistics and its importance under the current turbulent market where competition is high in every aspect. We also touch upon the concept of Supply Chain Management (SCM) and how the market logistics has evolved into SCM. Finally we see the objectives of market logistics and how it is linked to marketing plan.
Marketing logistics simply means effective physical distribution of goods and services. Marketing logistics mainly focus on planning, controlling and monitoring the flow of products and services to market and also materials and necessary information which is needed to full fill consumer demands. These demands must be met, keeping in mind the profit …show more content…
How much stock should we hold (Inventory)
This is often an important question that needed to be answered particularly in terms of perishable products. Optimum amount of products that can be safely stored without compromising in quality is measured and accordingly decisions are taken. Too much inventory is unnecessary expense for the firm.
4. How should we ship goods (Transportation)
Transportation of finished goods to warehouses, stores and consumers is the final process of market logistics decision making. A firm might choose from the verity of options available like railway, seaway and airway depending on cost and time constrains. Containerization is extensively used nowadays since it is possible to ship products in boxes or containers which are easy to transport between two points.
LOGISTICS AND MARKETING
Marketing and logistics are interrelated and they are often called as a single term (Marketing Logistics). Logistics are termed as a crucial part of marketing strategy as they provide a competitive edge. Marketing includes all the activities that have direct or indirect effect over firm’s success. Because of the following changes that happened in the 21st century companies are viewing logistics as an important part of their marketing …show more content…
FedEx has hyped their logistics and sincerity for the promotion of the firm. Service and maintenance is a key factor to retain customer loyalty. Truly loyal customers are the only consistent costumers who are going to stay with you. It is studied that 95% of the customers are likely to buy the same product if the complaint is rectified within the time constrain. There is a widely accepted mantra that says in order to increase the revenue you have to reduce the cost. For this an effective Supply chain management has to be introduced. For a firm Raw materials, transportation and warehousing add to the majority of the total cost consumed. Equation for market logistic cost is given