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.
The Term Paper on Marketing Plan For A Herbal Company – Himalaya Herbals
The purpose of this document is to analyse the situation of Himalaya Herbals of Oregon and provide forecasts for future market and product innovations. We have developed organisational goals and objectives which stem from their “back to basics” philosophies’. After evaluating the strengths, weaknesses, opportunities and threats, we found that competition was the single biggest ...
PLACE
“Any product or service loses almost all of its value when it is not available for its customers in time and place adequate for consuming”. Logistic plays the main role in this P of Marketing, once an efficient distribution channel strategically design by the Logistic Department allows the company to Place its product/service efficiently and delivery it on time. Advanced Logistics technologies that allow the customer to track the order since it is in the factory until it arrives the final destination may also contribute to the marketing of the company and the loyalty of the customer.
PRODUCT (DELIVERY)
Each customer has individualized needs so the logistical services provided may vary from customer to customer. Besides of these differences, the customers expects 100% conformance and assured reliability at all times with every transaction. The goals of this aspect of Logistics include filling the order, on-time delivery, precise invoicing and zero damage, for the Marketing Department the customer satisfaction is the main goal and once again Logistics plays an important role in this case.
