Holistic marketing recognizes that everything matters with marketing and that a broad, integrated perspective is necessary to attain the best solution. Pdf logistics concept, evolution, objectives and elements. The concept of reverse logistics is often misunderstood and academic research in this field is limited, especially in south africa. Logistics is the art of managing the supply chain and science of managing and controlling the flow of goods. Logistics is the management which synchronizes such providing actions as procurement, production, sales, and distribution with demands. The training material on marketing for logistics has been produced under project. Holistic marketing concept includes all elements of marketing mix 4p, closely related to the marketing mix 4c and web marketing mix 4s. The marketing concept, a crucial change in management philosophy, can be explained best by the shift from a sellers market one with a shortage of goods and services to a buyers market one with an abundance of goods. It aims to enhance corporate competitiveness and increase corporate value by realizing fulfillment of customers. Today, the meaning of goods must be defined from a wider angle for a systematic establishment of entrepreneurial logistics management.
The new era of digital logistics supply chain market. Part ii begins with definition of the field and examines the position of physical distribution in relation to marketing. By whatever name it is the sinuous, gritty, and cumbersome process by which companies move material, parts, and products to customers. Keep your customers satisfied, rely on experienced logistic professionals. In response to new competitive pressures, a manufacturing enterprise is emerging in which resources may now be dispersed worldwide. Sc1x supply chain and logistics fundamentals lesson. Logistics operations have alw ays been accompanying life in. The marketing concept does not target to maximize profitable sales volumes but to generate profits through customer satisfaction. International logistics is the process of planning and managing the flow of goods and products in your companys supply chain from acquisition to customer purchase, where part of the process. Four functions of marketing logistics small business. Pdf the role of marketing in supply chain management. Pdf logistics and operation management pdf mohsen rajabi. I concept of international marketing logistics word.
Logistics concept, evolution, objectives and elements. Marketing creates a demand and logisitics fills that demand through effective flow of goodsservices. Few areas of business involve the complexity or span the geography typical of logistics. It uses a variety of applications from material productions to commodity delivery to military maneuvers. Closed loop supply chain management and reverse logistics a. Division of intrasc payments are a function of power, market.
In the theoretical part, the thesis covers areas of marketing concepts and business concepts. Pdf international marketing logistics researchgate. Marketing logistics are basically the physical distribution of goods. These three rs responsiveness, reliability and relation ships underpin the idea of marketing logistics. Logistics management consists of the process of planning, implementing and controlling the efficient flow of rawmaterials, workinprogress and finished goods and related informationfrom point of origin to point of consumption. Marketing logistics logistics and marketing management are.
It is the whole business seen from the point of view of its final result, that is, from the customers point of view. Marketing for logistics chapter three page 7 oct 2014 chapter 3. Inbound logistics is one of the most overlooked aspects in logistics management. A global company needs to understand the requirements to. This study, however, proposes that the concepts of the marketing concept, a market orientation, relationship marketing, and scm are not separate. Dec 19, 2017 logistics is primarily concerned with a high degree of development in the relations that concern marketing exchange. You can find this concept used heavily by the fast food industry. The role of marketing in supply chain management emerald. Scm according to the council of supply chain management professionals. The chartered institute of marketing offers the following definition for marketing.
Fmcg, consumer durables, and many other industries regularly manufacture goods. It has also been said that scm is an addition over logistics. Logistics management has four main types for each aspect of the supply process. Presents a framework for explaining the relationship between strategy, structure, and logistics in the context of a changing environment. Meanwhile, poorly organized logistics can lead to losing customers and decreased sales. Introduction to supply chains what is a supply chain.
Principles of logistics management linkedin slideshare. On average, companies can potentially save between 20 58% on inbound freight spend. In this article we will discuss about the concept, nature and functions of logistics. Our goal is to help aid in the resurgence of american manufacturing, and manufacturing at large, in order to stay in the spirit of continuous improvement and lean methodologies to drive more bottom line savings. This post is the first in a 5 part series on marketing in logistics by creating a sound digital marketing strategy. The concept of packaging logistics focuses on the synergies achieved by integrating the systems of packaging and logistics with the potential of increased supply chain efficiency and effectiveness, through the improvement of both packaging and logistics related activities. Logistics management is defined as a process of management which joins the movement of products, services, data and capital from the stage of raw materials to the consumer end product. Call it distribution or logistics or supply chain management. Place is one of the five ps of marketing, which also includes product, price, promotion and people. Logistics management ensures the proper and timely distribution, storage and reclamation of needed materials.
Difference between logistics and supply chain management. Nov 01, 2000 the concept of supply chain management scm started in the logistics literature, and logistics has continued to have a significant impact on the concept. The flow of material from a supplier to a manufacturing plant and finally to the end customer is viewed as a single chain, ensuring efficiency and effectiveness in sequential activities to achieve the objective of customer satisfaction at a reduced cost. Logistics is the means to transport the goods from. A sign of coherence of logistics and marketing is a concept called marketing logistics. According to this concept, various costs related to logistics management system cannot be treated separately and a tradeoff has to be created to achieve the objective of overall cost minimization. The conventional idea of physical conveyance began with items. Logistics concept seeking for the enhancement of corporate value what is logistics. Logistics is an activity carried out by many different companies for the physical distribution of goods. Thus, social marketing was used by noncommercial organizations to market their cause and product to gain financial, political and social support. They include the general merchandise, such as the products of agriculture, husbandry, fishing, raw materials. Relationship marketing and supplier logistics performance.
Logistics and marketing are complementary business operations that enable a company to ensure that it can offer the right products to the right customers in the right place. The stp process is an important concept in the study and application of marketing. The marketing concept approach focuses on satisfying the consumer and outweighing the competition. Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse. Marketing is simply the performance of business activities that direct the. Network design is one of the prime responsibilities of logistics management. It is commonly believed that an effective logistics marketing strategy creates opportunities for the implementation of logistics in addition to building up effective and efficient logistics systems. Satisfied customers are the most precious asset for any business. Logistics is happening around the globe 24 hours a days seven days a week during fiftytwo weeks a year. Together they are referred to as marketing logistics. Two of the most important internal functions within a company, which have gained increased importance, are purchasing and logistics. In military science, maintaining ones supply lines while disrupting those of the enemy is a crucialsome would say the most crucialelement of military stratagy, since an armed force without resources and. Marketing logistics involve planning, delivering, and controlling the flow of physical goods to a market as well as the. The concept of supply chain management scm started in the logistics literature, and logistics has continued to have a significant impact on the concept.
Activities of logistics are categorized into two types and those are as below. Marketing logistics involve the transportation of goods in a planned manner which offers control over the distribution mechanism. The concept of marketing accordingly depends on three key perspectives 1 what is the target market the first step is to focus precisely which the object market is. Marketing for logistics has human resource development in. Marketing logistics involve planning, delivering and controlling the flow of physical goods, marketing materials and information from the producer to the market. Market logistics activities involve strong tradeoffs, decisions must be made on a total system basis. Military logistics in military logistics, logistics officers manage how and when to move resources to the places they are needed. Logistics refers to the process of strategically managing the procurement, movement and storage of materials, parts and finished inventory and information flows through the organisation and its marketing channels in such a way that current and future profitability are maximised through the cost effective fulfillment of orders christopher. This is mainly a combination of marketing and operations.
The concept of logistics is based on the system approach. We are entering a period of dynamic and fundamental change to logistics operations and strategy. Logistics deals with all activities that facilitate product flow from the point of raw material acquisition to the point of final consumption as well as the information flow that set the production in motion for the purpose of providing adequate levels. The letters stp stand for segmentation, targeting, and positioning. However, this process consists of various functions that have to be properly managed to bring effectiveness and efficiency to the supply chain of the organization. Organization, planning and control of marketing logistics. Uptodate coverage of pressing global issues is achieved through the authors chapter revisions, new examples, current references, and addition of new content throughout including the potential logistics and supply chain implications of the united kingdoms 2016 decision brexit to leave.
In recent years, reverse logistics has become a matter of strategic importance in the context of the supply chain management. Dowlatshahi 2000 and carter and ellram 1998 define reverse logistics as a process where a manufacturer accepts previously shipped products from the point for consumption for possible recycling and remanufacturing. In this chapter, an introduction to the concept and evolution of reverse logistics is provided. They are the main drive for the supply chains in each of the three phases. Marketing logistics is described as a system of planning and acting which guarantees that ordered goods will be supplied on time, with using of proper means of transport, in the. As a result, new products must constantly be introduced into the marketplace. This can be achieved by market research and choosing which, the target business sector, will give the best returns. Jul 26, 2018 logistics is a very old term, firstly used in the military, for the maintenance, storage and transportation of army persons and goods. Most companies produce marketing logistics on a functional basis.
Logistics is also known as physical distribution management. Unloading the transportation vehicle, this in most cases is manual. Chopra 2012, 239240 the marketing concept resorts to marketing research, which defines the market segments, the size of segments. Therefore, the emphasis is not solely on selling products but on selling satisfaction. What is the difference between logistics and supply chain. Keep your course current with todays pressing global issues. Every business requires both the functions to operate with a profit. Marketing logistics concept, objective, scope and its elements. The primary purpose of a sc is to satisfy customer needs. Logistics flow charts solution extends conceptdraw diagram functionality with opportunities of powerful logistics management software. Apr 07, 2019 the concept of logistics is based on the system approach.
Marketing involves satisfying customer needs or desires. Marketing logistics is described as a system of planning and acting which. From the point of view of management, marketing logistics has been described by. Nowadays, this term is used in many spheres, not specifically in the military after the evolution of the concept of supply chain management. Recently, however, there has been some convergence towards accepting scm as a larger concept than logistics management. Customers are interested in ontime delivery, suppliers desire to meet emergency needs and also have willingness to take back defective goods and resupply them quickly at their costs.
While the 1990s saw rapid advances in the logistics competencies of most companies, a number of forces, especially the communication and collaboration potential of the internet, are dramatically changing the way companies craft logistics strategies, processes and systems. It is the process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, inprocess inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of. Reverse logistics stands for all operations related to the reuse of products and materials. May 04, 2018 logistics is a process of movement of goods across the supply chain of a company.