Marketing Logistics - Definition, Importance & Components
What is Marketing Logistics?
Marketing logistics in a business process to ensure an efficient is flow of finished goods, services and product information to the distributor, retailer and end customer. Marketing logistics is an important business parameter which entails finished goods' inventory management, packaging, transportation, distribution, waste management and reverse logistics.
Importance of Marketing Logistics Management
Marketing logistics is a key component for any business which ensures that the products are reached to the right set of customers along with all the product-related information. A good product is useless unless it reaches the right set of customers at the right place at the right time. Marketing logistics management is an important study where a company has to analyze where a finished product is needed, how should the products be taken, when are they required, what product information must be shared etc. Without a proper marketing logistics plan, even the best of products might not have a positive impact on business.
Components of Marketing Logistics
Some of the main components of marketing logistics are:
1. Customer profiling
While products are created for fulfilling customer needs, it important to profile customers based on where they are, how much is the demand in a region, where to sell for maximum profitability etc.
2. Goods distribution
Under marketing logistics, distribution of finished goods is an important element to ensure goods are distributed, stored and sold based on the demand and opportunity.
3. Transportation
This step is important in understanding how goods need to be transported based on their shelf life, urgency, volume etc.
Companies need to evaluate use of air, rail, road or sea and look the the return on investments, time, geography etc.
4. Packaging & Information
type of packaging required for products is an important factor in marketing logistics. Also, passing correct information via brochures, product manuals, warranty cards is essential to be given along with a product.
5. Customer Service
For every product, there should be a channel to provides th3 consumers a service for resolve their queries, solve product issues and take feedback
6. Reverse Logistics
In marketing logistics, the process of taking products back from customers to manufacturer is another parameter which has to be planned.
All the components of marketing logistics are integrated and need to planned & executed well for the success of any product.
Hence, this concludes the definition of Marketing Logistics along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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