Please enable JavaScript.

Coggle requires JavaScript to display documents.

Logistics and Marketing Integration: Enhancing Competitive Advantages …

- - - - Through their SUPPLY and DEMAND FUNCTIONS in a
        MARKETING CHANNEL.
    - - Is critical TO
        THE DELIVERY OF CUSTOMER SERVICE.
        
        WITHOUT THE SUCCESSFUL LINK OF LOGISTICS AND MARKETING...
        
        THE FIRM MAY BE UNABLE to provide GOOD CUSTOMER SERVICE, resulting in DISSATISFIED CUSTOMER OR A LOST SALE.
      - THE MAJOR CAUSE OF CONFLICT FOR LOGISTICS AND MARKETING INTERFACE
        
        Is RELATED TO 5PS (PRODUCT, PRICE, PLACE, PROMOTION AND PACKAGING) OF MARKETING
        
        ORGANIZATIONS to be SUCCESSFUL in DELIVERING higher CUSTOMER VALUE, LOGISTICS AND MARKETING FUNCTIONS
        
        IT MUST BE INTEGRATED
        
        THE RIGHT PRODUCT MUST BE AT THE RIGHT PRICE.
        
        ADVERTISED THROUGH PROPER PROMOTIONS
        
        PROVIDED in RIGHT PACKAGING
        
        MUST BE AVAILABLE AT THE RIGHT PLACE
        
        THIS RESEARCH
        WORKS IN THIS DIRECTION AND DEVELOPS VARIOUS FRAMEWORKS AND MODELS
        
        LOGISTICS AND MARKETING INTEGRATION – AN INTERACTIVE MODEL
        
        LOGISTICS AND MARKETING INTEGRATION – A BUSINESS VALUE-ADDED FRAMEWORK
        
        FOR BETTER INTEGRATION OF LOGISTICS AND MARKETING.
- - - - AN EFFECTIVE COORDINATION AND INTEGRATION AMONG INDIVIDUAL UNITS OF THE ORGANIZATION.
    - - Is COMPLEX AND CHALLENGING because it involves INTER FUNCTIONAL COORDINATION
        
        Without the successful link of logistics and marketing...
        
        THE FIRM MAY BE UNABLE TO PROVIDE GOOD CUSTOMER SERVICES AND MEET CUSTOMER EXPECTATIONS, RESULTING IN A DISSATISFIED CUSTOMER OR A LOST SALE.
        
        ORGANIZATIONS OFTEN SUCCEED OR FAIL DEPENDING ON THEIR LEVELS OF CUSTOMER SERVICE.
        
        ESPECIALLY BETWEEN THE LOGISTICS AND MARKETING FUNCTIONS.
        
        Logistics activity may be dependent on marketing activity in a marketing channel, and vice versa.
        
        The malfunctioning of one activity may severely impact the functioning of other activities.
        
        THE SATISFACTION OF SUPPLY AND THE SATISFACTION OF DEMAND OF CUSTOMERS’ NEEDS AND WANTS HAVE TO BE COORDINATED AND SYNCHRONIZED IN ORDER TO ACHIEVE...
        
        CUSTOMER VALUE PROPOSITION.
- - - - Is responsible for the efficient and effective handling of a firm’s goods and services...
        
        With the ultimate aim to
        
        MINIMIZE COSTS
        
        IMPROVE CUSTOMER SERVICE.
        
        TO CREATE A COMPETITIVE ADVANTAGE
        
        (Murphy and Poist, 1993).
        
        THE EFFICIENT AND EFFECTIVE LOGISTICS MANAGEMENT is a major component for ORGANIZATIONAL SUCCESS
        
        WAREHOUSING MANAGEMENT.
        
        IMPORTANT FUNCTIONAL AREA IN LOGISTICS AND CAN BE A VERY COSTLY AND LABOR-INTENSIVE FUNCTION
      - LOGISTICS INTERACTION
        
        INTERACTS with a number of DIFFERENT AREAS within an ORGANIZATION (Coyle et al., 1992).
        
        OPERATIONS (PRODUCTION)
        
        MARKETING
        
        PROCUREMENT
        
        HUMAN RESOURCE MANAGEMENT
        
        WITH THE MOST COMMON INTERFACE BEING WITH MARKETING (Schary, 1984).
        
        It has evolved to focus primarily ON DEMAND CREATION.
        
        ADVERTISING
        
        SALES PROMOTION
        
        PERSONAL SELLING
        
        LOGISTICS
        
        (Lambert and Cook, 1990).
        
        Has emerged as a discipline to ADDRESS THE DEMAND SUPPLY ACTIVITIES inherent IN THE PHYSICAL DISTRIBUTION FUNCTIONS TO FULFILL THE DEMAND
        
        WAREHOUSING AND DISTRIBUTION
        
        Are critical to the successful marketing of products...
        
        2 more items...
    - - THE IMPORTANCE OF MARKETING’S COLLABORATIVE AND COORDINATED RELATIONS
        
        is to ACHIEVE MARKETING OBJECTIVES
        
        (Kahn, 1996).
        
        MARKETING’S INTER-FUNCTIONAL INTEGRATION
        
        POSITIVELY RELATED to a variety of BUSINESS PERFORMANCE INDICATORS in working with OTHER DEPARTMENTS
        
        DEPARTMENTAL PERFORMANCE
        
        COMPANY PERFORMANCE
        
        PSYCHOSOCIAL OUTCOMES SUCH AS SATISFACTION
        
        O’Leary-Kelly and Flores’s (2002)
        
        “Integration refers to the extent to which separate parties work together in a cooperative manner to arrive at mutually acceptable outcomes.”
        
        (Kahn and Mentzer, 1998).
        
        “Integration is a process of interdepartmental interaction and interdepartmental collaboration that brings departments together into a cohesive organization”.
        
        (Pagell, 2004).
        
        Two types or levels of integration are considered...
        
        INTERNAL INTEGRATION
        
        Examines integration across various
        parts of a single organization.
        
        1 more item...
        
        EXTERNAL INTEGRATION
        
        Examines integration that occurs between organizations.
        
        1 more item...
        
        Stevens (1989)
        
        Suggests that companies should integrate internally first (internal integration), and then extend the integration to their supply chain partners (external integration).
        
        1 more item...
      - (Murphy and Poist, 1996).
        
        POOR COORDINATION BETWEEN LOGISTICS AND MARKETING
        
        CAN IMPACT COMPANY
        PERFORMANCE in terms of...
        
        LONGER TRANSIT TIMES
        
        HIGHER LEVEL OF LOSS AND DAMAGE
        
        HIGHER TRANSPORT COSTS
        
        HIGHER PACKAGING COSTS
        
        Logistics may account for nearly 45% of all marketing expenditures. (Lambert and Stock, 1993).
        
        Setting marketing mix strategy without regard to the true logistics cost of the product can also be costly.
        
        EXAMPLE (Hammond, 1994).
        
        1 more item...
        
        (Lambert and Stock, 1993).
        
        THE INTEGRATION OF LOGISTICS AND MARKETING
        
        IS NECESSARY TO BRING THE LOGISTICS SOURCES OF ADVANTAGE INTO THE REALM OF EFFECTIVENESS, OR DRIVERS OF DIFFERENTIATION.
- - - - Place usefulness could be described as a created or added value to a product by possibility of buying and consuming it in a proper place.
      - CUSTOMER SATISFACTION ALSO INCLUDES MAXIMIZATION OF PLACE AND TIME
      - Time usefulness is a value created
        by making a product accessible in proper time.
    - - LOGISTICS clearly contributes to place and time utilities, which then allows marketers to offer possession utility to prospective customers.
        
        MARKETING typically focuses on demand creation through product, price, and promotion mixes and facilitates possession utility.
        
        INTER-FUNCTIONAL COORDINATION
        BETWEEN LOGISTICS AND MARKETING IS IMPORTANT SINCE OUTSTANDING CUSTOMER SERVICE REQUIRES ALL OF THE ABOVE ACTIVITIES.
- - - - “THE INTEGRATION OF KEY BUSINESS PROCESSES FROM END-USER THROUGH ORIGINAL SUPPLIERS THAT PROVIDES PRODUCTS, SERVICES, AND INFORMATION THAT ADD VALUE FOR CUSTOMERS AND OTHER STAKEHOLDERS".
        
        (Lings, 2000; and Mentzer et al., 2000).
        
        SCM is a link between LOGISTICS AND MARKETING DUE to the interrelationship between MARKETING ACTIVITIES IN MARKETING CHANNELS.
        
        (Shankar, 2001; and McGinnis et al., 2010).
        
        IS THE PROCESS OF MANAGING MATERIAL AND INFORMATION FLOWS from the source, through the firm and to the customer and PLAYS AN IMPORTANT ROLE IN THE ABILITY OF THE FIRMS TO REMAIN COMPETITIVE IN THE MARKETPLACE.
        
        (Gattorna et al., 1991).
        
        LOGISTICS PERFORMANCE
        
        CAN BE EVALUATED by considering logistics costs,
        product availability in the market, conforming to the promised delivery dates and quantities, flexibility in logistics activities, efficiency in inventory management and customer satisfaction.
- - - - PRODUCT AS A MARKETING MIX TOOL IS AMONG THE STRONGEST DISAGREEMENTS BETWEEN LOGISTICS AND MARKETING because of their VARIED RESPONSIBILITY FOR INVENTORY POLICIES
        
        MARKETING
        
        HIGH INVENTORY BECAUSE THIS REDUCES THE LIKELIHOOD
        OF STOCK OUTS.
        
        LOGISTICS
        
        HIGHER QUANTITIES OF INVENTORY NECESSITATE ADDITIONAL STORAGE SPACE AND INCREASES INVENTORY CARRYING COSTS AND HENCE LOGISTICS PREFER LESS STOCK (LOW INVENTORY).
    - - (Johnson and Wood, 1993)
        
        LOGISTICS AND MARKETING MAY DISAGREE in terms of whether TO USE FOB ORIGIN OR FOB DESTINATION PRICING WHEN ALLOCATING TRANSPORTATION COSTS.*
      - Place
        
        LOGISTICS EMPHASIZE CENTRALIZED INVENTORY AND LONGER LEAD TIME WHILE MARKETING EMPHASIZE DISPERSED INVENTORY AND SHORTER DELIVERY TIME.
        
        Promotion
        
        LOGISTICS AND MARKETING MAY DISAGREE IN TERMS OF WHETHER TO USE PUSH OR PULL PROMOTION STRATEGY
        
        Packaging
        
        (Vernuccio et al., 2010).
        
        UNIT SIZE OF THE PACKAGE
        AND EASY HANDLING ARE LOGISTICS RELATED CONCERNS, WHEREAS COLORING AND LABELING A PACKAGE ARE SOME OF THE ISSUES THAT CONCERNS MARKETING ALSO.
        
        In LOGISTICS, packaging
        refers to ease of handling and protection, and in MARKETING, packaging is for
        promotional activities and educating consumers.
        
        1 more item...