Logistics and marketing as integral parts of the business process
Logistics and marketing are closely linked, and their proper interaction has a positive effect on the work of the entire company. The common goal for these areas is customer satisfaction. At the same time, using the capabilities of both activities, it is possible to achieve excellent business success.
Logistics is engaged in the management and regulation of various flows, among which material and information. Its main task is to efficiently organize the movement of products within the company and outside of it. For this purpose, transportation services and the supply department are used.
Well-functioning logistics processes depend on the balance between the three departments: supply, production and sales. If there are problems in any direction, the whole system suffers.
The logistics department is responsible for the management of materials, from contracts with suppliers to the delivery of goods to the customer.
With regard to marketing, this area is involved in the management of production processes with the further promotion of goods on the market. This division is responsible for increasing the sale of products, taking into account the demand and its characteristics.
Consumer needs are regularly growing, and to meet them, businesses need to constantly improve their operations, finding new ways to increase profits without increasing costs. This applies to providing high quality products and delivering them quickly. However, for products to meet the demands of more and more customers, marketing experts need to be involved. They analyze customer motivation and know which incentives to use to generate demand or which products to promote. And in this case, the two services work in concert to achieve a common result – the development and prosperity of the business. Marketing submits its research to the logistics department, and the latter decides how much of this or that product needs to be produced, and how much material is needed for this.
However, it should be remembered that insufficient elaboration of all functions of the logistics sphere has a negative impact on the activities of the second direction. Marketing will not be able to carry out a full-fledged presentation and promotion of products on the market. The problem is aggravated if the segment is highly competitive and oversaturated. In this case, such important criteria as the quality and cost of goods by consumers are practically ignored, because the shortcomings of product presentation come to the fore. Advertising is an effective means of introducing consumers to new products. Carefully thought-out, selected for a particular audience of buyers, it can work wonders and override the problems of delivery and shortages. And here marketing saves the logistics by creating incentives to buy products, regardless of their shortages. However, this creates a temporary effect, and sales growth is only possible when both services are maximally engaged.
