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What is Logistics Marketing and how can it help you?

What is Logistics Marketing and how can it help you?

We have already spoken other times in the blog about the close relationship between marketing and logistics. This time we do it again to deal with a term that makes this relationship explicit: logistics marketing. Today we are going to see what is meant by logistics marketing and what are the objectives pursued by this discipline.

Logistics marketing as a plus in the supply chain

One way to understand logistics marketing is to see it as the point where logistics and marketing meet to satisfy the customer, focusing on the value that is provided to the customer through the construction of the supply chain.

Companies have traditionally had two main focuses; those focused on the competition (that is, on improving those that put their effort into improving what the competition was offering to the market) and those focused on the customer, which means looking for new ways to maximize their satisfaction, even if this implies following different paths. to which the competition is transiting.

The latter requires a plus of courage -and implies another plus of risk-. It is not easy to go off the beaten path and sometimes even involves giving the client solutions that he has not asked for or that he does not even know he needs or wants. An idea that was already haunting Henry Ford, the famous car manufacturer, when he said: “If I had asked my clients what they needed, they would have said a faster horse.” In other words, just a few years ago we did not know that we ‘need’ touch and smartphones.

Taken to the field of logistics, in the competition approach we would move in areas where cost savings or continuous or non-rupturing innovations would prevail. In other words, if the competition has a delivery commitment at 10:00 a.m., we would try to arrive at 9:30 a.m., instead of wondering if that change is what really represents a leap in quality. On the contrary, advances such as traceability, the new delivery points or the facilities to change delivery times or places have meant disruptions compared to what was done before, marking that plus in the supply chain.

Working together

That logistics and marketing work together in logistics marketing has to translate into how the company focuses its entire relationship with the customer, its value proposition and its production. For example, marketing has to work together with logistics to find out if their desire to offer a high level of customization is viable, which will also be delivered in a short time (in addition to analyzing the costs for this to happen).

On the contrary, if the approach that that company has in logistics is that of maximum cost savings (which implies working with the largest possible batches, to the detriment of more personalized batches), each one will be pulling to one side. It is not that one party or the other is correct, it is that they will be working uncoordinated.

Logistics is increasingly part of the sales proposition of companies. Zara is one of the global fashion giants and is highly recognized in particular for the high performance and use of its logistics. Already in 2014, it managed replacement times of 48 hours for all its stores. Zara carries out a very high product rotation between its stores, which translates into the sensation of a constant renewal of models and seasons, leading customers to return to its stores over and over again. Thus, from the logistics performance a marketing proposal arises (“we always have new models to see”) that makes increasing the value offered to the customer a reality.

“The most successful companies are those that, in addition to having excellent products, recognize that the product in the hands of the customer has much more value.” This phrase from Javier Montoro, logistics marketing consultant and ESIC professor, is a good summary of how important the way in which the product reaches the hands of customers is. Only from this unified approach to logistics marketing will we be giving a complete response to your needs.

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