Marketing logistics as well as communicating it is one of the duties of a logistics department. The highly competitive environment commonly associated with many business organizations has caused many companies all over the world to become proactive. Any organization which ignores the importance of logistics can only blame itself for the issues that follow. The entire purpose of logistics is defined when the logistics managers start to take marketing initiatives.
Logistics and marketing management are concerned with the effective flow of products and services in the economy and pertain to the distribution of both consumer and industrial goods. Marketing is considered to be a vital part of an economy and there is a need for an efficient marketing system which can ensure that all marketing activities are carried out in accordance with the predefined goals of the business.
Logistics managers and executives nowadays are trusted to make important decisions and they want a better due in return for their work by being recognized as members of the pivotal winning team.
Wholesalers, manufacturers, business firms and retailers are facing the urgent need to formulate and implement marketing policies. This can be done by the execution and development of executive marketing programs and strategies. The logistics executives and managers are primarily concerned with expansion of product line and product development, choice of the channels of distribution and are also concerned with the overall development of promotional programs and establishment of pricing methods and policies.
Logistics is primarily concerned with a high degree of development in the relations that concern marketing exchange. 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.
A developed economy or an economy which is expanding its horizons for its overall development requires the integration of both logistics and marketing. There is interplay between flow-oriented logistics and market-oriented concepts. Thus, the manufacturer of a product is benefited in such a way that he is able to increase the informational and material properties of the product as evaluated by the end consumer. This integration also helps in stimulating the emergence of marketing logistics in order to provide the customer with a wide range of options.
The concept of effective marketing which is widespread in the developed countries of the world allows modifications on the part of commercial mediators, their concerned functions and objectives. The marketing strategy allows the commercial mediators to get involved in introducing various means of production while raising the standards of servicing. This also leads to a reduction in the levels of price and costs through the streamlining of product flows.
Thus, it can be rightly concluded that marketing and logistics are inter-related with each other and an organization which wants to achieve equilibrium of stability and overall development must consider marketing logistics as an integral part of the organization.