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"The relationship between marketing and logistics in the Innovation Economy"
"The relationship between marketing and logistics in the Innovation Economy"
1. Basic definitions and the concept of marketing
Marketing - this is a human activity aimed at meeting the needs, requirements and demands of end users through the exchange. Let's discover the significance and meaning of key terms that are part of the definition given by F. Kotler.
Need - is a state consumer when he feels the need of something, but do not know how, what and in what order to implement it.
Need - is knowing the consumer spectrum (list) of goods and services that he may consume to meet their needs. However, he has not decided to choose one of them.(Known issue of choice!)
Request - is a state consumer when choosing a particular product has already been made based on the analysis of price and quality of the means chosen to meet the needs. Practical step - an appeal to the seller, in terms of which the client's request - it is nothing like ordering a product or a willingness to conclude a contract for services.
The end user - a person who acquires products for internal consumption. This may be not only physical, but also legal entities, which are in the market term - a corporate client.This product is sold only when the need to purchase the end user to meet their needs.Movement of goods in supply chains - this is not a sale, and incremental, for compensation conveyance of property to promote the goods (wholesale).
Client, as often happens, has no understanding of the markets in which it can meet their needs, on the operators of these markets, as well as the availability of products and upgrade them. This necessitates the development of the sellers of these organizational structures, whose job is to not only attract customers and work with them, but also to help consumers convert their needs into requirements, and then in the requests (orders).
This approach is actually a "concept of marketing" in commercial activities of any company, as opposed to "sales concept, the purpose of which is not profit at the expense of the needs of end users, and its formation to the needs of the market and consumers through aggressive advertising and until such time as this path does not run its course. Companies working in the framework of the concept of sales, are not focused on long-term existence. The slogan of market operators is simple: do not meet the needs of buyers, "to give" them what is in stock now! They are easy to identify precisely on this basis. And in companies professing "marketing concept", the goal is exactly the maximum approximation to the needs, the needs and demands of consumers, making a profit through their satisfaction. This systematic work aimed at long-term phased implementation of strategic objectives.
As a method, marketing includes not only external but also internal component, aimed at the most effective organization to achieve business goals. In fact, it's all kinds of internal organization and reorganization of any company, in close collaboration with management and logistics (economy, finance and accounting and auditing, etc.). In a broad sense, marketing - is not only organizational and staff structure or list of works, but the "mindset" of all employees from management to artists. His role in our lives can not be overemphasized. This determines the kind of human activity in a competitive market, a fundamental discipline for the professionals who organize the work of folk - the economic complex of the country.
2. Basic definitions and the concept of logistics
In logistics deeper historical roots than in marketing. The term "logistics" appeared originally in the Quartermaster Corps of the army. He comes from the Greek λόγος (logo) and is used for the first time in the treatises on martial arts of the Byzantine Emperor Leo VI the Wise (886 - 912 years. AD).
It so happened that for centuries the concept of "logistics" was used in a variety of subject areas. This explains the abundance of its wording and definitions. They are all correct, but in their areas. We are interested in logistics in terms of its impact on the economy of business entities and their management.
At present, determined that the logistics - it is part of economic science, as well as the area of activity, the subject of which is to organize, manage and control processes of the functioning of the sphere of circulation of products, goods and services, building infrastructure, ensuring the merchandising and management, and inventory . The content of logistics as a science is to establish causal relationships and regularities inherent in providing product distribution. In fact, it represents a set of attitudes and actions aimed at streamlining and cost management in these processes.
From the standpoint of state and municipal government, as well as management of organizations, logistics is a system of strategic management of material, financial and information flows in processes: procurement, supply, transportation, storage and service of materials, components and finished products. Its major task is to support and create effective organizational forms and methods of management.
In countries with developed market economies have a clear and informed views on this phenomenon, its role and place in the economy. If marketing is regarded as a system of beliefs, as well as the method of setting the strategic and practical problems in market processes, the logistics - as the executive market mechanism, not only in enterprises of different ownership forms, but also at the municipal and national levels of economic management.
Logistics encompasses and integrates into a single set of such diverse kinds of management activities as information exchange and financial security, packaging, warehouse management and inventory management, organization of cargo handling and gruzotransportirovki, the creation of organizational structures, management processes, product distribution and personnel, accounting, workflow, etc.
That is what determines the severity of approaches to preparing professionals logistics.Decisions are taken by people! Effective decisions are very well trained professionals!The quality of any decision provided no post, but only the state of training of managers at all levels and sectors.
The concept of logistics is a system of views on improving business performance through streamlined management of material, financial and information flows.
Characterize ¬ Riza its main provisions:
- Implementation of the principle of unification of commercial endeavors. Listed streams in the economy are added as a result of actions by many market participants, each of which pursues its own goal. If contractors can coordinate their activities in order to rationalize the joint control object (pass-through material flow), then they all receive substantial economic benefits;
- Taking into account logistics costs throughout the supply chain. One of the major problems of logistics - managing costs to bring the material flow from the primary source of raw materials to final consumer. However, to control costs is only possible if they can be accurately measured. Therefore, the cost-accounting system of production and reversal of the participants ¬ logistics processes must allocate costs incurred in the implementation of logistics functions, to form the information about the most significant cost, as well as the nature of their interactions with each other. Subject to the above conditions it is possible to use an important criterion for the optimal variant of logistics system - a minimum cumulative costs throughout the supply chain;
- Rejection of a universal technological and material handling equipment. Use equipment conforming to, basically, the specific conditions. Do not dwell here on the proof that under certain operations universal equipment, usually loses equipment developed specifically for this operation. This position is fully applied and logistics processes;
- Humanization of technological processes and the establishment of modern conditions.One of the important elements of logistic systems are the frames, that is specially trained personnel capable of with the requisite degree of responsibility to perform its functions. However, work in the field of materials management are traditionally undervalued, which explains the presence in it of the "eternal" problems of personnel.Logistic approach, reinforcing the public considerably ¬ dence of activity in the management of material flows, creates objective prerequisites for attracting industry personnel with a high employment potential, which is able to provide higher productivity;
- Development of logistics services. Niche in the market can take ways: improving the quality of existing products, launching new products and increasing the level of logistic service. Working with the flow of goods requires substantial investment, and the third way, allows them to significantly reduce. It is for this company are very serious about logistics service as a means of improving their competitiveness;
- The ability of logistics systems to adapt in an uncertain environment. The emergence of large and diverse goods and services increases the degree of uncertainty ¬ definite, demand, causes sharp fluctuations in quality and quantity of material flow through the logistics system. Under these conditions, the ability of logistics systems to adapt to changes in the environment is there ¬ essential factor for sustainable market position.
3. Interaction Marketing and Logistics
To analyze the interaction between marketing and logistics in the economic literature often use the concept of marketing and logistics "mix".
In marketing - is a collection of so-called four "P":
- Product (product satisfying end-user query);
- Price (the price of the product and all pricing issues);
- Plase (the location of the commercial efforts);
- Promotion (promotion system product).
In logistics - these are known seven «R»:
- Right product (for distributing the product);
- Right guantity (required amount of product);
- Right condition (satisfying product quality);
- Right place (defined territory distribution of the product);
- Right time (calculated time required to work with the product);
- Right customer (the presence of customers of the product);
- Right cost (calculated at the cost of work with the product).
The structure of such a "mix" is shown in Figure 1
Fig. 1 Interaction Marketing and Logistics
Logistics, in relation to the factor of "price", usually has a direct impact on the achievement by corporate or financial strategic objectives defined by marketing. Pricing decisions require careful analysis of factors related to competi ¬ rental goods, socio-economic, demographic and other characteristics of consumers in a particular market segment.
In some cases the logistics might be interested in a different pricing scheme if they meet the requirements of inventory management, changing the location of warehousing and delivery times, dictated by consumer demand and ensuring the appropriate level of quality service. Logistics efforts here may be directed to ¬ chenie increase sales in certain market segments, if there has not been achieved marketing scheme prices. This situation often develops under the influence of seasonal fluctuations in demand, which cause the need for additional logistics management solutions reserves ¬ themselves (such as the creation of special seasonal inventory).
Another important characteristic of areas of mutual interests of the intersection of marketing and logistics are the characteristics of food and, above all, its product range, defined marketing strategy firm. Assortment characteristics of the finished products directly affect the structure of supply chains and distribution channels in the system, as well as inventory levels, types of vehicles, transportation modes, etc. The emergence of new assortment of positions, even a single product, but in another (the dimensions) package can completely change the structure of the logistics channel, or mode of transportation and therefore must necessarily be coordinated with the logistics management.
The desire to design firms to their original packaging, are often dictated by the requirements of marketing, can cause unexpected increase in logistics costs. Logistics management is sometimes defined product packaging as a "silent salesman", as at the level of the retailer's packaging can be a deciding factor in sales. From the standpoint of marketing are important appearance of packaging, its attraction, having complete information about a product, ie those parameters that can distinguish it among similar competitors interchangeable commodities. For logistical packaging is important primarily in terms of its dimensions and the ability to protect goods from damage during transportation and material handling. In particular, the consumer (retail) packaging must be suitable for placing it in an industrial or external transport package, preferably with the full use of.
Sales promotion is one of the key functions of marketing, which paid much attention to any company. Confirmed the importance of moving the enormous sums that are spent worldwide on advertising, demonstration of the finished product ¬ tion, the organization of distribution and sales. Typically, marketing experts are divided strategy for promoting the finished product into two basic categories: "pulling" and "pushing." These categories are related to competition in the supply channels of distribution of finished products. Before producers often a dilemma: to create their (corporate) distribution ¬ very sensitive to the network or involve sales of finished products logistics intermediaries (wholesalers and retailers)? The first approach requires usually a large investment, but allows better control the market and sales. In the second case, the costs significantly less, but lost fully or partially control over the sales market. In this case, the distribution channels of wholesale brokers are subject to constant competition among producers ¬ telyami finished products.
Marketing strategy "pull» (pull strategy) of goods through the distribution channel is usually associated with large-scale advertising campaign in the media that carries the manufacturer. Advertising stimulates demand for customers who ask for the advertised goods from retailers, and those in turn, are turning to wholesalers and the last - the manufacturer. Thus we have a closed circuit "pull" product from the manufacturer on the basis of demand, stimulated by advertising. Regardless of the ownership of the channel distribution strategy "pull", as a rule, does not require the establishment and maintenance of large inventories of finished goods distribution network.
The basis of the strategy of "push» (push strategy) is a cooperative producer of finished products to wholesale and retail intermediaries, when the goods are "pushed" from production to distribution channels mediators almost regardless of demand stimulation.Costs for advertising are the mediators alone or together with productivity ¬ Dietel finished products. Often, producers are forced to stimulate the promotion and sale of goods, establishing a special discount, or by creating additional supplies from retailers.The emphasis in this approach is to regulate finished goods inventories in distribution channels, wholesale and retail trading partners.
From the standpoint of logistics discussed approaches are fundamentally different, as emphasis on the various logistics functions: transportation, on the one hand, warehousing and inventory management - with the other. Increasingly logistics manager prefers the strategy of "pushing" with its greater focus on the saturation of the logistics channel and sales training. The strategy of "pull" in pursuit of immediate goals to meet the demand, poses a logistics management is much more problematic. Therefore, the need ¬ mium constant coordination of logistics and strategic marketing plans in the distribution.
Interaction of logistics and marketing in the parameter "place" is usually a problem of choosing the main outlets of the finished product. From the point of marketing is transformed into the problem of choice: either sell to wholesalers, or - directly to retailers. In this case, the decision on the choice of "place" is always preceded by decisions about the choice of structural ¬ structure of distribution channels.
In terms of logistics, such decisions may significantly affect the efficiency of the logistics system. For example, firms with sales contacts only with wholesalers tend to have fewer logistical problems, as the wholesalers are more predictable, tend to purchase finished products in bulk, place their orders and manage inventory of finished products in storage systems more stable and efficient than retailers. A significant factor in this case is much lower level of cost manufacturer of transportation products.
Relationship marketing and logistics vast and varied, as These two realities are closely linked, a single algorithm for managing business processes.
The purpose of this article - to give the leaders of all parts of understanding the nature of these processes.
Original article Lobanov-Logist
Published 29.04.2011 г.