Creating Marketing Strategy with Logistics Leverage

In the past, many companies considered marketing and logistics as entirely different and independent areas. Pilarczyk, Mruk, Sojkin,  and Szulce (1999) argued that main reasons were:

• Traditional treatment and mechanical division of marketing and logistics function, however, the role of logistics in gaining and maintaining of competitive edge was small (logistics was preserved and organized as a transportation and warehousing department)
• Showing off a role of logistic costs from the viewpoint of the growth of company’s effectiveness and success
• Underestimation in practice of goods’ physical route management and its information situations in aspect of integrated marketing management

In the late 1980s, there was an intensive growth both in the marketing and the logistics areas. Companies started using them to extend management models and create potential areas for integration.

Providing an efficient logistics service is essential to compete.

Companies have realized that being able to provide an efficient logistics service is a vital part of a marketing strategy seeking to gain a competitive advantage. A well-organized logistics department can be a powerful and strategic marketing tool since marketing and logistics are related networks, focusing on consumers’ needs. Logistics and marketing function as a collaborative team since marketing stimulates needs and wants, and logistics satisfies them by distribution processes. Both marketing and logistics approaches give a chance of an effective use of companies’ growth potentials. The integration of marketing and logistics could contribute to the achievement of a required service level, and increase the company’s profit while maximizing the customer satisfaction.

Logistics leverage is the skill to efficiently influence market demands through the request of excellent logistics systems, techniques, and programs. Leverage refers to high market returns that may be gained from comparatively small investments. Sales, market share, and customer satisfaction gains can be achieved if the firm purposefully positions itself to leverage its logistics abilities. For successful logistics, the company must be able to market and use its logistics expertise to accomplish marketing strategies.

Long-term strategy and implementation of the marketing/logistics relationship is key.

In a nutshell, for companies, it is necessary to have a developed strategy including long-term and involved application of marketing and logistics potentials which could lead to the greatest success and the best outcomes for achieving overall company goals.