A Proposal for Logistics Marketing Based on the studies from overseas Hirofumi TANGE CS CR SCM P C When facing the great changes in the economy and ma

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1 A Proposal for Logistics Marketing Based on the studies from overseas Hirofumi TANGE CS CR SCM P C When facing the great changes in the economy and marketplace throughout the world, we can no longer depend upon the existing way of thinking and operating, or the strategy in the field of both corporate management and marketing. On the other hand, concerning physical distribution and logistics, it was said at the end of the th century that Those who control physical distribution dominate society at large and it has also been said at the beginning of the st century that The Marketing Era is evolving into the Logistics Era, so much so that, the time trend has been tremendously transforming. In the past, physical distribution was thought of merely as being a supporting role of marketing activities; however, it is now recognized as logistics, i.e., one of the management strategies, which is vital to realizing customer satisfaction CS and the customer relationship CR in the severe competition among corporations against the background of infomationalization and globalization. Furthermore, in the st century, logistics is just developing into supply chain management SCM as a value delivery network or system particularly from the customers or users viewpoint. Under these conditions there is something like a paradigm shift. This study and research tries to consider the conceptual convergence between logistics and marketing, and then proposes a new logistics oriented type of marketing called logistics marketing. Concretely, being based on the

2 excellent studies from overseas, channel and logistics in connection with traditional marketing mix P, will be analized. As a result, the framework of logistics marketing will be shaped, e.g., through applying brand new and sophisticated marketing mix C and so on. logistics marketing, marketing logistics, value delivery system, channel, C marketing logistics logistics marketing Thirteenth Edition Principles of Marketing Philip Kotler & Gray Armstrong In today s global marketplace, selling a product is sometimes easier than getting it to customers Logistics effectiveness has a major impact on both customer satisfaction and company costs

3 Effective Marketing Logistics Graham Buxton production financial resources marketing efforts Buxton demand creation physical supply flow business logistics marketing logistics PDM physical distribution management institutional channel of distribution channel management

4 facility location transpotation inventory management communication material handling and packaging distribution channel pattern of relationships inventory flow Marketing Logistics Martin Christopher & Helen Peck PL Third Party LogisticsSCM Supply Chain Management Christopher & Peck product price promotion place Ps what they do how they do it responsiveness reliabilityrelationships Rs customer service interface marketing and logistics interface consumer franchaise customer value supply chain

5 demand creation demand fulfilment market driven supply chain strategy delivery service logistics performance CS customer satisfaction long term profitability Principles of Marketing Kotler & Armstrong Marketing Channels: Delivering Customer Value suppliers resellers upstream and downstream distribution channel Marketing Logistics and Supply Chain Management physical distribution importance, complexity, and sophistication powerful competitive advantage IT

6 IT Information Technology distribution efficiency SCM goals flexible assortments larger shipping lots targeted level segment The objective is to maximize profit, not sales Kotler & Armstrong physical distribution Planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit marketers SCM

7 Ps P Place Kotler & Armstrong marketing mix the set of controllable tactical marketing tools target customers intended positioning arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers Kotler & Armstrong P Product Price variety quality design features brand name packaging services list price discounts allowances payment period credit terms advertising personal selling Promotion seles promotion public relations Place channels coverage assortments locations inventory transportation logistics Philip Kotler & Gary Armstrong, Principles of Marketing Thirteenth Edition, Pearson Education Inc.,, p.. Kotler & Armstrong intermediaries marketing channel distribution channel a set of inderdependent organizations that help

8 make a product or service available for use or consumption by the consumer or business user downstream side value delivery network the network made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve the performance of the entire system in delivering customer value SCM Managing upstream and downstream value added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers customer centered thinking customer value delivery system P SCM SCM SCM P product out Kotler & Armstrong market in P C P Segmented Marketing C Individualized Marketing C Customer solution Cost Convenience Communication Kotler & Armstrong C value conveniently C

9 Customer solution C Cost Convenience Communication P Chaotics: The Business of Managing and Marketing in the Age of Turbulence Philip Kotler & John A. Caslione Prosperity is a great teacher, adversity a greater CS CR SCM P

10 service products Philip Kotler & Gary Armstrong, Principles of Marketing Thirteenth Edition, Pearson Education Inc.,, p.. Logistics Japan Logistics Marketing Advisors Logistics Marketing, Inc. Graham Buxton, Effective Marketing Logistics, The Macmillan Press Ltd.,. A. W. A. W. A. W. Shaw, Some Problems in Market Distribution, Harvard University Press,. Buxton, op. cit., pp.. Ibid., pp.. Martin Christopher & Helen Peck, Marketing Logistics Second Edition, Butterworth Heinemann,. Ibid., Preface. Ibid., p.. Kotler & Armstrong, op. cit. Ibid., pp.. Ibid., pp.. Ibid., p.. Ibid., pp.. allowance Ibid., pp. & pp.. Kotler & Armstrong, op. cit. C Cost Customer Cost Kotler & Armstrong, op. cit. p.. Philip Kotler & John A. Caslione, Chaotics: The Business of Managing and Marketing in the Age of Turbulence, AMACOM,, pp.. SCM Kotler & Armstrong, op. cit. p..

11 JIS physical distribution logistics SCM JIS A. W. PL PL PL IT MH Charles W. L. Hill, International Business Eighth Edition, McGraw Hill/Irwin,. David Meerman Scott, The New Rules of Marketing & PR, John Wiley & Sons, Inc.,. Philip Kotler & Gary Armstrong, Principles of Marketing Thirteenth Edition, Pearson Education Inc.,. Philip Kotler & John A. Caslione, Chaotics: The Business of Managing and Marketing in the Age of Turbulence, AMACOM,. Johny K. Johansson, Global Marketing Fifth Edition, McGraw Hill/Irwin,. Cecil C. Bozarth & Robert B. Handfield, Introduction to Operations and Supply Chain Management Second Edition,

12 Pearson Education, Inc.,. Leif Enarsson, Future Logistics Challenges, Copenhagen Business School Press,. Edited by Marianne Jahre, etc., Resourcing in Business Logistics, Liber & Copenhagen Business School Press,. Martin Christopher, Logistics and Supply Chain Management Third Edition, Pearson Education Ltd.,. Philip Kotler, According to Kotler, AMACOM,. David Simche levi, Philip Kaminsky, & Edith Semchi Levi, Managing the Supply Chain, The McGraw Hill Companies,. Martin Christopher & Helen Peck, Marketing Logistics Second Edition, Butterworth Heinemann,. Graham Buxton, Effective Marketing Logistics, The Macmillan Press Ltd.,. A. W. Shaw, Some Problems in Market Distribution, Harvard University Press,.

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