Marketing Logistics in Developing Business Processes

Introduction

The article seeks to justify applying marketing logistics in developing business processes. It was co-authored by six scholars drawn from different Russian universities and state agencies. Their thesis is that adopting marketing logistics in enterprise systems can support business development strategies in today’s dynamic market environment. The article notes that to avoid excess supply and maintain an enterprise’s competitiveness, logistical efficiency is needed in business structures. Determining the place of integrated marketing and logistics in the organization is a feasible approach to realizing this objective.

Facts

The first fact the authors use to support their thesis is that marketing and logistics indicate value for customers. They explain that marketing success in today’s competitive environment demands an optimal choice of business processes (Chicherova et al., 2021). In this regard, reliable and adaptable structures will help meet demand efficiently. In a competitive environment, efficient marketing relations are achieved by combining marketing and logistics functions. This integration supports the optimal use of material and information obtained through feedback systems to enhance product value for the customer.

Support for the thesis also comes from the fact that when demand-creating and demand-satisfying factors are strategically linked, it is possible to achieve higher customer value. Marketing is primarily a demand-creating function of a business, while logistics aims to meet customer needs. Therefore, linking the two is crucial to delivering customer value. Marketing logistics strategically links these business areas for optimal customer satisfaction. Additionally, competitive advantages are gained from this integration due to the enhanced flow of information, materials, and capital.

The authors describe the structure of a functional marketing logistics complex that can support business strategy. In this regard, the focus should be on implementing systematic and technology-based marketing logistics for a timely and efficient satisfaction of demand (Chicherova et al., 2021). It requires all related business functions to be merged at micro or macro levels. Unified planning, execution, and management are crucial to optimal physical flows of goods and information to the consumer location. Further, the complex ensures better market orientation toward the buyer and personalized logistics services.

Explanation of Facts

The author’s first claim that marketing and logistics create customer value is well supported in the literature. It is achieved by delivering what a consumer wants when he or she needs it. As Lee and Woo (2019) note, a market mediation function is needed for SCM to deliver customer value. Efficient marketing relations are created by integrating marketing and logistics. Similarly, market orientation to logistics and SCM will ensure product availability and efficient supply and demand management to reduce inventory costs (Lee & Woo, 2019). Thus, integrating marketing and SCM is essential to satisfy customer needs.

The authors assert that integrating logistics and marketing leads to strategic business advantages. This claim is relevant to the logistics management function which is the interface between marketing (demand-creating business area) and production. Effective demand planning requires market data to predict and respond to future consumer trends. Forecasts also ensure the maintenance of optimal inventory at minimal costs. Thus, in a competitive business environment, firms integrate marketing and logistics to strategically manage inventories and plan for production based on projected demand changes.

The authors also state that marketing logistics is implemented systematically using technology to integrate internal and external business structures. Integration in SCM unifies various actors and systems at the macro level. Various technologies are applied in logistics to track shipments on a real-time basis, monitor goods destined for consumers, and determine the approximate delivery date. Radiofrequency identification is deployed in tracking inventory levels, helping minimize the costs of maintaining stock (Lee & Woo, 2019). Technology and vertical integration also enhance the visibility of international shipments transported by air or sea.

Evaluation of Article Resources

The authors relied mainly on peer-reviewed articles to support their argument that marketing logistics create unity across functions, enabling the organization to satisfy consumer demand and achieve business strategy. These sources offer high-quality evidence for a functioning integrated unit comprising the two business areas. In total, 32 sources drawn from different management and entrepreneurship journals are used in the article. The diversity of the material ensures an in-depth analysis of the place of marketing logistics within SCM. The sources are used to support the approaches for integrating the functions of an entrepreneurial structure at the micro and macro levels.

The currency and relevance of sources used in this article demonstrate that up-to-date information was used. In total, 32 resources are utilized, which shows that multiple views were considered to ensure sufficient coverage of integrated logistics and marketing. The information is current since 29 of the sources used were published within the last 10 years. The resources are also relevant to the topics of logistics and marketing. They include articles and reports, which enhance the credibility and quality of the authors’ discussion.

Strengths

A major strength of this article is that it analyzes the business structures for meeting market demand with efficiency. Vertical and horizontal integration, strategic diversification of enterprise functions, expanded product selection, and use of market intermediaries are identified as strategies for responding to demand changes. The analysis provides a compelling argument for the marketing logistics proposal. Further, the article’s conclusions that ML leads to accurate inventory control, improved market responsiveness, and better relationships with customers are well supported by relevant studies.

Another key strength of this article is that it provides a systematic and reproducible strategic framework that enterprises can use to develop their ML. Its core elements include the four Ps of a marketing mix quantity, quality, shipment date, and costs for the logistics component. Additionally, the article reveals the methods for creating a personalized service system in ML: systematic implementation, use of technology, consistency across departments, and employee involvement.

Weaknesses

The article uses several studies to support the proposal that marketing logistics unifies and focuses key business functions on meeting consumer needs. However, the literature review is not systematic, with the inclusion criteria not stated. Thus, it is difficult to determine how the studies included in the article were selected and appraised. Further, some claims in the text lack support from relevant sources. For example, the authors list the components of the marketing and logistics complex but do not state the source of this information. Additionally, they claim without support that optimizing economic flows in a business leads to cost-effective services, and organizing the market using the mixed principle is highly effective.

Bias or Faulty Reasoning

Personal bias occurs when the claims and conclusions of an article are based on opinion. The article proposes the elements that comprise the ML complex, a marketing logistics model, and the structure of a customer-focused service system that organizations can adopt to meet consumer demand efficiently. However, these proposals are based on the authors’ expert views rather than facts. Further, the authors argue that customer needs can be met through integrated ML. While ML may enhance market responsiveness due to better feedback flow, other factors also influence this outcome. For example, a CRM strategy and consistent communication with consumers are needed to meet customer demand (Lee & Woo, 2019). These factors should be considered when designing an ML model for an enterprise.

What Others are Saying

Other researchers have also investigated marketing logistics and its implementation in organizations. Using the structural-functional approach, Hurzhii et al. (2018) found that ML aims to optimize product circulation through “market orientation and economic flow optimization” (p. 96). They also establish that ML meets demand by employing marketing strategies and creating a logistics system. A combined approach to management is used in ML functions. In contrast, Hong and Nguyen (2020) found that ML is impacted more significantly by internal factors than external variables. Business networks, HR issues, and marketing methods affected logistics firms more strongly than SCM infrastructure.

Supporting Facts & Faulty Reasoning

The claim in the article that ML orients enterprises towards customer need satisfaction is supported in the literature. Hurzhii et al. (2018) note that ML optimizes product flows based on market orientation. Additionally, demand is met efficiently through customer feedback loops provided by an ML system. The article also claims that by integrating marketing and logistics, it will be possible to meet customer needs efficiently. However, CRM is needed to protect against supply chain issues that may impact customer value negatively (Lee & Woo, 2019). Thus, other factors should be considered when creating an ML system for enterprises.

Application to the Profession

The concept of marketing logistics has a practical application in the supply chain and logistics profession. Marketing helps support an efficient logistics system that ensures consumer demand is satisfied in time. In organizations, the role of a logistics coordinator has emerged to coordinate marketing and supply chain functions. The initial market strategy provides benchmarks for logistics, while modern technologies are applied to optimize economic flows and satisfy demand.

Relationship to the Textbook

The role of marketing in planning and controlling logistics is considered in the textbook. The article combines the two concepts to form the ML system. Marketing logistics require the integration of functions or divisions internally and supply chain actors externally. The goal is to meet consumer demand efficiently and cost-effectively. The textbook also analyzes the role of digital systems in logistics and marketing.

Conclusion

In conclusion, ML entails integrated planning, delivery, and control of products and marketing information to meet customer needs efficiently. The article reviewed varied, high-quality resources to support the ML concept and system. Overall, recent information is used but some claims are not well supported.

References

Chicherova, E. Y., Semenova, J. A., Dmitrieva, O. V., Anasenko, E. V.,

Popov, K. I., & Kovaleva, N. I. (2021). Marketing logistics as a factor of strategic development of business structures. Academy of Strategic Management Journal, 20(4), 1-11. Web.

Hong, P. V., & Nguyen, T. (2020). Factors affecting marketing strategy of logistics business – Case of Vietnam. The Asian Journal of Shipping and Logistics, 36(4), 224-234. Web.

Hurzhii, N., Shyshkin, V., & Kravchenko, A. (2018). The marketing logistics in the management system of the enterprise. Management and Entrepreneurship: Trends of Development, 1(3), 90-97. Web.

Lee, J. Y., & Woo, S. H. (2019). The impact of power on the relationships and customer satisfaction in a logistics triad: A meta-analysis. The Asian Journal of Shipping and Logistics, 35(4), 194-199. Web.

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