The Most Closely Related Elements of the Marketing Mix

logistics is most closely related to which element of the marketing mix

If you were asked to identify the most closely related elements of the marketing mix, you’d probably answer logistics. But how closely are logistics and the other elements related? Here are some examples. If you’re a big manufacturer, you probably have a logistics-oriented strategy. Recently, the world’s largest chemical manufacturer had to replace ships to deliver raw milk and cream to their customers. Now, the company is converting its entire distribution system from ships to containers.

For instance, a manufacturing company may begin by scheduling small quantities of production at a single facility for regional or local distribution. As sales volumes increase, they may focus more on efficiency and reduce logistics costs. They may also establish additional plants to focus on a part of their product line. Eventually, the logistic network will include many warehouses with varying locations and a variety of different warehousing methods. Market-oriented warehouses can minimize the cost of delivering small orders.

Although it has traditionally been related to top management, the function has not received the same attention. Managers of logistics functions have often lacked access to top management goals, and they have been least involved in decisions with the greatest long-term impact. Hence, top management must take the initiative to raise logistics’ importance in their strategic planning. So, how do they do it? Listed below are some examples.

Inventory management is not an exact science, but it’s a crucial aspect of logistics. It is important to maintain a healthy inventory balance because an imbalance in inventory will impact the supply chain and business margins. Transport, which includes different platforms, can make up 50 percent of a company’s logistics budget. If you’re planning a big-scale logistics strategy, you may have a hard time deciding which element to put the most resources into.

Price is another important element of logistics. A company’s price can be influenced by many factors. It can affect both the amount of money spent on shipping and labor, and the size of the customer base. For example, a factory located in Mexico will cost less to operate, but will cost more to ship. If you have a large customer base in Mexico, you should consider moving the factory to Mexico in order to reduce the costs of labor and shipping.

While these decisions are often tactical, they have long-term effects. They provide a competitive advantage that’s difficult to duplicate. And these aren’t the tactics you’ll use to get a logistics cost advantage – they’ll be based on nontraditional approaches to logistics. Ultimately, logistics actions will facilitate the movement of product and coordinate supply and demand, cost and service.

Knowing how your target customers think of your products is vital to the marketing process. Product categories help you define your target markets. Consumer products, for example, include electric razors, sandwiches, stereos, magazines, and houses. Consumer products that are used up quickly are considered consumer nondurables, while products that last for a long time are considered consumer durables. You must carefully plan your supply chain to meet their expectations.