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Marketing Exam Study!

  • Demand and supply are well balanced. Staff and facilities are busy without being overworked, and customers receive good service without delays

  • Excess capacity. Demand is below optimum capacity and productive resources are underutilized, resulting in low productivity

Marketing Logistics and Supply chain management pg 261

Marketing logistics (physical distribution) – the tasks involved in planning, implementing, and controlling the physical flow of materials, final goods, and related information from points fo origin to points of consumption to meet customer requirements at a profit.

  • Involves getting the right product to the right customer in the right place at the right time

  • Marketing logistics addresses not only outbound distribution (moving products from the

factory to resellers and ultimately to customers) but also inbound distribution (moving products and materials from suppliers to the factory and reverse distribution (moving unwanted products returned by consumers)

Supply chain management – managing value-add flows of materials, final goods, and related information between suppliers, the company resellers, and final users

  • Minimum distribution costs imply slower delivery, smaller inventories, and larger shipping costs

  • The goal of marketing logistics should be to provide a targeted level of customer service at the least cost

Major logistics functions

  • Order processing – orders set up my salespeople through mail or telephone, via the internet

    • o

      Vendor-managed inventory (VMI) systems – allows customers to share real- time data on sales and current inventory levels with the supplier

  • Warehousing

    • o

      Distribution centres – a large, highly automated warehouse designed to receive goods from various plants and suppliers, take order, sill the efficiently, and deliver goods to customers as quickly as possible

  • o

    Companies must store their tangible goods until they are sold

    • Inventory levels affect customer satisfaction

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