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Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 12

November 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 292

A Study on Role of Logistic Management in Present

Marketing Environment

By

Ravi Medicharla MBA (TM)

Genpact Uppal, Hyderabad

Email: ravi.medicharla@gmail.com

Abstract:

There has been consensus that logistics as well as supply chain management is a vital

research field, yet with few literature reviews on this topic. This paper sets out to

propose some hot issues in the current research, through a review of related literature

from the perspective of operations management. In addition, we generate some

insights and future research directions in this field.

Introduction:

The need for independent

distributors is growing through out the

world because of increased cost of

sales, large consumer base, large

quantity production of stackable items,

sales in small quantities and need for

rapid and timely delivery of products.

New marketing opportunities are

emerging in India market involving

wider use of distribution network for

handling different range of products.

The budgets and liberalization in the

recent years have significantly boosted

the distributors’ income.

The length and number of

channel members varies from product

to product, situation to situation and

organization to organization. The

classification of the channel of

distribution can be done based on the

length or the number of middleman

involved in moving the products from

manufacturer to consumers. Channel

design should begin with the final

consumer and work backward to the

manufacturer and the finally selected

channel must be totally appropriate to

the basic objectives of the

organizations marketing programme.

They also say that the channel

structure must be flexible enough so

that the use of one channel design

doesn’t results in closure of doors for

other designs.

Marketing channels can be

viewed as sets of interdependent

organizations involved in the process

of making a product or service

available for use. Marketing channels

not only satisfy demand by supplying

goods and services at the right place,

right quantity, right quality for right

price but they also stimulate demand

through promotional aspects

Marketing channels reduce the

consumer’s search, waiting time,

storage and other costs by lessening

their involvement. After the Second

World War Industrial revolution caused

sweeping changes in the distribution

strategies of many organizations.

Marketing channels are used where

the products are frequently purchased

in small quantities and the consumers

are very scattered over very large

Page 2 of 5

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 12

November 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 293

area. Channel design is also affected

by the characteristics of middleman

who are available. A creative and well- executed marketing channel provides

some of the more potent means by

which manufacturer enhance their

ability to compete domestically and

internationally.

The starting point of good

distribution system is to study what the

consumer wants and what the

competitors are offering. The

competitor’s characteristics also

influence the channel strategy. A

product may be the best in the world

but it will be of little use unless it

reaches the consumer where he wants

and when he wants. In all cases where

consumers are involved the

middleman are necessary.

In a vast country like India

characterised by marked inter-regional

differences in physical, climatic, socio- economic and cultural features which

may, in no small measure, lead to

perceptible region-to-region variations

in the consumer behaviour, the inter- regional homogeneity assumption may

not be realistic.

Understanding the consumer’s

needs, wants and buying behaviour is

at the heart of delivering successful

products to the market place.

Distributing consumer products

begins with the manufacturer and ends

with the ultimate consumer. Between

the two there is usually at least one

middleman - a retailer. In the

distribution channel the last middleman

is a retailer. He is also the last link

between the producer and the

consumer. The retailer is directly in

contact with the ultimate buyer. It is

believed that the retailer may generally

influence consumer brand choice by

exaggerating the band/product

attributes of a specific brand,

specifically in case of not so popular

brands. In other words, the retailer

may support some brand or disfavour

some depending upon his own

relationship with the brand market, or

the margin available from the specific

brand concerned. When the retailer

supports a brand the possibility of

success of that brand is high, unless

the brand itself is of inferior quality.

Marketing generally does not

represent unique theory or application.

Rather, marketing, particularly social

marketing is an overall approach to

large-scale behaviour change.

Important marketing strategies that

need to be incorporated into any

program include studies of consumer

behavior, needs assessment, market

segmentation, approaches, selection

of communication modalities, and

information feedback systems.

Consumer behaviour is another

overreaching, interdisciplinary field that

integrates work from psychology,

communications, economics,

marketing, and law. Efficient

Management is a prerequisite to an

industrial affluence and marketing.

Therefore, marketing should have

priority in management decisions and

be a major element for all production

and manufacturing operations.

Consumer behaviour

concentrates on understanding the

attitudes, attributes, beliefs, values,

norms of the consumers and it

analysis the way the consumer

consciously or unconsciously follows

any of these. Consumers do not make

Page 3 of 5

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 03 Issue 12

November 2017

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 294

decisions in vacuum. Their purchases

are strongly influenced by cultural,

social, personal and psychological

factors.

The consumer market is fast

increasing which requires a large

network of channel distribution. The

social changes such as small families,

late marriages are some other factors

that are necessitating more

middleman. The need for supplying

products as nearer to the consumer as

possible is assuming greater

significance because of increased

number of workingwomen and more

urbanization. Even the rural

consumers are attracted more towards

convenience products due to the

advertising boom, which is also

causing increased work load on the

distribution channel system.

Latest improvements in

communication technology are

facilitating electronic data storing and

exchange among the channel

members. New methods of transport,

freight handling and coordinated

methods of transporting have

produced a number of new model

combinations including containers on

ships, which did not exist earlier. The

computer revolution has made

possible new managerial models vital

to the successful management of

logistics and other marketing activities.

Economic development, which

is focus of many developing countries,

is also causing increase in the

business. The number of channels in a

market increased with the increase in

economic activity while the number of

services performed by retailers

decreased. It can be observed that in

recent years more and more retired

employees, Ex-servicemen and

housewives in India are opening

wholesale, retail or dealer to

supplement their earnings.

One of the key elements of

channel design is figuring out how

many sales outlets should be

established in a given geographic area

and what kind of participation in the

marketing flows is required from each

of the outlets so that needs of the

existing, potential and past consumers

may be adequately served.

In a vast country like India

characterised by marked inter-regional

differences in physical, climatic, socio- economic and cultural features which

may, in no small measure, lead to

perceptible region-to-region variations

in the consumer behaviour, the inter- regional homogeneity assumption may

not be realistic.

Consumer behaviour

concentrates on understanding the

attitudes, attributes, beliefs, values,

norms of the consumers and it

analysis the way the consumer

consciously or unconsciously follows

any of these. Consumers do not make

decisions in vacuum. Their purchases

are strongly influenced by cultural,

social, personal and psychological

factors. The relationship between

the consumer’s expectations and

the products perceived

performance depends on whether

the product meets expectations

there by satisfying the consumers

or falls short of expectation and

making the consumer dissatisfied.