In today’s competitive and complex world, the question “what is logistics?” is more relevant than ever. Logistics is a broad term that can cover anything from shipping to real estate to aerospace. It is a field that is often misunderstood by the general public. The following paragraphs will offer an explanation of logistics and what it means to those who understand it.
According to Merriam Webster’s dictionary, logistics is the “study or process of putting together goods in a manner so that they are able to be delivered to their intended destination.” A far more concise definition is “the science of bringing together the parts that make up a product.” Logistics is most closely associated with what element of the marketing mix best connects to the desires of the target market: that is, the way in which the product will satisfy the needs and expectations of the buyers. In a simple example, a truck driver transports products from one location to another. The driver has no knowledge of the product, nor does he care about the product because he knows that when he gets to his desired location, he just pick it up, load it and drive off.
But in order for a product to be effectively marketed, it must somehow be “clicked” by the consumer. Consumers depend on marketers to explain the benefit of their product, to illustrate how it can solve a problem for the consumer, and to tell them why they should buy it. Marketers need to rely on logistics to deliver these messages in a clear and compelling manner. There are three essential elements to marketing: understanding the customer, knowing your product, and communicating with the customer in a way that allows him to feel like he is making a good investment. None of these elements exist without the first two.
Simply put, a marketer cannot fully grasp the desires of a potential consumer if he does not know where they are. If he is unsure where the consumer is located, or even how he can get there, then he is bound to fail. For instance, if a marketer does not have any idea how to explain to a potential client why a new product is superior to the rest, then his chances of having a sale are going to be poor. Likewise, if the customer does not know how to place an order, then his ability to place an order is also going to be poor.
Understanding the customer is critical to a marketer’s success, but most successful marketers do not spend much time thinking about this part of their operations. Instead, they spend a large portion of their time trying to market the products that they have to offer. Most marketers do not even realize that part of their job may be to be logistics gurus who have figured out the best way to place products in the right places at the right times. If they did spend a little more time on understanding what the customer needs, they would find that their profits would increase. Most of the people in the retail industry know a lot more about logistics than the average person, because they are constantly studying the retail industry for new trends. Marketers should realize that the customer is the most important aspect of their business, but they need to understand the importance of understanding the customer.
There are many ways to look at logistics, but the bottom line is that it relates to sales. If you want to increase your sales and improve your profit margin, then you should always put the needs of the customer first. If you take all the customers into consideration, including the most affluent ones, then you will be able to determine the best times to place your products. If you are planning to make use of logistics consultants, then you will be able to determine the best and most cost efficient way to place your product. Once you have a good idea of the best times to place your product, then you can set your marketing budget around it.