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Wednesday, 12 September 2018

Elements of International Marketing Logistics




The component of the marketing logistics of a global marketing is the same with that of a domestic marketer. The challenge involved in the foreign market is that apart from the extra cost incurred as goods move across borders, issues like tariff barriers, import quotas, local content law on packaging et c. Transportation policies of countries should be taken note of with a view to ensuring that goods are placed at the right place and at the right time to the delight of the consumers. The elements of marketing logistics that enhance the achievement of this noble objectives are discussed below :

Customer Service

   Customer service is a total package involving all functional units in an organisation in the quest to ensure that efficiency is achieved in creating time and place utility. Customers services therefore strive and describe the firm's ability to meet customers needs and desires. The customer has both stated and unstated needs and an effective customer service program is expected to meet and possibly exceed the customer expectations with series of sales satisfying activities that begin the moment the customer places order for an item and ends with timely delivery of the products to the delight of the customer. Emergency needs of the customer should also be accommodated without showing apparent agitation. Customer services as an embracing element of an international marketing logistics system has common comma identifiable and important elements which are now explained :
Delivery time : this is the time taken to process customer order and delivery.
Delivery Reliability : This refers to the capacity of the firm to have readily available products to meet consumer demand at all times.
Order Accuracy : this refers to the ability or degree with which supply conforms with the specification of the order received from the customer.
Ease of doing Business : this element explains the ease with which the customer get access to quality service.
Elimination of Defects :  The product when received by the customer should be in good physical condition.
Value added services : features, pre sales and after sales support advice and services capable of facilitating or enhancing the use of product by consumers should add value to offers.


Order Processing :

  order processing is an important component of the international marketing logistics system. It involves proper coordination of information required for procurement of products for various suppliers as well as those from customers. It is here that the logistics chain starts. When a customers order is received, the information contained in the order form are studied closely and all relevant departments, sales and marketing, accounting, warehousing and logistics department or unit depending on the organisation are expected to make input and ensure that the right quality type and other specifications are delivered promptly to the location desired by the customer.

Advances in integrated communication technology ict has enhanced order processing in the international market place. With the internet, fax and other electronically based data management devices, customers can I place order across continents, make payment through internet banking facilities and get delivery made via air transportation facilities. A stock replenishment process that will guarantee product availability, cooperation among functional units department and data processing efficiency are some of the sub elements that will enhance and encourage an efficient and effective order processing activities in the international market place.


Logistics communication System :


   The importance of an efficient and effective communication system in a marketing logistics system cannot be overemphasized when viewed with the prism of distance which may separate the production facility and the channel members as well as the consumers. To achieve an effective management and control of physical distribution, certain crucial information required including among others inventory levels, warehousing capacity, frequency of other replenishment, customer consumption levels, capacity and mode of transportation, time lead, buffer stock level, delivery time etc. In a typical MNC, a good communication system should be able to make available on demand the present stock position of each item at each stock location or subsidiary. This will help the headquarters company or the international logistics manager to move products from one location to another in order to meet consumer demand as the as the needs arises. The integrated communication technology ICT as evidenced by computerized systems, display Equipment, telephone and other internet facilities had bridge the communication gap between the producer and foreign intermediaries as well as customers.

Transportation:

   in international marketing, large distances separate the production facilities from the target markets. Inventory is therefore expected to be planned and moved from production sites to choosing intermediaries and to customers inform required and on time. To achieve this objective, the transportation system that links and binds the logistics network is established. the first decision to be made is the type or transportation mode required to move the products to the foreign country. Three distinct modes of transportation are available to accomplish this :
Land transportation
(rail, roads, vehicles and pipelines).
 water transportation (transoceanic service and inland waterways).
The Logistics manager is expected to be guided by the following factors while taking decision on the mode of transportation, cost of each mode, speed of delivery, reliability of the mode in both countries, security of the products e.t.c.

Warehousing :

   Warehousing involves storing finished goods until they are brought by either channel intermediaries or by consumers. This becomes imperative because production and consumption cycles rarely match each other. The decision that the international marketer will have to make will include :

Whether to depend on foreign intermediaries for warehousing facility or establish own facilities in the target market.

The strategic location of warehouse needed to service customer demand.

Making use of public, private field or custodial warehouse or government warehouses.

Inventory Planning And Control :

     Inventory is the stock that is not immediately purchased and consumed by the market. While the efficient management or inventory is of utmost importance in customer service, the interest of the international marketer will include :
 Ability to strike a balance between carrying large inventory and its associated cost implications.
Ability to ensure the availability of buffer stock.
Ability to secure the products and minimize theft, pilfering and stock obsolescence.

Materials Handling :


   The ability to handle materials properly ensures that products are delivered without defect. The requisite decisions the international marketer will make to achieve success are :
Choosing proper equipment to handle each product type.
Providing proper and recommended warehousing and climatic condition to sustain the lifespan of the product.
Choosing proper packaging materials.
Providing adequate training for logistics staff that take charge of materials handling.
Choosing the proper mode of transportation that is capable of reducing damage.
Providing instruments like containers which have proved very efficient in cross border movement of goods in modern day international transportation system.


Protective Packaging :

   While moving goods from one country to another, it is expected that goods be packaged in a manner that will ensure that they are protected against stress, while in the ship, airplane and in the warehouse. In this regard the challenges facing the global firm are :
 Each countries specification on protective packaging.
The products characteristics which has bearing on packaging.
Container and re-packaging costs.
Taking cognizance of changing climates of the different countries where the products are made and consumed respectively.
Channel intermediaries hanging techniques required at each stage.

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