Page 28 - Journal of Strategic Marketing Magazine - January 2019
P. 28
The impact of the product life
cycle on business logistics
Marketing and logistics have a vitally important co-dependent relationship. Dr Myles
Wakeham and Dr Beverley Waugh explore the union between the supply chain, business
logistics, marketing and the product lifecycle.
A ccording to Jooste (2014), umbrella of the marketing effort. the organisation’s goods and those
Essentially, marketing is focused
marketing is deined as
of competitors. In order to elongate
on four key elements known as the
“the process by which
the life expectancy of the product
organisations satisfy the needs of
consumers by creating, communicating four Ps: product, price, promotion or service, marketing utilises the
and place (distribution), whereas
marketing mix variables (four Ps) to
and delivering value for customers in business logistics is made up of several try to generate sales, but like anything
the form of ideas, goods and services activities such as demand forecasting, in life, the product will experience an
to facilitate satisfying exchange site selection and facility design, eventual sad demise.
relationships, in ways that beneit both procurement, materials handling, Although the traditional PLC,
organisations and customers”. packaging, warehouse management, as relected above, is an accurate
Pienaar and Vogt (2012) posit that inventory management, order indication of a product’s life cycle,
business logistics is “concerned with processing, logistics communication, which starts at market entry and ends at
the inbound movement of materials transportation, reverse logistics and the death of the offering, it is not a true
and supplies and the outbound customer service. relection of the entire process because
movement of inished products. The it is void of one of the most important
goal is delivery of the inished products Addressing needs and wants stages; the product conceptualisation
required by the marketing department Every logistics activity, as mentioned and development phase. It is this
to the point where they are needed above, is required by marketing to important juncture (when the product
and when they are needed in the most convey inputs into the organisation and is perceived, conceived and born), that
economic fashion.” to deliver the outputs that have been triggers the commercialisation of the
So, in terms of Pienaar and Vogt’s developed by operations for targeted offering and its ultimate absorption into
deinition, logistics’ key function is to customers in such a way that the needs the marketplace.
convey inputs into the organisation in and wants of such customers may be So, to what extent does the PLC
the form of materials and components satisied in a cost-eficient manner. impact on business logistics and
etcetera, and then deliver the end All products have a lifecycle; some effective logistics management? Table
goods that were developed by are of long duration, like Coca Cola, 1 (on the next page) provides the
means of the transformation process and others extremely short (e.g. a fad). answers to this question.
(operations) to consumers at the The traditional product life cycle (PLC) An organisation that is well-versed
right time. This, at the right place, has four stages; the introduction stage in product life cycle management
price, to the right person in the right where new products are introduced in will have the ability and skills to
condition and quantity. The relationship the market, the growth stage, which optimise logistics and supply chain
between the two functions is that of is characterised by robust sales and management (SCM) to beneit its
co-dependence; marketing cannot proits, the maturation stage where bottom line. Product life cycle logistics
survive without logistics and logistics sales have peaked, and inally the is an approach to treating the supply
has no place in the economy without decline stage where the demand chain as a continuous network or
the need-satisfying offerings that are for the offering starts to diminish as circle and, in the process, to improve
uncovered and designed under the the market becomes saturated with customer service, lower supply chain
p26 - Strategic Marketing
cycle on business logistics
Marketing and logistics have a vitally important co-dependent relationship. Dr Myles
Wakeham and Dr Beverley Waugh explore the union between the supply chain, business
logistics, marketing and the product lifecycle.
A ccording to Jooste (2014), umbrella of the marketing effort. the organisation’s goods and those
Essentially, marketing is focused
marketing is deined as
of competitors. In order to elongate
on four key elements known as the
“the process by which
the life expectancy of the product
organisations satisfy the needs of
consumers by creating, communicating four Ps: product, price, promotion or service, marketing utilises the
and place (distribution), whereas
marketing mix variables (four Ps) to
and delivering value for customers in business logistics is made up of several try to generate sales, but like anything
the form of ideas, goods and services activities such as demand forecasting, in life, the product will experience an
to facilitate satisfying exchange site selection and facility design, eventual sad demise.
relationships, in ways that beneit both procurement, materials handling, Although the traditional PLC,
organisations and customers”. packaging, warehouse management, as relected above, is an accurate
Pienaar and Vogt (2012) posit that inventory management, order indication of a product’s life cycle,
business logistics is “concerned with processing, logistics communication, which starts at market entry and ends at
the inbound movement of materials transportation, reverse logistics and the death of the offering, it is not a true
and supplies and the outbound customer service. relection of the entire process because
movement of inished products. The it is void of one of the most important
goal is delivery of the inished products Addressing needs and wants stages; the product conceptualisation
required by the marketing department Every logistics activity, as mentioned and development phase. It is this
to the point where they are needed above, is required by marketing to important juncture (when the product
and when they are needed in the most convey inputs into the organisation and is perceived, conceived and born), that
economic fashion.” to deliver the outputs that have been triggers the commercialisation of the
So, in terms of Pienaar and Vogt’s developed by operations for targeted offering and its ultimate absorption into
deinition, logistics’ key function is to customers in such a way that the needs the marketplace.
convey inputs into the organisation in and wants of such customers may be So, to what extent does the PLC
the form of materials and components satisied in a cost-eficient manner. impact on business logistics and
etcetera, and then deliver the end All products have a lifecycle; some effective logistics management? Table
goods that were developed by are of long duration, like Coca Cola, 1 (on the next page) provides the
means of the transformation process and others extremely short (e.g. a fad). answers to this question.
(operations) to consumers at the The traditional product life cycle (PLC) An organisation that is well-versed
right time. This, at the right place, has four stages; the introduction stage in product life cycle management
price, to the right person in the right where new products are introduced in will have the ability and skills to
condition and quantity. The relationship the market, the growth stage, which optimise logistics and supply chain
between the two functions is that of is characterised by robust sales and management (SCM) to beneit its
co-dependence; marketing cannot proits, the maturation stage where bottom line. Product life cycle logistics
survive without logistics and logistics sales have peaked, and inally the is an approach to treating the supply
has no place in the economy without decline stage where the demand chain as a continuous network or
the need-satisfying offerings that are for the offering starts to diminish as circle and, in the process, to improve
uncovered and designed under the the market becomes saturated with customer service, lower supply chain
p26 - Strategic Marketing
