4 Surprising Connections Between Marketing and the Supply Chain
Unlocking Success: The Dynamic Partnership Between Marketing and Supply Chain/Logistics.
The essential role of marketing in driving demand for the supply chain industry.
What is supply chain marketing?
The role of marketing in supply chain and logistics must recognize that marketing serves the supply chain rather than the other way around. While the basic definition of logistics and supply chain management often overlooks marketing, the nuanced version must include it.
Connection #1: Marketing as Sales and Product Support
Marketing plays a crucial role in supporting supply chain and logistics efforts. Companies depend on marketing for increased revenue and a clear market position. However, marketing does not depend on the supply chain to function effectively. It requires materials and resources, but they are typically sourced locally.
In the realm of digital marketing, campaigns can reach millions of consumers instantly without the need for trucks, rail, diesel, or distribution centers. However, logistics marketers operate under the assumption that products will be available when consumers are ready to purchase them. The supply chain is responsible for transporting raw materials, transforming them into finished products, and delivering them to consumers. The assumption is that there will be consumer demand for these products! This often requires marketing that supports and understands supply chain dynamics.
Connection #2: Product Marketing
Marketing teams play a pivotal role in understanding product demand, ensuring that popular items are in stock while alerting organizations to less sought-after goods that may not be worth producing.
For instance, before new TVs hit the shelves of the big-box stores, marketing teams are already at work, promoting these products, devising pricing strategies, and timing campaigns around significant events like Big Game days. Marketers not only create demand but also address unmet consumer needs, influencing new product development and shaping the supply chain required.
Marketing advertises, differentiates, and presents product benefits to potential customers. A shipper or supplier needs to attract clients; marketing professionals make that happen.
Connection #3: B2B not B2C Marketing
The marketing strategies employed in business-to-business (B2B) differ significantly from those used in business-to-consumer (B2C) environments.
In the supply chain, B2B marketing strategies are effective. They typically focus less on flashy advertisements and more on building relationships through industry events and presentations for prospects. Transactions often involve complex sales processes and long-term partnerships. In contrast, B2C marketing aims to sell products directly to individual consumers, requiring strategies to engage and convert this audience.
Human interactions are crucial in B2B marketing, as personal relationships are the building blocks of success in the supply chain industry.
Connection #4: Industry Knowledge and Analysis
Effective supply chain/logistics marketing requires a strong analytical approach. Marketers must analyze key performance indicators (KPIs) related to demand and consumer preferences, while also informally assessing supply chain market trends and behaviors.
A deep understanding of the dynamic changes within the supply chain and their impact on customer choices is essential for crafting successful marketing strategies.
In today’s fast-paced market, marketing and supply chain go hand in hand to boost business success. Marketing doesn’t just support the supply chain; it helps create demand and ensures that products are available when customers want them. Cahill Consulting understands the difference between B2B and B2C marketing and understands the supply chain/logistics market and its trends. Contact us to connect the dots and improve your marketing strategies. This will lead to happier customers and better results.