Principle of Marketing (BCOE-141)

Logistics (physical distribution) is planning and controlling the flow and storage of goods from origin to consumption efficiently.

Key activities include: transportation, warehousing, inventory management, order processing, packaging and material handling.

Objective is to deliver the right product, at the right place and time, in right condition at minimum cost.

Channel levels depend on number of intermediaries:

1. 0-level (Direct): Producer → Consumer (brand website selling direct).
2. 1-level: Producer → Retailer → Consumer (supermarket).
3. 2-level: Producer → Wholesaler → Retailer → Consumer (common FMCG distribution).
4. 3-level: Producer → Agent → Wholesaler → Retailer → Consumer (agent coordinates distribution).

Choice depends on product, market size and company resources.

Target market selection strategies decide how many segments a firm will serve and with what approach:

1. Undifferentiated (mass) marketing

• One marketing mix for the whole market.
• Suitable when needs are similar and product is standard (e.g., basic salt/commodity).
• Advantage: low cost; Limitation: strong competition and weak customer fit.

2. Differentiated marketing

• Different marketing mixes for multiple segments.
• Example: shampoo variants for men, women, anti-dandruff, kids.
• Advantage: higher sales/coverage; Limitation: higher cost and complexity.

3. Concentrated (niche) marketing

• Focus on one segment only; deep specialisation.
• Example: premium organic skincare for niche buyers.
• Advantage: strong position and expertise; Limitation: higher risk if segment declines.

4. Micromarketing

• Customisation for local areas or individual customers.
• Example: personalised recommendations and offers in e-commerce apps.
• Advantage: high relevance; Limitation: data and operational cost.

Thus, choice depends on resources, competition, and market diversity.