Basic Marketing: A Global Managerial Approach

Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e

12. Distribution Customer
    Service and Logistics

Text © The McGraw−Hill

Companies, 2002

Distribution Customer Service and Logistics 331

computerized links between grocers and their suppliers, which leads to more effec-

tive merchandise assortments and continuous replenishment of shelves based on

what actually sells each day. Although the ECR movement started in the U.S. and

Canada, it quickly spread across Europe and in other regions. Now, 50 consumer

packaged goods companies have banned together to create Transora, a Web portal

(www.transora.com), to bring more e-commerce benefits to the ECR concept. Obvi-

ously, far-reaching innovations like these don’t transform everything overnight, but

you can see that more effective approaches in the distribution area have the poten-

tial to save firms, and their customers, massive amounts of money.^2

Physical Distribution Customer Service

From the beginning, we’ve emphasized that marketing strategy planning is based

on meeting customers’ needs. Planning for logistics and Place is no exception. So

let’s start by looking at logistics through a customer’s eyes.

Customers don’t care how a product was moved or stored or what some channel

member had to do to provide it. Rather, customers think in terms of the physical

distribution customer service level—how rapidly and dependably a firm can deliver

what they, the customers, want. Marketing managers need to understand the cus-

tomer’s point of view.

What does this really mean? It means that Toyota wants to have enough wind-

shields delivered to make cars thatday—not late so production stops orearly so

there are a lot of extras to move around or store. In turn, it means that the Toyota

dealer wants the car when it’s due so that salespeople are not left making lame

excuses to the customer who ordered it. It means that business executives who rent

cars from Hertz want them to be ready when they get off their planes. It means

that when you order a blue shirt at the Lands’ End website you receive blue,

Customers want

products, not excuses

The physical distribution

customer service level—including

fast and reliable delivery of

whatever assortment is needed—

is critical to many business

customers.