Marketing Logistics Distribution Strategy & Customers (Term Paper Sample)

Marketing Logistics- Distribution Strategy
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Businesses that can succeed on same day delivery exhibit certain peculiar characteristics. Firstly, they have the capacity to deliver directly to the customer very fast and during the same day. eBay for instance is said to have more than fifty courier tracks positioned in San Francesco to facilitate this. Further, such delivery should be run during the twenty four hour period CITATION Gre12 \l 1033 (Bensinger, December 3rd 2012). As such a business should have this capacity. Also, these businesses should have the capacity to indemnify the buyer in the event of a loss or damage to the goods.
The potential trade-offs when companies consider this type of business are that historically daily delivery has proved to be very unprofitable. Companies do not make profits when pursuing this sort of business. However, this delivery is very important in maintaining a client base. Businesses would thus balance between satisfying customers fully and maintaining them throughout and spending a few dollars more in pleasing their customers to maintain them CITATION Cho13 \l 1033 (Chopra, 2013).
Factors that are related to innovation and would improve the likelihood of success include online placing of orders and email delivery notes. Online placing of orders expedites the process of daily delivery. Companies now strive to deliver products to homes of their clients. However, home delivery does not reduce any costs. In fact it increases the expense of companies.
The location of the warehousing facility for a daily delivery business is very important. The warehouse should be located very close to the destination of the delivery. This is to help realize expeditious delivery within a day. Where the warehouse is very far from the destination of the goods it no longer remains a daily delivery service. Thus in as much as innovation in this area is good, distance from the warehouse to destination is an important consideration in keeping with the desire to deliver on time.
Multiple orders of customers cannot be bundled together. Rural and urban customers have different tastes of goods. T...