IT Enabled Supply Chain Management for Effective Marketing Mix Strategy
Paper presented at Nirma International Conference on Management (NICOM 2008) on Strategies and Trends in Marketing: A New Economy Perspective. Organized jointly by Institute of Management Nirma University and Florida Atlantic University, USA, January 9-11, 2008
Posted: 7 Dec 2011 Last revised: 31 Aug 2015
Abstract
RFID enabled supply chain reduces product tempering and product spoilage thus improves product delivery. It also reduces warehouse costs, labor costs and reduces product theft/shrinkage. By providing better visibility in locating inventory throughout the supply chain, it avoids out of stock position, reduces shipment errors, hence influence distribution strategy. RFID assist in increased promotion sales, reduce execution costs and deliver elevated customer satisfaction, there by helps in promotion strategy. This paper discusses RFID technology, its relevance in marketing mix strategy and focuses on its derived benefits. It also highlights limitations of RFID. A marketing mix strategy is the mix of product or service offerings used to reach target customers of the firm. The marketing mix comprises the Price, Product, Place and Promotion. RFID is IT enabler for enhancing effectiveness and efficiency of the supply chain and helps in effectively designing and executing all components of marketing mix strategy. In current era of global competition, there is tremendous pressure on firms to reduce cost while delivering better services. With automation of supply chain, supply chain partners viz. wholesalers, distributors and retailers can reduce the overall cost and pass on the benefits to customer by reducing price and hence influence pricing strategy.
Keywords: supply chain management, RFID, marketing mix
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