PROMISE MANAGEMENT AND THE ROLE OF LOGISTICS IN BRANDING

Ömer Baybars TekYaşar University, Faculty of Economics and Administrative Sciences

Department of International Logistics. İzmir, Turkey

Abstract

Main focus of the paper is first to bring a new explanation for the concept ofPromise Management through the model of Dual Marketing Subfunctions. Andsecondly, setting out from this new model showing how logistics submix could beused for brand building. Marketing Strategy is choosing of potential targetcustomers and preparing Marketing Mix or Value Offer (the mix of poduct, promotion,price and place, 4Ps, and in the case of services and retailing services, 7Ps) forthese customers. Logistics is the major part of the Place submix. Actually thebreakdown of the concept of Value Offer or Proposal can be expanded into twointerrelated marketing subfunctions;(1) Obtaining demand (promising to sell) (2)Servicing demand (fulfilling demand, keeping promise, satisfying customers,delivery, logistics). Marketing management, in a sense, is Promise Management.Products, and/or the Value Offers, even persons, could be transformed into a brandthrough appropriate conduct of Promise Management. “The Promise” consists not onlythe “obtaining demand subfunction” but also the “keeping promise” part or the“logistics subfunction” of marketing. In other words Value Offer could gain worththrough the collaboration of whole 4Ps where logistics is the lifeblood and maindriver. “Brand name” is a sub element of product submix which is a part of thePromise (obtaining demand) and of Value Offer as well. Brand name alone is not thebrand. For a brand name to rise up to what is called the ulterior brand, the firmshould go the extra miles.A brand name turns to be a brand only after the wholeValue Offer is accepted and demanded by customers many times over and over again,making the brand name identical with the Value Offer. Branding, a strategic process,starts with a promise to provide a Value Offer to potential customers and keepingthe promise by fulfilling the promise properly. Through this many repeat customersand thereby sustainable brand equity could be created. Therefore Brand equity iscomprised of repeated orders and repurchases of satisfied customers over timebecause the firm continues to keep its value promises uninterruptedly. Achievingand maintaining a position superior than competitors is at the heart of “strategicmarketing” and “Promise Management”. Underneath this whole process lies the trustcreated in customers through successful Promise management which also includescontinuous renewal of the value Offer over time. Since “Fulfilling Promise” or“delivery/ logistics” is the equally important half of the Promise, ceteris paribus,mainly the strategic role of logistics will be brought into focus in this paper.The purpose is to clarify the role of logistics in Promise Management and brandingthrough a new and simplified model. This is a descriptive but theoretical study that brings a new, persusasive andconclusive explanation to the concept of Promise Management . This descriptive modelwhich is focused on the role of logistics in branding could be regarded as apreliminary contribution to the branding not taken up so far in depth.

Key words: Logistics, marketing, marketing subfunctions, promise management

1.INTRODUCTION

The importance of logistics and fulfilling customer demands can’t beoverestimated. Since “Fulfilling, keeping Promise” or “delivery/ logistics” is theequally important half of the Promise in marketing, mainly the strategic role oflogistics, ceteris paribus, will be brought into focus at length in this paper.The purpose is to clarify the role of logistics via Promise Management in branding

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through a new and simplified model. It is already recognized that logistics is animportant competive weapon [1]. Logistics’ role in obtaining, satisfying, retainingcustomers and supporting brand building is indisputable. Again it is wellacknowledged that logistics has historically been concerned with cost reduction [2].Also Peter F. Drucker had termed physical distribution as the “Economy's DarkContinent and last frontier” to mean it is a cost reduction area to be discoveredfor business growth , and as Paul D. Converse described it is “The Other Half ofMarketing”, indicating profit potential of logistics many years ago [3].This study through Dual Subfunctions Model of marketing provides insights into theroots of Promise Management and also tries to show how this model can help brandbuilding of focal or industrial firms, Logistic Service Provider firms or both. Thestudy is concerned with the role of logistics in branding of total value offers. Sofar few authors attempted to explore the contribution of logistics to branding inthe value chain. For instance, Glaser, explored the role of the brand in the valuechain by considering the opportunities for coordination and control of the brandoffers [4]. In a sense, if a firms’ supply chain and logistics capability ispowerful and efficient enough it will ,in and of itself, be a brand (corporatebrand) that will help the total value offer of the firm to evolve to a real brand.It is not the products but Value offers are being shaped to turn to real brands.Among other things, one of the most remarkable event that reminded the importanceof logistics maybe once and for all, is the deplorable failures of many Internetbased companies or dot.coms during 1999-2000 [5].The widely-known dot-comscandal that broke out at that time was a good reminder of the importance ofmarketing and particularly logistics preparedness and skills to all companies inthe new economy .

II. CUSTOMER - ORIENTED MODERN MARKETING AND LOGISTICS LEVERAGE

The widely known term “marketing mix” or 4Ps could be regarded as ABC’s ofmarketing, and is almost self-explanatory. Lately, the “4Ps” concept is beingtransformed into the 4Cs concept (customer solution, customer cost, marketingcommunication, and convenience) , by Lauterborn [6]. Clearly, marketing and itsplace submix is one of the most important triggering functions of business forcarrying out exchange processes between the firms and customers. Kotler and Armstrong defined “Marketing management as “the art and science ofchoosing target markets and getting, keeping, and growing customers throughcreating, delivering, and communicating superior customer value” [7]. According tothe author “Marketing could be defined as satisfying target customers and prospectsthrough preparing and delivering better and continually updated Value Offers (ValueProposals,Offerings or Marketing Mixes, including Logistics submix) that will bevalued by potential customers (target markets), than that of competitors’, andsustain profitability by means of repeat purchases by those customers[8].”From the above definitions , it is clear that function of marketing is aboutmeeting or fulfilling human needs and wants. It is a truism to say that logisticsplays a critical role particularly in support of getting the right product, at theright time, at the right condition and make it available at the right place,provided that it is consistent with the agreed upon customer service level for thetargeted market . In order for a firm to be succesful, any marketing effort mustintegrate these principles of logistics internally and externally [9]. Evidently,ifthe firm cannot accomplish these goals it might incur (1) stock outs (2)shippingthe product(s) to wrong places (3) withdrawal because of the mistaken purchasingor selling mistakes (4) damages during transit [10]. When the firm is out of stock,customers, (1) may wait, (if they are loyal) (2) may buy another product or brand(substitutes) (3) may switch to another seller only for that spesific good orservice for once (4) may postpone all their purchases (5) may switch to othersellers on all subsequent purchases (6) may both switch to a new seller(s) and anew brand [11] [12].

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Furthermore, more contemporary extension of customer oriented modern marketing isRelationship Marketing which aims at establishing and deepening exchangerelations in order to achieve long lasting relationships [13]. RelationshipMarketing is one of the most important component of the latest HolisticMarketing philosophy of conducting business. [14]. This approach emphasizes thetotal offering –the functional relationships between all the pieces. Here thetotal offering provides complete solution to the buyer’s needs such as delivery,service,financing and so on [15]. Holistic marketing is also explained as “integrating the valueexploration, value creation ,and value delivery activities with the purpose of building long term, mutuallysatisfying relationships and coprosperity among key stakeholders.” Holistic marketers thus succeed by managingsuperior value chain that delivers a high level of product quality,service,and speed [16]. All of thecomponents of Holistic Marketing , particularly logistics, working together inharmony , strongly support the marketing function and finally the brandingprocess. However, relationships can only be sustained through “trust”. Trust is createdby promising the right things and continuously keeping the promises.

III. A KEY MARKETING STRATEGY: LOGISTICS LEVERAGE

By leveraging superior logistics services, linked with marketing strategy, firms canpotentially create and maintain competitive advantage [17]. Since for many companiesany change in product, promotion, or price has only a temporary impact in theirmarkets, the way to sustainable competitive advantage may rather lie in improvingsupporting services, such as logistics [18]. It is no secret that almost allfirms stress logistics capabilities as a means of creating differentiation [19]. Itis well-acknowledged now that unlike a product change or enhancement, achievinglogistics superiority is a capability difficult to imitate . In almost any business,especially in e-tailing, the goal of logistics is providing product availability.Because logistics emphasizes cost reduction and customer satisfaction, regardless ofwhether managers define their market as competitor-focused or customer-driven,achieving competitive advantage through leveraging logistics is likely to achieveand maintain competitive superiority [20]. Logistics Leverage can help firms achieveand maintain a positional advantage through both types of competitive advantageconceptualized by Porter [21]: cost leadership and differentiation which are themain pillars of efficient logistics [22]. Differentiation can be based on the product itself, the low cost delivery system bywhich it is sold, the marketing approach, a broad range of other factors [23].Strategic corporate relationships can lead to an alliance, i.e. logistics alliancethat the competition cannot readily match. For example, McDonald's has outsourcedits entire logistics function, allowing it to concentrate on its core business [24].Dell applied customer focus, supplier partnerships, changes in logisticsinfrastructure, mass customization, and Just-In-Time delivery to implement thestrategy of virtual integration-succinctly which leverages logistics to create andsustain customer value. Leveraging logistics allows Dell to have long-term specialrelationship [25].

The mechanism with which the start-up brand name is eventually transformed to areal brand covering the whole components of Value Offer is customer service andcustomer satisfaction which are the outputs of logistics. It is at the customertouchpoint customer service or the output of logistics subfunction crystallizesand results in customer satisfaction and leads to ensuing purchases andrepurchases. In the medium or long term increased repeat purchases lead toreinforcement of branding. Therefore, the principal/focal firms and LogisticsService Providers (LPS) [26] give special importance to improved logisticsservices.

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IV. ALIGNING LOGISTICS SUBMIX WITH THE TOTAL VALUE OFFER AND THEREAFTER WITH THEBRAND

In order tıo see the power of logistics in branding we must first study theinterrelatedness of the marketing submixes. Logistics value proposition orlogistics promise which is the submix of marketing value proposition, should nevergo unfulfilled. How management allocates scare resources to the logistics componentof the value offer, as well as to other submixes, will largely determine a company’smarket share and profitability [27]. One of the most important aspect of thisprocess is a strict alignment of logistics submix with the remaining threesubmixes simultaneously and continually, just as weaving a cloth [28]. To takebetter decisions, marketing management needs to understand the tradeoffs andinterrelatednesses between logistics and other Value Offer activities. The manner inwhich the major elements of the value offer (marketing) interact with each other areaffected by logistics operations [29].

A. Place (Logistics and Distribution Channel) Submix and 3Ps Interaction

Marketing mix or value offer could gain worth through the collaboration of whole4Ps where logistics is the lifeblood and main driver. Expenditures in the “place”component of the marketing mix support the levels of customer service provided bythe organization [30]. This includes on-time delivery, high order-fill rates, andconsistent transit times. Customer service represents the firms expenditure for logistics. When theorganization performs well on all the components of the value offer, customersatisfaction is accomplished. It is obvious for many organizations, customer servicemay be a key performance indicator and success factor in gaining competitiveadvantage. By adjusting customer service levels to meet what the customer desiresand willing to pay for, the organization may simultaneously try to improve servicelevels and reduce costs. All of the logistics trade-offs must be considered in termsof their impact on customer service [30]. To avoid making poor decisions, managementneeds to study the trade-offs and interrelationships between logistics and othermarketing activities [31]. The interaction between those four submixes must firstbe reviewed and then,ceteris paribus, the impact and role of logistics incompetition and branding must be studied . In other words, logistics togetherwith remaining 3Ps must step in to pave the way for branding process. Anywrongdoing in these components damages the reputation of brands. Interfunctionalco-ordination between these submixes is important since outstanding customerservice requires the use of all marketing activities [32];

A1) Product and Service Submix and Physical Distribution (Logistics) Submix [33]:What a firm offers to customers is not the product but satisfaction or fulfillment.If the product in question is a service, convenience, quality and distinction,if itsa physical or material thing, weight,volume and shape will affect the physicaldistribution costs. Logistics systems are designed to reflect the different usagestyles , depending on who will be using the product. Product classifications, be itconsumer or industrial goods, help decide on the logistic strategies [34]. Sincefor convenience goods (services, food, etc) the needed customer service level(product availability and accessibility) is generally high [35], the distributioncosts will be high as well. For the shopping goods such as furniture, dressesautomobiles, the number of stocking points are reduced. Depending upon the product(Value Offer) life cyle physical distribution policies might change. Also productcharacteristics (weight, volume, value, perishability risks, fire-proofness ordurability,ease of theft, substitutability,packaging (etc) affects the logisticsstrategies such as warehousing, inventories,transportation For instance, in IKEAlogistics concept is configured to be founded on flat packaging ,depending uponcustomer’s preference, transportation and assembly may belong to her or the firm

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may undertake these responsibilities for a fee [36]. Since the substitutability ofproducts such as medicines, soaps and food products are high,logistics departmenttry to cope up with choosing the transportation and warehousing alternatives inorder to prevent stockouts . The products that are perishable require refrigeratedtransportation, and special warehousing.

A2) Promotion (Marketing Communications) Submix and Physical Distribution(Logistics) Submix: If the competition works normally a well running coordination isrequired between promotion and physical distribution programs. Extension ofpromotion campaigns may cause to imitations,piracy marketing and buyer weariness .If the promoted item couldn’t be found in the date announced there will be lossof reputation, sales and even customers. The vague and poor promotion programsmight lead to unrealistic demands. The delays in communication and in “orderconsolidations” might also cause serious problems [37]. Particularly salesassociates might have difficulties because of the lack of sufficient inventory. Inother words, stockout of promotion items may give harm to the promotion campaignitself [38].

A3) Price Submix and Physical Distribution (Logistics) Submix: Logistics is notdirectly responsible from the pricing policy but it does heavily affect the pricing.Wastes in physical distribution and high costs is reflected in prices and thisincreases costs further and also puts the profits and firm life into risk. In thelong run the price of a product must cover all costs including distribution [39].Contrarily, reduction in distribution costs may increase consumer demand andmarket penetration becomes easier, thereby the savings (funds) freed this way couldbe switched to other areas. A supplier may attempt to increase sales by reducingthe price of its product or by changing the terms or service offering [38]. Productprice is also related to geographic location costs. The freight rates changes inaccordance with the distance.

V.DUAL SUBFUNCTIONS OF MARKETING MODEL : THE VERY FOUNDATION OF PROMISE MANAGEMENTCONCEPT

In this study marketing (management) function is taken as Promise Managementwhich is rather a philosophical concept as well as technical that deservedlyexpresses the spirit of marketing function. It is reported that the PromiseManagement concept was first suggested as key construct in marketing by HenrikCalonious in 1983 ,1986 and 2006,partly founded on an observation by Levitt [40]. Itis also reported that in 1999 Harker, also used the term Promise concept whiledefining the concept of “Relationship Marketing” [41]. Later on Grönroos revisitedthe concept and produced two articles successively in 2006 and 2009 on the subject.He also did prepared excellent definitions of Marketing and Relationship Marketingthat connects them with Promise Management[42];

“Marketing is a customer focus that permeates organizationalfunctions and processes and is geared towards making promisesthrough value proposition, enabling the fulfilment of individualexpectations created by such promises and fulfilling suchexpectations through assistance to customers’ value generatingprocesses, thereby supporting value creation in the firm’s a well asits customers’ and other stakeholders’ processes” [43] .and,“Relationship marketing is to identify and establish,maintain andenhance,and when necessary terminate relationships with customers(and other parties) so that the objectives regarding economic and

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other variables of all parties are met.This is achieved through amutual making and fulfilment of promises” [44].

The link between logistics and marketing has been acknowledged for almost acentury,starting from functional and Institutional Schools of Marketing [45].Yet, the foundations of Promise Management concept should be traced back to 1969at which time the significant article “Marketing Functions and Marketing Systems:A Synthesis” of Lewis and Erickson’s came out [46]. Therefore it might be betterto tie and attribute it to this article. The author Tek’s translation of thisarticle got published in 1976 [47]. The authors had not then mentioned the word“subfunctions” of marketing. In the article Lewis and Erickson broke down themarketing function into two components which is later named Dual Marketingsubfunctions by the author Tek; (1) obtaining demand and (2) servicing demand . TheFig 1. is the improved and adapted form of the original figure [48].

Fig.1. Marketing Function (Value Offer) (4Ps)

The means or instruments of “obtaining demand” are product and services, price andmarketing communications and the means of “servicing demand” are components(transportation, warehousing, rooting, materials handling,site selection,orderprocessing, inventory , etc.) of logistics. In terms of Promise Managementconcept,this figure could be transformed to making promises (to sell and deliver)and keeping promises. From Lewis and Erickson’s approach , we gather that thereasons why marketing exists as a business function are twofold: obtaining demandand meeting or fulfilling demand (delivery/logistics). According to them, these are

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the raison d’être and goals of marketing. These two functions delineate the role ofmarketing in a firm. The author Tek, incognizant of Caloniuos’s reference, drawingupon and inspired by the significant article of Lewis and Erickson had coined thesame “Promise Management“ concept in his Physical Distribution Management book in1985 and later in his marketing books in 1990 and 1997 [49].

As yet, no other author based their “Promise Management“ approach on the articleof Lewis and Erickson and thereby on Dual Marketing Subfunctions scheme whichclearly pointed out two interrelated subfunctions of marketing. As a matter of factthe article of Lewis and Erickson could be regarded as the foundation orcornerstone of the Promise Management concept. This new approach puts the notionof Promise Management into proper perspective. While at it, we must also note a relevant point; Although, traditionally, marketingconsists of two separate but interconnected principal parts, namely the stimulationof demand and the satisfaction of demand [50], in most literature there is amisleading classification of marketing and logistics [51]. These are usually, andmaybe inadvertently, treatment of marketing and logistics as separate andindependent functions. Authors frequently describe them as if they are two differentfunctions: that of marketing, and that of logistics. In reality, logistics is asubmix (subfunction) of marketing function as well as of marketing mix. The factthat logistics is a part of marketing is usually ignored. For instance, as mostauthors , Emerson and Grimm [32], Svensson [52], MKG [32], and Porter [21] too,treated marketing and logistics separately. Although Porter expressed what hemeant by theword “marketing” ,that it was the advertising, product and pricing ,he still fell into this superficial and erroneous distinction,if not intosynecdoche . Because what he was defining was the “obtaining demand” activites ofthe marketing function [53] . This kind of approach is still prevalent in most writing. The MGK modelconceptually integrates logistics and marketing customer service, based on anextensive review of the literature [54]. On the other hand,Svensson with a proper diagnosis also rightfully says ;

“ ..a principal part of the marketing activities strives to obtain ademand for something that is offered in the marketplace. On theother hand, the other principal part of the marketing activitiesstrives to service or match the obtained demand in the marketplace.Despite logistics activities and the marketing activities beingclosely linked to one another in a marketing channel, there is oftenan illogical and unhealthy distance between the two researchdisciplines in literature, and sometimes in practice. Consequently,marketing activities and logistics activities are from time to timetreated as separate from each other, which means that one or theother perspective is often neglected .”[55].

Despite the above views , Svensson ,if it is not a figure of speech or synecdoche ,also says that “logistics” is usually concerned with satisfying the supply of thecustomers' needs and wants in a marketing channel , while “marketing” usuallyfocuses on satisfying the demands of the customer needs and wants in the samemarketing channel. Svensson states that logistics and marketing may be seen asmutual and strongly interdependent [56]. That is a misinterpreted view. Actuallythe right view or statement should be that “logistics (servicing or fulfilling)demand” and “obtaining demand” subfunctions are strongly interdependent.Therefore, the connection and interdependence of marketing and logistics terminologymust be put into their proper place for correct and complete analysis [57]. Althoughit is not clearly voiced in the marketing literature, the essence of marketingfunction is comprised of the above mentioned two marketing submixes and, “4Ps” is

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the decoded and contracted form of marketing function. The dual subfunctions are theexpanded form of 4Ps. In each case logistics submix plays a vital role. Actually adaptation of Dual Subfunction Approach to Promise Management has been longdormant.Clearly, Through the Dual Subfunctional Model of marketing function thefirm , making use of marketing communications, makes a promise to sell a productor service with a certain agreed upon price and to deliver it at a place and atime customers want. Actually what is promised here is not the sole product orservice but the whole value offer (4Ps) and it holds for both subfunctions. Herethe firm’s total value offer,under a start-up brand name, is its explicit andinherent promise to customers . The promise concept or the spirit of it it existed even before the advent of moderncustomer oriented marketing concept .The firm’s supply chain is one of the mostimportant party responsible for delivering on the promises to its customers beforetheir purchases. Whatever the firm holds out to its end-customers as the level ofsatisfaction they can expect from the seller, the firm’s supply chain has todeliver. Logistics is the process that links supply chains into integratedoperations [58].

Although these two marketing subfunctions seem to be replaced by SCM today, the DualSubfunction approach could be regarded as the DNA of the modern SCM model [59]. Inthe case of e-commerce and e-marketing , principles of logistics takes on moreimportance because the webstores and private shopping clubs are all inescapablydependent upon efficient and effective logistics performance. As for direct uploadand download of digital products such as softwares, music,multimedia etc., overthe internet on the desktop of customers , the logistics may not be a problem. Butif the digital products are to be sent in the form of CD,DVD etc. through cargothen logistics becomes more important [60].

The logistics submix takes place at the right hand side of the equation. It maysound tautologic but logistics contributes to an organization’s success byaccomodating customer’s delivery and availability expectations and requirements[61]. Logistical service is measured in tems of product availability, operationalperformance and service reliability. One fundamental aspect of modern marketingconcept is that customers must be readily able to obtain the products they desire[62]. Fortunately, today, more than ever, logistics has many efficient tools withwhich to satisfy customer needs. Many different metrics by which to judge theeffectiveness of the distribution system that help create opportunities to buy aredeveloped., i.e. out-of-stocks service levels, percentage on-timedelivery ,inventory turns inventory days, rain checks, or make-goods onpromotions ,misshipments ,deductions, obsolescense, shrinkage ,pipeline salesdiverted merchandise or diverted goods, inventory ,repeat volumes, which are usedto quantify the number of outlets reached by a product, the fraction of the relevantmarket served by those outlets, and the percentage of total sales volume in allcategories held by the outlets that carry the product [63]. Customer expectationsrelated to logistical performance are reliability, responsiveness, access,communication, credibility, security, courtesy, competency and knowing the customer[64].

The key objectives of order fulfillment also includes provision of relatedcustomer services such as assembly and operation instructions [65]. Mainly supplychain services outputs where necessary to accomodate customer requirements are (1)spatial convenience (2) lot size (3)waiting for delivery time and (3) productvariety and assortment [66]. Order fulfilment involves “back-office” operationswhich are the activities that support fulfillment of orders, such aspacking,delivery,inventory management, checking for in-stock availability,replenishment, managing returns, recovery of problems, and shipping etc.RFID,CRM,PRM,CPFR,QR and tracking applications are strongly related to the “front-

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office” operations as well as back-office operations and to the customer-facingactivities such as advertising and order taking that are visible to customers. Alsothey provide inputs to “back-ofice” operations [67]. It is through these back-oficeoperations the firms track information about the present and future course ofbrands. PRM and CRM are important Promise management tools to support brandingprocess. Thanks to CRM and PRM, Promise Management keeps or fulfills not onlypromise of today’s customer order(s) but also fulfilment of their orders in thefuture by recognizing ,remembering their history with the brand and the firm. CRMand PRM by themselves are the promise to customers that it will remember themanytime through data base.

The major player in the promise-keeping process is the logistics subfunction. It isnot enough to be excellent at product design and its other attributes, the firm mustnot fail delivering products to customers on time. Particularly, late deliveries area major source of customer dissatisfaction, as it’s the last impression a firm willmake on their customers. In the worst case, a broken supply chain leads tofrustrated buying experiences, disappearing customer loyalty, damaged brand imageand ultimately loss of revenue [28]. Of course, failure in logistics means notbeing able to keep promise which obviously results with dissatisfaction of thecustomers , weakening of relationship with the brand [134]. In accordance with theteaching of Experiential Marketing [68] ,If the customers’ negative experiencessurpasse the positive experiences the value offer will never reach to the levelof a real brand.

A refined version of Dual Subfunctions Model which is Broadened Model ofMarketing Subfunctions is given below;

Fig.2. Broadened Model of Marketing Subfunctions

VI.PROMISE MANAGEMENT, RELATIONSHIP MARKETING ,LOGISTICS AND CUSTOMER SERVICES

As cited above, drawing upon Calonius , Grönroos put forward PromiseManagement approach for regaining customer management in which marketing isviewed as a process of enabling and making promises as well as keeping promises in

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order to meet expectations created by promises made [69]. Although,most of hiscomments are appropriate ,with due respect to Grönroos ,it must be rememberedthat this concept is the inherent function or purposes of customer orientedmarketing which aims at obtaining customers orders and fulfilling their orders .What Grönroos, and Tek as well, proposed could be regarded just a reminder tomarketers what is already implicitly and explicitly clear in customer orientedmarketing concept. This reminder could be restated such as “ remember that withwhat you are presenting to customers you are making a promise and you must notforget to fulfill or keep your promises properly”. Grönroos , seems stretchedthis axiomatic issue a little bit by further trying to establish connectionbetween Promise Management and Relationship Marketing. Certainly, if the firm keepsits promises and satisfies the customers from the very first time ,customerswill stay with them for a long time. Therefore what he asserted seems merely atruism. Nevertheless it is useful for the systematic implementation of customeroriented marketing, keeping in mind or in the memory (database) of the firm thatit has a promise to be fulfilled for customers. Because, through RelationshipMarketing approach , the firm intends to establish long lasting relationships withcustomers from the very beginning of their first contact and transactions whichare recorded in the database. Again in this approach there is an inherentintent to extend the relationship to an indefinite future time. This viewpointtakes us to the concept of Promise Management. In other words, to establish andmaintain lasting relationship with customers , the firm must continually makesuperior promises than competitors and keep its promises relentlessly. To putanother way, lasting relationship with customers or retaining existing customerscan only be materialized through keeping promises appropriately. In marketing jargonthis is the subject of proper logistical fulfilment.Grönroos also emphasized value-in-use concept [70] which seems to be another truismbecause the word “fulfilment” in Dual Subfunction Model explicitly and implicitlycovers this [71]. It is obvious that if customers do not get anything from thegoods and services in-use or if they are not satisfied most probably they will notcome back or buy again. Here we should also stress that customers will alsoconsider satisfaction from proper delivery or logistics as well as from the remainingsubmixes of the value offer [72]. As a matter of fact , in Lauterborn’s scheme [73], particularly the conveniencesubmix is about ease of buying the product, finding the product, findinginformation about the product. Although this scheme can not be regarded as areplacement of 4Ps concept and ,it nevertheless is useful in expanding on the roleof customer orientation and uses of logistics. Because if the value proposal(4Ps) is not prepared in accordance witthe “4Cs understanding” it will fail in-useanyway. Actually this is something already inherent in modern customer orientedapproach. It cannot be thought as a breakthrough from the so called conventionalmarketing strategy. Promise management is sine qua non of marketing function.Therefore Promise Management cannot be regarded as a new approach but itcertainly is useful to remember in practice. Actually, what is new about it is theapproach of author Tek to the Promise Management Concept with Dual Subfunctionand Broadened Subfunctions model . This Promise Management understandingwhich ,in a sense, warns the marketers to be sincerely and seriously responsive tothe needs and wants of customers . In order to strengthen customer orientedmodern marketing strategies the components of the above mentioned HolisticApproach help support customer oriented marketing . In fact,all marketing strategiesand especially modern marketing , Holistic Marketing and Relationship Marketingconcepts exist already for enabling of these dual subfunctions.

A.Output of Logistics System : Customer Service and Customer Satisfaction

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The power of logistics in achieving an organization’s customer service goals andsupporting customer satisfaction has been receiving an increased amount ofattention in the press in recent years [74]. Although customer satisfaction resultswhen the company performs well on all components of the marketing mix , the outputof the logistics system,that is, customer service, has a special role in customersatisfaction because it is the last stop [75]. For many firms providing excellentcustomer service may be the best method of gaining competitive advantage. A firm’sentire marketing effort can be rendered ineffective by poorly carried customerservice policies. What is the advantage of having a well-researched and neededproduct, priced to sell and promoted well, if customers cannot find it on the shelfat the retail level [75].The promises of marketing can be fullfilled properly during pretransaction,transaction and posttransaction stages of customer service [76]. Also theTransaction Elements [77] (stockout level, order information, elements of the ordercycle. expedited shipments, transshipment, system accuracy,order convenience,product substitution) and posttransaction elements (installation, warranty,alterations, repairs and parts,product tracing, customer claims, complaints, andreturns, temporary product replacement) are vitally important in fulfilling promises[78]. The customer service measures such as “responsiveness to productproblems”,“action on complaints” and “supplier returns policy”, may be consideredpart of the augmented product, an intangible component added to the goods [17].

Customer service management is one of the important single sources of customerinformation [79]. For instance, customer service provides the customer with real-time information on promised shipping dates and product availability throughinterface with the organization’s production and distribution operations. Intoday’s electronic cyberspace , online, real-time systems definitely facilitateorder placement and help handling customer inquiries about product and pricinginformation. After-sales service is also a requirement [79]. Mentzer, Gomes andKrapfel, suggested “quality of physical distribution service” as a dimension, onemodification of their model was the renaming of this dimension as “delivery quality”[15].

VII. PRODUCT SUBMIX START-UP BRAND NAME,BRANDING AND TRANSFORMING BRAND NAME TO A REAL BRAND

The issue is how a firm can use the logistics subfunction and supply chain touse as leverage for the branding of its offer (s). We can infer from the DualSubfunctions approach that if logistics is going to support the whole marketingoffer in order to turn it to a brand , it must first become a brand itself. TheDual Subfunctions scheme is suggested to be the correct or unerring compasswhich settles the confusing marketing and logistics dichotomy in most literatureonce and for all. Once this dual scheme is recognized then it will be very easy tosee the contribution of marketing’s and logistics’ towards brand building processdirectly. Differentiated “promise making” and especially “differentiatedfulfilling” superior than competitors takes the firms to embark on the board ofbranding . The concept does also link each unit of this triad ,comprised the twosubfunctions and brand name, to one another and shows how marketing and itsinseparable submixes ,particularly “Logistics” can contribute and enhance brandbuilding and eventually reinforce branding process .

It is clear that if the value offer is not delivered as promised , customers willnot put up with this failure for long and they may not even give a second chance tothe seller. Of course repetition of failures will cause loss of customers. Onthe contrary, if the firm repeatedly satisfies customers then its value offergets transformed into a real brand. No exact number ,date or estimation could be

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given for the optimum number of repeat purchases and/or customers. It is hard tospeak of a brand, unless adequate number of repeat purchases made by numerouscustomers for a sufficiently long duration. Relationship is reinforced andcontinues if service output of logistics continues to satisfy the customers.Products , and Value Offers, even persons,could be transformed into a brand throughappropriate management of Dual Subfunctions and certainly dedicated conduct ofPromise Management . As mentioned before “The Promise” consists of the means of“obtaining demand” subfunction such as product and service ,promotion and pricebut also the “keeping promise” part or the “place-Logistics” subfunction ofmarketing.

Product or service is the heart of the value or marketing offer.The components ofproduct are product form, features, performance, conformance, durability,reliability, repairability, style, and design, service dimensions such as orderingease, delivery, installation, customer training, customer consulting, andmaintenance and repairs, brand name, packages ,warranties and guarantees [80]. As is known, Kotler and Keller (Ref. 8) gathered together the components of “productand service” submix such as core product, actual product and augmented product. Theaugmented product includes “delivery” too. It is known that at the outset or productlaunching stage , there is only a “brand name” which is part of the products submixand broader marketing mix or value offer. “Brand name” is under the productsubmix menu of 4Ps or 7Ps (in the case of services and service retailing) andwithin the product submix menu at the “obtaining demand” side of the dualsubfunctions of marketing function.

We should also point out to a confusion or inadvertent use of word “Brand name ”in place of an already established “brand” Yet brand name by itself is notthe brand at least for the start-up products,marketing mixes and firms. A basicprinciple of branding is that brands transform products-goods as well as services-into something larger than the product itself [81]. This may coincide with theaugmented product concept which includes additional product attributes,benefits ofrelated services that distinguishes the product from competitors’ [82]. Actually ina real brand , core brand associations,points of difference (PODs), and a brandmantra are already settled for a long time. For a start-up brand name to rise up orto be transformed to what may be called as “the ultimate brand” , the firmshould go the extra miles. A start–up brand name turns to be a brand only after thewhole Value Offer (4Ps) is accepted and demanded by customers many times over andover again in the medium or long run, making the brand name identical with the ValueOffer, provided that it is continously and persistently updated and renewed. After awhile,this strategies will create trust [83] and then sincere relationship willstart to develop which is the essence of Relationship Marketing and Promisemanagement.

According to Keller,a brand is a product but that adds other dimensions thatdifferentiate it in some way from other products designed to satisfy the same need[84]. Here “other dimensions” should include remaining 3Ps. Therefore a real orestablished brand also encompasses , place (distribution channels and logistics)submix as well as remaining two Ps. Keller ,without distinguishing between thewords “ brand name” and “real brand”, expresses this somewhat differently [85].Again this could also be a synecdoche or metonymy . Because of past experienceswith the product and its marketing program over the years,consumers find out whichbrands satisfy their needs and which ones do not.” [86].

Kotler and Keller stated; “ brands are not build by advertising alone. Customers come toknow a brand through a range of contacts and touch points: personalobservation and use,word of mouth,interactions with company

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personnel,online or telephone experiences,and payment transactions.A brand contact is any information-bearing experience,whetherpositive or negative,a customer or prospect has with the brand,itsproduct category,or its market. The company must put as much effortinto managing these expreriences as into producing its ads..” [87].

One important point is missing in their statement,that is,the function of deliveryor logistics. As mentioned before, it is in fact the logistics customer touchpointwhich is “moment of truth” for brand building from the customer viewpoint. Yet intheir further statements , without explicitly touching upon the logistics ,theybring up the “Integrated Marketing” and “Holistic Branding” concepts to achieve thegoal of reinforcing the brand promise [87].

Intrinsically,the essence of a brand is a promise. Core brand promise is alsocalled brand mantra which includes most important aspects of the brand and its corebrand associations (attributes and benefits)[88]. Promises create expectations.Therefore it is the task of Integrated Marketing Communication that companies mustmanage customer expectations which is the foundation of managing brand promise andcreating trust on which brands are built [89].

Branding, which is a strategic process, starts with a promise to provide a ValueOffer to potential customers and keeping the promise by fulfilling the promiseproperly. According to Keller, a strong brand’s general and major promise topotential customers is simplifying customer decision making, reducing risks, andsetting their expectations. Therefore creating strong brands that deliver on thatpromise,and maintaining and enhancing the strength of these brands over time is amanagement imperative [90]. Through this way , many repeat or loyal customers andthereby sustainable brand equity could be created. [91]. According to Aaker brandname awareness,brand associations, perceived quality,proprietary brand assets-patents,trademarks etc determine brand loyalty , which is a measure of theattachment that a customer has to a brand [92].

Fundamentally , branding is all about endowing products and services with the powerof brand equity [91]. Actually what Keller does not explicitly express is that notonly the products and services but the whole marketing mix needs to be endowedwith the power of brand equity. Keller’s Customer based Brand Equity Model [93] isan extension of customer oriented modern marketing understanding and its extensionof relationship marketing. Customer Based Brand Equity Model draws upon customerequity which is the sum of discounted lifetime values of a firm’s customer baseand it includes also brand equity and relationship equity [94]. Brand equity tendsto put more emphasis on the front end marketing programs and customer equity tendsto put more emphasis on the backend of marketing programs [95] which is usuallyabout distribution and logistics. Actually what Keller asserts as strategic brand management is mostly identicalwith strategic marketing mix management [96]. Underneath this whole process lies thetrust [97] created in customers through successful Promise Management which alsoincludes continuous renewal and updating of the value offer over time. At the outset we must point out to a commonly committed erroneousness wording.Most authors,Keller as well [98], talk “product” instead of marketing mix. Itshould be recognized that we cannot speak of marketing “products “ alone .Actually what is marketed is the whole marketing mix or value offer,not just aproduct. At the product (or to be exact , the marketing mix) introductionstage ,a suggested value offer is merely a certain marketing mix. It could also becalled start-up marketing mix. Provided that the requirements are met,in the finalanalysis the value offer prepared for customers and prospects may head up towardsturning or growing to a brand,if not perished or disappeared on the way. In orderto mean any value for the potential customers,this venture calls for a serious

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cooperation and collaboration among the interdependent submixes of marketingmix . It takes time ,knowledge,and energy and of course an Holistic approach toturn a value offer with merely a brand name into a real brand that is demandedby many many customers for a long time. As is known,this kind of brand type iscalled Brand Insistence or at the extreme Love Brand or Lovemark [99]. And thecustomers who has Love Brands are the ones that are already grown to loyalcustomers.

VIII.THE ROLE OF BRANDING IN DIFFERENTIATION OF THE LSP’S AND FOCAL FIRMS’“COMMODITY LIK”E LOGISTICS SERVICES

To the knowledge of author ,some studies on branding so far focused on thebranding of value chains or building brands for value chains but notspecifically the role of logistics in brand building for members of value chain.Most logistics services are commodity like products . Therefore in order theselogistics services or the service providers to find customers (clients,focal firms)they need to be differentiated. Service brands assure customers (sellers) of aconsistent, uniform level of service quality, which is important for market offers,such as logistics services, that are characterized by experience and credenceattributes [100].

Glaser suggested that firms can use their brands to promote the value ofsustainability to their industrial customers, consumers, and other stakeholders.According to him “brand strategy management” should be both a demand and supplychain priority, in contrast to its general demand chain focus [101]. Some otherstudies are concerned with the role of brands in differentiating the offeringsof Logistics Service Provider (LSP) organizations or businesses [102]. There isone good example in the industrial marketing field that takes up the impact ofcomponent supplier (CS) branding on profitability. In addition , in recent years,many business-to-business (B2B) component supplier (CS) firms have added branding totheir marketing toolbox. CS branding can be applied to B2B components embedded inoriginal equipment manufacturer (OEM) products that, in turn, are marketed to B2Bend customers (i.e., OEMs'customers). By extending the logic of ingredient brandingto B2B components, they aim to create “pull” from B2B end customers by building astrong CS brand image among their customers' customers. [103]. In contrast with theestablished “push” approach of building strong relationships with original equipmentmanufacturers (OEMs), it is unclear whether and under which conditions CS brandingis a worthy strategy [104]. Many suppliers in business-to-business (B2B) orindustrial markets have begun investing systematically in their brands, with theidea that branding strategies can help them stabilize or grow their profits inincreasingly competitive markets [105] Particularly due to increased outsourcingactivities today, building, maintaining and protecting brands is no longer the dutyof any individual organisation, logistics service provider or transportation companyonly; for instance, co-branding along with alliance branding and brand co-creationhave become widely known forms of branding in transportation logistics networks[106]. An example of industrial co-branding is the joint venture of Pitney Bowesand Royal mail (UK postal system),another is the alliance of Amazon.de with DHL[107]. The most important branding option for B2B component suppliers (CSs) is CSbranding, which represents an extension of the ingredient branding approach [108] .

Anuja Agarwall and Deepali Singh worked on a paper to investigate the possibilityof enhancing channel partner relationships through a PRM Index in B2B context andfound five factors that might contribute towards PRM; trust,satisfaction ,relational communication, collaboration, environmental factors[109].

IX.IN-HOUSE (B2C) LOGISTICS SERVICE BRAND VERSUS OUTSOURCED (EXTERNAL) TPLSLOGISTICS SERVICE BRAND AND (B2B) LOGISTICS SERVICE BRAND

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There is logistics service sellers (service providers) and logistics service buyers(focal ,principal firms,clients). If logistics service sellers strengthen theirbrands or become brand themselves they can increase the number of customers. On theother hand,the firms that utilize outside service providers normally should prefer“branded service providers” to buy their services. But their purpose should be tocreate loyal customers and make their value offers turn to real brand(s) over time.Most authors studied the role of service branding in value chain or therole of branded services (providers firms) in obtaining more customers for theirservices to the end customers [110]. For instance, sophisticated logisticssystem explains the Fortune 500’s number one World class retail company Wall-mart’s success [111].

Findings of the research of Nor Aida Abdul Rahman et. al., suggested that there isa strong association between logistics service performance (LSP) provided by thethird party logistics provider (TPLP) and the development and support of a mutualbrand image for both the Logistics Service Provider or TPLP and the carmanufacturer (the principal firm) . They contributed to the extant literature onlogistics partnership and industrial branding through linking LSP with the creationand maintenance of an industrial branding strategy for both parties in the contextof the Malaysian automotive industry [112]. Within many contemporary businesscontexts, there is increasing recognition that firms need to develop and maintainclose and longterm relationships with their Third Party Logistics Providers (TPLPs)[113]. This is partly because high cost of the logistics activity and partlyinability and lack of expertise (suppliers, manufacturers, wholesalers andretailers) required to undertake this activity in-house [114].Firms believe that success is not only derived from the product offered, but alsocritically from its relationships with channel members [115]. More recently, it hasbeen argued that not only has relationship building contributed towards supply chaineffectiveness, but that it is also related to the strengthening of the brand imageamongst the key players in the supply chain [116]. Meanwhile the relationship andworking of the relations between a Principal and the TPLS provider could also bestudied adaptively from the vantage point of Agency Theory [117].

The focal firms or the clients of logistics Service Providers (industrialfirms,producers,exporters,e-commerce firms and retailers) have two options throughwhich they can build brands for logistical services and for their own brands aswell;

1) In-House Logistics Service Provisions (by the Principal /Focal firms orclients) (Branding both their firms and also their logistics servicesthrough carrying out Logistics Services themselves) (It is important that in-house logistics staff themselves must be knowledgable and expert enough tobe able to utilize outside Logistic Service Providers) and

2) (2) Branding their organizations through the branded or not -yet-brandedThird Party logistics Service Providers themselves.

Of course it is the TPLS providers themselves which are at the middle of thecompetitive battles and need differentiation and branding in order to be preferredby the clients. The same principles of branding holds for these firms too.

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Fig.3 In-House Logistics Service Provision (Direct Logistics Service By Principal / Focal Firms)

A growing body of evidence supports the importance of brands and brand managementfor B2B marketers across multiple industries [118]. While there is a substantialresearch that examines branding of consumer goods and an increasing literature onindustrial and service brands, little is known about branding in the context oflogistics services. Davis et al., worked on a test of scales that measure brandequity and its two dimensions – brand image and brand awareness – in the context oflogistics services [102]. for both logistics service providers and end-customersand found that brand awareness, brand image, and brand equity scales are valid andreliable in the context of logistics services. Rahman et.al., explains the role ofstrong logistics services in industrial branding.

Logistics services in the supply chain can be considered a commodity offering (partof the total value offer or logistics submix), with hundreds of thousands oflogistics companies (i.e. carriers, warehousing firms and third party providers)competing to provide similar services to many of the same customers [102]. Studiesshow that most firms typically use a small number of unknown providers [119]. Ascustomers search for potential providers in this highly competitive marketplace,logistics service providers must find ways to differentiate themselves and theirservice offerings (7Ps) in order to help them compete [120]. According toPlunkett,a competent outsourced logistics provider can be the difference betweendeep customer satisfaction and loss of consumer loyalty. Computer vendor Dell builta $ 50 billion business by delivering what consumers wanted, in exactly the mannerthey wanted it. Amazon cements its customer relationship by delivering earlier thanpromised when it upgrades order to express delivery at no extra charge [28].

Logistics is an enormous component of delivering on what a firm’s brand promises[28]. Nearly three decades ago, Levitt urged B2B marketers to establish brandidentities associated with superior service in order to differentiate commodity-likeproducts and avoid potentially devastating price wars [121]. To cope with thesechallenges and to avoid this commoditisation, an increasing number of B2B marketersare seeking to brand their products to differentiate themselves from their

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competitors [122]. In the B2B context, business relationships with external parties,such as TPLPs, help the company in engaging the TPLP to improve their logisticsservice performance which also increases satisfaction to their end customer.

Fig. 4. The Role of Logistics Services In Branding of Principals /Focal/Client/Primary Firms ≡ (The Customers or Clients of Logistics Service ProviderFirms’ (LSP) and The Role of Logistics Services In Branding of Logistics ServiceProvider Firms (LSP)

Logistics keeps the promise of suppliers (producers, wholesalers, retailers) tosuppliers (upstream) and downstream channel members ultimately to final or endconsumers. Thus, to conclude, by forging a successful business relationship withtheir buyer, the TPLP also gains and could differentiate itself or increase itscompany visibility when serving large companies and increase its reputation based ontestimonials [123].Hence, causing a positive relationship between logisticsperformance and branding strategy. One proven method for firms to distinguish themselves is of course by developingstrong brands [124] . As an example, FedEx and UPS have clearly differentiatedthemselves through successful brand management. The role that brands play in supplychain relationships (meaning LSP firms must adapt and reinforce their brands=servicebrands) so that they can influence their clients or customers (Principals/focalfirms).

X.BRAND EQUITY IN B2B FIRMS AND INDUSTRIAL BRANDING FOR LOGISTICS SERVICES

Given the intangible nature of services and, consequently, the difficultyencountered by clients/customers and end customers in differentiating variousfirms’ service offers in the marketplace, brand equity is believed to be animportant factor also in B2B services marketing [125] . In a B2B context, brandequity can be a powerful source of competitive advantage in the form of branddifferentiation[126].

Strong brands may be considered as key sources of sustainable competitive advantage in business-to-businessenvironments too [127]. Industrial branding presents a company image by emphasizingthe added value or benefits of its Critical Success Factors, such as itsdistribution activity. The strength of a brand is dependent on how attributes, such

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as effectiveness in distribution, are marketed [128]. Hence, it is proposed thatbranding can be supported and sustained by the use of an external party – such as aTPLP – for instance, when the product is delivered by the TPLP in a way that thecustomer (industrial buyer) understands, desires, and is willing to pay forcontributing factors to logistics partnership success. A substantial body of workrecognises that the use of TPLPs to perform inbound and outbound logistics in thedistribution activity is becoming widespread worldwide as most organisations arerealising that they require vast improvements in their logistics to ensure theimproved effectiveness of their supply chain [129] .

In a supply chain relationship, such as the logistics service context, everyinteraction between a firm and its stakeholders becomes an input to brand image. Aservice brand communicates a commitment to providing a certain kind of experience;as a result it is critical that logistics service firms ensure that everyone in theorganisation understands the importance of delivering consistent, predictable, highquality performance to the customer [130].However, past research has not discovered how a successful dyadic partnership couldcontribute to industrial branding creation. It is important to highlight that in alogistics partnership between a TPLP and its customer, both parties are aiming togain mutual benefit as a result of the win–win situation between them. Researchershave begun to examine service quality, customer evaluations of service, and brandingfrom an industrial perspective. Findings shown that both the functional andtechnical qualities of service delivery influenced business customer evaluations[131]. In addition to the works of Davis and Mentzer (2006) [Ref. 116], Nor Aidaet al.’s [Ref.112] paper is amongst the first that combines LSP literature andbranding to better understand the creation of industrial branding to the TPLPs andtheir industrial customers.Their results extend TPLP literature with the emphasis on three key factors underLSP, namely delivery time, product quality and support for a successful logisticspartnership in the automotive industry. They also found that LSP has a stronginfluence in creating the TPLP's branding, in addition to that of their customer[132].

XI .CONCLUSION

In conclusion, in order to show or remind the role of logistics in branding ,theplace or mission of logistics first shown in various definitions of marketing andmarketing management. This descriptive article attempts to study first theconnection between the concept of Promise Management , Marketing function, andLogistics subfunction. It brings up a different and fresh viewpoint to the PromiseManagement concept which is not thought of in depth and uncovered so far. This newviewpoint developed by the author is the introduction of the Dual MarketingSubfunctions model which is largely interdependent and interactive model. Themodel also establishes that Promise Management concept is nothing but a truism,ifnot tautology. Setting out from the model ,the frequently misinterpreted dichotomybetween marketing and logistics concepts by many authors are unveiled. Then aconnection between marketing subfunctions and branding is tried to be established.The Holistic Branding concept is also taken up for consideration. The role of logistics in brand building of Principal/Focal /Client firms andLogistics Service Providers are shown. In a sense, if a firms supply chain andlogistics is powerful and efficient enough , it , in and end of itself , will be abrand (Corporate Brand) that will help the total Value Offer of the firm to evolveto a real brand. Actually that is what is sought in this paper. By necessity,the role of logistics in developing brand equity and customer equity is studied aswell. Eventually the issue of branding or brand building of principal firms andLogistics Service Provider firms is studied with figures. Here in the context ofindustrial or B2B branding in-house logistics services and outsourced logistics

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services are taken up with a comparative approach. The points or circumstances tobe considered by the principal and service firms in the way,to turn to be a realbrand is explained. Meanwhile, maybe because of synecdoche ,some wrongly ormistakenly known ideas are brought to attention with a new understanding; Thefact that Promise Management is inherent in modern customer oriented marketing isemphasized. Yet it is pointed out that it is only a good reminder for the firmswhen treating customer issues. The article brought explanation to a confusionbetween the misuse of “brand name” and “brand”. While brand name is one itemunder the product submix, brand is the established total value offer of thefirm. Again this could also be a synecdoche, wherein a specific part of something isused to refer to the whole, or the whole to a specific part [133]. Moreover it isshown that the word marketing or marketing functions covers both “obtainingdemand” subfunction activies and “servicing demand” activities. Finally, what ismarketed is not the “product and service” but the whole ”marketing mix” or “valueoffer” . Therefore it is shown that using the word “product and service “, insteadof value offer could be regarded as another misnomer. It is believed that futurelogistics writers will find it easier to build on the premises and road map of therevised Dual Subfunctional Approach. It is recommended to keep this road mapavailable while engaging in any ,marketing ,logistics ,customer service andbranding study.Digital Logistics and branding is also another subject worth to beresearched further in –depth .In passing, it is further suggested that the relationship and workings of therelations between a Principal/Focal firm or Client and the TPLS provider could alsobe studied adaptively from the vantage point of Agency Theory.

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