Marketing


Introduction


The competition in the business arena has been very stiff and complex.  In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (2000;  2003). There are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit.


Traditionally, marketing has been utilized by most of the organisation in order to increase the capabilities and core competencies of the company. It can be said that marketing can be considered as one of the most important element supporting successful business establishment (1994). This is because of marketing’s complex applications, this have been defined in different manners. The significance of marketing concept integrates oft-repeated aspects such as: integrated marketing efforts, customer orientation, and resultant profitability (2003).


Different firms obviously try and achieve the level of customer satisfaction as a strategy of both staying ahead of the competition and making a profit. And since, many companies are trying to be recognised in the business arena. These companies had been able to competently and effectively adjust to the situation in the marketplace through the use of different marketing strategies that enhanced their competitiveness.


            Primarily, the goal of this paper is to provide discussion about an organisation in terms its marketing strategy. The focus of this paper will be on FedEx. The discussion will include the overview of the company, the services it offered, market segment and its competitors. Further, the pay will also give emphasise to one of the four meaning of marketing provided by  (1994) which is about the specific process to meet the needs of the customers.


 


Company Overview


FedEx Corporation was established by in 1973 as an entirely new concept in package delivery an overnight air delivery service. While many competitors have sprung up since that time to steal small portions of the market share, FedEx is still undeniably the global leader in its industry. The company also provides e-commerce and supply chain management services to its clients in more than 210 countries. The corporation has some 215,000 employees and contractors and offers a wide range of delivery options including worldwide express delivery, ground small parcel delivery, freight delivery, and customs brokerage. Integrated business solutions are provided through a group of operating companies, of which Federal Express Corporation is the largest.


            FedEx was the pioneer of the express transportation and logistics industry.  In addition, FedEx is also regarded as one of the world’s leading transportation companies that focus on the transportation of parcels and packages worldwide. In accordance to the activity around us especially when it comes to the speed and efficiency needed to serve the clients better, FedEx also has improved its performance when it comes to service through continuous changes in its IS and addition of certain programs like tracking lost parcels within thirty minutes which is of good help to clients and the such. This is very important so as to keep the company consistent of being number one on its spot. In this way, it will never fail to attract more clients.


FedEx is committed with their People-Service-Profit philosophy. Herein, the company aims to produce outstanding financial returns by means of providing, competitively superior, totally reliable global air-ground transportation of high priority goods and documents that require rapid, time-certain delivery.  The company also aims to provide positive control of each package that will be delivered by using real time electronic tracking and tracing systems.  In this manner, a complete record of each shipment and delivery is being presented with the company’s request for payment.  The company’s goal is to become helpful, courteous and professional to each other and the public.  The vision of the company is to strive efficiently to have a completely satisfied customer every time they avail the services of FedEx (Federal Express Corporation 2000).


 


Services Offered


The following are the core, supplementary and facilitating services provided by FedEx:



  • Overnight package delivery

  • Worldwide express delivery

  • Ground small parcel delivery

  • Freight delivery, and

  • Customs brokerage.


 


These services are being offered in a quality manner to satisfy their customers. Because FedEx has been able to expand their services internationally, the industry also provides different products and services to their customers in the international market like in Asia-Pacific. The products and services provided by FedEx include FedEx International Priority (IP), International Priority Freight Services and FedEx Packaging.


·         FedEx International Priority (IP)


The FedEx International Priority Service offers a time-definite, door-to-door technology-intensive, customers-cleared delivery of packages, documents and freight all over the world. This offering includes the FedEx International Mail Service which is available for bulk mailings of printed material like direct mail, invoices and catalogues.


The clients of FedEx has the opportunity to choose from different delivery options which include door-to-door delivery using FedEx courier, customs clearance, holding for collection at a FedEx location and delivery through a broker or customer’s agent.


·         International Priority Freight Service (IPFS)


The industry is currently operating in five scheduled air services from the United Stated to Sydney every week. The majority of the traffic on these flights is IXP, to ensure a time-definite airport to airport service.


·         FedEx Packaging


In this service, the company used sound packaging system to ensure the fast and secured delivery of the shipment of the customers. In this regard, the company are able to develop their own range of ready-to-use, self-sealing packaging in different shapes and sizes. At the hub, the range of boxes, tubes, envelopes and packs have been created to deliver superior durability and protection at the lowest possible weight.


 


Market Segment


            The customers of FedEx include those individual who wants to deliver their shipments and packages in time. The customers may be an individual or corporation who wants to avail any of the services offered by FedEx.


 


Competitors


            As mentioned, competitor’s analysis is an important aspect of strategic marketing planning.  Herein, the company is given the chance to recognise which competitors are strong or weak. The competitors of FedEx are other companies which offer fast and quality delivery of different packages or shipments locally and internationally or those Express Delivery Services industry. In addition, the company also competes in terms of Trucking services, Freight Forwarding Services and Logistics services.  The competitor of FedEx includes DHL, UPS and US Postal Service. Each of these companies is considered as a strong competitor because of the good reputation that they established in the market place. In addition, each of these companies has been able to use strategic marketing strategies to position their services in the marketing arena.


 


Marketing Definition: Company Wide Definition


             (1994) argues that the economy has been radically transformed in the past two decades. This transformation has been brought about as a result of technological development and convergence and widening of geographical markets. Global marketing is expanding and various trade blocs are emerging to facilitate international trade.  Political dogmas are disappearing there is a great surge towards free market economies. The ways businesses do their marketing are changing to meet consumer needs.  At the social level there are significant demographic and societal changes which affect consumer lifestyles and their needs. Businesses need to respond to these changes.


According to  (1994) the guiding principle now is customer value. Consumers rank products according to the value they generate. Marketers have to pay attention to the way consumers make decisions.  Marketing is based on the process of exchange. Exchange involves two parties and the process is influenced by value, cost and satisfaction. ‘Exchange is the defining concept underlying marketing.’ For exchange to take place there have to be markets consisting of groups of people with specific needs for goods and services.   provides meaning for marketing in terms of four basic concepts. However, the focus of this is about specific process to meet the needs of their customers.


In FedEx, the company has been able to use specific process to meet the demands of their customers of an express delivery service. In this manner, the company has been able to strategically align their management system with the information technology.  Technology plays a very important role in delivery of the FedEx service. The FedEx Corporation has made enormous strides in technology and is setting the industry standard for efficiency and customer service. First, FedEx has sought technological advances in response to customer needs and has excelled in anticipating and projecting demands of an
environment that would depend and thrive on information.


The technology FedEx has developed enables customers and support personnel to have wireless access to essential are information system’s networks anytime and anywhere. FedEx was the first to integrate wireless
technology more than two decades ago, and continues to develop and lead the industry in developing innovative wireless solutions. FedEx has long been in the forefront in recognizing the potential of the Internet to provide fast, easy, and convenient service options for its customers.


The ability to track a package was already available within the company through the use of technology. FedEx was the first transportation company to use barcodes on their packages. In 1979 the couriers were the first to use SuperTracker hand-held computers. The DADS (Digitally Assisted Dispatch System) was implemented in 1980. This allowed packages to be scanned at the point of pick-up, and was the first instance of a transport company using computers in their vans.


In 1981 the COSMOS (Customer Operations Master On-Line System) was implemented. This was one of the first centralized computer systems of its type. Based at the GOC () in Memphis, the COSMOS system manages all aspects of the company, from pick-ups, vehicles, routes, packages and even weather conditions. The combination of all of these cutting edge technologies means that a package can be tracked, by the customer, in real-time from pick-up to delivery, anywhere on the globe. As of today, FedEx is still continuing this strategic alignment so as to ensure that the company always meets or exceeds with the expectation of their clients.


Because of the changes that are happening in the marketplace, especially in line with the fast advancement of information technology and the growing needs of the customers, the marketing concepts specifically in terms of having specific process to meet the needs of the target market is also continuously changing and developing. The definition of marketing with the view of customers.


Accordingly, customers will and should always be a part of the agenda in any marketing plan and strategies of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today’s ever increasing competitive environment (19933).


The challenge for gaining customers is for the company to establish good customer relations by satisfying their needs using strategic marketing approach. Hence, the key to customer satisfaction, loyalty and thereby ensuring repeat purchase operates on a number of levels and ultimately requires fulfilling the customers’ requirements or needs. This needs an in-depth understanding of customers and consumers that comes from analysing buying behavior, brand preferences as well as other issues such as frequency of purchase, time of purchase, brand repertoire, mood & mindset, etc. Marketers have much to learn from customers and this should all lead to improving the customer experience and, consequently, the sales and profits of the organization.


 



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