FedEx Marketing Function

FedEx Marketing Function

This essay will talk over the businesses conducted by FedEx Marketing Function. On the other hand, it will talk about the four P’s of the company’s marketing mix concept as well as four countries in which the FedEx Marketing Function operates.

As one of the worldwide logistics company, FedEx Corporation is located in the United States having its headquarters in Memphis. The corporation mainly specializes in overnight distribution of heavy freights, packages of high priority and documents.

The overnight air express business was introduced by the company singlehandedly. This occurred in the 1970s which led to the corporation facing flattery due to its success. This led to high level of competition from other rival corporations. FedEx abilities to track packages that are being shipped and have good logistics, has enabled the corporation to maintain its vital role of leadership in the air cargo industry. In addition, the corporation has helped many individuals and corporates in ensuring that packages delivered are safe. FedEx Corporation conducts its operations in 214 countries providing a twenty four hour delivery of the valued and time sensitive freights globally (Griffin & Lowenstein, 2001). This corporation operates in India, China and Saudi Arabia among the 214 countries.

To add on this, the corporation serves every part of the United States. Since the corporation was founded in 1973 by Fredrick Smith, it has changed itself from being a company dealing with express deliveries to a company dealing with supply chain management and international logistics. It handles approximately seven million goods or parcels daily. To add on that, it has seven lines of product which operate under one umbrella of management. These product lines are FedEx Ground, FedEx Services, FedEx Express, FedEx Freight, FedEx Trade Networks, FedEx Custom Critical and FedEx Kinko’s. FedEx Express is the largest transportation corporation worldwide and is operational in two hundred and fourteen companies. The FedEx Custom Critical is the largest shipment corporation that goes door to door worldwide. It is operational in Europe, the United States and Canada. FedEx Ground entails itself in shipment of small packages during the night. It is the second corporation to the United States Postal Service (Overview of Services, 2012).

FedEx Freight is the biggest in United States area less than truck load shipping liners. FedEx Trade Networks is entailed in customs brokerage and freight forwarding that is aimed to enhance trade internationally. In addition, FedEx Kinko’s is a business facility center that has more than one thousand two hundred retail stores which provide fax, copy, back office support and publishing services. The last line of product is the FedEx Services that offers technology and supply chain managing services. The company has shown great investments in information technology systems which have enhanced the provision of good services to its customers across the continents. The corporation had a great potential to venture in the internet commerce due to the prevailing technical architecture it had (Overview of Services, 2012).

The progress of the logistics industry and express transportation in the FedEx Corporation was enhanced by information technology advances, businesses globalization; the change in market demand for services that had more value and the use of the new technology used in generating process efficiencies. As the business grew globally in order to take advantage of the cheaper resources and new markets, it led to the demand of logistics and transportation industry due to the movement of goods and services. Competition among various transportation companies depended on their distribution centers internationally and their capability to deliver their goods to the customers conducting businesses. The ability of the corporation to distribute goods quickly led to an improvement in cash flow hence creating customers satisfaction (Overview of Services, 2012).

Marketing Mix Concept of FedEx Marketing Function

The variables that can be controlled by a corporation and put together in order to satisfy a given group targeted are referred to as marketing mix. Marketing mix can transform various strategies used in marketing into action by putting in place specific tools. These tools are; price, place promotion and product. The FedEx operations mainly rely on the powerful marketing schemes of the corporation. On the other hand, the management of FedEx Corporation relies heavily on the market information so that it can be able to alter and create products, have good promotion strategies, prices and service destinations (Burrow & Bosiljevac, 2011)

The first marketing mix tool is the product. It can be defined as services or goods that are needed by the people being targeted. Originally, FedEx Corporation worked as a channel of distributing parcel deliveries but this product line has spread to all copy centers. The products in this corporation are unified and cross branded so that easy access in shipping products may be made to the customers. Users from one product line may go to another product line and use the similar account information from creation point to delivery. Griffin & Lowenstein (2001) assert that the policy mainly used by FedEx is to attain businesses and create product lines that may increase the revenues in the corporation and enhance better movement of the corporation’s fleet.

The second tool is the place. It is mainly concerned in the decisions that are to be involved to get the needed product to the market place of the target group. The market place and customer base of FedEx Corporation is encompassed from the United States to the rest of the world. 214 countries are served by this corporation. In 2003, FedEx procured Kinko’s Copy Center that led to unparalleled abilities (Burrow & Bosiljevac, 2011).

The third tool is the Promotion. The main concerns for this tool are to tell the market being targeted or other people in the distribution channel about a product that is suitable. The promotions of FedEx Corporation are projected to make brand recognition in order for the customers to associate FedEx with quality service that is reliable and delivered on time (Griffin & Lowenstein, 2001). The Federal Express has one promotional vision of increasing shipping. By doing that, it has set partnerships with firms dealing with supply management, government agencies and distribution centers. The United States Postal Service and the Federal Express signed two different contracts whereby FedEx was the one to deliver all packages for the United States Postal Service.

On the other hand, FedEx had agreements with great companies such as Amazon, Google and eBay so that they may reduce shipping costs and increase parcel delivery volumes. The fourth tool is price. Pricing is a wide-ranging critical study that has to put into place all factors such as the marketing mix entire cost, reaction of the customers, competitions and other inventories that are socioeconomic. The structure used in pricing is more complicated because it has been affected by the energy and fuel costs, leases and rentals, changing labor costs, duties and taxes and the competition in pricing by other companies (Burrow & Bosiljevac, 2011).

. Federal Express does not obtain any subsidies from the government like the other competitors such as DHL and the United States Postal Service. FedEx was named as a third parcel distributer in Afghanistan in 2004. At that time, FedEx Corporation was charging high costs for parcel deliveries and was forced to put into place new price guidelines that would lead to competition between it and DHL that were also offering the alike services. The marketing mix used by FedEx is an effective strategy and comprehensive in the industry of parcel distributions (Burrow & Bosiljevac, 2011)

In conclusion, the marketing mix is a firm observance to the brand identity. Reliability, connectivity and speed are the core things used in brand identity and this leads to the same message being passed everywhere. In the international marketplace that is changing from time to time, the brand marketing methods used by FedEx kept the corporation on the modest edge with innovative and dynamic solutions. FedEx Corporation is said to be profitable despite the economic havoc.

References

Burrow, J. L., & Bosiljevac, J. (2011). Marketing. Belmont, CA; Boston, MA: Cengage Learning.

Griffin, J., & Lowenstein, M., W. (2001). Customer Winback: How to Recapture Lost Customers—And Keep Them Loyal. Hoboken, New Jersey: John Wiley & Sons.

Overview of Services. (2012). Retrieved September 21, 2012, from < http://investors.fedex.com/phoenix.zhtml?c=73289&p=irol-overviewPortfolioServices>