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US postal service discussion
QUESTION
The U.S. Postal Service is an independent establishment of the executive branch of the government. When it engages in marketing, it is not to earn a profit. Rather, the mission of the USPS is to provide postal services to the United States. In contrast, FedEx is a for-profit company that has become a market leader because of its quick and efficient delivery services.
How do USPS marketing objectives differ from FedEx marketing objectives?
Who is the target market for USPS? How does this differ from the target market of FedEx?
| Subject | Business | Pages | 2 | Style | APA |
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Answer
Marketing Approach
U.S Postal Service and FedEx are the most competitive companies in the parcel delivery industries. While USPS is a non-profit company providing parcel deliveries run by government, FedEx is a profit making company. As expected USPS and FedEx have similar roles in delivering parcels to customers in the industry but show and use different marketing objectives with different target markets.
Although the United States Postal Service (USPS) and FedEx often compete for the same customer, they employ different marketing objectives. FedEx use promotion strategy as a market objective to target their customers (Mieghem, 2018). Their billboards are usually placed strategically in order to advertise and promote their products and services. According to Mieghem (2018), the company has made use of the price based position strategy to target specific customer base with their services. Through positioning, customers can be reached adequately and conveniently; hence timely distribution of products at customer’s price. FedEx attracts customers through product modification using modern technological advancements, fast delivery, and their reliability. Most time people are looking forward to tracking parcels that will arrive fast; therefore, the use of product differentiation attracts and captures more clients.
The United States Postal Service (USPS) recently introduced a pricing strategy to attract customers. The implementation of the pricing strategy was a subject to rate parcels as per their dimensions rather than their weights (Johnson, 2017). Pricing strategy has appealed to most customers because regardless of the parcel’s weight, the set price will be finalized to the size of the package. Johnson (2017) asserts that also place strategy has been initiated by USPS to offer locations which are often closer to the customer’s residences; hence ensuring faster drop-offs and pick-ups at customers’ homes creating a client friendly business environment.
Being the competitive companies in the parcel delivery industry, it is important to note the difference in market target for USPS and FedEx. While USPS target market are larger corporations that ship variety of packages within the Unites States, FedEx targets different segments within and beyond United States with a variety of customers from industries, individuals and government businesses such as the USPS (Mieghem, 2018).
In conclusion, U.S Postal Service and FedEx compete for almost the same customers by employing different marketing strategies such as position and promotion strategies by FedEx, and price and place strategies by USPS. It is also noted that FedEx acquire its trade from the USPS. As a result, there is a multiplex relationship between FedEx and USPS which calls for further studies in the future.
References
Johnson, R. K. (2017). How the United States Postal Service (USPS) Could Encourage More Local Economic Development. Chi.-Kent L. Rev., 92, 593.
Van Mieghem, J. A. (2018). FedEx: aligning operations strategy to the company’s mission. The Business & Management Collection.