Fedex Marketing Mix

In today's market a vast amount of business is done online or over the phone so having an established and efficient distribution services is a must. Federal Express is a world innovator of a distribution center. Founded in 1973 by Frederick W. Smith used his ideas from his paper he wrote in Yale in 1965. He recognized the need for an established and efficient distribution service based off of airfreight. Over the years FedEx has become a leader within the distribution industry (History of FedEx, 2012).

Today FedEx delivers over 3.6 million packages per business day within 220 countries worldwide and within the United States. They use their resources of 692 aircrafts and over 45,000 vehicles to keep them ahead of the game (Overview and Facts, 2012).

FedEx doesn't offer any product except shipping boxes and materials so they rely heavily on their services. They offer a wide range of services that target different market segments. For the United States shipping they offer same-day delivery, next-business-day delivery, 2- or 3-business-day delivery, business delivery via ground, residential delivery via ground, and delivery commitments. They also offer many international services and services for transporting dangerous and hazardous materials (Our Package and Freight, 2012). They also have a whole small business service that they call FedEx Office, that helps with all their printing and shipping needs. Their services help create pamphlets, banners, signs, and of course their packaging and shipping needs (FedEx Office, 2012).

The prices of FedEx's services have recently increased due to gas prices and market industry. Compared to their competitors FedEx's prices are still less. Some examples of price increases are for the additional handling surcharge increased from $8 to $8.50 and their collect on delivery increased from $10 to $11 (Surcharges and Fees, 2012).

FedEx is very well established throughout the world and especially established in the United States. Throughout the United States they have stores in most major cities and drop boxes elsewhere. For business you are able to request trucks to freight truck to come pick up your packages. They are also the "world largest express transportation in the world" delivering to more than 220 countries and they are continually expanding (Overview and Facts, 2012).

FedEx relies on personal selling for capturing and containing customers. Sales representatives will often make phone calls or visits to require new customers that are currently with a competitor. Recently at my current job we have switched to FedEx from the interactions with a sales representatives. There is also personal selling done at their stores to help retain customers and to provide an efficient and effective experience for the customer.

FedEx does not have much in the way of sales promotions. I'm sure some aspects of business is negotiable in terms of working with other businesses but for the every day person deals are few and far to come by. FedEx feels they are already offering a low price compared to their competitors so they don't need sales promotions. The only coupons that I could find were related to their printing options.

FedEx is also involved in many sponsors many sporting events. In 2005 FedEx released their number 11 car into NASCAR racing. They had an advertisement to promote their