Introduction Of Service Marketing Business Essay


"Services are going to move in this decade to being the front edge of the industry." This statement show how important is 'servicing marketing' for leading and reinforce the industry now days. Generally, service is means deeds, processes and performances. Service is form of intangible, inseparable, variable and perishable. Meaning that, service has to be feeling and experience it, it can't be separate with human, without human 'service' cannot be carry out. Today's service might very different with yesterday one, this can be effect by many reason, example, the mood of the personnel is bad, then it might affect the way he serve the customer, this is why the point of variable. Perishable is means that, service cannot be kept, it has to be 'use' it right happening.

Services marketing are a form of marketing which focuses on selling services. Services can be tricky to sell and the marketing approach for them is much different than the approach for products. Some companies offer both products and services and must use a mixture of styles; for example, a store which sells computers also tends to offer services such as helping people select computers and providing computer repair. Such a store must market both its products and the supporting services it offers to appeal to customers. (What is marketing, wisegeek, 12 Nov 2010)

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Background of FedEx

Today's FedEx is led by FedEx Corporation, which provides strategic direction and consolidated financial reporting for the operating companies that compete collectively under the FedEx name worldwide: FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks and FedEx Services.

Originally called FDX Corp., FedEx Corp. was formed in January 1998 with the acquisition of Caliber System Inc. Through this and future purchases, FedEx sought to build on the strength of its famous express delivery service and create a more diversified company that included a portfolio of different but related businesses. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited, exclusive-use shipping provider; Viking Freight, a regional, less-than-truckload (LTL) freight carrier serving the Western U.S.; Caribbean Transportation Services, a provider of airfreight forwarding between the U.S., Puerto Rico, the Dominican Republic and the Caribbean Islands; and Caliber Logistics and Caliber Technology, providers of integrated logistics and technology solutions. These companies, along with worldwide express shipping provider Federal Express, composed the original FDX Corp. 

Over the next two years FDX Corp. oversaw the assimilation of these companies and introduced them to many trademark service and technology enhancements.

In January 2000, FedEx unleashed the power of its global brand. In a move to further integrate the company's portfolio of services, FDX Corp. was renamed FedEx Corporation. In addition, Federal Express became FedEx Express, RPS became FedEx Ground, Roberts Express became FedEx Custom Critical, and Caliber Logistics and Caliber Technology were combined to make up FedEx Global Logistics. To centralize the sales, marketing, customer service and information technology support for FedEx Express and FedEx Ground, a new subsidiary named FedEx Corporate Services (FedEx Services) was formed and began operations in June 2000. 

Over the next year, a number of acquisitions and realignments changed the size and scope of various FedEx operating companies. The first move was a new subsidiary, just one month after the re-branding announcement. In February 2000, FedEx Corp. announced the acquisition of Tower Group International, a leader in the business of international logistics and trade information technology. TowerGroup became the foundation of a new FedEx Corp. subsidiary, FedEx Trade Networks, which in turn acquired WorldTariff, a customs duty and tax information company, a month later. Today, FedEx Trade Networks is the largest-volume customs entry filer in North America and a leader in global ocean & air cargo distribution and trade facilitation.

In January 2001, FedEx Global Logistics was realigned to streamline the organization and further improve customer service. FedEx Supply Chain Services became part of FedEx Services and Caribbean Transportation Services became part of FedEx Trade Networks. The following month, FedEx Corp. finalized the acquisition of American Freightways, a leading LTL freight carrier serving 40 states in the eastern two-thirds of the U.S., and rebranded American Freightways and Viking Freight as FedEx Freight. 

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FedEx Corp. acquired privately held Kinko's Inc. in February 2004. Two months later, Kinko's was rebranded as FedEx Kinko's (rebranded as FedEx Office in 2008). For FedEx, the acquisition meant expanded retail access to all of the 1,200 FedEx Kinko's stores in operation at that time, enhanced FedEx document management services and a broader reach to customers of all sizes. For Kinko's, the move added the resources and expertise needed to continue expansion of its corporate document outsourcing business and international operations.

Following the acquisition, all U.S. FedEx Kinko's locations offered new or expanded FedEx shipping options for greater customer convenience.

In September 2004, FedEx Corp. acquired Parcel Direct, a leading parcel consolidator, and later rebranded it FedEx SmartPost. The acquisition complements the FedEx alliance with the U.S. Postal Service and provides customers in the e-tail and catalog segments with a proven, cost-effective solution for low-weight, less time-sensitive residential shipments. 

In 2006, FedEx Corp. aquired ANC Holdings Limited, a United Kingdom domestic express transporation company.  This transaction allowed FedEx Express to directly serve the entire UK domestic market.  ANC was then rebranded FedEx UK.

In 2007, FedEx Corp. acquired Tianjin Datian W. Group Co., Ltd.'s 50 percent share of the FedEx-DTW International Priority Express joint venture and DTW Group's domestic express network in China.  FedEx then launched a domestic express service serving the Chinese market.

Also in 2007, FedEx Corp. continued its acquisition of domestic express companies with the acquisitions of Indian express company Prakash Air Freight Pvt. Ltd. (PAFEX) and Hungarian express company Flying-Cargo Hungary Kft.

All the companies obtained through FedEx Corp. acquisitions, in addition to diversifying the FedEx services portfolio, also exhibited the same "absolutely, positively" spirit that FedEx is known for possessing-which made the companies a good fit. 

Today, FedEx Corporation is the premier provider of shipping and information services worldwide, and its companies function under the motto of "operate independently, compete collectively and manage collaboratively." By operating independently, each company can focus exclusively on delivering the best service for its specific market. Competing collectively under the trusted FedEx banner ensures that all of the companies benefit from one of the world's most recognized brands. (FedEx, Wikipedia, 13 November 2010 at 16:07) (FedEx History, About FedEx, n/d)


FedEx Ground specializes in cost-effective, small-package shipping, offering dependable business-to-business delivery or convenient residential service through FedEx Home Delivery and FedEx SmartPost.

While, FedEx Express is the world's largest express transportation company, providing fast and reliable delivery to every U.S. address and to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, usually in one to two business days with the delivery time guaranteed.

As an integrated logistics provider, FedEx SupplyChain executes solutions that leverage the FedEx transportation and information networks in commercial markets around the world. The company provides integrated FedEx services for customers with high-value products or complex supply chain requirements. FedEx Supply Chain offers specialty logistics services that include critical inventory logistics, transportation management and temperature-controlled transportation through a network of owned and managed resources - all tightly integrated via advanced IT systems. (FedEx Facts, about fedex, n/d)


Advances in IT and the Internet have given FedEx enough ground to compete with already established companies such as UPS. It has allowed third-party clients, vendors, and customers access to their network by creating tools which allow direct interaction between both companies to optimize delivery services. Without these new innovations, FedEx may not have been able to last this long. As technology shifts and new strategic opportunities arise, FedEx must evaluate their current business goals and initiatives by utilizing such tools at the Strategic Alignment Model. ( , n/d)