Both FEDEX and UPS have announced significant price increases, starting next year. Since January first is a Sunday, these price increase start Monday, January 2nd.
In November FEDEX EXPRESS announced rate increases will increase by an average of 3.9% for US domestic, US import and US export shipments.
FEDEX GROUND and its HOME DELIVERY rate increases will increase by an average of 4.9%.
UPS (United Parcel Service) has also announced an average increase of 4.9% for all of its shipments, ground, air and global/international shipments.
Shipping and logistic services would fall under Product or Service in the 9P's of Marketing. The price increases fall under "Price," in the 9P's of Marketing.
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I am a senior Forensic Marketing Expert, Marketing and Advertising consultant with Londre Marketing Consultants, LLC plus I teach Marketing and Advertising.
I created and own a copyright for this marketing concept, the Nine P’s/9 P's of Marketing ©2007, which augments the Marketing Mix (Product, Price, Promotion and Place) or the 4P’s by the American Marketing Association, Neil Borden and Jerome McCarthy in the study and practices of Marketing.
In Marketing. the "customer," or potential purchasers, buyers are king, but are missing as one of the P's, in the 4P's. It's prominent and its own "P" in the 9P's of Marketing.
The Nine P's/9P's of Marketing help identify marketing opportunities, solutions and find marketing problems and opportunities in a number of areas. They help, develop and guide a company or firm's marketing objectives, strategies, tactics and solutions.
The Nine P's can be truly insightful.
I consult and teach using the Marketing concepts and practices of the Nine P's/9P's of Marketing.
In the study and practice of Marketing, Marketing and Brand Managers develop objectives, plans, strategies and tactics.
The Nine P's of Marketing include these important components or elements:
- Developing and transforming marketing objectives to marketing strategies to tactics, marketing management must make basic decisions on marketing targets (“People”), marketing mix, marketing budgets/expenditures and marketing allocations.
- It’s dividing the total marketing budget among the various tools in the marketing mix and for the various products, channels, promotion, media and sales areas.
- It's about Segmentation and Targeting. Add Positioning and you have STP.
- "People" or targeting has almost always been left out of the traditional "Marketing Mix." Almost every diagram includes the four P's with "Consumer" or "People" or "Potential Buyers" in the middle of the circle. There needs to be more focus on the "Customer," or "People."
- "People," market segments utilizing demographics, geographics, psychographics, behavioral characteristics and technographics are a vital component of the 9P's of Marketing. Once a target market is chosen, the organization can develop its marketing strategies to target this market segment.
- Product and Services:
- The goods and service combination the firm offers to the target market, including variety of product mix, features, branding, designs, packaging, sizes, services, maintenance contracts, warranties and return policies.
- A product (service) is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.
- Place (Distribution):
- The company’s activities that make the product available, using distribution and trade channels, roles, coverage, assortments, locations, inventory and transportation characteristics and alternatives.
- Offering the right product at the right PLACE, at the right time, at the right price.
- Please consider, develop and review store and non-store, e-commerce and “brick and mortar” factors, considerations, objectives, strategies and tactics, including “Partners.”
- All aspects regarding pricing. “Pricing” is the sum of the values that customers exchange for the benefits of having or using the product or service.
- The amount of money a consumer is willing to pay to obtain the product. Pricing includes wholesale/retail/promotional prices, discounts, trade-in allowances, quantity discounts, credit terms, sales and payment periods and credit terms.
- Pricing decision making also involves adjusting prices concerning the competitive environment, economic situations and involve buyer perceptions.
- Eight (8) major, strategic components: The communication elements include personal and non-personal communication activities. Activities that communicate the merits of the overall product, which include:
- Personal Selling/ Sales Force: Sales persons: Listen more than you talk. People who listen more, learn more, plus helps you position your service/product/solution or offering.
- Sales Promotion
- Collateral Materials
- Direct Marketing (also referred to as Action or Direct Response Advertising
- Interactive/Internet/Web, Digital Media, Social Media
- Events and Experiences-
- Public Relations
- Here are some strategic questions under Promotion::
- What should you promote?
- To whom should you promote? People and companies looking for shipping and logistic services.
- What economic and discount levels should you offer?
- What form of promotion should you offer? Features?
- How frequent?
- Also know as Alliances.
- It is important to partner with firms that have similar corporate philosophies, who have agreed upon objectives and strategies.
- The “P” or “Presentation” is the act of presenting any of the different 9P’s© and/or components to your customers, suppliers, wholesalers, retailers, sales force, marketing intermediaries, clients, employees, partners, and/or others.
- Look at “real” product and service experiences.
- I place “events and experiences” also under Promotion.
- While traditional marketing is based on target audience impressions/ views/ clicks/ exposure, experimental marketing involves engaging with consumers. Enabling consumers and “allowing” them to feel the brand.
- Those intense, driving or overmastering feelings, emotions in the planning, developing, pricing, promoting, partnering, selling and overall marketing of products or services.
Or for more fun, marketing strategies/tactics and facts: Go to Marketing Trivia with 38+ stimulating questions and answers at Londre Marketing Consultants, LLC. Here to help. All the best.