About the same time FedEx entered UPSs lucrative over the road transport space

About the same time fedex entered upss lucrative over

This preview shows page 29 - 30 out of 68 pages.

solutions even for small-to-medium-size businesses. About the same time, FedEx entered UPS's lucrative over-the-road transport space with FedEx Ground. Initially, because of UPS's domination, FedEx had a difficult time differentiating itself in a meaningful way and only recently has FedEx Ground begun to gain widespread usage at a level that would even come close to affecting UPS's domination of that market.Concentrated Target Marketing A concentrated target marketingapproach, which Michael Porter refers to as a focus strategyand is also popularly called a niche strategy,involves targeting a large portion of a small market. Many start-up firmsenter a marketplace as a focus player. Because they are not saddled with keeping up with competitive demands in the broader market, firms using concentrated target marketing can realize cost and operational efficiencies and better margins than many first positioned as differentiators.53 The danger ofbeing a focus player is that sometimes these firms get too successful and are no longer able to fly under the radar of the differentiators, especially if the niche they occupy is a growing niche within the larger market.Customized (One-to-One) Marketing With the proliferation of CRM, firms are able to develop more customized approaches to target marketing. In Chapter 1 we said that customized (one-to-one) marketingadvocates that firms should direct energy and resources into establishing a learning relationship with each customer and then connect that knowledge with the firm's production and service capabilities to fulfill that customer's needs in as custom a manner as possible.54 The related approach of mass customization allows flexible manufacturing, augmented by highly efficient ordering and supply chain systems, to drive the capability for a consumer to essentially build a product from the ground up. Today, many online clothing retailers offer a high degree of customization in ordering. Consumers enjoy “building their own outfit” by completing a form that includes all the necessary body dimensions along with style and color choices, and within a few days a custom garment arrives via FedEx or UPS!EasyJet is a British short-haul, low-cost airline headquartered in London. With profit per seat of just $8, the company is focused on controlling costs and increasing revenue wherever possible. The firm works toincrease online check-in rates, which reduces the need for staff in airports, and it has “no frills” office spaces. Nonetheless, EasyJet uses customized marketing to increase sales. The “Inspire Me” tool on its website gives personalized destination recommendations to users based on responses to several questions about price range, timing, and destination preferences. The company also uses sophisticated, one-to-one e-mail campaigns. For example, the company sent e-mails to every passenger who had booked a trip during spring break but had not yet booked flights later in the year. Each e-mail included suggested trips with prices starting lower than what the customer had paid for the previous trip. For
Image of page 29
Image of page 30

You've reached the end of your free preview.

Want to read all 68 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture