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The top logistical solutions provider worldwide is United Parcel Service of America (UPS). When working with UPS, customers look for a variety of important issues. In addition to high-quality products, (UPS) corporate clients demand top-notch customer service. Customers in the business sector seek solutions that are tailored to them specifically and that may help them transform their operations. They seek out solutions that go above and beyond what their clients want, as well as business partners they can rely on to uphold the partnership by carrying out their obligations honestly. They must have a business partner who operates with integrity. Customers in the business world anticipate that UPS will foster a culture of achievement and decision-making. Business customers expect to make the right decision in every business step. They hope that UPS will minimize their hassles and maximize visibility for the business operations (Jackson, 2007).
Business customers expect gains that surpass cost savings. UPS concentrate on the continuous creation of value-added services that cannot be found in traditional mailings approaches. In this regard, business customers look for postal and technology expertise and mail logic solution that facilitate their businesses to accomplish their operational objectives. Business customers find a partner who understands their demands. They look for a logistic partner who can help them sharpen and shape their entire logistics operations and strategies, and serve them in the right way. Above all, convenience, value, excellent customer service, and superior products are the major benefits a client can expect from UPS.
Difference between UPS Working with Business Customers and Residential Customers
UPS distinguish its customers between residential and business customers. The differences are incorporated in their shipping rates, and they charge high rates for residential customers than business clients. Federal Express (FedEx) AND UPS have been competing head-to-head for the business customers. In the early twenty-first century, both companies commanded approximately 70% of the package shipment industry. In this market, both companies provided world-class services to their business customer. They not only used to pick up boxes at the place of delivery, but also provided labels, boxes, and software for tracking the package on the client personal computer and automating labeling (Service, n.d.). UPS still offer these services up-to-date. In this regard, UPS value large customers. They consider it profitable to sell to a few large clients than partnering with a large number of customers of small clients. A given shipment error or mistake in logistics can cost both the company and customer millions of dollars. Thus, they minimize the risk by focusing on business customers.
The package shipment industry has gone through some significant new growth mainly triggered by the rapid development in e-commerce. For instance, in the United States, online customers’ sales increased from $5 billion to $35 billion in 1998 to 2002. Consequently, residential delivery was growing the significant segment in the value chain, and as a result, UPS considered venturing into this market to tap the unmet need. In 2015, UPS reported an approximately $279 billion online retail sales in the United States which were a sharp increase from around $177 billion in 2010. In every year, UPS delivers about 100 million packages to America residential customers (Service, n.d.). However, UPS is mainly concerned about making personal pickups in residential areas and some residential customers are required to visit the local postal office and pick their packages. UPS it is not service oriented with its residential customers and postal office working hours do not always coincide with schedules of residential customers. Nevertheless, working with business and residential customers demands clear comprehension of client wants and client-driven marketing techniques that develop superior customer value. UPS must collaborate closely with its customers to avoid unnecessary losses and remain as a leading logistic company in the globe.
UPS Story in Relation to Major Concepts of Kotler & Armstrong
The UPS report demonstrates a clear understanding of Kotler and Armstrong major concepts of buyer behavior. According to Kotler & Armstrong (2016), excellent customer service, value, convenience, and superior products are the significant gains clients get from their shopping experiences. UPS brags as a logistic partner that helps to sharpen and shape the entire logistic operations and strategies, serve buyer in the right way and help to minimize cost. The report shows challenges that exist between business-to-business activities. It demonstrates how to analyze the logistic businesses. The case study, indicate steps that have been taken by UPS to emerge as a leading logistics company in the globe. There is a clear understanding of customer wants and buying pattern. Trust, loyalty, problem-solving, and commitment are factors that influence business client buying pattern. The UPS story is a good illustration of differences that exist between business buying behavior and consumer buying pattern. However, consumer and business market are similar in various dimensions. In both situations, individuals take up buying responsibilities and make buying judgment to satisfy their wants. It also clearly shows the distinctive attributes of the business market. It is apparent that working with business clients demands a clear understanding of client-driven marketing approaches and the customer wants that enhance consumer value. At the most fundamental stage, the story shows what business buyer demands and reacts to various stimuli in the market.
Jackson, S. E. (2007). Where value hides: A new way to uncover profitable growth for your business. Hoboken, NJ: John Wiley.
Kotler, P., & Armstrong, G. (2016). Principles of marketing.
Service, U. U. (n.d.). Surpassing Customer Expectations. Retrieved July 12, 2017, from https://solvers.ups.com/surpassing-customer-expectations/
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