J'FeiAMC

1
International Transport Systems (M09)

• Organisation of this unit

2
International Transport Systems (M09)

• Learning objectives
• Explain the concept of marketing orientation
• Discuss the marketing activities of segmentation,
  targeting and market positioning
• Describe the elements involved in the marketing
  mix
• Understand the role of public relations in
  attracting public support and customers
• Acknowledging that good relationships with
  colleagues are based on the same principles as
  good customer service

3
International Transport Systems (M09)

• Transport marketing and public relations
• Market orientation
• Segmentation, targeting and positioning
• Market segmentation
• Target the market
• Market positioning
• Marketing mix
• Public relations and open communication
• Customer service
• The culture of customer service
• Customers and colleagues

4
International Transport Systems (M09)

• Market orientation
• Production orientation
• management concerns itself with the companys
  existing products or services and pays little
  attention to the changing needs or demands of its
  customers, e.g. in an oligopolistic or
  monopolistic market, where customers have little
  or no effective choice.
• Sales orientation
• prevalent when a market is over supplied with a
  commodity or services. Companies employ highly
  motivated sales force and advertise heavily in
  order to increase demand for their products.
• Market orientation
• focus on its customers, e.g. what is it
  customers want? How much are they willing or able
  to pay? Are their needs being met by products or
  services already in the marketplace? If not, what
  service or products will meet their needs?
• Make what you can sell, not sell what you can
  make!

5
International Transport Systems (M09)

• Segmentation, targeting and positioning
• Market segmentation
• A market is not a homogenous thing. There will be
  some variation from customers in their
  requirements depending on such factors as gender,
  age, education or income in the case of
  individuals, location and size in the case of
  businesses.
• When an organisation addresses the needs of its
  market in terms of the variables listed above, it
  is practising market segmentation. That is, it is
  distinguishing different groups of customers and
  responding to their specific needs.

6
International Transport Systems (M09)

• Segmentation, targeting and positioning
• Market segmentation
• For transport operators, the variables used to
  segment a market might include
• Passenger market
• The purpose of the journey
• The type of experience for which the customer is
  looking
• The socio-economic group to which the passenger
  belongs
• The passengers gender
• The passengers age

7
International Transport Systems (M09)

• Market segmentation
• For transport operators, the variables used to
  segment a market might include
• Freight market
• Whether the market segment is national or
  international
• The customers need for security
• The size of the customer (volume discount)
• The urgency of the delivery (overnight express
  services)
• The handling characteristics of the commodity
  being transported (delicate and fragile or
  valuable items, hazardous chemicals etc. )

8
International Transport Systems (M09)

• Targeting the market
• SWOT analysis
• Marketing strategies
• Undifferentiated market strategy when each of
  the segments in a market is sufficiently similar
  to the others, this strategy will be adopted.
• Single segment an organisation concentrates on a
  single segment in the market and devote its
  resources to succeeding through specialisation.
• Differentiated market strategy a company focus
  on multiple market segments. This can be very
  expensive because the organisation has to meet
  the specific needs of several segments at once,
  but it can be quite profitable (e.g. ro-ro
  vessels).

9
International Transport Systems (M09)

• Market positioning
• How does a firm want its products to be perceived
  in the market?
• As a luxury?
• As an excellent performer?
• As reliable?
• As safe?
• As fast?
• As something for special occasions?
• Advertising can be overwhelming and customers are
  constantly facing information overload. It is
  very important that a firm positions its products
  or services so that it will receive maximum
  attention from potential consumers.

10
International Transport Systems (M09)

• Marketing mix
• It is a fundamental principle of marketing that
  there is a mix of ingredients or variables that,
  when combined in the correct proportions, make up
  the marketing mix for any product or service. The
  four elements of the marketing mix are Product,
  Price, Place and Promotion, also referred to as
  the 4Ps. The combination of these four elements
  will determine how well a business achieves its
  objectives in the marketplace.
• Product means not only a tangible commodity, but
  also stands for services. It also means any
  benefits derived from the goods or services.
• Price in the transport industry, price is
  essentially the practice of correlating passenger
  and freight tariffs to potential market demand
  and sensitivity in order primarily to maximise
  cash flow, attain high load factors, counter
  competition, stimulate market growth and improve
  profitability.

11
International Transport Systems (M09)

• Marketing mix
• Place where products or services are made
  available to customers. (distribution,
  accessibility)
• Examples
• Promotion the blend of techniques the
  organisation uses to communicate with its
  customers or potential customers direct selling
  advertising non-media promotions public
  relations.
• Extended marketing mix (for services marketing)
• Physical evidence
• Process
• People

12
International Transport Systems (M09)

• Public relations and open communication
• Public relations is the process of being open
  and where possible interactive. It increases the
  likelihood of success in our venture because we
  know that are providing a service that is wanted
  and because we present our company as one which
  goes out of its way to involve its customers and
  its community in decisions that have a direct
  bearing on them.
• The basis of all good public relations is
  communication and consultation.
• Activities
• You are the CEO of a seaport. The demand for
  the port services has been increasing steadily
  and to a point where night shifts are required to
  meet the growing demand. Operations in the night
  however may affect the surrounding community in
  terms noise etc. What will you do?
• Your are running a delivery service
  specialising in delivery by van of small parcels.
  You find it necessary to increase your charges
  by 8. How are you going to inform you
  customers? What will you need to tell your staff
  who might see the price rise as an indication of
  an accompanying rise in their wages?

13
International Transport Systems (M09)

• Public relations and open communication
• A number of important groups that a firm shall
  communicate with
• Existing and potential customers
• Former customers no longer using your service
• Local communities and/or industry groups
• Employees, trade unions and staff associations
• Trade associations
• Pressure groups (environmental and residents
  groups are two such examples)
• Consumers
• The media television, radio, and press both
  local and state/national

14
International Transport Systems (M09)

• Customer service
• It is believed that every client who is happy
  with the level of service of a company is likely,
  on average, to attract by word of mouth three
  other customers. A disgruntled client will lose
  you ten.
• Customers might go for products or services
  provided by another company because
• Dissatisfied with current services (experience
  vs. expectation)
• Breadth of choices in the marketplace
• Vigorous advertising campaigns of other
  companies.
• Why retain existing customers?
• The cost of retaining existing customers vs.
  attracting new customers
• Word of mouth
• Activity
• Have you ever experienced any dissatisfied
  services? What was your reaction?

15
International Transport Systems (M09)

• Customer service
• The culture of customer service
• Building up a mutual respect for and
  understanding of one another leads to ease of
  communication and providing superior service. A
  firm also is expected to
• Provide expertise
• Offer advice
• Solve problems
• Undertake extra responsibilities such as checking
  out a product or service
• Properly deal with complaints

16
International Transport Systems (M09)

• Customer service
• The culture of customer service
• The basis of good customer service is the person
  at the front line the person behind the counter
  or the respondent on the phone or the delivery
  person. Therefore, the management of firm should
  
• Set clear standards and expectations and an
  example of best practice
• Treat employees with respect
• Seek and value their opinions
• Show them trust and loyalty
• Culture of customer service applies equally to
  colleagues. When internal enquiries are dealt as
  though they are urgent, responses are prompt and
  helpful, and information is shared among fellow
  workers, efficiency will be significantly
  improved and employee satisfaction will be high.
  Satisfied employees will most likely serve
  customers better, therefore more satisfied
  customers.