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Marketing Training For Transits February 23, 2006 Presented By: Carla Lakatos, Partner The Lakatos Marketing Training For Transits February 23, 2006 Presented By: Carla Lakatos, Partner The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

The most concise definition of marketing is …the matching of a company’s capabilities with The most concise definition of marketing is …the matching of a company’s capabilities with the wants of the marketplace to the mutual satisfaction of both parties. Company capabilities The Lakatos Group Matching ODOT 2006 Marketing Training Customer wants February 23, 2006

The only goal of private sector companies is profit: without profit the company ceases The only goal of private sector companies is profit: without profit the company ceases to exist. The public sector is just as concerned as the private sector with the elements of marketing… The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

…however, the standard that the organization is measured by is customer satisfaction rather than …however, the standard that the organization is measured by is customer satisfaction rather than profitability The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Marketing is not just Selling and Advertising… § Marketing is a philosophy, or a Marketing is not just Selling and Advertising… § Marketing is a philosophy, or a management orientation, that stresses the importance of customer satisfaction § Bottom-up approach – learning to listen to customers’ needs and desires § Research and evaluation form the cornerstone The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Why Should Transit Managers Study Marketing? 1. Marketing Is A Key Responsibility Of Public Why Should Transit Managers Study Marketing? 1. Marketing Is A Key Responsibility Of Public Service Providers – A Source Of Information The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Why Should Transit Managers Study Marketing? 2. Marketing Is Important To The Marketplace Success Why Should Transit Managers Study Marketing? 2. Marketing Is Important To The Marketplace Success Of Individual Transit Organizations § Reflects how you wish your organization to be understood public trust directly impacts local support § Important input in the design of transit services § Important tool in the regulation of demand The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Why Should Transit Managers Study Marketing? 3. Marketing Is Important In The Internal Management Why Should Transit Managers Study Marketing? 3. Marketing Is Important In The Internal Management Efforts Of Transit Organizations § What is internal marketing? § How does employee satisfaction affect customer satisfaction? § Developing a Marketing Orientation – customer driven The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

“Inability to understand respond quickly and effectively to customers and markets are hallmarks of “Inability to understand respond quickly and effectively to customers and markets are hallmarks of industries in decline. ” Transit Agencies Have Been Slow To Embrace The Notion That They Are First And Foremost Delivering A Travel Experience To Their Riders. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Properties of a Customer-Driven Organization Lines of communication are broad There is less turf Properties of a Customer-Driven Organization Lines of communication are broad There is less turf protection Customer service features as a tenet of the mission statement Internal customer service standards match high standards of external customer service A commercial organization is observable in all departments The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Properties of a Customer-Driven Organization (continued) The taking of responsibility and risks in the Properties of a Customer-Driven Organization (continued) The taking of responsibility and risks in the name of providing breakthrough service is encouraged and failures or mistakes are tolerated. Customer service champions are developed and encouraged. Such champions walk the talk of customer service. Line managers display a genuine commitment to customer service. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Examples Of Customer-Focused Activities General Customer Interaction § Transit System Map § Information Brochures Examples Of Customer-Focused Activities General Customer Interaction § Transit System Map § Information Brochures § Public Timetables by Route § Advertising (Print, Radio, TV) § Telephone Information Centers § Public Forums § Web-based Information § Information Kiosks/Bus Stop Signs The Lakatos Group § Mission Statements § Automated Information Kiosks/Touch Screens ODOT 2006 Marketing Training February 23, 2006

Examples Of Customer-Focused Activities Obtaining and Using Customer Input § Complaints § On-Board Surveys Examples Of Customer-Focused Activities Obtaining and Using Customer Input § Complaints § On-Board Surveys § Telephone Surveys § Focus Groups § Employee Meetings The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Examples Of Customer-Focused Activities Involving Employees § Message From Policy-Making Body § Message From Examples Of Customer-Focused Activities Involving Employees § Message From Policy-Making Body § Message From CEO § Message From Department Head § Customer-Focused Training for Supervisors, Operators, All Employees The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Examples Of Customer-Focused Activities Involving Employees (cont’d) § Periodic Visits by CEO or Dept Examples Of Customer-Focused Activities Involving Employees (cont’d) § Periodic Visits by CEO or Dept Heads to Transfer Centers, Rail Stations, etc. § Events to Build Employee Moral § Allowing Employees to Make Customer-Focused Service Decisions The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Examples Of Customer-Focused Activities Achieving Customer Satisfaction § Service Guarantees § Guaranteed ride Home Examples Of Customer-Focused Activities Achieving Customer Satisfaction § Service Guarantees § Guaranteed ride Home § Frequent Rider Discounts § Frequent Rider Benefits § Customer Bill of Rights The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Effective Customer Service Is Really About… § Sound diagnosis of present service levels § Effective Customer Service Is Really About… § Sound diagnosis of present service levels § Using excellent interpersonal and selfmanagement skills § Ongoing research into customer service and customer follow-up The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Market Research in Transit Agencies… “…most transit agencies do not know their market segments Market Research in Transit Agencies… “…most transit agencies do not know their market segments and are developing products and services without knowing what the market wants. ” § 98% of private-sector firms do market segmentation research § 80% of transit agencies do some market research § 72% focus on customers only § 20% do not obtain market research information § Few agencies do market segmentation research § 14% use market research in policy-making The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Questions We Might Explore Do we know what our customers' number one expectation is? Questions We Might Explore Do we know what our customers' number one expectation is? Do we consistently deliver it? Do we ask these questions at least every six months? Do we have marketing programs aimed at current customers? Are there additional products or services we can sell to our customers? The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Questions We Might Explore (cont’d) Do our missions and visions include this focus on Questions We Might Explore (cont’d) Do our missions and visions include this focus on service? How do we ensure real benefits are being delivered both up and down the chain? Do our operating policies — the way we deal with customers — make them want to patronize our business time and time again? Do we strategize and plan for loyalty? Do we even have a specific plan for building customer loyalty? The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Questions We Might Explore (cont’d) Do we know the top three reasons our customers Questions We Might Explore (cont’d) Do we know the top three reasons our customers leave? Do we have written customer care policies? Do all current and new employees know how you would like each of your customers to be treated? How you will measure whether or not your staff is handling clients appropriately? Are there additional products or services we can sell to our customers? The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Questions We Might Explore (cont’d) Do we keep all the information we can on Questions We Might Explore (cont’d) Do we keep all the information we can on our customers and don't hesitate to use it to increase ridership and partnerships? Do we use complaints to build our business? Do we promptly follow up and resolve a customer's complaint? Do we treat these interactions as the ones that really matter? Do we handle these interactions with the same attention and focus that other business strategies receive? The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Questions We Might Explore (cont’d) Do we regularly conduct satisfaction questionnaires? Do we reach Questions We Might Explore (cont’d) Do we regularly conduct satisfaction questionnaires? Do we reach out to our customers? Do they feel we are someone to help them? Are they aware of our accomplishments? The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Questions We Might Explore (cont’d) Do we strategically focus on building loyal customers through Questions We Might Explore (cont’d) Do we strategically focus on building loyal customers through a loyal workforce? Do we work to attract and retain those employees who interact with customers? Do we assign specific support persons to every significant customer? (If this is what the customer prefers) Do we tell our customers that their concerns can only be address through one specific channel or phone number? Do we offer employee incentive programs for employees who care for and retain customers? The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Marketing’s Organizational Role Support corporate strategy to attain organization’s goals The Lakatos Group ODOT Marketing’s Organizational Role Support corporate strategy to attain organization’s goals The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Overview Of The Strategic Planning Process Where We’ve Been Situational Analysis Where We Are Overview Of The Strategic Planning Process Where We’ve Been Situational Analysis Where We Are Where We Want To Be Goal Setting How We’ll Get There The Strategic Plan The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Marketing Strategies The Means By Which An Organization Pursues Its Goals: Marketing Positions and Marketing Strategies The Means By Which An Organization Pursues Its Goals: Marketing Positions and Programs § Measurable § § The Lakatos Group Valid Assumptions/Facts Simplicity Complete and Feasible Controllable and Flexible ODOT 2006 Marketing Training February 23, 2006

Marketing Program A Plan Which Integrates An Organization's Marketing Mix Elements In Order To Marketing Program A Plan Which Integrates An Organization's Marketing Mix Elements In Order To Define Their Product (Goods And/Or Services) Offering. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Generally Speaking, Marketing is said to Include The Management of The 4 P's § Generally Speaking, Marketing is said to Include The Management of The 4 P's § § The Lakatos Group Price Place Product Promotion ODOT 2006 Marketing Training February 23, 2006

What Customers Must Do To Obtain The Product Or Service Price § Setting the What Customers Must Do To Obtain The Product Or Service Price § Setting the Basic Fare Structure § Identifying Seasonal Price Offers § Identifying Individual Discounts § Special Event Activities § Loss or gain in personal time, stress, image The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

The Way The Product Reaches The Customer Place § Service Accessibility § Quality of The Way The Product Reaches The Customer Place § Service Accessibility § Quality of Service Delivery § Designing and Maintaining Physical Facilities The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

A Continuum From Tangible Products (Bus Trips) To Intangible Ideas (Accessibility, Independence, Choices, Opportunity) A Continuum From Tangible Products (Bus Trips) To Intangible Ideas (Accessibility, Independence, Choices, Opportunity) Product § Whatis the problem your product solves? § How does the consumer/community perceive the problem? § How important do they feel it is to take action against the problem? The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Creating And Sustaining A Demand For The Product Promotion § Advertising § Personal Selling Creating And Sustaining A Demand For The Product Promotion § Advertising § Personal Selling § Publicity § Coupons, media events, editorials, etc. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Marketing A Social Service Includes Additional “Ps” § Publics § Partnership § Policy § Marketing A Social Service Includes Additional “Ps” § Publics § Partnership § Policy § Purse Strings The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

External & Internal Groups Critical To Success Publics § External Publics § Target & External & Internal Groups Critical To Success Publics § External Publics § Target & secondary audiences § Policymakers § Key influencers § Internal Publics § Involved with approval or implementation of the program The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Required Of Complex Social Issues Partnerships § Who has similar goals? § Identification of Required Of Complex Social Issues Partnerships § Who has similar goals? § Identification of team efforts § Synergistic Opportunities The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Assuring A Supportive Environment Policy § Needed policy changes § Advocacy program The Lakatos Assuring A Supportive Environment Policy § Needed policy changes § Advocacy program The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Sources Of Funds Purse Strings § Foundations, grants, donations The Lakatos Group ODOT 2006 Sources Of Funds Purse Strings § Foundations, grants, donations The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Each Element Of The Marketing Mix Product, Price, Place, Promotion, Publics, Partnership, Policy, & Each Element Of The Marketing Mix Product, Price, Place, Promotion, Publics, Partnership, Policy, & Purse Strings Should Be Considered In The Marketing Plan Research and evaluation elucidates and shapes final marketing decisions The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

The Marketing Plan A written document which identifies an organization's target market, specific marketing The Marketing Plan A written document which identifies an organization's target market, specific marketing goals, the marketing program, the marketing budget, and the time line for the marketing program. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Marketing Plans Vary With Respect To The Time Period Involved Short-range plans are for Marketing Plans Vary With Respect To The Time Period Involved Short-range plans are for one year or less. Mid-range plans for two to five years -- both of these types of plans are usually quite detailed. Long-range plans cover periods of more than five years and can not be as detailed, or specific, as short and midrange plans For most public transit systems, it is beneficial to form strategic marketing plans covering short-range, moderaterange, and long-range operations of the organization. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

Selected Examples of Marketing Objectives For Transit Organizations Create Consumer Awareness Provide Pertinent Information Selected Examples of Marketing Objectives For Transit Organizations Create Consumer Awareness Provide Pertinent Information Improve Customer Understanding Induce Trial Ridership Increase/Maintain Customer Loyalty Create Positive Associations Explain Organization's Viewpoint Counter Competitor/Critics Claims Increase Purchase Frequency Stabilize Ridership Demand The Lakatos Group Enhance Organization's Image Change Consumer Attitudes Alter Consumers' Behavior Introduce New Service(s) Establish Market Position Develop Name Recognition Accentuate Service Value Enhance Public Support Counter Negative Publicity Introduce New Facilities Fulfill Legal Requirements ODOT 2006 Marketing Training February 23, 2006

Managing The Marketing Process The Lakatos Group ODOT 2006 Marketing Training February 23, 2006 Managing The Marketing Process The Lakatos Group ODOT 2006 Marketing Training February 23, 2006