Marketing Mix in Ports

Logistics Management Due Date Word Count Abstract This strain investigates the appearance of tenacious brim ( crownwork) with the aim of identifying the business and selling purlieu and ascertaining its study spate op carriageunities, threats, strengths and weaknesses.Based upon this internecine and external environmental evaluation, the ups of the alone-inclusive merchandise mix be analyses in relation to Polls authentic merchandising schema. Finally, suggestions on how Improvements to Polls market schema, with limited reference to the analysis of he widen marketing mix atomic number 18 proposed and the intrusions of such suggestions argon detailed. Research comprised of academic literature, constancy Journals, reports and websites In relation to the organization Itself and Its affiliates.What was found was that the mien of keen-sighted B for each ones list marketing strategies were based upon environmental stewardship, community, Industry and politics r elations, Infrastructure and transportation, dispense and commerce and organizational soundness. It was as well as recognized that the marketing strategy that opinion poll employ Is highly sophisticated, covering all facets of the widen marketing mix. Polls facilitating effective delivery of service to their major(ip) guests, eastern Asia, which accounts for 90% of its finishedput.POLL was analyses and segmented match the ups of the extended marketing mix. Its hear marketing strategies included environmental stewardship, community, manufacture and government relations, infrastructure and transportation, administer and commerce organizational intensity level. POLL vex focused this strategy, in conjunction with coalitions on their guest base, primarily eastbound Asia which accounts for 90% of trade and overly consumers at heart its local hinterland. Finally, changes to Port of Long Beachs marketing strategy argon put forth and also the potency impacts of such change s argon detailed.Table of Contents Abstract Contents Price work Evidence Introduction ii Table of iii Introduction 1 Task 1 1 Task 2 3 ware 4 4 Promotion 5 People 5 6 Physical 6 Task 3 7 Conclusion 8 References 10 The rise of world-wideization and subsequent increased freight volumes has essential seaports to become customer-focus oriented, proactive and adaptive in a highly belligerent freight market, encouraging trade facilitation some(prenominal) inside the port work its logistics and supply chain and outside(a)ly (Cannon 2004), (Cannon 2008), (Strategic Plan 2009).It follows then that seaport marketing must also develop and adapt in order to recognize value and also customer satisfaction. This essay will investigate the Port of Long Beachs (POLL) overall business from a marketing perspective, profiling the industry, the markets within the industry, its customers, this evaluation, the ups of the extended marketing mix are analyses in relation to Polls current marketing strategy. Finally, suggestions on how improvements to Polls marketing strategy, with specific reference to the analysis of the extended marketing mix are proposed and the impacts of such suggestions are detailed.Task 1 Summaries key organizational and marketing information from your Assignment 1 Case Report, in order to provide the context for your response to Questions 2 and 3 below. Pollinator & Khakis (2011) suggests that When shippers are confident about the volumes of cargo they will pick up to move or they feel that transport is of too great strategic importance, they may conclude to take the tape drive risk themselves. Whilst POLL do birth richly automated facilities, they do non do so in fusion with any major shipping lines.The absence of any major take leavenership agreements has left the door open for POLL to sign such agreements with eastern hemisphere Overseas Container Line ( alter) and Mediterranean Shipping Co (MASC.), ensuring that the majority of all carg o owned by MASC., nerveless and their hamper partners will straight off pass done Polls terminals and not Polls (Porter 2013). The impact of the partnerships has been immediately reflected through a 10. 1 percent increase in container throughput in the second prat of 2013, which simultaneously saw a 9. Percent decrease from POLL (Canada, atomic number 20 Ports Grow West Coast Market Share 2013).Newly developed on- come in rail facilities, gray chassis pool and Green Port gateway cook greatly improved the ports competitiveness and efficiency whilst reserveing for greater engagement connectivity through to east U. S. As far as the Ohio River (Port of Long Beach), (UNCLAD 2013). Kettle, Brown, Burton, Deans & Armstrong (2013, p. 243) states moving in buyers are influenced hard by factors in the current and expected economic environment. This statement has never been more evident than in hipping following the spherical Financial Crisis (SGF) in 2008/2009 and more recently the European debt sovereign crisis.Subsequent ascesis measures harbour seen a shift in trade routes from Asia to Europe forthwith heading to the west coast of the U. S. , placing POLL and POLL in primary quill position to receive increased volumes of cargo (UNCLAD 2012). POLL is aware of its impact on the environment and have answered with their award winning Green Port Policy, which seeks to reduce and eliminate the pollution generated by the port. POLL wish to not only be the busiest and most efficient port in north America, but also an environmental innovator and leader (Port of Long Beach 2013).Critically evaluate the marketing mix of your chosen organization, using relevant marketing theory. The advent of globalization and the subsequent increase in seaport rivalry has required seaports to differentiate their product through the provision of value-added service and continually evolving marketing strategies (Cannon 2004). Port of Long Beachs key marketing strategies were based upon environmental stewardship, community, industry and government relations, infrastructure and transportation, read and commerce and organizational effectiveness (Port of Long Beach 2013).PRODUCT The product of a port can be separated into its core product and its actual product (Kettle, Brown, Burton, Deans & Armstrong 2013). POLL seeks to have value and competitive advantage through its complex and highly merged service offering, enabled through its cargo handling function and value-added services. POLL possess both dedicated container and bulk cargo terminals, with supply chain capabilities that allow meshing access as far as the Ohio River.Network connectivity is enabled pacifically through on-dock rail, across 10 piers and 80 berths that are serviced by 66 post-Panamas gauntry cranes, allowing for efficient transshipment and storage of cargoes. Channel and berth depth have been deepened in order to accommodate many of the larger container vessels capable of carryin g 13,000 TIES. POLL encourages trade facilitation through its harbor services, tug/towing, piloting, consulates, marine surveyors, U. S. Customs, freight forwarders, customer brokers, and shipping agents.Supporting services such as waste disposal, medical facilities, tortes and bunkering are also available. Additionally, POLL provides value-added services such as cold storage and bonded entrepot (Port of Long Beach 2013), (Strategic Plan 2009). PLACE Place of the product involves accompany logistics and marketing activities concerned with delivering the companys service. A ports position is imperative to its ability to string and retain customers. POLL is situated in the heart of the most inhabited extensive hinterland access, allowing it to be served by 140 shipping lines with connections to 217 seaports.Polls location and network connectivity allows for the shiest chance of frequency, reliability, profitability and relative convenience. High calling volumes of its major compe titor and harbor neighbor, POLL, results in increased traffic flows and congestion that would other than belong to POLL, save POLL is able to reduce this effect as five of Polls container terminals are connected with on-dock rail facilities, that increase the efficiency of traffic flow and reach of the port past the immediate through to the extended hinterland in the east U.S. (Cannon 2008), (Kettle, Brown, Burton, Deans & Armstrong 2013) (Port of Long Beach 2013), Strategic modify 2009). PRICE Price is the amount of money the customer has to pay to capture the product (Kettle, Brown, Burton, Deans & Armstrong 2013). It is difficult to compare port tariffs among ports accurately because of diversity in their systems and regulations, the existence of determine by long-standing agreements and the influence of the exchange rate. This is indicative Polls duty No. , which continually states that tariffs and charges are assessed in accordance with and based upon each and every of the limitations, agreements, covenants and conditions set forth. POLL, however, does adopt a mix of efficiency pricing and relationship pricing, as each strategy is specifically applied to the face of customer and relationship. Efficiency pricing applies to customers requiring the lowest available prices. This pricing strategy is more applicable to short-term transactional based customers. Relationship pricing is offered to those that are either profitable in the long-term or have the trenchant potential to grow.Port charges encompass navigation, berth and cargo operational services, all of which are either based on size of ship, time in port or size/volume of cargo. Other business related cost include real estate, licensing and charge services incurred from or by port-related services (Berry & Hydra 1996), (ESCAPE 2002), (Port of Long Beach 2013) PROMOTION Promoting a port is suggested as being a means of communicating with current and potential customers, with its train being to r aise awareness of what the port offers and to influence customer attitudes and fashion towards the port (Bernard 1995), (Somers and De Wiled 1997).POLL seeks to promote itself through the victimization of a positive blot image, conveying network connectivity, sailing frequency, liability, service quality and professional management (Branch 1998), (Port of Long Beach 2013). POLL has formed partnerships with leading European and Asiatic shipping companies, each of which are part of shipping alliances that allows it to promote its services globally (Porter 2013). POLL further promotes itself through its website, annual reports and strategic plans, outlining its constitute directive for the future, one that balance their constituent as a facilitator of international trade with our strong partnership.PEOPLE Cannon (2008) states Establishing a relationship with a customer and building loyalty emperies two parts, the initial marketing to attract the cover relationship over time so t hat the financial and other objectives of both parties are achieved. It follows then that marketing communications play an important role in customer relationship management. POLL have a clear focus on employing talented and motivated people, with the aim to empower them at all levels that encourages them to develop and enhance the relationship in order to remark customers. Gumminess 1994), PROCESS Customers migrate to other service providers when the process is disadvantageously managed and lets them down (Kettle, Brown, Burton, Deans & Armstrong 2013). In order to lessen the risk of losing competitive advantage, customer relationship management within ports has evolved into the development of partnerships. Decisions by POLL marketing and management are indicative of this evolution with the recent contractual arrangements with COOL and the subsequent development of Terminal Operating Shipping Lines (TOSS).Vertical integration allows COOL to exert market power through upstream or downriver integration, whilst POLL benefit from the resultant higher volumes of cargo and technologically get along with cargo systems, improving service delivery (Bishop 2009) (Porter 2013). PHYSICAL EVIDENCE function are mostly intangible. Thus the meaning of other tools and techniques used in marketing is important as customer tend to rely on physical cues to help them evaluate the product before they buy it (Kettle, Brown, Burton, Deans & Armstrong 2013) (Marketing instructor 2013).POLL and the local government have both invested heavily in regards to the versed and external environments resulting in aesthetically pleasing involves both inward and superficial from the port. Restaurants, tourist shops, parks, bikes and customary transport facilities lie directly adjacent and diametral POLL, increasing the ports community integration and acceptance. Such external projects, matched with modern, sophisticated internal infrastructure projects are becoming increasingly attra ctive to all stakeholders and customers, as POLL leads the way in efficiency and environmental stewardship, both domestically and internationally.How could your chosen organization improve their marketing mix in view of the evaluation you conducted and the strategies you recommended in your Case Report? Whilst POLL have invested heavily in their own employees and long-term customers, it seems that they could do more in relation to the greater everyday. The greater public, whilst benefiting from increased trade volumes, efficiency, environmental standards and community-friendly amenities, are not utilized in their full capacity. Increasing public involvement within the port has many benefits and repercussions, should issues arise.Cannon (2008) propounds that port developments are hampered by community concerns and the need for environmental performance, which is mirrored by Giuliani & OBrien (2008) who state that citizen concerns about ports environmental impacts condition public p olicy, which can lead to policy intervention and increased be or loss of customers. Increased involvement allows the public to take a vested interest in the operations of the port, boosting public perception, thus allowing for greater public investment and increased brand image, greatly reducing the potential for public backlash should blackball publicity in regards to the port arises.The development to the full automated facility in conjunction with private investors, MASC., COOL and their alliance partners, could discourage competing shipping lines, not involved in such alliances from expend in POLL, and in some instances lead to discriminatory treatment. Bishop (2009), states Ports and ocean carriers may also get onto conflict because of resource scarcities, for instance when dedicated terminals are allocated to a single shipping line, hence pushing other carriers to exit via ports elsewhere.POLL could adjust their strategy in relation to such firms by winning them from tra nsactional based customer and developing customer relationships. Whilst this strategy may not be applicable to all smaller sized shippers, it is through the development of relationships with medium to larger sized shipping lines, not a part of shipping alliances, where POLL could increase market share whilst at the equivalent time decrease POI-As competitive advantage. The U. S. Has replaced Europe in relations to exports, however the increased volumes can have both a positive and negative effect on hinterland connections with the rest of the U.S. The development of infrastructure and processes within the port are only as effective as its network connections with the hinterland. Ensuring network inevitably improve its perceived port efficiency to an Asian, global and domestic markets that demand it. Although rising cargo volumes can create congestion within the vast networks connecting POLL with its hinterland, an opportunity lies within to market to major injecting intermediate an d multimedia firms.Forming alliances or partnerships with such firms could secure reliability through the supply chain into the future and in turn reduce cost to importers, increases perceived reliability in the Asian market and also increases ingathering and potential for importers to utilities the facilities POLL has to offer. The promotion of high efficiency and reliability to the East Asian consumer base that accounts for 90 percent of Polls container throughput could prove the difference in perceived competitive advantage, resulting in cargo volumes transferring from POLL to POLL. ConclusionThe Port of Long Beach and the way in which the extended marketing mix have shaped its marketing strategy has been analyses. POLL was found to be in a highly competitive environment, specifically due to the close proximity of its larger rival, POLL. In order to regain competitive ground, POLL have entered into partnerships through the signing off long-term lease with a major shipping line COOL and allowed further private investment from MASC., in order to achieve ameliorate economies of scale, improved operational efficiency and better asset utilization to sure up profitability.This matched with newly developed, environmentally sustainable infrastructure, will enhance its capability to capitalist on shifting trade routes from Asia to the U. S. Then the marketing strategy of POLL was analyses and segmented according the ups of the extended marketing mix. Its key marketing strategies included environmental stewardship, community, industry and government relations, infrastructure and transportation, trade and commerce organizational effectiveness.POLL have focused this strategy on their customer base, primarily East Asia which accounts for 90% of trade and also consumers within its local hinterland. The ups product, place, price, rumination, people, process and physical evidence were individually analyses with specific reference to POLL and its stakeholders including i ts customer base and POI-A. Lastly, three suggestions as to how POLL could improve aspects of their marketing mix in view of the evaluation conducted are provided.