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

2. 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.
Matching
Company
capabilities
Customer
wants
The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

3. 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

4. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006
…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

5. 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

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

7. Why Should Transit Managers Study Marketing?
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

8. Why Should Transit Managers Study Marketing?
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

9. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006
“Inability to understand and 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

10. 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 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

11. 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

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

13. 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

14. 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

15. 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

16. 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

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

18. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006
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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

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

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

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

28. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006
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

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

30. Price What Customers Must Do To Obtain The Product Or Service
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

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

32. Product A Continuum From Tangible Products (Bus Trips) To
Intangible Ideas (Accessibility, Independence, Choices, Opportunity)
Product
What\is 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

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

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

35. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006
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

36. 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

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

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

39. 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

40. 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 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

41. 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 mid-range plans
For most public transit systems, it is beneficial to form strategic marketing plans covering short-range, moderate-range, and long-range operations of the organization.
The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

42. The Lakatos Group ODOT 2006 Marketing Training February 23, 2006
Selected Examples of Marketing Objectives For Transit Organizations
Create Consumer Awareness
Provide Pertinent Information
Improve Customer Understanding
Induce Trial Ridership
Increase Ridership
Increase/Maintain Customer Loyalty
Create Positive Associations
Explain Organization's Viewpoint
Counter Competitor/Critics Claims
Increase Purchase Frequency
Stabilize Ridership Demand
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
The Lakatos Group ODOT 2006 Marketing Training February 23, 2006

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