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

Presented By: Carla Lakatos, Partner

Marketing TrainingMarketing TrainingForFor

TransitsTransitsFebruary 23, 2006February 23, 2006

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

MatchingCompanycapabilities

Customerwants

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.

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

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

…however,

the standard that the organization is

measured by is customer satisfaction

rather than profitability

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

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

Why Should Transit ManagersStudy Marketing?

1.Marketing Is A Key Responsibility Of Public Service Providers – A Source Of Information

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

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

Why Should Transit ManagersStudy Marketing?

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

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

Why Should Transit ManagersStudy Marketing?

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

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

Examples Of Customer-Focused ActivitiesGeneral 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

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Examples Of Customer-Focused Activities

Obtaining and Using Customer Input Complaints

On-Board Surveys

Telephone Surveys

Focus Groups

Employee Meetings

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

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

Examples Of Customer-Focused ActivitiesInvolving

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

Examples Of Customer-Focused Activities

Achieving Customer Satisfaction

Service Guarantees

Guaranteed ride Home

Frequent Rider Discounts

Frequent Rider Benefits

Customer Bill of Rights

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

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

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

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

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

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

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

Support corporate strategy to attain organization’s goals

Marketing’s Organizational Role

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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

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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

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Marketing Program

A Plan Which Integrates An Organization's

Marketing Mix Elements In Order To Define

Their Product (Goods And/Or Services)

Offering.

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Generally Speaking, Marketing is said to Include The Management of The 4 P's

Price Place Product Promotion

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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

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Service Accessibility Quality of Service Delivery Designing and Maintaining

Physical Facilities

The Way The Product Reaches The Customer

Place

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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?

A Continuum From Tangible Products (Bus Trips) To

Intangible Ideas (Accessibility, Independence, Choices,

Opportunity)

Product

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Advertising Personal Selling Publicity Coupons, media

events,

editorials, etc.

Creating And Sustaining A Demand For The Product

Promotion

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Publics Partnership Policy Purse Strings

Marketing A Social Service Includes Additional “Ps”

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External Publics Target & secondary audiences Policymakers Key influencers

Internal Publics Involved with approval or

implementation of the program

External & Internal Groups Critical To Success

Publics

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Who has similar goals?

Identification of team

efforts

Synergistic

Opportunities

Required Of Complex Social Issues

Partnerships

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Needed policy changes Advocacy program

Assuring A Supportive Environment

Policy

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Foundations, grants, donations

Sources Of Funds

Purse Strings

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Each Element Of The Marketing Mix

Product, Price, Place, Promotion, Publics, Partnership,

Policy, & Purse StringsShould Be Considered In The

Marketing PlanResearch and evaluation elucidates and shapes final marketing decisions

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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.

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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.

Marketing Plans Vary With Respect To The Time Period

Involved

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Selected Examples of Marketing Objectives For

Transit Organizations

Create Consumer AwarenessProvide Pertinent InformationImprove Customer UnderstandingInduce Trial RidershipIncrease RidershipIncrease/Maintain Customer LoyaltyCreate Positive AssociationsExplain Organization's Viewpoint Counter Competitor/Critics ClaimsIncrease Purchase Frequency Stabilize Ridership Demand

Enhance Organization's ImageChange Consumer AttitudesAlter Consumers' BehaviorIntroduce New Service(s)Establish Market PositionDevelop Name RecognitionAccentuate Service ValueEnhance Public SupportCounter Negative PublicityIntroduce New FacilitiesFulfill Legal Requirements

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

Managing The Marketing Process