THE MARKETING OF PUBLIC TRANSPORTATION
CASE STUDY:
COMMUTER RAIL
AT THE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY
by
Rosemary Cashman
SUBMITTED IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS OF THE
DEGREE OF
MASTER OF CITY PLANNING
at the
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
June 1987
Rosemary Cashman
1987
The author hereby grants to M.I.T. permission to reproduce
and to distribute copies of this thesis document in whole or
in part.
Signature of Author_
Depa$thnt of Urban Studies and Planning
June 26, 1987
Certified by
Ralph Gakenheimer
Thesis Supervisor
Accepted by
Tunney Lee
Department of Urban Studies and Planning
OF TEC
OSYTITujy
SEP 1 7 1987
LIBRARIES
Rotcb
Table of Contents
page
A.
Introduction
B.
Definition of Marketing
C.
Transit Marketing
11
D.
Marketing of Commuter Rail Operations
at the Massachusetts Bay Transportation Authority
18
Conclusion
47
E.
5
Introduction
Public transit agencies in
and continue
the United
to be recalcitrant with their use of marketing.
Although there have been numerous journal
written
States have been
about
the
need
for
better
articles and books
marketing
services, there has been little movement
of transit
towards a marketing
approach by transit agencies.
In too
many agencies across the United States, there is
limited or non-existent use of basic marketing practices such
as market research, product development, advertising, pricing
studies, and evaluation of products and services.
understanding
and/or
services is evident.
determination of
commitment
A lack of
to the customer of transit
A customer perspective, emphasizing the
the transit services wanted by the customer
and the development of a means to deliver
those services, is
all too often missing.
Little or
be
creating
decreasing
no marketing
or
or
may
static
at a transit agency may already
ultimately
ridership
services, and poor image for the
lead
to
such
things
as
and revenues, poor quality
agency.
As a
result, the
following goals of public transportation may not be attained:
traffic
congestion
quality
enhancement,
minimization,
land
energy
conservation, air
use conservancy and compactness,
and accessibility of transportation to all
of income, age, or physical disability.
people regardless
The
marketing
of
commuter
rail
service
Massachusetts Bay Transportation Authority (MBTA) may
at
the
or may
not be similar to the marketing of other services (i.e., bus,
subways) provided by the MBTA and
the United
States.
The goal
of this
analyze, and make recommendations
in the
Commuter Rail
other transit
thesis is to review,
for the
Directorate of
agencies in
marketing program
the MBTA.
In order to
achieve this goal, I will first review the general concept of
marketing with
an emphasis
in the United States.
commuter rail
on marketing at transit agencies
After
this
operations at
review,
I
will
look at
the MBTA, making comparisons to
the general marketing concepts and transit marketing concepts
that have
been previously
recommendations for the
explained.
marketing
Rail operations of the MBTA.
Finally, I will make
program
in
the Commuter
MARKETING DEFINITION
General Definition
Marketing
defines,
is
the
understands,
demands.
process
by
influences,
which
and
an
organization
satisfies
customer
Marketing has a consumer orientation rather than a
product or operations orientation.
insures
that
the
manager
A marketing approach
"
1)
knows what and where his markets
are; 2) provides effective product service; 3) puts the right
product at
the right
the greatest
efficient
place at
possible number
sales
product/service
and
the right price: 4) sells to
of customers
through the most
distribution channels; 5) supports the
adequately
with
advertising
and
sales
promotion"; and 6) evaluates the results. 1
Many
years,
businesses
becoming
have
more
marketing approaches
and
used
marketing
more
in subsequent
strategies
sophisticated
years.
to
find
a
"customer-comes-first"
This is
because the
successful
idea
has
business
been
their
Growth, profits,
and customer satisfaction have usually resulted.
nowadays
in
for
in
ignored
"It is hard
which
or flouted.
marketing concept forces the company 1)
to think what it is doing, and why, and then 2) to
develop a
plan for accomplishing its goals." 2
1
E. Jerome McCarthy, Basic Marketing, (Illinois, 1971),
p. 29.
2
McCarthy, p. 32.
the
Customer
approach
Versus
has
a
understanding of
to that customer.
and
information
Operations
customer
viewpoint.
A
orientation;
the customer
there
marketing
is
an
and the competitors appealing
In order to satisfy the customer, services
are
reviewed
frequently
and updated when
necessary.
In contrast, an operations
usually
means
that
changes
approach in
occur
slowly and that the few
customer services are often standardized.
approach, there
is little
that as
long as
competition.
the system
then the customer will
buy the
from
Success
that
system.
With an operations
recognition that the organization
presently or potentially faces
is made
an organization
The assumption
works well internally,
product/service that results
achievement of operating standards
is
cost
minimization
that are
and
not necessarily
related to customer needs and preferences.
In
an
customer and
results of
be:
a)
organization
attuned
to
operations orientations
marketing,
will be
both
the
present.
The
this kind of comprehensive marketing approach can
improved
customer
satisfaction,
b)
improved
net
operating performance,
c)
improved
productivity',
and
d) improved awareness that
Christopher H. Lovelock and Charles B. Weinberg, Marketing
for Public and Non-Profit Managers, ( New York, 1984), pp. 470-71.
3
4
Lovelock and Weinberg, p. 471.
"developing customer demand for a service that isn't produced
is as foolish as producing a
service for
demand."'
I Lovelock and Weinberg, p. 470.
which there
is no
Two
specific
selection
of
steps
target
in
a marketing concept are a) the
markets
and
b)
the
development
of
"marketing mixes".
a) Selection
of target
markets. In
the selection of target
markets, particular groups of customers and non-customers are
chosen
and
segmented
according
to such characteristics as
age, sex, income, occupation, and residence.'
Market research plays a
target markets
key
by determining
role
in
the
who these
selection of
customers and non-
customers are and what their needs are. Research
via different
surveys, telephone surveys,
methods: on-board
focus groups, employer
may be done
surveys,
information
request cards,
community advocacy groups, and census data.
b) Development of marketing mixes.
mixes"
means
the
selection
organization believes
Development of "marketing
of
will satisfy
the
p's
of
marketing
--
that
the target markets.
four standard factors of the "marketing
four
factors
product,
mix" are
price,
an
The
called the
place,
and
promotion.
- Product. This is the development of
the right market.
the right
product for
Market research can be translated into new
or improved products and
services that
are refined
to meet
and
Strategies for Transit
Organization
6
"Marketing
Agencies", Marketing Public Transportation, (Illinois, 1981),
p. 9.
1 Transit Marketing: A Review of the
Handbook of Current Practice, pp. 19-20.
State-of-the-Art and A
the needs/preferences
of one
or more market segments.
of the attributes of the product/service
reliability,
safety,
Some
can be convenience,
attractiveness, quality of workmanship
and materials, training and delivery by personnel.'
- Price. This is the determination of the right price for the
product or
service based
on the
ability and willingness to
pay of the consumer.
- Place. The product or service is
the
customer
wants
it,
thus
available when
and where
recognizing that people have
different schedules and locations.'
- Promotion.
a
This marketing factor involves communication to
target
market.
This
(schedules,
maps,
information
(media,
radio,
community
includes
centers),
activities),
billboards),
and
consumer
public
advertising
promotions
information
relations
(newspapers,
(merchant
discounts,
contests).1
Evaluation.
well,
To
evaluation
Feedback
is
insure
of
necessary
that
marketing
so
to
hasn't, why, and what needs to
the customer is being served
strategies
must
be
done.
decide what has worked, what
be changed
to bring
about a
* McCarthy, pp. 60-61.
'
McCarthy, p. 45.
10 Transit Marketing: A Review of the State-of-the-Art and A
Handbook of Current Practice, pp. 25-43.
more efficient delivery of service to the consumer. 1 1
Organizational Structure.
function
in
organizations
given low echelon status.
recognizes the
as
well
as
pricing,
Marketing
is a
attuned
senior management
to marketing; it is not
In these organizations, management
importance of marketing strategy and research
the
interdependence
placement,
and
of
product
promotion.
development,
Among
throughout the organization with a marketing
employees
orientation can
be found communication, teamwork, and a customer focus. 1 2
In
summary,
continuous
evaluation
process
is
focuses
marketing
of
necessary
planning,
if
the
on
the
consumer.
implementation,
needs
and
wants
A
and
of the
customers are to be discerned and satisfied.
11 Roy Cresswell and Tony Young, The Urban Transport Future,
(New York, 1982), p. 158.
12
Lovelock and Weinberg, p. 403.
Transit Marketing
Transit used
until
the
catering
by the
mid-twentieth
to
passengers
public had
virtually no marketing
century.
Prior
was
owners, union members, and
not
to
the 1950's,
very often a byword.
politicians
were
often
The
at odds
with the goal of providing a quality service to passengers.
In the
1950's, due to the influx of automobiles and the
movement of people to the suburbs, transit passengers rapidly
disappeared.' 3
Some
for survival of jobs and
marketing techniques became necessary
votes.
Marketing
in
the 1950's
focused primarily on advertising and vehicle comforts such as
air conditioning; the focus was on
to customers.
not service
the 1960's,
federal and state assistance
became available, and marketing
experiments were encouraged.
A
sales
In
the vehicle,
orientation
promotions
using
came
into
view.
However, because the product hadn't changed much, the results
and promotions
of experiments
1970's,
transit
orientation.
marketing
weren't very
began
Product, price,
to
develop
beginning of
segments
of
consumers
a
customer
placement, and promotion were
beginning to be recognized as being interrelated.
also the
In the
good.14
There was
the recognition that different market
existed
with
different
needs
for
"Transit Marketing: A Strategic Approach", Transportation
Quarterly, (October, 1986), p. 550.
1'
14
"Transit Marketing: A Strategic Approach", p. 551.
product,
and promotion.
price, placement,
15
In the 1980's, declining government dollars required some
agencies to increase fares and/or reduce services.
Marketing in
transit continued
agencies.1 "
Advertising and
accepted marketing
forms.
16
to be a low priority in many
promotion continued
to be the
However, it was not uncommon for
advertising and promotion to
be considered
luxuries, and be
cut from the budget. 1 *
Customer
versus
Operations
organizations in the United States have,
viewed their
customer
emphasized
role from
The
the
a
effective
for the
customer
design
most part,
perspective and not a
operations
services
standardized
capital and labor while
emphasized
an operations
perspective. 1 '
Public transit
Viewpoint.
and
perspective
has
the efficient use of
perspective
would have
delivery
of transit
and
services that will meet consumer wants and needs.2
15
"Transit Marketing: A Strategic Approach", p. 552.
1' Transit Marketing: A Review of the State-of-the-Art and A
Handbook of Current Practice, p. 8.
Transit Marketing: A Review of the State-of-the-Art and A
Handbook of Current Practice, p. 9.
17
1* Mass Transit Management: A Handbook for
Part IV, UMTA, (Washington, D.C., 1980), p. 369.
Ridership with
Managing Transit
Incentives, UMTA, (Washington, D.C.), p. 1.
19
Small Cities,
Short-term
Economic
"Organizing
the
Marketing
Function
for
Transit
Marketing,
and
Non-Profit
in Public
Authorities", Readings
(1978), p. 81.
20
To this day, transit agencies lack
place
marketing
Some see it
as
should
Transit
others
as
promotion,
And some just don't see it
agencies
to what
occupy in the transit organization.
planning,
consumer education.
agreement as
have
done
others as
at all.
or not done the following
with the basic components of marketing:
a) Selection of Target Markets.
There has been little market
research done at most agencies.
As a result, little is known
about who the present or potential customer is,
customer wants or needs.
and what the
21
b) Development of Marketing Mixes.
- Product.
Public transit's approach to product development
has not been very good.
product
despite
customers.
changes
Transit has been slow
in
the
to change its
transportation
needs
of
During the decades when almost all employment was
located in the urban core, the existing transit routes served
most of the transit needs of
changed.
People
and
the customers.
industry
moved
However, times
to
the
suburbs.
Competition from automobiles and trucks roared. Despite
1 Roy Cresswell and Tony Young, The Urban Transport Future,
(New York, 1982), p. 156.
technology
available
could have provided faster, more
that
reliable, cleaner transit service,
the technological changes
were either not implemented or were slow to be implemented. 2 2
- Price.
pricing has been
The basic approach of transit to
to set a single base fare with a few variations.
Very little
attempt has been made to optimize pricing arrangements.
needed
revenues,
c)
collectors,
as :
is seen
one-price strategy
b)
easy
to
simple
a) efficient in generating
understand
riders and
by
However, in setting
administer.
to
This
prices, some things need to be recognized: a) the product and
riders aren't
homogeneous; the
the tripmaker, b) different
value of
the trip varies to
don't have
pricing arrangements
to be complicated, c) with the one-price strategy, the shortdistance rider subsidizes the long-distance rider.2
has
largely
fear that
backed
price
transit agencies
Transit
from increasing fares; there is a
away
increases
will
drive
people
away.
Few
have a policy in the pricing area; the only
policy seems to be not to raise fares.24
- Place.
with the
Many transit
development of
agencies have
shown limited concern
a product/service that is available
22
"Transit Marketing: A Strategic Approach", p. 554.
23
"Transit Marketing: A Strategic Approach", pp. 555-56.
"Transit Marketing and Markets in the
Marketing Public Transportation, 1981, p. 3.
24
United States",
in a location and at a time that is convenient for customers.
The number
outlets),
and location
the
manner
of transit
of
sites (stations, ticket
operation
of
the sites, and the
timing of transit service have too often been determined with
lack of
consideration to
agencies have
generally
customer needs.
failed
to
Moreover, transit
recognize
that transit
customers place a high value on out-of-vehicle time.
- Promotion.
26
Promotion is the most highly developed aspect
of transit
marketing.
activities
from
1)
It
encompasses
consumer
a
broad
information
to
range of
2)
public
relations to 3) advertising.
Transit agencies devote the majority of
budgets to
advertising as
promote usage.
decades that
a way
their marketing
to enhance their image and
However, it has only been within the past two
agencies have
to different groups of
begun sending different messages
consumers,
recognizing
that certain
market segments require certain types of messages.
Other than
advertising, the
most prevalent promotional
tools are schedules, timetables, maps, and brochures.
Evaluation.
Historically, the transit industry has relied on
gross indicators
to
evaluate
its
25
"Results Are
Efforts", p. 20.
such as ridership and revenues as the means
services.
Mixed from
Market
surveys
of
customer
Public Transportation Marketing
reactions have seen limited use as evaluation measures.
even
when
surveys
have
And
been done, their designs have many
times been criticized for weakness.
Evaluation of transit services
requires the development
and maintenance of a good data base.
research in transit agencies
However, because market
is often
underfunded, there is
generally a lack of the data needed for evaluation purposes.
Organizational
Structure.
An
organizational
designed to meet the needs of customers has
developed
in
transit
agencies.
protect the boundaries of
because employees
All too often, battles to
In
Furthermore, an
effect,
take place
the transit agency as a system
where all the parts work together
customer.
usually not been
departmental "empires"
don't view
structure
a
to provide
team
approach
organizational structure
service to the
is
lacking. 2
6
is usually lacking
for marketing activities in that such marketing activities as
public relations,
consumer information,
and advertising are
usually scattered throughout the agency. 27
implementation, and
evaluation
of
Design, analysis,
marketing
activities is
difficult without coordination of personnel.
Furthermore, transit managers have been accused of being
too operations-oriented, and placing too much emphasis on new
"Marketing
Organization
Agencies", pp. 17-18.
and
26
Strategies
for
Transit
Transit Marketing: A Review of the State-of-the-Art and A
Handbook for Current Practice, p. 14.
27
16
technology and
not enough
of transit service and
emphasis on improving the quality
the quality
of employee relations. 29
They have neither insured that a team effort happens nor have
they insured that information is given to all
employees, not
just those involved in decisionmaking.
21
"Public and Non-profit Marketing Comes of Age", p. 10.
Case
Study:
Commuter
Rail
at
the
Massachusetts
Bay
Transportation Authority
How
similar
is
the
marketing
of
the
commuter rail
operation at the MBTA to the marketing of other MBTA services
and other transit operations
in
the
United
States?
What
changes, if any, should occur in commuter rail marketing?
First, I
shall give
a general history of the marketing
of passenger rail in the United States; then I shall
overview of
give an
the commuter rail operation at the Massachusetts
Bay Transportation Authority; and
marketing practices,
public transit.
then I
shall describe its
comparing them to those of the MBTA and
Finally,
I
shall
outline
any recommended
changes.
Historically,
marketing.
private
passenger
lines
There are several reasons
owners
of
have
for this.
not had much
First, the
railroads (Many railroads were privately
owned at one time.) did not
way to
rail
increase their
consider passenger
wealth or
transit as a
power. Freight transit and
the development of land surrounding transportation facilities
were
viewed
by
these
passenger transit.
holding
Stories
companies,
scandals abound.
owners
as
far
of stock
corruption,
more important than
manipulations, illegal
political
kickbacks,
and
Consequently, the lack of importance placed
on passengers meant that little, if anything, was done in the
18
way
The
marketing.
of
to
allowed
allowed
was
to
kept competitive, locations of
were not
deteriorate, prices
the lines were
product/service
promotion was
and
reduced,
be
almost non-existent.
has
railroads
owned
not
know
to
how
of marketing
the importance
either do not understand
funders
convince
the
because public managers
limited
been
that
of publically-
marketing
automobiles,
from
railroads have
competition
enormous
the
despite
Today,
of
the
or do
importance of
marketing.
of
Furthermore, the strength
reason
for
railroad
marketing
competitive with other
not only
in price
Work rules, high
in
factors
creating a
and/or keeping transit from being
of transit
negative image
been another
has
troubles.
been
have
labor costs, and strikes
unions
of transportation--competitive
forms
but also in comfort, safety, reliability,
and convenience.
Another
reason
for
strength
of
the
directly
or
indirectly,
automobiles,
and
marketing
lobbies
political
in
the
These
highways.
problems
for
those
been the
involved,
production
of
oil,
are
far
more
groups
powerful, singly and cumulatively, than transit
19
has
market their
dollars to
many
spent
have
groups
These
organizations.
own products and services much to the detriment
of public transportation.2
MBTA has
Historically, the
Commuter Rail at the MBTA.
only had rail service since the mid-1970's, at which time the
Central and
financially-troubled Penn
the
from
lines
MBTA bought rail
The original MBTA
Maine railroads.
Boston and
plan was to continue
rail service
until rapid
to the
areas served
by rail.
was extended
rail was
never
the 1970's
changed in
late 1970's
commuter
by the
However,
by many.
and 1980's, railroads had returned as a means of
transportation.
revitalized;
for railroads
In the early 1970's, the
and 1980's.
railroads were considered "dead"
However, rapid
environment
The
extended.
rail transit
workers
The
from
Boston
suburbs
had
region
needed
been
and wanted rail
services to get to their jobs.
For the most part, the Commuter Rail Directorate
MBTA is
considered separate
at the
from other MBTA operations, and
has its own divisions for scheduling, maintenance/purchasing,
engineering,
and
budgeting.
The Commuter Rail Directorate
owns the equipment, but hires outside contractors to
system.
The
Presently, the contractor is Amtrak.
railroads
service
45,000 commuters per day, using
McCleery, William and Southerland, Thomas C.,
Go, (New York, 1973), pp. 51-94.
29
run the
The Way To
200 vehicles,
84 stations, 8 routes, and 500 miles of track.
In contrast, the other transit operations of the MBTA provide
service for
83 stations,
550,000 pasengers
167
operating expenses
routes,
track.
of
miles
800
and
The
rail are 80 million dollars
for commuter
versus 480 million dollars
fare recovery
per day, using 1500 vehicles,
MBTA operations.
for other
The
ratio for commuter rail is 25% while the ratio
for other MBTA operations is 33%.
Ridership has
been
the rails.
on
steadily
increasing
These increases in passengers have led to capacity conditions
the
during
However, 100
peak
hour
crowdedness and providing
that
comparison, other MBTA
In
additional passengers.
an
operations have also experienced
such
operations.
new coaches are expected to be delivered by the
end of 1987, thereby relieving the
room for
rail
the
for
service
rehabilitation
substantial
in passengers
increase
facilities
of
and
equipment additions are taking place.
The current status of
commuter rail
the
of
marketing
operations at the MBTA can be described as follows:
Selection of
Similar
target markets.
to public transit in
the United States and other operations at the
very
little
marketing
commuter rail operations.
in
the
commuter
rail
strategy
or
research
The title of one
department
21
MBTA, there is
done for the
of the employees
is indicative of the low
status given to
Finance,
and
--
marketing
"Director
Marketing".
commuter rail at the
According
MBTA doesn't
of Administration,
to
this
do marketing
director,
"unless you
call goals for on-time performance marketing."
In the case of market research, none is done by commuter
rail employees.
done by
However, a
the Department
department responsible
limited
amount
of
research is
of Development and Public Affairs,
for
all
eight
directorates
a
at the
MBTA. As one employee stated, the amount of research done for
Occasionally, surveys are
the entire MBTA is "microscopic".
done.
is not embedded in the MBTA, and a
However, research
haphazard approach to research is taken.
Development of Marketing Mixes
- Product.
Rail Directorate
the Commuter
Until recently,
had done little to assess the volume and trends of ridership.
It
had
slow
been
to
transportation needs
not assessed
living
and
the
impacts
employment,
development
by
the
changes
and potential
of users
automobiles to the users.
product
to
respond
of
traffic
or
the
users.
in
the
It had
congestion, suburban
costs
and
benefits
of
In these respects, the approach to
the
Commuter
similar to other MBTA operations and
Rail
Directorate is
public transit agencies
in the United States.
However, as
in
the
United
with the
States,
MBTA and several transit agencies
the
commuter
22
rail
operation
is
beginning to
cars
have
pay more attention to product development.
been
ordered,
several
stations
rehabilitated, and some parking has been added.
have
New
been
Furthermore,
rail service is expected to be expanded to several areas such
as
Needham,
many
South
Shore communities, and Providence,
Rhode Island.
- Price.
The
involvement in
Commuter
Rail
Directorate
has
little
the setting of fares for the rail service.
A
general pricing committee that establishes fares for all MBTA
services
has
the
pricing
demand-oriented in that peak
responsibility.
Pricing is not
service costs
less expensive off-peak serivce.
the same
Several payment methods are
allowed such as cash, check, and credit card.
offered
students.
such
as
to
special
needs
Also, there
one-way,
groups
are many
twelve-ride,
as the
such
Discounts are
as the elderly and
different fare arrangements
monthly,
family, and group
tickets.
At the present
Finance,
and
the
time,
Marketing
in
Director
of Administration,
commuter rail is thinking about
having a hearing with the pricing
would like
committee; she
to make some changes, such as limiting the variation in fares
and restricting on-board payment.
But
she
knows
that the
chance of any changes is small; political influence is heavy.
Pricing policy
the MBTA and other
for commuter rail is similar to those of
U.S.
transit
agencies
in
that pricing
policy is generally decided outside of the department, prices
23
and
are slow to change,
politics.
Price arrangements for commuter rail are, for the
that
in
many
are
there
and other U.S.
the MBTA
those of
most part, different from
agencies
influenced by
heavily
are
prices
different
pricing
arrangements.
- Placement.
reservation and payment. However, the Director of
places for
of the
the next
are being
few years.
considered
be added in
For the most part, these new locations
rail
commuter
of political
because
researched
and
because
not
influence,
difficult to locate and have
stations are
More locations are expected to
limited parking.
a concern
expressed
Marketing
Administration, Finance, and
that some
stations, and numerous
84 transit
There are
made any efforts to
discover consumer need for additional rail service.
available on
services are
done
determine
to
More
weekdays and during peak hours in
However,
order to accommodate commuters.
been
year.
throughout the
Rail services are available
research has
no
changes should be made in
whether
schedules.
placement
Overall, in dealing with
and time,
with
mode coincides
States.
rail
is
operations
In
comparison
perhaps
have
a
been
agencies
transit
many
Its reactive
MBTA reacts.
at the
commuter rail
of location
issues
the United
in
to other MBTA operations, commuter
more
little
making
24
reactive.
major
changes
Other
for
MBTA
the past
several years in transit stations via
rehabilitation and new
Also, scheduling is being computerized for other
locations.
MBTA operations to get
a better
the needs
understanding of
and costs for various transit runs.
- Promotion.
The
rail
commuter
and
brochures,
operation
answers
provides
telephone
to
schedules,
maps,
inquiries.
These tools are also heavily used by the MBTA and
other transit agencies.
No advertising is done for commuter rail.
is
no
different
from
different
advertising is
from
U.S.
other
MBTA
operations,
it is
transit
operations
where
other
the
Although this
usually the majority of the marketing budget.
Also, sales
of
promotion
commuter rail employees.
is
tickets
handled by
not
Other MBTA employees do these jobs.
Some special promotions for commuter rail have been done
such as free rides to Lowell and ski trains to areas north of
However, these
Boston.
market
research;
rail
have not
employees
worthwhile
and
implemented
promotions
was
done.
In
them;
been initiated because of
thought
no
the
ideas
evaluation
the
comparison,
were
of these
other
MBTA
operations also do few promotions and little evaluation while
transit agencies in the
with some evaluation.
U.S.
generally
do
many promotions
used for
revenues are
Few
have
surveys
on consumer satisfaction with
done
been
information materials,
locations,
All of this coincides with
or promotions.
public relations,
ridership and
as
commuter rail service.
evaluation of
times,
prices,
service,
such
indicators
Gross
Evaluation.
other MBTA and U.S. transit agency operations.
divisions
separate
and
public
relations,
nor
commuter rail
MBTA has
the
at
for scheduling, maintenance, purchasing,
and
promotion,
other
shares
rail
Commuter
engineering.
rail
Commuter
Organizational Structure.
services for
Neither
pricing.
operations
MBTA
MBTA
has
the
a marketing
department; various marketing functions are spread throughout
the organization.
Many transit agencies in the United States
have similar experiences.
Summary
Marketing
of
of
marketing of commuter rail
strategy
and
of
assessment
Rail.
Commuter
MBTA is
at the
unknowns.
research
are
social,
economic,
In summary, the
minimal.
is
There
political
or
Market
minor
trends.
Customer and non-customer preferences are not determined very
often.
As
a
Assessment for
result,
the
product
additional, safer,
is
slow
to
change.
more comfortable, or more
reliable rail lines generally comes about because of consumer
pressure rather
than management
26
awareness of consumer need.
Similarly,
limited
pricing
policies
are
made with
input
from managers and
Finally, promotion is almost
a non-entity; the
customer
politicians.
placement
and
rationale seems
but
input
to be
much
that public services should not spend
money on "frivolous" items
such
relations.
27
as
advertising
and public
Recommendations for Commuter Rail at the MBTA
Rail
to get marketing used by the Commuter
be done
What can
of
Directorate
the
for marketing
order
In
MBTA?
techniques to be implemented, management of commuter rail and
recognize marketing's importance
the MBTA must be willing to
--
must
become customer-oriented
to
willing
be
achieve the overall goals of public transportation
benefits
what
funders
to
a way to
rail as
willing to recognize marketing of commuter
willing to explain
must be
--
must be
--
will accrue,
directly and indirectly, from the marketing of commuter rail.
Based on the marketing history of commuter rail, finding
should not be lost.
and
An
attempt
about
getting
marketing program should
that use
a minimum
spending
elected
be
However, all hope
to garner
be
made
In
recognition
money
of
and politicians'
every two to four years, a
developed
emphasizing projects
chance of
success.
If these
successful, then the next step in the marketing
projects are
program would be
to
develop
hopes that
be successful.
for
marketing of
of tax dollars, that can show short-term
results, and that have a good
projects in
should
support.
political
management's concern about
concerns
for
politicians
to be difficult.
is likely
commuter rail
managerial
and
management
support from
marketing
other
they, too, will be approved and will
The ultimate goal
so
that
short-term, inexpensive
a
is to
gain enough support
comprehensive
developed, approved, and implemented.
28
program
can
be
The following recommendations
short and
have
developed for
been
long-term projects in the commuter rail operations
at the MBTA.
Some of
the short-term
projects (less
than 3
years required for development and implementation) may or may
not be
implemented depending
upon the
results of research,
planning, management and legislative support.
hoped that enough support
the short-term
will be
required for development and
included to
give a
try some of
generated to
Long-term goals
projects.
However, it is
(3 or more years
implementation) have
also been
sense of direction for the commuter rail
operations.
Product Development.
SHORT-TERM:
a.
Club cars carrying food and newspapers
Provide
Purpose:
attracting
Planning:
service
amenities
a
as
way
of
people from their cars.
Do market research to discover whether there is a
need for this type of service.
prices
with
willing
to
be
Focus on one line.
Determine
paid by consumers. Work closely with
management and politicians to gain support.
Implementation:
Institute service on one line.
Promote with
local newspaper advertising and free tickets, contrasting the
driving in
stress of
to the
relaxation and well-spent time
commuter traffic, inability to read, do work, or eat.
Time
for research, gaining support, and
year
One
Frame:
Six months for trial run.
amassing equipment and employees.
Ridership, revenues, on-board surveys. (On-board
Evaluation:
likely be
surveys will
of market
general surveys
service.
information such as: Is
to
used
be
can
will be in
club cars
area where
surveys
On-board
and less expensive than
more useful
Will
customer new?
ascertain
customer leave
altogether if no club cars are available?
commuter rail
promotions lead
to use?
prices of
Are
Did
tickets, food, and
other amenities satisfactory?)
Aftermath:
If
do
successful,
implementation on other line(s).
probably depend
The
number of
and
lines will
upon the degree of success and the amount of
managerial and political support
would be
planning,
research,
hoped that
that
can
be
gained.
It
the time to gain support for additional
line(s) would be less than the time needed for support of the
first club
car.
Possibly, the
and implementation could
be
6
time for research, planning
months
instead
of
Continue with 6 month trial run for line(s) approved.
1 year.
b.
Express runs
Purpose:
Provide quick service with few or no stops as a way
of attracting people from their cars.
Planning:
Do market research for
and price
willing to be paid by consumer.
one line.
Determine need
Work closely with
management and politicians to gain support.
Implementation:
newspaper
Institute
advertising
service.
and
free
Promote
tickets,
with local
contrasting time
stuck in traffic with quick delivery time of express runs.
Time Frame:
One year for research, gaining
doing schedules.
Evaluation:
Six months for trial run.
Ridership, revenues, on-board surveys.
Aftermath: If
adding more
runs
successful, do
express runs.
will
experimental
politicians.
likely
depend
run
well
as
As with
research on the feasibility of
Approval
upon
as
time needed
for additional express
degree
support
of
of
success
management
of
and
club cars, it would be hoped that the
time to gain support for additional
less than
support, and re-
express run(s)
for first express run.
would be
Possibly, the
time for
research, planning,
months instead of 1 year.
and implementation
could be 6
Continue with six month time frame
for express run(s) approved..
Price
SHORT TERM
a.
Reduction of fares during non-peak hours
Purpose: Attract riders to
get better
use of
equipment and
labor.
Do market
Planning:
research to
In
market for this service.
merchant discounts
discover whether there is
particular, look
into special
for shoppers, and talk with larger Boston
organizations about flex-time.
Implementation:
advertising
newspaper
reduced
Institute
paid
by
fares.
merchants,
Promote
free
with
tickets,
employer materials at workplace.
Time Frame:
program.
Six
for
months
research
and
development of
One year trial period.
Evaluation:
Ridership,
information provided on
revenues,
discount
employers.
32
on-board
tickets,
surveys,
information from
Decide whether to continue reduced fare program.
Aftermath:
continue, review program annually, making
is to
If decision
changes where needed.
LONG-TERM
c.
Increase in peak time fares
Purpose:
Reduce dependence on taxpayer subsidy by increasing
fare recovery ratio from 25% to 35%.
Planning:
prices.
Do customer
transportation
would
price
what
At
Detail
modes?
ridership and revenues.
their attitudes towards
research on
Discuss
consider
they
switching
of price change on
effects
results
with management,
Board of Directors, Advisory Board, legislators, citizens.
Implementation:
Institute
public is aware ahead of time
if warning
is given,
fare
will be
given no
Make sure that
changes will occur;
that fare
the public
angry than if they had been
changes.
likely to be less
warning.
Promote via
public relations and advertising campaigns.
Time Frame:
Once
fares.
Three years for discussions with all involved.
discussion
is
ended,
one
year
test period for peak
Evaluation:
Ridership,
to be
survey is
used so
In
and non-users.
random
revenues,
surveys.
(Random
to get information from both users
it
particular,
is
important
to know
whether non-users were once users and how price-sensitive the
non-users are.
Determine whether to continue peak fares.
Aftermath:
If
decision
Continue to
is
to
continue,
review
annually thereafter.
consider whether fare recovery ratio is adequate
and whether it should be increased or decreased.
Placement
SHORT-TERM
Location
a.
Signage and directions.
Purpose:
Insure that stations can
be found
easily and that
written directions are correct and understandable.
Planning:
Review signage and directions for each location on
one line, using customer focus groups.
Implementation:
Add signs; change written directions.
months for
6
Time Frame:
and changing of
research, making
signage and materials.
Focus
Evaluation:
and
signage
(Have
groups.
reviewed by people unfamiliar with the
materials
location as
a way to
insure clarity.)
Change
Aftermath:
still consider inadequate.
materials are
and
signs
materials that focus groups
new signs and
Make sure that all
Furthermore, begin reviewing
being reviewed.
signage and directions for other line(s), adhering to 6 month
time
frame.
It
be
would
hoped
that
management
and
legislators would see the importance of signs and directions,
and would require that signs and directions for all remaining
rail lines be reviewed and changed within one year.
b.
Add Old Colony and Newburyport rail lines
Purpose:
Provide additional
rail service;
fulfill goals of
public transportation.
Planning:
Market research has already been done.
Implementation:
governments.
Get
funding
from
state
and
federal
Time Frame:
Two years to begin taking paying customers.
Evaluate after one year.
Evaluation:
Aftermath:
Ridership, revenues, on-board surveys.
Consider
Review
lines.
increase
to
ways
target
surveys;
on these
ridership
non-users
with
similar
Evaluate annually.
characteristics as users.
Time
LONG-TERM:
a.
Service availability.
Purpose: Add or reduce times of service.
Planning:
need
for
Do market research to discover whether
additional
feasibility of
fewer
or
additions or
times.
reductions.
there is a
Determine financial
Work closely with
management and politicians.
Implementation: Add
Promote
pieces.
with
or reduce
newspaper
times and vehicles available.
advertising
and
public
relations
Additions
Time Frame:
--
four
years for research, funding
approval, ordering new vehicles.
--
Reductions
three
for
years
research
and
approval.
Ridership, revenues, surveys.
Evaluation:
Aftermath: Decide whether additions and reductions in service
If
have been satisfactory.
Also,
should
any
other
not,
additions
what
or
needs
to
be done?
reductions be made?
Evaluate annually.
Promotion
SHORT-TERM
a.
Free passes/free rides/free tickets to sports
events and
theater.
Purpose:
Maintain
or
gain
new passengers; foster positive
image among users and non-users.
Planning:
Chambers
Work with sports teams, theaters, restaurants, and
of
Commerce.
assistance from them.
Get
discounts
and/or
financial
Implementation:
tickets) and
Promote via direct mail (recipient gets free
newspaper coupons
(drawing for free tickets to
be held for all coupons returned).
Do planning for six months; do giveaway for next
Time Frame:
six months.
Telephone follow-up for those who get free pass,
Evaluation:
(Ask such questions as: Do they continue to
ride, or ticket.
rail?
use commuter
Has their image of commuter rail changed
in any way?)
Aftermath:
If successful
response
from
ticket recipients,
consider doing additional ticket promotions every six months;
evaluate annually.
b.
Merchant discounts
Purpose:
and
Maintain or gain new
customers
for
passengers for
Foster
merchants.
commuter rail
positive image for
commuter rail and merchants.
Planning:
There should be an
larger merchants
Filene's.
Also,
involved in
merchants
gotten--Rockport, Lowell,
attempt
to
get
some
of the
this, such as Jordan Marsh and
in
Concord.
tourist
cities
should be
Merchants should pay for
the advertising
and discounts.
Discount
tickets should be
printed in such a manner that information about
customer can
be written on ticket.
Implementation:
with
Promote
newspaper
advertising
and
direct mail to target market.
Time Frame:
Develop planning for six months.
Give discounts
every three months during the next six month period.
Evaluation:
Telephone follow-up to customers and merchants.
Aftermath:
If positive
consumers as well as
response from
from merchants, then a similar promotion should be considered
on a quarterly basis; evaluate annually.
c.
Ski tours/bike tours
Purpose:
Attract
and
maintain
customers.
Foster positive
image, especially one showing that commuter rail is
not just
for the peak hour commute.
Planning:
Work with recreational directors of ski facilities
and Chambers of Commerce in communities with biking trails.
Implementation:
Initiate
service.
ski/bicycle/sports magazines.
Promote in newspapers,
Six
Time Frame:
months to
develop program; one year trial
period.
Evaluation:
Aftermath:
Ridership, revenues, random surveys.
If successful, continue service; review annually.
Consider expanding to other geographic areas.
d.
Advertising
-
Billboards
Purpose:
Planning:
Gear towards commuters.
Find billboard
hours;
standstill in
peak
check traffic
counts.
locations where
talk
with
traffic comes to
billboard companies;
those businesses who have
Talk with
previously used the locations; what benefit, if any, did they
find from having their advertising in these locations.
Implementation:
Buy
time
on
billboards;
work
with
advertising agency on promotional message.
Time Frame: Six months to develop
and get
program approved.
Advertise on billboard for one month.
Evaluation: Ridership, revenues, and on-board surveys.
If successful, do another billboard campaign in 6
Aftermath:
A billboard
months.
inexpensive
and
adequate
campaign two
times per
year should be
enough to encourage ridership and
enhance image; evaluate annually.
-Radio
Gear towards commuters.
Purpose:
Determine
Planning:
radio
stations
with
most
commuter
listeners.
Implementation:
on radio stations during commuter
Have advertising agency prepare promotional messages.
hours.
run during
Have ads
such as cost, no
stress,
Time
Buy time
traffic, no
time savings,
Frame:
peak hours, emphasizing benefits of "T"
Six
more helicopter
reports, less
ease of use.
months
to
develop
and
get
approved.
Advertise on weekdays for one month.
Evaluation:
Aftermath:
months.
Ridership, revenues, and on-board surveys.
If successful,
do another
one month
blitz in 6
A radio campaign two times per year should be
41
adequate
and
enough to encourage ridership and
inexpensive
enhance image; evaluate annually.
-Newspapers
Purpose:
Gear towards all drivers.
major
Use
Planning:
Boston
newspapers
in
that
many
suburbanites (commuters and shoppers) read them.
Buy
Implementation:
time
in
newspapers.
Have advertising
agency prepare promotional messages.
Time
Frame:
Six
months
to
develop
and
get
approved.
Advertise once a week for three months.
Evaluation:
Ridership, revenues, on-board surveys.
If
Aftermath:
successful, continue the once-a-week format
for another three months.
Evaluate again, and decide whether
on permanent
basis; if decision is to continue,
to continue
evaluate annually thereafter.
d.
Customer information materials
Purpose:
Insure that materials are readable and graphically-
interesting
42
with
materials
Review
Planning:
The same
directions.
review with signage and
Coordinate
focus groups.
focus groups
could be used.
Re-design.
Implementation:
Time Frame:
Review and make chnages in six months.
Evaluation:
On-board surveys.
materials
Re-design
Aftermath:
consumers
surveyed
if
indicate confusion; repeat survey after implementation of new
designs.
Insure
that
new
materials
are reviewed by focus
groups.
Evaluation.
SHORT-TERM:
Purpose:
Insure that research, planning,
of programs are proceeding as desired.
and implementation
If not, discover why,
and make changes.
Planning:
Review each
marketing program
for such
items as
whether program has evaluation procedures, whether evaluation
procedures measure
what
they
should
measure,
design of evaluation procedures is biased.
and whether
marketing
Each
Implementation:
program
should
have
evaluation measures attached before allowing approval.
Review programs within one year.
Time Frame:
Determine
Evaluation:
used by
whether
procedures were
evaluation
employees and politicians, whether the measures gave
needed information, and whether
the benefits
outweighed the
costs of evaluation.
If evaluation is viewed as appropriate and worth
Aftermath:
the cost, continue to
have
require
that
evaluation
measures
attached.
be
reviewed
annually
continue
to
each
marketing program
These measures should
for
usefulness
and
costliness.
Organizational Structure.
SHORT-TERM:
a.
Employee training for Amtrak and MBTA employees.
Purpose:
To insure that customers are being well-served and
that employees
feel knowledgeable,
about their jobs.
confident, and motivated
Discuss training with labor and management of MBTA
Planning:
and Amtrak.
Determine what training is needed for such areas
as customer relations, maintenance, marketing.
Implementation:
Time Frame:
Institute training programs.
Develop within six months.
Have one year trial
period.
Evaluation:
On-board surveys.
Aftermath:
If
evaluation.
successful,
Also, begin
continue
training
with annual
making customers and non-customers
aware of employee knowledge via various promotions and public
relations.
LONG-TERM:
a.
Develop marketing department for commuter rail and MBTA
Purpose:
Insure that customer viewpoint is being emphasized,
that market
research
is
being
done,
and
that
4
p's of
marketing are seen as interconnected.
Planning:
Develop short-term marketing techniques/programs
for commuter rail.
successful, attempt
to implement others.
become
success, marketing may then
management of
function, and
When
techniques/programs.
Implement
Implementation:
viewed
Based on continual
as
an important
Commuter Rail and MBTA may then
require that a comprehensive marketing program be developed.
Time Frame:
4 years for Commuter Rail; 6 years for MBTA.
Evaluation:
The comprehensive
evaluated
for
its
marketing
attention
program
should be
to marketing strategy, market
research, product development, pricing policies, placement of
product, and
promotion.
focus of the marketing
The customer should be the primary
program.
Also, personnel
should be
evaluated for communication, cooperation, and knowledge.
CONCLUSION
In summary,
the marketing
However, Commuter Rail
non-existent.
the MBTA is virtually
is not
of commuter rail services at
alone since a lack of marketing also exists for other
the United
agencies in
MBTA operations and for many transit
States.
Should marketing be so non-existent for commuter rail?
Inclusion
No.
politicians, and
considered
be
should
activities
marketing into every day organizational
of
the
norm.
labor should recognize that marketing helps
to insure that customers are satisfied; this, in
to insure
Management,
that the
turn, helps
goals of public transportation are being
fulfilled; this, in turn, helps to insure that both users and
non-users
continue
support of public transportation;
their
in turn,
this satisfaction of users and non-users,
insure
that
management,
helps to
labor, and politicians continue to
hold their jobs.
To develop and implement
rail at
the MBTA,
was done
a review
transit marketing in the
plan for commuter
a marketing
of general marketing,
and MBTA marketing.
United States,
By doing this review, an understanding was gained of what the
advantages and disadvantages of marketing are, what marketing
programs exist, and what programs could exist.
marketing
strategy
and
were
seen
satisfaction,
marketing
approach
to
research,
as
key
commuter
Consequently,
emphasizing
factors
rail.
in
customer
developing a
Furthermore,
for
marketing to be successful, the review of marketing indicated
right place
in the
right price with the
at the
right time
at the
and put
be developed
had to
that the right product
right promotion.
Moreover,
this
of
the
importance
organizational
laborers, and politicians.
recognized
marketing
of
review
behavior
of
the
managers,
Short attention spans, dislike of
lack of cooperation and communication inside
spending money,
and outside transit agencies did not create an environment in
which marketing could thrive.
However, the behavior of these
be
could
that
people was not something
the the behavior was unlikely to change.
Realistically, some
Despite the likelihood of slow or
labor,
some
sensitive
--
gratification.
could be
of
money,
areas
developed,
where
employer/voter
Short-term,
could
attempts
These
very
the
no behavioral change,
to gain the support of management,
politicians.
an
towards
made
be
could
attempts
changed overnight.
be geared
these people were
approval,
instant
inexpensive marketing programs
limiting
the
financial
and political
risk; quick, inexpensive feedback could be provided.
Several short-term
marketing programs were recommended,
outlining the purpose, planning,
and evaluation
needed.
implementation, time frame,
Furthermore, some long-term programs
were recommended, acknowledging the fact that
would only
come into
being if
these programs
the short-term programs were
successful.
A
listing
of
recommendations
follows.
49
with
time
frames
proposed
Commuter Rail Marketing Recommendations
Time Frame for Planning and Implementation
Total
Planning
Trial
Pl.+ Trial
all rail
lines
Product Development
-
Club cars
1 rail
line
other lines(7)
1 yr
1/2 yr
1 1/2 yr
1/2 yr
1/2 yr
1 - 7 yr
2
1/2 -
8 1/2 yr
- Express runs
1 rail line
other lines(7)
1 yr
1/2 yr
1 1/2 yr
1/2 yr
1/2 yr
1 - 7 yr
2 1/2
8 1/2 yr
-
Service
Availability
0 yr
3-4 yr
50
3 -
4 yr
3 -
4 yr
Time Frame for Planning and Implementation
Total
Planning
Trial
Pl.+ Trial
all rail
lines
Price
- Reduce non-peak
fares
-
1/2 yr
1 yr
1 1/2 yr
1 1/2 yr
4 yr
4 yr
Increase peak
fares
3 yr
1 yr
Place
-
Signage and
1 rail
directions
line
other lines(7)
1/2 yr
0 yr
1/2 yr
1/2 yr
0 yr
1/2 -
3 1/2 yr
- Additional lines
2 yr
1 yr
3 yr
1 -
4 yr
3 yr
Time Frame for Planning and Implementation
Total
Planning
Trial
Pl.+ Trial
all rail
lines
Promotion
- Free tickets
1/2 yr
1/2 yr
1 yr
1 yr
- Merchant disc.
1/2 yr
1/2 yr
1 yr
1 yr
- Ski/bike tours
1/2 yr
1 yr
1 1/2 yr
1 1/2 yr
Billboards
1/2 yr
1 mo
7 mo
7 mo
Radio
1/2 yr
1 mo
7 mo
7
Newpapers
1/2 yr
3 mo
9 mo
9 mo
6 mo
0 yr
6 mo
6 mo
- Review procedures 1 yr
0 yr
1 yr
1 yr
- Advertising
- Customer info.
mo
Evaluation
52
Organizational Structure
- Employee training
1/2 yr
1 yr
1 1/2 yr
1 1/2 yr
- Develop mktg plan
Commuter rail
4 yr
0 yr
4 yr
4 yr
MBTA
6 yr
0 yr
6 yr
6 yr
The
preceding
recommendations
marketing activities
could be developed
years.
for commuter
and
Furthermore,
that
many
rail services at the MBTA
implemented
other
indicate
within
marketing
developed and implemented within three to
the
next three
activities could be
eight years; their
time frame is dependent upon the support given by management,
labor, and legislators.
three
or
years
eight
understood is that
However, whether
years,
are
there
the time
frame is
to be
the
important
point
many
marketing
programs and
can be used by the Commuter Rail Directorate
techniques that
at the MBTA.
These programs and techniques, if developed and
implemented,
can
subsidizers of
and
image
help
to
commuter rail
being
generated
insure
that
are pleased
by
the
with the services
commuter rail.
programs and techniques can help to insure that
public transportation are being fulfilled.
54
customers and
Also, these
the goals of
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