Public Transportation
Marketing
Why Marketing Is
Important – Even
When You Don’t
Want New
Customers
2014 Florida Transportation Disadvantaged Conference
Public Transportation Marketing
Jeff Horton, Director
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – key challenges
Providers of transportation
disadvantaged services are often
very quick to dismiss marketing as
a component of their operations.
WHY?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – key challenges
The challenges of public transportation marketing
• Budget constraints – both real and imagined.
• We do SO much, and staff is constantly multi-tasking.
• Efforts to recruit new users (choice riders) can compromise retention efforts of existing
customers (dependent riders).
• We spend as much time de-marketing as we do marketing.
• The pace of transportation planning is out of synch with changing market conditions.
• There are competing interests with much bigger budgets.
• Sometimes our goals are unclear or too numerous.
• And primarily . . .
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – primary challenge
There is a fundamental misunderstanding
about what marketing is and how & when it
should be applied.
So, what
exactly is
marketing?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – the basics
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing
“Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large.”
American Marketing Association – July 2013
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing
Marketing . . .
•IS NOT just promotion and advertising;
•IS NOT only about attracting new customers;
•IS about creating & maintaining value for your
current and future customers and stakeholders;
•IS a strategy for improving operational efficiency
that positively impacts your service/product quality;
•and IS developing the principles that guide your
business/agency.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – the 4 Ps
The most basic definition of marketing involves four
component parts, referred to as the 4Ps. They are:
product
place
Target
Market
promotion
price
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – services marketing
However, public transportation is best defined as a service, and the
4Ps do not capture the entire marketing mix for services.
Services marketing contains 3 additional
components
Step
1
people
Public Transportation Marketing
Step
2
Step
3
process
physical
evidence
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – the 7 Ps
product
The 7 Ps of
Services
Marketing
Step
2
Step
3
Step
1
place
Target
Market
process
people
promotion
physical
evidence
price
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
Sequencing the 7 Ps
The 7 Ps
(product, price, place, process, physical evidence, people, and promotion)
should be implemented in a strategic manner.
Ste
Ste p 2
p1
people
product
place
price
Ste
p3
process
physical
evidence
promotion
Often, these components are developed simultaneously
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
the 7 Ps of services marketing
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PEOPLE
PEOPLE
It always starts with your
customers – the individuals
and/or groups whose need or
want you are meeting with
your product or service.
BUT, there is a second variable.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PEOPLE
In some instances, you
will see “people” in the
same orbit at the other 6
Ps. Sometimes it’s in the
center.
That’s because “people”
is comprised of two
different groups that are
sometimes considered
separately.
product
Step
2
Step
3
Step
1
place
Target
Market
process
people
promotion
physical
evidence
price
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PEOPLE
In marketing, people involves two key groups.
< external >
> internal <
•
riders/users
•
drivers, dispatchers, & mechanics
•
employers
•
customer service reps
•
policy makers
•
employer outreach coordinators
•
external advocates
•
internal advocates
•
funding agencies
•
and you!
Public Transportation Marketing
(e.g. Board of Directors)
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PEOPLE
EXTERNAL -- To whom are you selling? And what needs do they have?
policy makers/
stakeholders/funders
Public Transportation Marketing
choice users
dependent
riders
employers
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PEOPLE
INTERNAL -- Who is selling or providing the service?
Source: iStock
drivers
Public Transportation Marketing
outreach specialists
dispatchers
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PEOPLE
EXTERNAL CUSTOMERS
choice users
dependent
riders
We often undervalue the importance of dependent or existing
users in our marketing efforts because we think marketing is
only about attracting new customers.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PEOPLE
Why is customer retention & satisfaction so important?
•Most business comes from existing customers.
•Dissatisfied customers are often vocal and can
influence friends, policy makers and funders.
•Dissatisfaction with your services opens the door
for competition.
•High customer satisfaction indicates that you are
doing something right and should be used as a
performance metric.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRODUCT
PRODUCT
the service, privilege, or
physical item being offered by
your business for “purchase” by
consumers
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRODUCT
If you build it, will
they come?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRODUCT
Not always.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRODUCT
What is your product(s)?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRODUCT
products
benefits as products
Fixed-Route Transit Service
Mobility
On-Demand TD Services
Safety
Ridematching
Reliability
Vanpool leasing
Cost savings
Shuttles
Environmental Protection
Express transit service
Peace of mind
Emergency ride home
Convenience
Incentive programs
“Feel good” factor
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRODUCT
“People don’t want to
buy a quarter-inch drill.
They want a quarterinch hole!”
Theodore Levitt
Harvard Business School
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRODUCT
You are NOT selling this.
Picture of a bus.
Public Transportation Marketing
You are selling this.
Smiling woman in wheelchair entering an accessible van.
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PLACE
PLACE
the distribution methods which
facilitate purchase or use of
your product
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PLACE
What infrastructure do you use to
distribute or facilitate the use of your
services?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PLACE
Common market-places for public transportation services
•Bus stops
•Vehicles
•Park and ride lots
•Kiosks
•Central transit hub
•Main Office
•Employment Sites
•Social Service Agencies
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PLACE
You should also consider these market-places too.
•Information hotlines
•Websites
•Commuter stores
•Mobile apps
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRICE
PRICE
the cost associated with the
purchase and subsequent use
of your product
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRICE
value vs. cost
$1
$3
Why would someone pay three times as much for a
cup of coffee at Starbucks than at McDonald’s?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRICE
value vs. cost
• Expense is a relative term.
• Consumers make choices based on the perceived “value” of the
product to them -- not necessarily the monetary cost alone.
• This is particularly true for choice users.
• Cheaper doesn’t necessarily equate to better.
• Consider the “value” of free.
• Even if your services are free, don’t assume there is no “cost”
associated with it.
• Consumers sometimes need a positive emotional relationship to
their purchases.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRICE
understanding value
Save money
No parking worries
Don’t have to drive
Reduced auto wear & tear
Conserve fuel
“I can nap, read, knit.”
“I’m benefitting the environment.”
Personal mobility
Privacy
Comfort
Alone-Time
“I can afford it & I recycle.”
“I can listen to Justin Timberlake as
loud as I want.”
carpooling
driving alone
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PRICE
In marketing, customers consider the
value of the service to them relative to
cost.
Value = benefits - cost
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROCESS
PROCESS
the procedures, tasks,
Step
1
Public Transportation Marketing
Step
2
Step
3
activities, and routines by
which a service is delivered to
the customer
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROCESS
In a service-based operation, every interaction
between customers and your organization is critical.
But, the actions and/or disruptions that occur
“behind the counter” in the service-delivery process
are just as important.
This is why developing a service blueprint is an
important marketing tool.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROCESS
service blueprinting
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROCESS
What might be a comparable scenario in the
provision of transportation disadvantaged
services?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROCESS
service blueprinting -- ridematching example
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing - PROCESS
You should always assess the various scenarios that might affect
service delivery and how your organization will respond. For
example . . .
• What happens if there is a problem with the service
provided by a sub-contractor or vendor?
• What happens if your vehicles are down for maintenance?
• What do you do when a driver calls in sick?
These instances can cause service disruptions which
adversely affect customer satisfaction.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROCESS
Yes, your mechanic is an integral part of your
marketing strategy!
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PHYSICAL EVIDENCE
PHYSICAL
EVIDENCE
the tangible/physical cues that
customers use to evaluate the
quality of your services
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PHYSICAL EVIDENCE
People do
judge a book
by its cover.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PHYSICAL EVIDENCE
We are conditioned to evaluate the quality of everything
based on a few basic sensory cues.
These are both hotel lobbies. What can you determine about each
hotel based on their lobbies?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PHYSICAL EVIDENCE
Why is physical evidence such a critical part of a servicedominated industry?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PHYSICAL EVIDENCE
What would be your opinion of transit if you
encountered this?
Dirty and littered bus stop
Public Transportation Marketing
Filthy bus interior
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PHYSICAL EVIDENCE
Physical evidence is also a critical consideration
when producing promotional or communications
materials.
Which of these signs instill a sense of confidence in the
product or service you’re going to receive?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PHYSICAL EVIDENCE
vs.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PHYSICAL EVIDENCE
Things to consider . . .
• Are your vehicles clean?
• Are your employees, especially drivers, dressed professionally?
• Are your physical spaces (e.g. offices, bus stops, etc.)
well maintained?
• Are your communications materials professionally
done and kept up to date?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
PROMOTION
the communication methods
used to inform consumers
about the availability of your
product and to increase their
interest
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
Although promotion is part of marketing,
marketing is NOT just promotion.
It is the final component of the marketing
mix. Only when the other 6 Ps are satisfied
and a maintenance plan implemented
should promotion take place.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
Why is promotion always the last piece of the marketing mix?
great ad campaign will
“ Amake
a bad product fail
“
faster. It will get more
people to know it’s bad.
Bill Bernbach,
Marketing Industry Legend
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
An effective promotional strategy involves 3 critical
considerations:
Message Development
Message Design
Message Delivery
Public Transportation Marketing
What are consumers looking for? And what message about
your product or service will appeal to them?
What environmental or graphic design considerations,
mediums, formatting, etc. will maximize exposure, attention,
and comprehension?
How will you deliver this message to your target audience?
Billboards? Social Media? Sales?
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
message development
In order to develop a message that
resonates with customers, you must
understand buyer behavior.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
message development
Customers begin the buying
process by confronting a
problem they need resolved.
In transportation, this could be
lack of a vehicle, a physical
disability, age, or a need to
save money.
Dependent
users
Public Transportation Marketing
They also consider whether it
is a short-term or long-term
solution.
Choice
users
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
message development
2. Information
Search
External Search
Internal Search
Once they
recognize a
problem, where
are your potential
customers
looking for
information?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
message development
2. Information
Search
Within the consumer buying process, you have to know who is making
the final decision in order to tailor your marketing efforts.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
message development
3. Evaluation of
Alternatives
Do not assume you are the only game in town. The
information search should reveal several alternatives. Make
sure you are one of them and you are evaluated well.
Local TD Provider
Public Transportation Marketing
Taxi
Family & Friends
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
message development
3. Evaluation of
Alternatives
How do consumers evaluate alternatives? The Multi-Attribute Approach
Importance
TD
Provider
Taxi
Family/
Friends
Total 1
Total 2
Total 3
Attributes
Safety
High
Reliability
High
Timeliness
Med
Cost
High
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
message development
4. Purchase
Decision
If someone choose to use your service, do not assume that your job is
done. You have to deliver on your promises and the expectations of
the consumer.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
public transportation marketing – PROMOTION
message development
5. Post
Purchase
Evaluation
Even after they start using your service, customers will routinely assess
the value of the service to make sure it is still meeting their needs.
This is why customer satisfaction is so important.
Continue to communicate after the
purchase to get feedback on the quality
of your service and develop programs
that show your appreciation.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
concluding comments
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
key takeaways
Marketing is a highly interconnected set of
tools and strategies to improve customer value
and operational success.
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
key takeaways
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
putting the 7 Ps in context
tdm marketing challenges
How do you strategically develop the 7Ps?
vision
mission
research
goals
(data collection, environmental scanning, etc.)
STRATEGIC PLAN
Ste
Ste p 2
p1
people
product
place
price
Ste
p3
process
physical
evidence
promotion
Evaluate & Adjust
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
key takeaways
•
Increasing value to the customer
is at the core of marketing
strategy
•
Marketing is not just promotion.
•
Marketing strategy is complex
and highly customized.
•
Services marketing is more than
the traditional 4 P’s
•
People, Physical Evidence, and
Process must be considered
within a services marketing
strategy
product
Step
2
Step
3
Step
1
place
Target
Market
process
people
promotion
physical
evidence
price
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando
questions?
Public Transportation Marketing
2014 Florida Transportation Disadvantaged Conference -- Orlando