Levantamiento de información

The marketing mix represents the various media through which any organization seeks to secure the patronage of the target market. In general, these are identified as being the price, product/service, distribution channels and promotional- efforts. In a port setting, these therefore comprise the combination of:

i) service quality and range il) tariff levels, and

Hi) selling and promotional activities.

Distribution refers to, the various channels through which the product or service reaches the customer. The simultaneous production and consumption of port services necessarily means that the distribution is embedded in, and a part of the service. For this reason, considerations regarding the service, incorporates that of its delivery.

6.3.2.1 PLANNING PORT SERVICES

Planning the range and level of port services in the marketing mix entails ascertaining whether the present quality

This -Fact would have level is as desired by customers,

emerged -From the analytic process based on market research. It a ^ o involves setting targets -For service quality, in terms of (a) productivity levels and (b) maximum vessel waiting time.

Since productivity levels are functions of the performance of labour and equipment, due consideration needs to be given to labor motivation, remuneration and training, and equipment supply and maintenance. Other factors which impact on productivity such as imbalance between the various subsystems of the port will need to be taken into account and plans made to address these.

It may be that changes will need to be made in the operational planning. Especially in the container shipping industry where the vessel's daily cost is high, rapid turnaround is vital. This is not only a function of productivity alongside berth, but of total time in port. It therefore becomes essential to also minimize the time spent in port before receiving a berth. Other services which impact on the ship’s stay in port such as pilotage, towage and customs

documentation may need to be considered for improvement.

Additionally, it may be that there exist inadequate berthing space, which may indicate the need for new investment. At this point the need for targets being set cannot be over emphasized. While the ideal situation from a carrier perspective is zero waiting time, which means the availability of a berth at all times, it is not feasible to provide the needed numbers due to investment cost to the port. The port needs to establish the maximum time it can afford to have ships waiting, bearing in mind the need to satisfy customers so as to retain their business. Based on this, some notion of the required number of berths needed can be gained.

Improvement o-F service to users may also be looked at through more involvement of the port in the through transport

'Hk

process. It may be through providing information to users about alternative modes of transporting cargo to and from the port (feedering services, rail and road) and some indicative costs. It may be that there is a need to get involved in the actual arrangement of on-carriage either through contracts or direct investments.

The decision will need to be made as to whether the port should seek to increase customer satisfaction and entice new users by offering new services,* such as EDP logistics and distribution services. Some ports have seen the benefits in terms of improved customer service and operational planning, of establishing links with ports on the opposite end of their trade. Ports such as Hamburg, Bremen and Rotterdam have set up EDP links with their opposite number in Asia and the United States (Singapore and the port of New York). This ’data bridge’ gives instant information to customers on,cargo flow, while by providing data on the number and type of containers to be shipped to the port, the identity of consignees and a breakdown of the status in terms of FCLs and LCLs, it affords the port a higher degree of operational pre planning.

The cost benefit trade off needs to be considered as well as whether the existing level of port competition requires it. Clearly, if the major competitors have gained an edge by offering this facility, it may be that it will constitute an important service improvement feature for the port, in order to avoid loss of business, and so the benefits will outweigh the cost. On the other hand, if it does not already form a part of the existing competitive arsenal, then the decision to pursue its development must rest on the financial costs to be

incurred versus additional revenues to be gained.

6.3.2.2 PORT PRICINB POLICIES

Port tari-f-Fs represent the remuneration to the port -for its various services, and in the case o-f ports operated on a commercial basis, represents the means o-f achieving its -Financial objectives. While the prices o-F the various port services are usually stated in a published tari-f-F (see appendix 6.3), in addition to planning the tari-f-f level, consideration should be given to the need -For a -Flexible pricing policy. This may be in the -Form o-f:

<i) incentive rebates -For large throughput customers; (ii) lower rates to encourage new tra-F-Fic and

(iii) incentives or penalties to encourage e-f-Ficient utilization o-F port -facilities.

A prerequisite to employing a flexible pricing policy is a knowledge of port costs. It is important to know how low charges can go if necessary, without being uneconomic. If it is desirable that each traffic/customer make a contribution to the overall profitability of the port, then this will dictate the minimum price be at least above direct costs.

A position on the desirability of special agreements with individual customers re tariffs will- need to be taken: some customers may prefer the simplicity of a consolidated rate while others prefer detailed breakdown-so that they have scope to arrange their operation in order to minimize outpayment. It is important for the port's management to have policies that respond to these needs, since it may affect the user's confidence in the port. Considerations as to special charges to encourage different traffic is also necessary. For example lower charges for transhipment versus domestic cargoes.

Due note must also be taken of the charges at competing ports (if available). This will indicate the scope for

•further increases, especially regarding increased charges in light o-f additional investment in improved port -Facilities.

6.3.2.3 SELLING & PROMOTION OF PORTS

Before looking at the factors to be considered in the port selling and promotional effort, a distinction needs to be made between marketing and promotion. Marketing has been defined as the analysis, planning, implementation and control of plans aimed at satisfying port users. It involves devising that combination of service variety and quality, price and promotional activities, that will do so effectively. This means that promotion and selling is only one of the activities

necessary in marketing the port.

Promotion and selling involves the overt efforts to increase customer and the public awareness in general, and usage of the port. Typically, a port will consist of several companies - competing and complementary. It is here that the distinction becomes important since it also dictates the division of the marketing effort. the role of promoting the entire port is normally the function of the Port Authority or an association of port companies (terminal operators, stevedoring companies, Agents, forwarders, truckers etc.). The task of promoting and securing business for a particular port company, say a terminal operator, must be the responsibility of the latter.

Port authorities and associations increase awareness of and generate interest in the port and can secure business for the port in general but should not allocate it to the port companies. For this, the individual companies should compete. While this arrangement does not preclude individual companies carrying out their own promotional activities to secure business, it does save costs and provide an integrated picture

o-F all the various port services to potential users. Such port bodies as the Port Authorities are therefore, allowed to solicit business but cannot conclude contracts or set rates though they may regulate it.

Whether promotion and selling efforts are being carried out at the port or company level, consideration has to be given as to whom the effort is to be directed at : shipowner, shipping agents, exporters, importers, forwarding agents, marketing boards and so on. This will depend on their perceived power (based on market research information) to

influence or control port routing. , ■

f .r

The effectiveness of the various media type for the different target audience is also important. This point cannot be over-emphasized, from both a cost and impact stand point. For example the use of television advertisements might be appropriate in a public relations effort but quite inappropriate compared to say trade journals, for reaching potential users.