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Applied Transport operations Management [ATO712S]. NUST: Bachelor of Transport Management Vacation School, Semester 2 - 2018 Date: 20 August 2018. Vetiraije Tjipombo Marker –Tutor Cell no:. +264 81 657 7648 E-mail:. vtjipombo@gmail.com. Introduction. Logistics Management.
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Applied Transport operations Management [ATO712S] NUST: Bachelor of Transport Management Vacation School, Semester 2 - 2018 Date: 20 August 2018 Vetiraije Tjipombo Marker –Tutor Cell no:. +264 81 657 7648 E-mail:. vtjipombo@gmail.com
Introduction Logistics Management Marketing Strategy Competitive analysis and Strategies Product and Service Management Tips: Assignments and Tests Marketing Management Transport Management Market segmentation, Target Marketing and Positioning Marketing Products vs Services Conclusion
COURSE: TRANSPORT OPERATIONS MANAGEMENT This course will give you the necessary information about the marketing aspects of transport management, and it will also help you realise the importance of good marketing strategies and execution.
Marketing Management ... The manageent process responsible for identifying, anticipating, and satisfying customer requirements profitably. ... Is concerned with the relationship between buyer and seller, and the connections involved in bringing this to a conclusion. In other words, marketing involves delings between buyer and seller, ... Where at the end of the deal, both are satisfied with the exchange. Difference between marketing and selling: Marketing: focuses on the needs of the buyer, the customer is the central focus of all business decision-making, Selling: foucuses on the needs of the seller. The seller wants to get the product/service across to the buyer, even if the buyer does not need it.
Logistics Management ... The process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of meeting customer requirements. Source: Canadian Association of Logistics Management
Logistics Management • Logistics is not everything. But without logistics, everything is nothing! • Especially today, logistics is increasingly becoming an integral part of the entire supply chain • Competition is increasing. Companies are concentrating on their key areas of competence • (I only do things I am capable doing! ) • > Subcontracting logistics activities increased between 1950 and 1990 from 9% to 45 %!
Transport Management Transport Management in the Supply Chain • Transport Management • The management of transportation operations of all types, including tracking and managing every aspect of vehicle maintenance, fuel costing, routing and mapping, warehousing, communications, EDI implementations, cargo handling, carrier selection and management, accounting • Integral element of the supply chain, adds value and meets customers requirements • Transport Management also includes information, transportation, warehousing, material handling and packaging • Transport Management plans, implements and controls the efficient and effective flow (forward and reverse) and storage of goods and related information. • From A to B.
Transport Management Transport Management in the Supply Chain • Typical activities / Decision Making • Inbound and Outbound Transportation • Contracting (Carrier – Shipper / 3PL / 4PL) • Strategic Alliances • Own account carriage • Transport Mode & Carrier Selection Process • Routing and Scheduling • Service Levels • Maintenance of vehicles, equipment • Integration of Information Systems (EDI)
QUIZZ Transport Enterprise • In groups: • Please find a Transport Business that you are familiar with and discuss, as per the following points: • Company background • Products/Services offered • What excites you about this business operations? • Who are the target users/ customers of this enterprise? • How does it help them/ why do they use it? • What impact does this enterprise have? • Does it help people at local level or it also helps people across all of Africa and/or globally? • Do customers buy only once or regularly?
Strategies • Strategy: • Strategic plan. • Functional plans. • Marketing plan • NB: Consider the products it sells and the market it sells them in.
Ansoff Matrix • Ansoff Matrix: • Penetration – sell more products into existing markets. • Market extension – sell existing products into new markets. • New Product Development – sell new products into existing markets. • Diversification – sell new products into new markets.
QUIZZ • In groups: • Please find a Transport Business that you are familiar with and discuss, as per the following points: • Customers: • Who is the target audience of the business? Include market segmentation details. • What wants/needs are being met by the product/service? • Competitors: • Who are the major competitors for their product/service? • Environment: • What trends are occurring in the markets that are influencing your product/service decision? • Are there specific laws that they need to be concerned with?
Competitive analysis and strategies • Competitive positions: • Market leader • Market challenger • Market follower • Market niche • Competitive strategies: • Differentiation strategy • Low cost strategy • Focus strategy • Pre-emptive move/First movers
Market segmentation • Market segment: • ... A market segment is a grouping of customers with similar needs, attidutes and behaviours. • ... Transport: railways, road, air, pipelines etc. • ... The above can be further be broken down, example freight or passengers. • Market segmentation: • … may be defined as the process of dividing a total market into categories of people with almost similar product needs. • Market segmentation criteria: • Geographical segmentation • Socio-economic segmentation • Demographic segmentation • Psychographic segmentation • Behavioural segmentation • Positioning: • … arranging for a particular product to take up a more visible and desirable place, as compared to those competing in the minds of target customers.
Market segmentation • Advantages: • ... Allows marketers to focus on customer needs and wants • ... Also helps marketers to develop an effective marketing mix, and lastly • ... Enables more effective market positioning (that is, making sure that targeted consumer know about the product/service on offer). • Disadvantages: • developing seperate market product/service offering is expensive • it may be difficult for the marketer to know how accurately or broadly to segment • there is a tendency/ inclination to appeal to markets that are not viable.
Marketing mix ... Is used to describe the tools that the marketer uses to influence demand. Price Product 4 P’s of Marketing Place Promotion
QUIZZ • In groups: • Please find a Transport Enterprise that you are familiar with and discuss, as per the following points: • Product: • Describe the product/service. Include the features and benefits of your product/service. • What is the Logo of their product/service? • What is the Slogan for their product/service? • How do they package their products? • Pricing: • What pricing strategy or strategies do they use? • What prices the products/services sell for? • Place (Channel of Distribution): • What distribution channel do they use? • How do the customers buy the products/services? • Promotion: • Provide at least one sales promotion they use to promote their products/services. • Name two advertising strategies/techniques they use to advertise their products/services. • For one of your advertisements for your product/service, indicate how you will attract attention, arouse interest, create desire, and cause action with your ad?
Products vs Services • Product quality: • Low cost and high volume production • Adherence to specification for example the dimensions given on a drawing • Number of defects per unit produced • Time taken to rectify product problems, the shorter the time the better the quality • Service quality: • The service provided meets or exceeds the customers expectation • The service provided establishes or improves the customers relationship • Meets the customer‘s time requirements in other words the service is delivered on time.
PLC • Product Life Cycle: • Introduction – typically a time of high investment and slow uptake • Growth – if it takes on, it takes off, with resultant volumes bringing costs down, so fuelling more growth • Maturity – the products success brings in competitors to share the spoils and life starts to get a little harder • – too many players are crowing around the honey pot, spoiling the game for everyone • Decline – with fun gone out of the game, the suppliers lose interest and the product declines towards death and example in the transport industry would be ox wagons for trasnporting goods.
Boston Matrix • Boston Matrix: • ... Allocating resources to different business units/product lines. • ... Various business units on a graph of the market growth rate vs. Market share relative to competitors. • Resources are allocated to business units according to where they are situated on the grid as follows: • Stars – There is future growth potential. And have commanding position in the market. • Question Mark/Problem child – Very strong competition. • Cash cow – To be milked. Strong position in the market but growth is gone. Reduce high-cost resources and effort. • Dog – To be digested or strictly managed at low cost of effort or resources.
TIPS FOR TESTS AND ASSIGNMENTS • Read your study guide, journal articles and text books on the subject matter. • You are advised to type your assignments. • Please learn to present your information in a systematic way and numbered properly. • It is very important to read and understand the instructions before starting with the assignment. • Make sure that you understand what is expected from you. • Please proof read your work before any attempt, two to three times. • Always, provide practical examples. • Acquaint yourself with APA Referencing. ASSIGNMENTS
