“IMPLEMENTATION OF MARKETINGSTRATEGY IN SHIPPING INDUSTRY”

Paslis Vasilis - Dedousis Andreas

MARITIME IMFORMATIONProf : Ioannis Philippopoulos

AGENDA

MARKETING IN SHIPPING INDUSTRY

Marketing has been delayed to apply to the Maritime Industry. This wasespecially happened in the commercial shipping industry globally andshipping companies with such ships - with the exception of the Cruisewhere tourism marketing actually existed in 1972 - and was applied tocruising boats.

1992

200125 studies that occurred between 1992 and 2001, only 3 focused explicitly on market orientation and services

of shipping industry

Marketing Services is still in the process of constant evolution and change

MARKETING IN SHIPPING INDUSTRYTHE INTEGRATED GAPS MODEL OF SERVICE QUALITY

GAP 1 Know what the customers expect GAP 2 Select the right service designs and standards

• Inadequate marketing research orientation.

• Lack of upward communication.

• Insufficient relationship focus.

• Inadequate service recovery.

• poor service design.

• Absence of customer-defined standards.

• Inappropriate physical evidence and

service scape.

• Deficiencies in human resource policies.

• Failure to match supply and demand.

• Customer not fulfilling roles.

• Problems with service intermediaries.

• Lack of integrated services marketing

communications.

• Ineffective management of customer expectations.

• Overpromising.

• Inadequate horizontal communications.

GAP 3 Deliver to service standards GAP 4 Match performance to promises

MARKETING IN SHIPPING INDUSTRY

“The marketing of shipping companies engaged incommercial shipping is the science of Business toBusiness (B2B) Marketing, which deals with thesatisfaction of the needs of charters - shippers for themaritime transport of goods, with the main purpose ofenterprise profit.”

1. DIAGNOSIS

2. PLANNING

3. ORGANIZATION

4. IMPLEMENTATION

5. CONTROL

MARKETING IN SHIPPING INDUSTRY

ORGANIZATION• Resources of the shipping

enterprise are utilized depending on the opportunities of the

shipping market• Definition and delegation of

obligations among the employees of shipping company.

DIAGNOSIS

• Marketing information system

• Analysis of marketing

opportunities

• Segmentation of shipping market

• Choice of target market

PLANNING

• Planning of marketing programs :

distribution of marketing recourses

in the tools of marketing mix

• Planning of marketing strategy :

tools of the shipping marketing mix

IMPLEMENTATION

• Implementation of marketing

plans and marketing programs.

CONTROL

•Measurement of the achieved

performance.

•Comparative analysis of exemplary

performance against current performance

•Correction of possible deviations

SEGMENTATION OF SHIPPING MARKET

AND ORIENTATION OF CHARTERS BEHAVIOR AT EACH PART

The success of a marketing plan depends on the quality of the information gathered during the previous stages of the marketing process.

McDonald M.

STAGE OF PLANNING – MARKETING MIX TOOLS

“

“The marketing mix is the sum of marketing tools

used by the shipping company to achieve its target

market objectives.

These tools are internationally known as the "8 P"

EMPIRICAL RESEARCH FOR IMPLEMENTATION IN SHIPPING MARKETING

SAMPLE

10 LARGEST TANKER SHIPPING COMPANIES

10 LARGEST LINER OPERATORS OF CONTAINER SHIPS

INFORMATION The competitive advantages

Business relations with charterers The security system Ship performance

The data was appropriate and sufficient to draw significant conclusions from them about the marketing philosophies they adopt and the marketing

strategies in place.

Tanker shipping companies believe that the criteria for their

choice by a charterer are:

1. Providing secure marine freight

2. Sensitization on environmental issues.

3. Compliance of the company with international safety

standards with regard to the construction, operation and

management of ships.

4. The honest negotiation, as defined by BIMCO (Baltic and

International Maritime Council).

5. The provision of high quality transport services.

6. Good business relationships with customers.

EMPIRICAL RESEARCH (PLOMARITOU, 2006) FOR THE 10 LARGEST TANKER SHIPPING COMPANIES

Philosophy of Social Marketing

According to Kotler P. (1994), the philosophy of socialmarketing requires that the duty of business is todetermine the needs of customers and provide thedesired satisfaction more effectively and efficiently thancompetitors in a way that promotes environmentalprotection.

“

EMPIRICAL RESEARCH (PLOMARITOU, 2006) FOR THE 10 LARGEST TANKER SHIPPING COMPANIES

The largest tanker shipping companies use advertising as a key competitive tool.

Marketing Strategy

Geographical diversification, Quality, Staff, Business Image.

Line companies consider that the criteria for their choice by a shipper are:

1. The duration of the trip

2. Frequency and flexibility of itineraries.

3. Reliable transport performance and immediate itineraries.

4. Larger liner shipping companies have a low degree of differentiated

marketing strategy.

5. They address at selected market segments by adapting their policy to each

of them.

6. Providing a secure transport of goods and complying with international

safety standards

EMPIRICAL RESEARCH (PLOMARITOU, 2006) FOR THE 10 LARGEST LINER OPERATORS OF CONTAINER SHIPS

Philosophy

With the market as a focal pointAccording to Kotler P. (1994), the philosophy of the market as afocal point assumes that the task of business is to determinethe needs of customers and provide the desired satisfactionmore effectively and more efficiently than its competitors.Liner companies maintain advanced systems for trackingtransport and constantly informing shippers.

“

EMPIRICAL RESEARCH (PLOMARITOU, 2006) FOR THE 10 LARGEST LINER OPERATORS OF CONTAINER SHIPS

The largest liner operators of container ships use advertising as a key competitive tool.

Marketing Strategy Low degree of differentiation - Type and Volume of the load. Target at selected market segments. Adaption of policy to each of them.

Thank you for your patient and understanding