Transportation Discussion A. What is the relationship between marketing and tran

Question

Transportation Discussion

A. What is the relationship between marketing and transportation?

B.What does it mean to say that: “cargo carriers operate in a B2B with derived demand”?  

C.Describe what would be a basic marketing mix for a maritime shipping company. You can use one example to illustrate your explanation.

D. In a typical marketing strategy decision, maritime shipping players have to decide on shipping routes as part of their product characteristics. At the same time, shipping routes are derived from international global markets. Explain and describe the other variables that could guide the definition of the marketing strategy for these players.

Explanation / Answer

A. Transportation is one of the significant component of marketing. The products manufactured goes a long way to reach to the ultimate consumers targeted. Therefore, in order to market your products and make them available to the customers, transportation what is professionally termed as Logistics work.

The Company chooses its distribution channels keeping in mind, the products involved. They may choose any route like Air or shipping or road or train, depending on their urgency and requirements. In order to let your products, reach timely and at minimum cost, one need to choose this transportation channel wisely. Infect Marketing department use the information provided by the logistics before plannin for expanding the segments.

B. Derive demand in market terms refers to the situation when your product demand is based on the demand made by the other business if they need to manufacture or use your products to make final products to sell to their customers at the end.

B2B, that is, business to business transactions like raw and materials sold by one business unit to another business unit.

B2C, that is business to consumers which ,mean to say, the business who uses raw materials to make final goods out of it which is ultimately sell to the consumers.

Cargo carriers who carries our raw materials or final goods depending on business to business like air flights, trains, trucks, ships, etc.

Now the statement Cargo carriers operate in a B2B derived demand may meant to say the raw and materials or any spare parts, etc., carried by the cargo from one business unit for the use and consumption by another business unit wherein the demand for raw materials is derived on the basis of need of an consumption by another business unit.

C. The basic components of marketing mix are

An illustration – Shipping companies needed an accurate and timely information much earlier as their vessels must travel worldwide and any delay in shipping may not be pardon. Also, since they travel worldwide, their income received in dollars, therefore their business is affected largely on the change in circumstances in other countries. Such that their pricing should be competitive as many shipping companies exists and their huge competition in the market, secondly for timely and effective communication of the information and charger, electronic media is useful and effective than the formal written ways. MIS system may help here which helps to store the information in a way that other involved in the company can also get some idea of the information contained in it wherever needed. They must continue to forecast the changes that may happen to satisfy the charters requirements. Continue market research also helps keep going.

D. Marketing strategies for these companies depends whether they are following the concentrated market such that offering shipping services to only one market segment. If they offer services to one segment, they would achieve the specialisation and also recognition of the same market which will add goodwill and bring more business. But if the company chooses selective segments, there will be more options to serve so that if any segment ceases to be operational, at least one of the them would be working. Some company chooses to work for many other needs of an organisation so that they won't need to go anywhere.

Their business depends on the globalization factors also as they have to do cross border transactions and crossing their ways to enemies country would be a problem. They have to work on risk assessment and forecast in order to be ready for any uncertainty.

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