Port Marketing

Professor, YANG, Yi-Chih

Department of Shipping and Transportation,

National Kaohsiung Marine University

Outline

Concept of Port marketing

Target of Port marketing

Strategies of Port Marketing

Case studies of Port Marketing

1. Concept of Port Marketing

With the port operating environment is becoming increasingly fierce, port marketing in the port business is of vital important.

New terminology of port marketing emerged in the 1980s as well as port logistics which has been gradually accepted by the all over the world.

The port marketing is to create a process of exchange value in compliance with individual or organizational purposes by planning ideas, prices, promotions and distribution of products and services based on Total Customer Satisfaction.

Port Marketing is made up of Market Research and Marketing Implementation.

Market research activities are mainly based on market analysis, goal setting, strategy development and object confirmation.

Marketing execution means the use of promotional tools to achieve the intended purpose of the event.

The type of consumers

Commodity consumers

The purpose of the customer to buy products for the ultimate direct consumption purposes, the use of such products known as consumer goods.

Industrial consumers

The purpose of the purchase of goods for customers is in order to put into remanufacturing, reproduction and sales, this product is called industrial supplies

purchase decision-making process for consumers

Problem confirmation

Information collection

Case evaluation

Purchase decision

Post - purchase behavior

Formulation steps of target market

Market segmentation

Segmentation is done according to the appropriate segmentation variable

Target selection

The target is sorted by the attraction of each segment

Product Positioning

Seeking each market may be positioning the concept, so that consumers understand the difference in the status of goods in mind

2. targets of Port marketing

2.1 shipping company

While Shipping companies open up new route and call on the port, there are several port selection factors:

Market demand

Freight volume,

Port tariff,

operating efficiency,

loading and unloading facilities,

Hinterland scale

Inland access traffic infrastructure

Marketing in ports is composed of activities related to market research and marketing implementation.

The research activities will allow the port to have its market analyzed, target fixed strategy built and targets identified.

Then in the implementation stage, marketing tools should be deployed to achieve those targets.

Shipping company, shipping agents, intermodal transport carriers, foreign manufacturers,

With the right of opening up regular sailing routes including ship owner association, shipper association and strategic alliance,

To open up new routes with a indirect influence from port authorities, related groups, academic sectors and public opinion, those interest stakeholders can not be ignored as the marketing target.

2. Cargo owner

The shipper shall determine the port of shipment and

the date of shipment in accordance with the

conclusion of the contract between the buyer and the

seller.

The shipper will specify the loading and unloading

port of the goods in the letter of credit.

Therefore, the cargo owner has become port

marketing target thanks to having the right of

designating the loading, unloading port or place.

According to Incoterms 2012 stipulated 11 kinds of trading terms, being classified into C, D, E, F groups.

Cargo owner bears the responsibility of transport costs and traffic vehicles arrangement with the right of port designation. Hence cargo owner no matter buyer or seller has become one of port marketing target.

Port designated party

Types Trade term Port designated party

Seller Buyer

E EXW(EX works) ●

FCA(Free Carrier) ●

F FAS(Free Alongside Ship) ●

FOB(Free on Board) ●

C CFR(Cost and Freight) ●

CIF(Cost Insurance and Freight) ●

CPT(Carriage Paid to) ●

CPT(Carriage and Insurance Paid to) ●

D DAT(Delivered At Terminal) ●

DAP(Delivered At Place) ●

DDP(Delivered Duty Paid) ●

3. Strategies of port marketing

UNCTAD's “Marketing promotion tools for ports", published in 1995, in the port business, marketing tools can be described as 3 Ps namely, Product, Price and Promotion.

With the lack of Place in this guidebook, several scholars from Japan and South Korea scholars defining the place strategy as domestic and foreign routes and port infrastructure, including foreign routes opened, hinterland access transport network , Feeder transport network, free trade area establishment and so on.

3.1 The Product

Geographical position

Nautical approach

Hinterland connections

Disposition of quay and land

Services

Labor force and social climated

Know-how

Fiscal environment

3.2 The price

Estimated costs

Competition

Currency

Payment terms

Market variables

3.3 The Promotion tools

Advertising

Direct Mailing

International shipping exhibitions

Organizing port days

Personal selling/direct business trips.

Preventatives

Domestic networking

Domestic fairs

School visits

Organizing conferences

Speaker at a conference

International press day

Others tools

4.、case studies of port

marketing strategies

Port marketing strategies of Rotterdam port

Port marketing strategies of Hamburg port

Port marketing strategies of Antwerp port

4.1 Port marketing strategies of Rotterdam port

Rotterdam port marketing campaigns mainly rely on the port sale mission commission, which are consisted with stevedoring company, the shipping intermediary, freight forwarders, the consultants, the bank, etc. ) and the local community stakeholders (such as the municipal government, port management, port development agencies).

Marketing targets of overseas port sale commission are shipping companies and big cargo owners. The discussion issues are involved in port, cargo, transportation, storage, logistics and distribution, trade, custom clearance, taxation and finance.

4.2 Port marketing strategies of Port of Hamburg Port of Hamburg is governed by the city of

Hamburg, the port business is the Hamburg City, the internal agency of the Hamburg Propaganda Department to be responsible for promoting the port in the activities, it is planning by the HPD, and the Hamburg Municipal Government, Port Authority as well as civil stakeholders to participate in the implementation jointly.

HPD’s organizational structure has one president, the Committee are composed of 11 people, there are three offices in the country, there are 11 branches abroad.

Main businesses of HPD are in the following:

To Provide information of Hamburg port for general customer, affiliates, groups or media.

To carry out the marketing research and marketing strategy

For exiting port users to provide a variety of ports related to the various services, for potential port users by means of the promotional activities (such as domestic and international port visiting and port promotion campaign)

Port associated with disputes occurred, to take the initiative to help mediating disputes.

4.3 Port marketing case of Antwerp port

The port marketing implemented by Port of Antwerp Promotion Association (ASSIPORT), which is composed of 12 non-permanent members (one of the 12 organizations involved in the port delegates), participating groups (banks, chambers of commerce and industry, maritime association groups, ship repairers, shipping agents, shipowners, shippers, stevedoring companies) and other members.

ASSIPORT’s marketing business is as below: Intelligence gathering and research activities Through different channels to collect the

necessary information, such as the use of access to port users, the government's diplomatic channels, the Belgian Chamber of Commerce and Industry overseas offices, Antwerp port’s overseas offices. As for the analysis of information analysis implemented by ASSIPORT.

Hold meetings and events Once the marketing object is locked, the

seminar will be held, such as the use of the port promotion festival to invite the port user and the port of the relevant government agencies to attend the comprehensive activities, and to visit the port facilities after the seminar.

To issue information publication The Port of Antwerp is a special feature of the

"Hinterland" issue on a regular basis in a quarterly fashion and is distributed to the world in four languages. The contents of the publication are from the special articles containing the basic information of Antwerp port related with Rules and tariffs are included. In addition, the port of Antwerp uses news newspapers and magazines and other media, advertising and publishing news to maintain close relations.

To provide Intelligence service Antwerp port related with enterprises,

associations, government agencies, research institutions, educational institutions and other units have provided port information periodically. In addition, Antwerp port’s Port Education and Academic Seminar will be held regularly to enhance the learning and cognition of the port to the public.