The Marketing Mix for ALTAS Company - Case Study Example

Atlas, AmbarliLimanTesisleri Tic Name: Institution: Instructor: Course: Date: Table of Contents Table of Contents 2 Introduction 2 Service-Oriented Theory Based on Consumer Need- from Customer to Service. 4 Price- oriented Theory Dependent on Consumer’ Ability to Pay 6 Product and services Promotion on communication. 7 Marketing environment 8 PESTEL Analysis 9 References 12 Introduction The marketing mix is defined as a business tool often used by marketing professionals in promoting services and products. It is an important aspect in determining prices, services offered, goods sold as well as a business venue. In 1960, Professor McCarthy defined the Four ‘P’ model as a marketing theory. The model emphasizes on determining sales strategies and supply channels of services and goods from consumers’ perspectives. Four ‘P’s can be divided into four groups, namely; Price, Promotion, Product as well as place. In recent times, service marketing has become customer-driven rather than product oriented. For instance, Lauterborns four Cs model (convenience, communication, cost and consumer) is a marketing theory that emphasizes on customer satisfaction as the first priority (Kotler & Armstrong, 2012). The Four C model was first mentioned in 1990 by an American marketing expert known as Professor Lauter born. In essence, the theory ensures that the company gives full attention to the customers’ convenience during the purchase. Additionally, it tends to reduce the consumers’ purchase by regulating market prices (Koldermir, Balci, Sari & Apak, 2013). Finally, it is important for every business firm to effectively maintain good communication strategies with its consumers. In general, it is impossible to replace the Four ‘C’ and ‘P’ with each other and therefore, it always advisable for an enterprise to find a flexible way of intertwining the two models. Meanwhile, the enterprise may venture in designing its own market system regarding its relationship between supply and demand. Furthermore, it is essential for an enterprise to know itself as well as its competitors to ensure that its services meet the market and industry demands (Kotler & Armstrong, 2012). Altas Ambarlı Port’s marketing synthesis cannot be considered as either a simple 4Ps or 4Cs, but rather an effective incorporation of them. For ALTAS Company, 4C theory is an essential approach to help grasp their target market as well as fulfill the market needs. Meanwhile, ALTAS Company is also striving in strengthening 4Cs theory with 4Ps model. As a result, the 4P model will aid in putting more emphasis on the potential product customers that use the various goods transported by the ALTAS Ambarli ports. Every service in Ambarli ports emphasizes on the customers, which ensures that the marketing communication activities receives broader culture, great communication channels as well as more space. Service-Oriented Theory Based on Consumer Need- from Customer to Service. 4Ps theory values goods while 4Cs theory emphasizes on the customer. Armbarli port was established in various cities in the same state. Considering the difference in market demand, geographical location, culture as well as economy, the Ambarli port determines its unique services- oriented marketing strategies dependent on customer demands and service deliveries. Those in need of transporting cargoes are always concerned about the convenience and the efficiency of the transporting channel. General management, environmental arrangements, geological studies, good infrastructures, as well as attaining security are some of core services offered by Altas Ambarli Port Company. The shipping docks and cargoes of Ambarli Ports are all strictly regulated by the Ministry of Public Works and settlement. In order to guarantee quality services, Port of Ambarli is divided into different terminals across Turkey. Each terminal is responsible for carrying specific transporting services with regard to the type of cargo. For instance, Port of Ambali’s Limak Terminal is owned by Limak Western Cement firm. The terminal handles a capacity of 1,3million tons cargo per annum. The firm runs a raw material inventory and cement silos, a crusher with extra packing components, a grinding unit as well as a raw material. Limak terminal comprises of a berthing space of 280 meters with maximum drafts of eleven meters and a 700 meters conveyor that transports raw materials between port pier and silo. Mardasport Terminal runs break-bulk project cargoes with berthing space of 910 meters of permissible draft of 52.5 feet. The terminal handles twelve mobile cranes, four excavators, as well as terminal tractors. Mardasport supplies machinery as well as industrial equipment that are used in warehousing and weighing services. In order to boost its coverage, Mardsport has heavy cargo lifters, boats, yachts and 140-ton cranes for heavy cargoes (Koldermir, Balci, Sari &Apak, 2013). During cargo movements, it is required that all shipping transactions between the consumers and the transport company are done in good time. Meanwhile, all staff is well trained with vast experience. Considering that cargoes are shipped in various countries, Ambarli port has super enhanced docks that operates around globe (Yercan& Roe, 1999). Besides, operating both internally and globally, Ambarli port management consists of various application programs that are linked to a central database. Although, shipping industries may input their requests as well as cargo information right into the system through a dedicated line via Solon Acenta program, most companies to use e-mail or fax. These requests are often manually inputted into the database, and depending on the data yard. The database helps staff in determining positions of the various containers in the yard. During exportation, the bay plan from the ship captain is inputted into the database manually. Since the entire yard area often enclosed by wireless network, all staff as well equipment operators freely accesses the system in order to report job completions as well as receive job instructions. Touchpads screens are fixed in every yard crane, stacker, forklift and vehicles operating within the various terminals (Yercan& Roe, 1999. In terms of security, hand terminals are operated by the pointers inside the quay area while controllers monitor the gateway. Clerks at the gate input the vehicles numbers into the system which produces a serial number, container’s number and its position in the yard. On the contrary, several bureaucratic requirements with regard to customs enforcements cannot be ascertained by the port management itself but rather filled manually before leaving the gate. Price- oriented Theory Dependent on Consumer’ Ability to Pay Among the many factors that determine successful marketing mix strategies, price creates sales revenue. Price is a significant determinant of income. In theory, price is greatly depended on the customers and what they perceive as worth the value. A firm should research customer’s opinions on pricing before attaching a value to their services. On the hand, an organization’s pricing policy can differ depending on the time, place, inflation as well as government policies. For pricing products and services, Ambali ports implements a differentiated pricing strategy putting into consideration the various levels of nonrefundable income as well as the willingness to pay in various states in terms of existing economic gap. In case of Ambarli Ports in Turkey, equating with the national GDP, nonrefundable income and Turkey shipping fees tend differ. Ambarli provides rapid, effective as well as cheap services by enhancing the quality of services provided to the cargo passengers and vessels. Rushton & Walker (2007) states that Altas Ambarli Port’s joint action regulates costs among the existing terminals; the company holds good reputation in effectively resolving common cost problems realized in the market without affecting its functions. However, recently, Altas Ambarli port experienced major marketplace backlash due to the raising inflation crisis that crippled its functions. In conclusion, Altas Ambarli Port not only reflects prices from the 4Ps model according to the cost of the services, but the willingness to pay. The discriminatory pricing offers customers from various economic levels more choices according to consumers’ income levels. Essentially, Altas Ambarli Port satisfies clients’ needs on their demand. To some extent, Altas Ambarli Port attains a win-win situation from both its suppliers and demanders. Product and services Promotion on communication. Advertising is defined as any mode of communication that is paid for; it ranges from internet advertisements, commercials to billboards (Lee-Partridge, TEO, & LIM, 2000). Public relations are whereby communication is paid indirectly through press releases; conferences trade affairs or events and sponsorship deals among others. An example of promotion was the second Black Sea and shipping conference that took place on the 11th and 12th of September, 2013 at the luxurious Marmara Taksim Hotel located in Instanbul, Turkey. The regional transport event aimed at promoting containerized transport across the Black Sea region. The conference included a two day display of sixty booths, giving various companies an opportunity to market their products as well as the services to the participants in attendance. Altas plays a holistic part in making decisions concerning various terminal processes in Port of Ambarli. It ensures that Port of Amabarli becomes a world class port developing modern structures as well as embracing the use of technology in its major operations. Altas Ambarli Port always value both national and international image. It promotes cultural exchange through a two-way communication strategy. From the aspect of joint-port management, Altas Ambarli Port accomplishes their goal of promoting both road and water transport by vivid communication and interactions (Partridge, 2000). In order to maintain the continuity of its vast activities Altas continuously improves its operational events of the various terminals by providing back-field services. It also aims at promoting the interests of Ambarli Port community as well as reinforcing the competitive position of the port. Marketing environment Maritime transportation is one of the most preferred modes of transportation both in Turkey’s exports and imports transactions with shares of 46.0 and 59.1%respectively (Hong, Choi, and Keceli2012). This is followed by road, with a share of 23.6 and 41.1% of imports and exports respectively. Air transportation is ranked third on the list for both exports as well as imports. Business location as a major aspect of market mix strategies. Place determines the different modes of distribution as well as storage of products. As a company of good reputation, Port of Ambarli ensures that goods shipped both internally and externally, arrives in its destination in good time and condition. It uses various strategies such as selective, extensive as well as intensive distributions (Rushton & Walker, 2007). Turkey is surrounded by seas and therefore, there is surplus demand for container transportation, custom endorsement as well as warehousing services (Krupka & Ozretić DOŠEN, 2009).Turkeys’ geographical location also makes transportation industry an important in economic development of the nation. Transport is a major aspects already being examined by the Turkey’s European Union accession agenda. Altas Ambarli Ports’ restructuring processes as well as global investments will enable effective competition against its major competitors (Hall, 2011).Currently; the competition observed among the various companies is basically based on pricing rather than service quality. Therefore, in order for port of Ambarlito beat its competitor, it should adopt new strategies of offering more differentiated services to achieve a wide coverage as a company. Additionally, Altas Ambarli Port can improve its logistics performance by adopting a more friendly logistic strategy that favors the foreign countries which they trade (Alderson, 2008). Last but not least, Port of Ambarli, can develop a harmonization course with European Union that entails complying with environment standards, infrastructure, vehicles, as well as enhancement of foreign trade policies (Groneberg, Mueller & Klingelhoefer, 2011). PESTEL Analysis Uncontrollable external as well as internal factors encircling a company can hinder its growth. Other environmental such as cultural and social differences, weather changes as well economic constraints of a region can affect normal business operations. Ambarli ports management ensures that all domestics’ wastes occurring on the port are collected and disposed in the rubbish dumps (Mueller et al. 2011). The common areas as well as the surrounding areas of the port are also continuously cleaned on regular basis. The company also maintains good infrastructure by conducting timely repairs. Additionally, ALTAS Ambarli ports carries out road works that involves pouring concrete and asphalt. According to Mueller et al., (20011), Turkey has four main container ports, namely; Izmir, Mersin, Haydarpsa and Ambarli. All the three ports are operated by the state except Ambarli. However, Ambarli port is geological risky, it is also narrowly established in a small area that does not allow expansion. . Following the expected Trans Caucasian Railway Project met to link Turkey to Europe, Altas Ambarli ports can expand their port network to the region so as aid in transporting containers to numerous interior places Essentially, it is important that port regions be established within a strategic urban area. Therefore, establishment of strong links between port operation and urban system will enable Port of Ambali become more significant. Furthermore, Ambali ports often causes a lot of traffic problems, as a result, the government plans to establish a railroad in Bahcesehir region in order to abate the traffic jam (Partridge, 2000). Port liberalization as well as its growth is faced with great interest and sentiments that are likely to continue regarding the government’s plan to privatize extra ports across the country. Given the incapacity of port of Izmir port to run third-generation vessels, as well as the rising container volume growth along the Mediterranean, the government is encouraging more companies to establish private projects to fill the gap (Walsh, Enz & Canina, 2008). Further, given the current port developments projects across the region, capacities will increase to 114m TEU by 2080. Thus, in order to cope against its competitors, Altas should also become a key facilitator constructing more efficient ports such as Candarli that will attract more international shipping lines. Since Ambarli Port has an aspect of being entirely privatized, ALTAS provides the needs of public administration in the shortest time possible. Ambarli Port Authority has enhanced customs enforcement directorates, Port Sanitary as well as marine police that address the arising demands from the Public. The Laws regulating the Ambarli Port Terminals are implemented by Atlas, which is also a partner in business. Furthermore, Altas, is responsible for overall coordination between terminals. Altas carries out all Law operations without involving the six Ambarli terminals in implementing such activities separately. Port of Ambarli was approved by the General Directorate of Disaster Affairs in conducting researches, as well as reporting studies on geologic aspects in the region. As a result, the region is continuously supervised with the subtle land measurements as well as the reporting researches instigated together with the Istanbul Technical University for a period of nine years. All results and reports from geological studies for each project are surrendered to the General Directorate of Disaster Affairs (Rushton & Walker, 2007). The reports are often ascertained by the Instanbul Technical University prior submission. The measurements reports are often submitted monthly, quarterly and annually. Conclusion ports are perfect locations for global companies to distribute their goods and therefore, formulation of good marketing mixing strategies is an essential. Altas Ambarli ports should be restructured in terms of service deliveries, port allocation and technological advancement in order to experience growth in its both imports and exports operations. The continuing privatization of other ports tends to facilitate the infrastructural enhancements towards port improvements in the region. References Alderson, M (2008). Port Management and Operations: Third Edition. London: MPG books publishers. Ambarli port Area of Marmara (Turkey) 29(1):28-43 ALTAmŞ Ambarlı Port Facilities Trade Co. ALTAŞ AMBARI THE BIGGEST PORT IN TURKEY. 2007. Web page. 18 August 2013. www.altasliman.com/en/index.php Erdem A( 2000) Port regeneration and Sustainable Urban Development, The Case of Galata Port and Haydarpasa Port projects in Instanbulafter 2000, 43 ISOCarp congress, (1-10). Hall, P. V. (2011). 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