Reading_CHAPTER 1 - Port Marketing Manual (for Part 1)...

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Port Marketing Manual (for Part 1) CHAPTER 1 INTRODUCTION CHAPTER 1 INTRODUCTION 1.1 THE NATURE OF PORT MARKETING 1.1.1 WHY DO PORT MARKETING 1.1.2 What Is Port Marketing 1.1.3 Summary 1.2 ENVIROMENT FORCES IN DIVERSE WORLD 1.2.1 The Macroenviroment 1.2.2 The Microenvironment—The Four Cs 1.2.3 THE NATURE OF MARKETING RELATIONSHIP 1.2.4 Summary 1.1 THE NATURE OF PORT MARKETING 1.1.1 WHY DO PORT MARKETING THE REASON OF PORT MARKETING In the past there was a widespread and essentially passive attitude on the part of port organisations towards the marketing of their ports. A general background to this attitude was the belief that ports have "captive hinterlands"; that cargo naturally passed through particular ports and that the shipowner natura1ly used certain ports. This is no longer valid for ports nowadays. Today’s fast changing and highly competitive international environment makes that "the captive hinterlands" which seaports had in the past, now have to be shared with other competing ports. Ports are operating in a more and more competitive environment, so that port management has to be adapted to those new tendencies. There are four main reasons for a port marketing initiative as it was exhibited by figure 1-1: Figure 1-1 1 Reasons for Port Marketing New Market Prospects Changing Needs Increasing Competition Declining Traffic
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Port Marketing Manual (for Part 1) Declining traffic Declining traffic or income is perhaps the most common cause for port marketing. The first question that should be asked is "what is the cause?” The port service is a demand derived from trade and transport activities. Therefore an intemationa1, national or regional economic recession will have brought with it a drop in the movement of products and a consequent drop in the demand for transport a port services. The first thing to look at is the general situation of re1evant markets , to find out whether the problems come from a declining economy. Increasing competition . When it turns out that the trade and economy in the relevant markets are not in recession, yet there is a decline of the port activities, the competitive position of the port should been urgently examined, because such a situation implies that the market share of the port is declining. A port can find that although the absolute figures in traffic have not changed, its market share is declining or it has a s1ower growth rate compared with the competing ports. The investigation should look at the traffic evolution of all competing ports and of potential competitors to find out which port is threatening the most for which traffic. It may happen, however, that the loss of market share originated in other modes of transport: land transport , for examp1e, can severely affect port traffic especia1ly when there is an important sabotage activity.
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This note was uploaded on 03/04/2011 for the course ECON 178 taught by Professor Yangliu during the Fall '08 term at Tsinghua University.

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Reading_CHAPTER 1 - Port Marketing Manual (for Part 1)...

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