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Table of contents AllUHIWIBIID~ EXI~Iffv~ S_llry ~ Introduction .eeee-e-. eeeeee-ee-eeeeeeee eeeeeeeeeee.-e_ Business-to-Business Marketing Theory e--ee- ~e-----~-e Trar~sit-to-Business Marketing......... Perspectives From Other Industries . Pace Case Study.. Voucher Program Case Study Bank of America Case Study ...................................... Kaiser Permanente Case Study ................................... Lessons A Focus on the Customer is the Key Ingredient to Success 'a The Marketing Function Should Be Well Integrated and Supported Within the Agency Marketing Must Be Visible to Be Effective........ Some Marketing Techniques Are Particularly Effective in the Business Environment................................................................................ Fostering Links Outside of the Agency is Critical..... Conclusion............. .17 ......... Introduction ........................................................... Goals of Project................................................... The Benefits Are Mutual..................................... Advantages to Transit... Benefits for Business.............. 1 Q ~1 , 1-1 Overview of This Report........................ Adapts 2. Business-to-Business ~ 4^~-^~:~ TO Chapter Overview ............................................................................. Differences Between Business-to-Business Marketing arid Consumer Marketing........... The Marketing Process................... Overview 2-4 Goal Setting and Understanding the Business Strategy 2-5 Product or Service Development 2-7 Understanding the C2tstomer/Gather Data 2-10 Market Analysis 2-15

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Developn~ent of a Marketing Plan.. Overview....................................................................................................... Direct Sales................................................................................................... Personal Selling.................. Employee-Based Marketing... Promotions............................. Partnerships........................ Advertising and Publicity ... Chapter Summary. Shapiro ...... 2-15 Service Delivery 2-18 Customer Purchase Decision 2-19 Evaluation and Refinement 2-19 Marketing Tools and Techniques e e e e e e ee e e..e eeee2-20 ..... 2-20 ..... 2-22 ..... 2-24 ..... 2-27 ..... 2-27 ..... 2-28 ..... 2-28 e e e e e2 29 Transit to Business Marketing.eeeeeeee.ee.e..eeee.eeee.e....e...eeeeeeee..e.e.eee.eeeeeeeeeeeeeeeee..eeeee.ee.eee3-1 Chapter Overview eeeeeeeeeeee~e~ en resees eeea~eeeeae~ ee~eea~ee~ ee ~ ee3~1 Issues in Measunng Costs and Benefits. ~ ~ e ee. ~ e~e. .. He 3-3 Measuring Costs 3-3 Measuring Benefits 3-4 The Different Programse e e e e 3-5 Ridesharing Programs 3-5 General Transit Services and Employee Pass Programs 3-7 Transit Voucher Programs 3-10 Reverse Commute Services 3-13 Overview of Transit Marketing Techniques 3-14 Market Selection . e ~3-17 Mass Marketing 3-1 7 Target Marketing 3-1 7 Tools and Techniques in Transit e3-19 Personal Selling 3-19 Advertising Techniques 3-22 Publicity and Public Relations 3-23 Chapter Summary and Findings 3-23 Chap~r4~ Business-to-Business Marketing ~e4-1 Chapter Overview . e 4-1 Package Delivery / Courier Services 4-2 Banking arid Finance Telecommunications ................................. Travel ....................................................... Tnsurar~ce arid Health Care ....................... Non-Profits .... Chapter Summary...................................... ........... 4-5 ........... 4-9 4-21 .........

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Ithanta~ ~ Ma~eket Assessment ~ ~ee~e eeeae eeeeeaeee~eeeeee~eeeeeeeeaeeeeeeeeeeeeeeeee~ ooeeeee ee~ aeeaeeeeeeeeeeee~eeeeeeeS~4 Ridership Profile ee~e~.eeeee~eeeeeeeeeee~e~e..e~eeee.. eeeeeeeeeeeeeeeeeeeeeeeeeeeeeee..eeeeeee~eeeeeeeeeee~eeeeeeeeeeeeeS~S Demographic Characieristics 5-6 Commuting Patterns 5-6 Vision 2000 e e e e e e e ~ e e e e e e e e e ~ e e e e e e ~ e e e e e e e ~ e e e e e e e e e e e ~ e e e e e e e e e e ~ e e e e e e e e ~ e e e e e e ~ e e e e e e e e e e e e e ~ e e e e e e e ~ e e e e e e e e ~ e e e e e e e e e S 9 Strategic Plan 5-9 Comprehensive OperatingPlan 5-10 Marketing Plan 5-10 Ma~-keting ar~d Development Groupeeeeeeeeeeeeeeeeeeeeeeeee Outreach Program Technical Review Assistance Program 5-~] Pace Employer Serviceseeeeeeeeeee.ee.e~eeeeeeeeeeeeeeeee.eeeeeeee.eeeeeeee.eeeeeeeeee.eeeeeeeeee.eeeeeeeeeeee.eee5-12 Employee Surveys Vanpools 5-13 Shuttles to Rail 5-13 Subscription Buses 5-13 Modified Fixed-Route Services 5-14 Case Example: Sears Relocation 5-14 <_ 1 7 1t 4~lr~+ ~ ~ Dh; 1~ mr~l~~ r ~r~'rtD fh~ Pr^~llr' ~, ~ &,&~ `, v ~5-l 7 Establish Long-Term Relationships 5-18 Develop a B.1lsiness Culture 5-18 Adapt fo N'ew Markets 5-19 13~ ~+f' ^~1 U~rml~;r` ~ti_O 1 Program Costs 5-21 Program Evaluation 5-21 T - ~ c`~^l-; 1;~ r 1 1 all~l~1 aull1 ~,~ e ~ ~ e ~e ~e ~e ~e ~e ~e ~ ~ e e e 5 22 Chapter ~ 6-1 Voucher Program Case Study ~6-1 Executive Summary.~ ee.~. e ee~.e~. e.. . ~6-1 Backgrourld ..a. ~ e~ee~ee ~e~eee~e~ e ~ee ~e~ 6~2 Early Market Research e e e e e e e e.6-3 City-by-City Voucher Programs ~e ~ a~ eeeeee~ ee~e eea~ e ~ oo~ 6~4 New York.................................................................................................... Philadelphia......... San Francisco....... .......... 6-5 ..6-8 ..6-9

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Smaller Cities Transferability . . e e e e ~ e e e ~ e ~ ~ e e ~ ~ e e ~ e ~ e e e ~ e e ~ ~ e ~ ~ e ~ e e e e ~ e e ~ e e ~ e e e ~ e e e e e ~ ~ ~ e e ~ ~ ~ e ~ ~ ~ e ~ e Milwaukee 6-12 Seattle 6-14 .. 6-15 ..6-16 char_ Bank of America Case Study .. Executive Summary................ Background ~ meet e e ~ e 7 ~ e ~7~] ~ ~ ~ e ~ ~ e ~ ~7 2 Marketing to Small Businesses bee e ~easeen ease e7~3 Strategic Marketing and Long-Term Goals 7-3 Product and Marketing Plans 7-4 ....... 7-4 New Product Development for Small Business Summary of Bank of America's Small Business Marketing Concepts 7-7 Relationship Marketing for Medium-Sized Businesses 7-7 Case Example: The Laur~ch of the Alpha/Prima Account Outcome.:. Transferability escaper' Market Assessment 7-8 The Alpha/Prima Marketing Plan 7-10 Market Research Findrings 7-15 Implementation Issues 7-16 7-19 7_~ Kaiser Permanente Case Study 8-1 Executive Summary e 8-1 Background and Description of Kaiser Permanente 8-2 Market Assessment 8-4 Products/Services Offered by Kaiser 8-6 Organizational Structure arid New Product Development 8-9 Marketing Philosophy Market Segmentation Pricing Strategy Identification and Tracking of Employers 8-14 Direct Sales Internal Sales Force and Brokers ~-14 Telemarketing 8-15 Advertising and Promotion Costs arid Measures of Effectiveness.............................................. Measures of Electiveness. Customer Satisfaction....... ....... ~-20 ..... 8-21 Other Measures of Electiveness ~-22 Transferability 8-24

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[hapter! _ Conclusion. . e ~ ~ ~ e ~ ~ ~ e ~e ~- e ~e e - ~e e - ~ - e ~ e e e e e e e e e e e e e e e ~ e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e _ |-1 e ~ - - - - e ~ 9 1 Lessons Learned ee .. ee ~ eeeee eeeeeeee ~ ~ee ~ e e ..eee e e ~e. ~ ~ e .9~1 A Focus on the Customer is the Key Ingredient to Success.e. .ee..e e. 9-2 Focusing on the Customer Takes Time 9-2 Tracking Customers 9-2 The Marketing Function Should Be Well Integrated and Q11n^^rtF.A Within th~. AnPn~v ntegratzng the Mar~eting ~ unction with tJperattons 9-3 Marketing Must Be Supported From the Top 9-3 Becoming Marketing-Oriented Takes Resources 9-3 Commitment to Internal Marketine and Training 9-3 ...... 9-4 O Marketing Must Be Visible to Be Effective Developing a Visior7 9-4 Press Releases and the Use of the Media 9-5 Some Ma~eketing Techniques Are Particularly Effective in the Business Environment Personal Contact.............................................. Use of Technologies to Support Direct SaZe* Peer-to-Peer Marketing................... Rider-Based Marketing.... ...................................................... 9-6 9 ~ Foster~ng Links Outside of the Agency is Critical 9-8 Partnerships Co-Marketing National and Local Links (~nnrlllcimn ...9-8 ...9 9 ~v1A_~Aeeee e eeee. e e e.e eeee e e.e e e 9 1 0 ehap~r 10~ 1~1 References e e e e e e e e e e e 1 0- 1 Appendb A ~ Sutrmary of Pace's 1 997 Marketing Plan arid Related Documents e ~ A-1 AppenIb ~ Bank of America Guide to Writing a Marketing Plan B-1 .B-1

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ustof Tabs Table 2- 1: Primary Communications Method for Trar~sit-Business Marketing 2-2 1 Table 3-1: Transit Programs Marketed to Business Covered in the Literature Review or in Phone Interviews 3-2 ................ 3-8 .3-16 Table 3-2: Marketing and Advertising of Transit Services and Programs Table 3-3: Summary of Transit-to-Business Programs Table 3-4: Trar~sit-to-Business Program Effectiveness by Area Size 3-24 Table 4-1: Differences Between Non-Profit arid Profit-Oriented Marketing 4-20 Table 5-1: Pace Market Share Table 5-2: Pace Customer Profile by Market Segment Table 6-1: April 1997 Commuter Check Sales 6-10 Table 7-1: Bank of America Market Share Table 7-2: Changes in Main Bank Share Table 7-3: Breakdown of Bank of America Customers Table 7-4: Goals for the Alpha/Pr~ma Accour~t Table 7-5: Sensitivity Analysis for the Alpha/Prima Account 7-15 Table 7-6: Planned Versus Actual Start-Up Costs 7-17 ..7-9 ..... 7-10 LO Figure 2-1: The Marketing Process 2-6 Figure 2-2: Product or Service Development Figure 2-3: Outline of a Marketing PlaIl 2-l 6 Figure 2-4: Guidelines for Sales Staff Training and Development Figure 5-1: Pace Annual Ridership Figure 5-2: Pace Annual Vehicle Miles of Service ~ Figure 5-3: Metropolitan Chicago Commute Trips ...................................... Figure 5-4: Auto Ownership by Market Segment arid User Status............... Figure 5-5: Customer Profile by Pace Market Figure 5-6: Auto Share by Market Segment Figure 5-7: Pace Organizational Chart 5-20 Figure 6-1: New York TransitCheck Sales by Year 6-6 Figure 6-2: Source of Inquirer for Philadelphiats TransitCheck 6-9