Transcript Research Needs in the Intercity Bus and Rail

Research Needs in the
Intercity Bus and Rail
Transportation Industry
Chapter 28
Research Methodologies
Introduction
 Marketing intercity rail and bus travel is
different from marketing other types of
transportation and travel for two reasons:
 This industry is regulated by government
 Both the rail and bus market are dominated
by one major competitor
Regulation
 The intercity bus industry is regulated by the
Interstate Commerce Commission (ICC) and
by various regulatory agencies.
 Under these authorities, the ICC must approve
all fare increases and decreases before they
are implemented
 Another for of government regulation is route
authority in which a bus company has to be
granted authority to provide service between
two cities
Competition
 People are rarely surprised to find out
that one company has dominated the bus
industry for over 40 years and that is
Greyhound, by 60 percent
 Intercity rail is regulated by government
agencies and is dominated by Amtrak
Market Research
Responsibilities
 The dynamic nature of the intercity bus market
requires all companies to develop marketing
plans in an atmosphere of uncertainty and
these plans must be flexible enough to adapt
quickly to a constantly changing market
 Therefore the responsibility of the corporate
market research department is to help senior
managers develop strategies that can be
changed and modified at a moment’s notice
The Needs of Five
Managers
 The Vice President of Passenger Marketing:
 Needs information that will help price tickets and
travel services
 Develop and evaluate marketing promotions
 Forecast passenger miles, revenues, and profits
 The Vice President of Advertising
 Needs research support for testing advertising copy
 Developing Media plans
 Tracking Advertising
The Needs of Five
Managers
 The Marketing Controller
 Needs help in evaluating the cost-benefits of
marketing programs
 The Vice President of Passenger Services
 Focuses on receiving ratings of passenger service
on a timely basis
 The Vice President of Traffic and Operations
 Needs to be kept appraised of changes in preferred
origins and destinations