Ch 10 Product Concept

As explained in chapter 10, a product is more then tangible good it can also be services and ideas.  Transit Center offers its commuter benefits (Transitchek) to employees in different companies as a service.  The services can mostly be classified as a consumer product.  Specifically in NYC, metro cards are used to produce the services for commuters. In addition to that Transit Center thinks of innovative products for example web based ordering and mobile apps that assist commuters and allows them to manage their benefits.

You can really categorize consumer products for Transit center because the service you decide to choose is easy to implement and prices for your commuter benefits varies depending on what you determine would be your monthly expenses. Generally speaking, Transit Center services are the lowest cost provider for employee commuter benefits. It not a benefit that anyone can have because it specifically offered to employees of companies.  However this is an option by the consumer/ commuter to decide if the services are suited to their personal wants.

For Transit Center or Transitchek the product mix would consist of different forms of payment for public transportation i.e. Metro cards, Transitchek visa, and vouchers. These can either be directly delivered to the companies or employee’s homes.

Transit Center is typically branded as Transitchek because Transitchek is the service that is provided by Transit center. Most employees who have or know someone that has Transitchek commuter benefits recognize that Transit center logo or term is located on back of metro cards recognizes Transitchek cursive   or   .  These logos can be found on items used to promote the company( umbrellas, pens, bags etc. ) even on subway trains. 

Ch 18 Sales promotion and Personal selling

       When it comes to sales Transit center is focused on relationship selling. After the sales Representatives get the company to enroll in Transit center services "closing the sale" they follow up the company to ensure the company is introducing the services or enrolling their employees. The more employees enrolled the bigger tax break on payroll for the company. The company saves money and so does the employees on their pre tax benefit. The sales representative may also want to make sure that the employees of each of the companies understand what Transit center is and what benefits they have after enrolling. They may come to the company and do presentation about their services, to help the employees understand Transit Center system.


       Sells promotion is not really the focal for Transit center. As mentioned before Transit Center does not offer rewards for companies except that it helps save the employee and the employer money. However they can order extra TransitChek products for family members and friends, as long as it is through the employee as a TransitChek participant and within current IRS monthly limits. TransitChek benefits can also be used for transit trips other than between work and home, for example weekend getaways and sporting events. This expanded use of TransitChek does not apply to commuter parking benefits. Since this company already offers benefits it is not necessary to have to create loyalty program, frequent buyer programs rebates, etc. This company is a non-profit company that uses the money to operate the company and provide services for it's commuters. The commuters already recognize that they want to save money. When commuters hear the word "save" they are already entice to learn more about the service or enroll. Therefore Transit center does not have to introduce sales promotions to persuade commuters. The sales representatives is left to build relationship between companies who are already enrolled.

Even though this company does not have a loyalty marketing program, in a sense the commuter is rewarded because Transitchek card provides tax free-savings nationwide as a part of its benefit program. The card has made it easier and more convenient for it commuters to use their tax free dollars to pay for transit which is rewarding in itself. At the same time Transit center offers this prepaid Transitchek visa card that the commuters can use and Transit Center can also market it's brand.

Ch.17 Advertising and Public Realtions

In terms of type of advertising, Transit Center can best be described as a Product Advertising company.  They Even though they are non-profit company they still try to persuade other companies to enroll employees into Transit Center commuter benefit program. In other words they are still selling a service to these companies, with intent to show companies how they and the employee can benefit from the services offered through Transit Center’s transitchek program.  Transit Center focuses on identifying the service products without emphasis the actual products like vouchers, metro cards, or transitchek credit cards.

            Transit Center conveys it message by using common advertising appeals. The three that are used by this company is Profit, Convenience, and Environmental Consciousness.  The first being Profit as discussed before the main purpose why companies and employees enroll in commuter transit benefits is to save money.  Employees pay for their commute, tax-free with flexibility to set aside up to $230.00 a month for mass transit use and if need $230.00 for commuter.  Convenience is another element that appealing, many commuters like that they don’t have to go to purchase the product. The transitchek credit cards, vouchers, or metro cards can be mailed to your house or the company you work for. The commuter is also able to manage their Transitchek account online, Smartphones, and Tablets. The last advertising appeal is environmental consciousness, which is most important to why the company exist. Transit Center is a nonprofit organization whose mission is to encourage the greater use of mass transit in order to reduce traffic congestion and improve air quality. For many being able to create a healthier cleaner environment is what they value. Some commuters are environmental conscious and refuse to drive if they don’t have to.   

With Transit Center education and awareness activities you can say two of major public relation tools that is used by the company is consumer education and sponsorship. They participate in Dress for Success, which is also a non-profit organization that helps the unfortunate women by giving them professional attire for the business field to assist in finding a job. In addition to that transit center also sponsors to organization like breast cancer Earth Day.  Being associated with these important renowned organization help promote and get commuters and companies to know who Transit center is.

Ch 15 Retailing

Transit Center does not have a retail location. They use their sales marketing representatives team to introduce their services to companies. As discussed before in the previous chapter this companies main headquarters is located in New York City. Transit Center sells its services at a discounted rate depending how many employees sign up for transit center commuter benefits. The discount rate is also determined by company nonprofit or profit status. The nonprofit rate for companies is at 3.9 % with a $18 shipping cost for either metro cards, vouchers, or credit cards to the HR administrators of the companies. The HR administrator then distributes the product to their employees which is reflected on payroll. Profit companies are offered a rate 4.5% at shipping cost $18. The discounted rate is offered less to nonprofit companies because they get a tax break.

When looking at a retailing mix for transit center it can be broken down into personnel, product, and promotion. I didn't include presentation and place because they don't have a physical place for the public to distribute Transit Center commuter benefits, with the exception of a replacement center. A replacement center is a place that commuters can go to if they loss their metro cards. If their Transit credit card is lost they have to contact customer service.
Transit Center personnel and customers service is key component in maintaing relationships with companies. A sales representatives and account managers task is to go to different companies to try to sell their services and also follow up with companies that already have an account with Transit center. Customer service is in place for commuters and companies to call when they lose their product or questions pertaining to accounts. The product that is offered through Transit Center are metro cards, vouchers, and credit cards ; this gives commuters a range. Some commuters prefer having a metro card others a credit card to purchase a metro card from a kiosk. Vouchers are usually offered to companies out of New York City who have a different transportation system.
Promotion is another important component for Transit Center. When personnel travels to these companies to promote their services there are gifts that have Transit Center's name. Transit center also partners up with other organizations for events that give away gifts like t-shirts, pens, umbrellas, bags, metro card holders,etc are distributed to the public. This is a great way for the company to promote their service or products.

A retail establishment that I visited earlier this weekend to accompany my sister was Sephora. It was quite interesting visiting this this retail store. When you think of Sephora you instantly think of makeup, but to my surprise they sell products for beauty, makeup, fragrance, skincare, and hair for both male and female. At this chain operated store you can get a complete make over with the exception of clothing. When you first walk in you smell this nice aroma that is very pleasing to the noise. You also see bright and vibrant colors that are appealing to the eyes. The music is very up beat. I would say their target market is geared towards women of all ages who are into fashion. Then you have these sales representatives walking around to assist their customers with basket of goods that they giveaway to promote different products. You can classify Sephora as a full service shop that offers a variety of products with different price ranges. They also have stations where the customer can get their makeup done and manicures as a free trial. In addition to representatives assistance there are tv screens that show tutorials of how to use products. This is a great way to allow their customers to try the product before buying. When you go to checkout you are offered more samples and gifts which can also be a great promotion strategy. I believe this company is very successful in what they are doing and they are really dominating the cosmetic and beauty industry because of the range in products and prices.