Ch 7 Business Marketing

Business marketing is defined as marketing of goods and services to individuals and organizations for purposes other than personal consumption. We can say that Transit center is an example of business marketing because the services are offered to companies for employees and employers with the purpose of using their metro cards, Transitchek credit visa, or vouchers for traveling back and forth to work. These products offered through Transit can be used for other purposes, such as travel for family functions and events but the customer has to keep in mind that the services offered has a cap of $230 dollars a month and therefore the customer has to determine if the services is used as a business product or consumer product.

Business-to-business electronic commerce is also used for Transit center services. Transit center offers a feature online that allows the employer to manage the employees account and if products like metro cards need to be ordered and sent to company which is considered bulk. The employer can pay for that service online through Transitchek website. This process eliminates paper order and employers from calling Transit center to order products.

Transit Center has an strategic alliance with all city Transportation. Evens though Transit is non profit Business they still get their products from New York City and other cities in order to provide services to other firms. Each of these products( metro card, visa cards, vouchers) have a price to distribute and that's why there usually are delivery charges. Transit center also works with New York city Transit to keep their customers updated on changes or additions to Transportation.

Transit center understands the importance of customer service. They constantly find ways for their customers to better manage their benefits without hassle at the same time help to attract and retain employees by saving them money on commuting cost. They help to educate the employers and employees about commuter benefits. No customer is more important then the other. If Transit Center continues to provide quality service to companies and stick to their "Every one benefits" they can continue to be the lowest cost provider of employee commuter benefits.

Ch 8 Segmenting and Targeting Market

New York City being the largest city in the United States has a transportation system that includes the largest subway system, which is measured by track mileage. In addition to that, other mass Transit that connects buses and trains throughout other cities. The Transportation Market is not only environmental favored by commuters but also a necessity in today’s society. Could you imagine what New City would be like if everyone use cars and even other cities like San Diego or Chicago. I think it would be chaotic. Transit Center targets business commuters in cities but also partnered with transportation organizations, and transit operators across the nation. With New City Mass transit and other Cities as Market segment that have similar product needs working together to create a safe reliable commute each day for workers. 

Transit Center demographic segmentation in the placement of their headquarters is based in New York City not because it has the largest transportation system but also because they Service 11,000 companies, majority of companies based in New York city. People from all ages, gender, social classes, personalities, and Lifestyles use Mass Transit System Nationwide.

Transit Center Targets employee commuters, but if they had a choice I think they would Target everyone since they are non-profit. However the city has to make a profit and that’s why the Transit Center focuses on one segment instead of the cities as a whole. Transit Center allows people who are working to support family, an opportunity to reduce traffic congestion and air pollution, preserve our natural resources and support the economy.  

Additional Post in Regards to Holidays and possible change to commuter benefits

Mass Transit is known for advertising many products on subway carts, buses, billboards etc for Holiday specials. These advertisements and promotions during holidays persuade consumers to shop, shop, and shop.  Most important Transit Center main concern after the holiday is for its commuters to get back in to managing their finances because the holidays can put a whole in your pocket.

Since we are going into holidays and a lot of money will be spent throughout the holidays, savings is crucial! However the benefits for up coming year is in jeopardy for commuters in NYC The monthly transit $230 benefit cap is set to be cut nearly in half to $125 a month at the end of 2011. Which would then gives commuters less leeway  – unless Congress acts to extend it. The Commuter Benefits Equity Act of 2011, which is a regulation for a common cost-of-living adjustment, and for other purposes. Senator Schumer understands New York commuters are challenged in this economic environment and transit operators are under pressure to reduce budget gaps. Tax-free commuter benefits help keep riders on board when fares go up because participants continue to save. Through TransitChek they lessen the commuting costs by offering employees the opportunity to save hundreds of dollars each year. So with the help of commuters expressing this to congress and Mr. Schumer continue support, Transit Center can continue to offer these great benefits. 

Ch 11 Developing and Managing Products

Innovation does exist for Transit Center; the services offered is a new product for commuters who never knew what it meant to save money on their annual commute, until they signed up for Transitchek.  As explained in marketing terms innovation is a product perceived by a potential buyer. It really doesn’t matter whether the product is “ new to the world”. It is new to potential adopter; it is an innovation in this context.  Transit Center has been operating and providing services for years but to many people who join different firms who never herd of Transitchek benefits ,this a product they seek out and want to learn how they can save. A Feature that has been added to the existing product line is Transitchek benefit management online.  Before customers had to get their product like metro cards, Transitchek Visas through order forms or calling the service number for Transit Center sales department.   

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				The online program offered online allows administrators from the firms the ability to place orders online and make direct payments for the services for each benefit program for their employees. In addition, the employees can also manage their benefits for their Transitchek visa card and their Transit Parking.

An improvement to Transit Center is how the employees of each firm can enroll in and manage their TransitChek commuter benefits account online from any Smartphone or tablet!

Employees can enroll anytime, anywhere. The application that you can download on smart phones allows you check balances on their TransitChek QuickPay Card, a prepaid Visa card, instantly

they can also view the last ten transactions made with their TransitChek QuickPay Card all employees can view the benefits used for the last three months, most important If there's a change in their commute — they can change their benefit. In addition With TransitChek Mobile application, the firm and their employees will also have access to the latest TransitChek information and product news.

Transit Center uses the commuters Reponses for developing new ideas or known as Market research update. This allows the company to determine what it needs to improve on or create for their customers. They formulate reports from more than 500 Transit Center commuters. These reports help then develop a NET promoter Score, which is a commonly used customer loyalty metric. They also see how they meet customers’ expectations. Overall the company did a very good ob exceeding customer expectations on the most important element such as the program is easy to implement and administer, helping save on payroll taxes, and cost effective relative tot other providers. 

Ch 16 Intergrated Marketing Communications

Marketing communication from each promotion mix element such as personal selling,advertising, sales promotion, and public relation are combined to get the attention of consumers. Consumer themselves don't recognize these elements, the consumer usually gets the message through Ads or advertising. However these elements are responsible for communicating with consumer directly or indirectly.


Transit Center is predominately focused on personal selling, public relations, and advertising. Sales promotion is not an important element for it's target market, for the reason that the benefits that the company offer is already helping commuters for these companies save money and also helps the employer save money. As discussed before in earlier blogs Transit centers target market is commuters for businesses in big cities national. Throughout my blogs I've talked about New York City because this is where the headquarters is located and it's mass transit is enormous compared to other cities. Transit center incorporates personal selling when the sales representatives goes to these companies face to face with human resources/payroll they present their services with a presentation which the employees can also be present. Their services are advertised on mass transit subway, buses, and products. Also events help advertise Transit Center publicly. These events are partnered with organizations to advertise their services and at the same time allows the public, businesses, and commuters understand Transit Centers mission. Transit center ultimate goal is help commuters of business gain awareness of how they can help reduce traffic in big cities and better the air quality.

Transit center message can be interpersonal communication and mass communication. Being that sales representatives deal with these companies face to face it helps the receivers better understand the services offered. Mass communication is conveyed through advertisements and events that help commuters again awareness.

Another way Transit Center conveys it's message is through twitter. Transit Center uses Twitter as a social network that keeps readers updated for events and things that are happening in the environment. They also post links to other websites pertaining to topics on their tweets so you can get a better understanding of current events.

Some examples of Tweets

TransitChek
@TransitChek TransitCenter’s President and CEO discusses potential reduction in $230 transit benefit cap on CNBC.COM bit.ly/ru0Iz6
14 Oct via web

Today is World Ozone Day. Switch from driving to mass transit as a way to help preserve the Ozone Layer. bit.ly/nQr1SK
16 Sep via web

Traffic is growing longer and more painful in cities around the world, according to IBM’s Global Commuter Pain Study. bit.ly/mX3pKh
9 Sep via web

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.