THE KEY STAGES OF MARKETING IMPLEMENTATION IN SHIPPING COMPANIES INTRODUCTION

The marketing of shipping companies activating in merchant shipping is the science

of Business to Business Marketing (B2B marketing) which deals with the satisfaction

of chartererrsquos ndash shipperrsquos needs for the carriage of goods by sea with main aim the

profit of the enterprise This satisfaction presupposes on the one hand correct

diagnosis of the shipping market to better understand and forecast clientrsquos

(chartererrsquos ndash shipperrsquos) transport needs and on the other hand appropriate

organization planning and control of the shipping enterprisersquos means The more the

shipping enterprise tries to discover what its clients needto adapt the chartering

policy to their requirements to offer appropriate transport services to negotiate the

freight as a function to what it offers as well as to communicate effectively

with the market it targets the more are the possibilities to achieve the most

appropriate efficient and long-lasting commercial operation of its vessels

All shipping enterprises have limited capabilities concerning the means the

resources and the management abilities for their ships This means that it is

impossible to exploit all the chances of the shipping market with equal effectiveness

The matching of the shipping enterprise capabilities with the needs and the desires

of its clients is fundamental for the provision of the desired transport services the

satisfaction and retention of charterers and thus the commercial success of the

enterprise The shipping company must organize its resources in such a manner as

to be able to apply the marketing processrsquo stages and to achieve a long-lasting and

more effective commercial operation of its ships The application of marketing

presupposes correct diagnosis planning organization implementation and control of

marketing effort This process is continuous

The key stages of marketing implementation in shipping companies are the

diagnosis the planning the organization the implementation and the control

Diagnosis

The first stage of shipping marketing is the diagnosis which is consisted of five

phases

1 The phase of the organization of marketing information system

2 The phase of analysis of marketing environmentrsquos threatsopportunities

3 The phase of shipping marketrsquos segmentation

4 The phase of segmentsrsquo evaluation and finally the phase of the target

marketrsquos choice

Phase One Marketing Information System

A reliable and updated information at the enterprises which are activated

worldwide is important The correct sound and timely provision of

information is more imperative to a shipping enterprise than it is to

another land enterprise because the shipping company moves its vessels

worldwide its revenue is realized in foreign currencies (mainly dollars)

and the international events significantly affect freight levels and

consequently the position of the enterprise in the shipping world

Therefore much information is necessary to the shipping companies in

order to offer

appropriate transport services and satisfy their clientsrsquo needs More

specifically persons

occupied with chartering of ships exchange such a great volume of

information useful for

understanding the tendencies of the charter market and necessary for

correct decision making

and correct planning The information exchanged between shipowners

agents

charterers and shippers concerns matters such as demand and supply of

ships port dues

canal dues fuel prices congestion in certain ports etc4 With the

assistance of information

systems ship administrators would be able to review marketing strategies

in time to meet

new challenges and satisfy transportation needs of their clients

Phase Two Analysis of Threats and Opportunities in Marketing Environment

The shipping marketing environment changes continuously creating new

opportunities

and threats According to Kotler P (1991) as a marketing opportunity is

defined an

attractive arena for marketing action of a company in which the company

will have a

competitive advantage On the other hand environmental threat is a

challenge presented by

an adverse trend or development in the environment which can

undermine the position of

the company if no appropriate marketing action is undertaken6 Threats in

the shipping

marketing environment are caused by the institution of new IMO stricter

regulations with

consequences in ship management as well as the reduction in the supply

of able seamen

with an increase of wages as a result Opportunities in the shipping

marketing environment

are created by new technology as well as by development of world trade

In order for a

shipping enterprise to draw up noteworthy marketing plans it must firstly

gather the

appropriate information concerning its internal and external environment

and thereafter it

has to investigate the environmentrsquos opportunities and threats With the

assistance of

information systems shipping companies may review marketing

strategies in order to

exploit new opportunities to avoid threats and satisfy their clients

Phase Three Shipping Marketrsquos Segmentation

The main objective of segmentation is to help the company focus its

efforts to the most promising opportunities The segmentation of the

shipping market is a behavioural one since it is based on the buying

behaviour of the charterers ndashshippers The market segments are based on

the charterers ndash shippersrsquo needs for sea transport of cargo with a specific

type of vessel to a specific geographical region and with specific

chartering terms The shipping market is constituted by separate

segments differentiated as to the type of cargo the type of ship the trade

routes the type and duration of charter In every segment the buying

behavior of the charterers ndash shippers presents common characteristics

The segmentation criteria are the following

1 According to the type of ships the shipping market may be divided into

the Dry Bulk

Carrier Tanker LNGLPG Combined Carrier Containership RORO and

Reefer Market

2 According to the type of cargo the shipping market may be broadly

divided into the Dry

Bulk Cargo Liquid Bulk Cargo Specialised Cargo and General Cargo

Market

3 According to the type of trade routes the shipping market may be

divided into many

segments such as the market of Mediterranean Sea the market of

Caribbean Sea etc

4 According to the duration of the charter the shipping market is divided

into the spot

market and the time-charter market

5 According to the type of charter the market is divided into the Voyage

Charter Market the Time Charter Market the Bareboat Charter Market

and the Contract of Affreightment market

The type of ship and the type of cargo could be named as fundamental

criteria because ship

and cargo are the leading players in every commercial sea transport

Geographical criterion and type of charter have a determinative meaning

and constitute the basis for sub-apportionment for every main segment

ensued from the fundamental criteria It must be noted that the

fundamental criteria do not operate cumulatively in forming the

segments What happens in practice is that a group of cargoes is

transported by one category of ships

The charterersrsquo needs as well as their buying behaviour are differentiated

from segment

to segment8 In each segment the buying behaviour of the charterers

displays common

characteristics A precondition of effective shipping marketing is the

understanding of the

different needs the charterers ndash shippers have in the above market

segments For each

segment of the shipping market appropriate marketing strategies must be

designed and

appropriate marketing mix must be offered

Phase Four Evaluation of Shipping Market Segments

The shipping enterprise must evaluate the market segments by studying the

1 Size of a Segment

The appropriate size of a segment is relative because large shipping

enterprises usually prefer segments with large volume of charters and

avoid small segmentswhereas small companies avoid large segments

because they demand many resources

2 Development of a Segment

The development of a segment is desirable in the degree the companies

wish to increase charters However there is a risk that competitors enter

quickly into the developing segments and limit the companyrsquos

profitability

3 Structured Attractiveness of a Segment

A segment may have the desired size and development but not be

attractive in view of profitability The company should evaluate possible

consequences of those forces to the long-term profitability of the

segment Such forces are the possible new shipping enterprises entering

the market the substitutes of sea transport services such as air transport

etc

4 Company Objectives and Resources

Even if a segment has the appropriate size and development and from

structural point of view is good the shipping enterprise must take into

account the objectives and resources it possesses in relation to this

segment

Phase Five Choice Of The Target-Market

The shipping enterprise should target on the best possible segment or

segments of the

market and select the target - market The target - market is the sum of

shippers ndash

charterers that have the same transportation needs they express

eagerness in buying the

transport services and they show a high degree of buying force A

substantial

precondition for the recognition of a segment as target - market is its

financial viability

in order to justify the drawing up of marketing programmes for attracting

it

The shipping enterprise should apply one of the following selection models

of the target

market which were defined by Abell D (1980)9

1 Segmental Concentration where the enterprise offers transport

services to one and only

one market segment An example of concentrated marketing is the

company ldquoLavinia

Corprdquo (Greece) which manages ldquoReefer Vesselsrdquo and offers transport

services exclusively

to the Reefer market Through concentrating marketing an enterprise

achieves a strong

position in the market segment due to the better knowledge of the

segmentrsquos needs and

the specific gravity it lends itself If the enterprise achieves a good

position in the

segment it may ensure high performance for its investments

2 Selective Specialization where the enterprise selects to offer its

transport services to a

number of market segments which are promising and match the

enterprisersquos resources

There might be minimum or no cooperation between the segments An

example of

company which implements selective specialization is the ldquoBergesenrdquo

(Norway) The

company possesses ldquoGas Carriersrdquo ldquoBulk Carriersrdquo and ldquoTankersrdquo and

offers its transport

services to the liquid bulk as well as to the dry bulk cargo market The

strategy of this

multi-segmental coverage has an advantage over the segmental

concentration concerning

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

The key stages of marketing implementation in shipping companies are the

diagnosis the planning the organization the implementation and the control

Diagnosis

The first stage of shipping marketing is the diagnosis which is consisted of five

phases

1 The phase of the organization of marketing information system

2 The phase of analysis of marketing environmentrsquos threatsopportunities

3 The phase of shipping marketrsquos segmentation

4 The phase of segmentsrsquo evaluation and finally the phase of the target

marketrsquos choice

Phase One Marketing Information System

A reliable and updated information at the enterprises which are activated

worldwide is important The correct sound and timely provision of

information is more imperative to a shipping enterprise than it is to

another land enterprise because the shipping company moves its vessels

worldwide its revenue is realized in foreign currencies (mainly dollars)

and the international events significantly affect freight levels and

consequently the position of the enterprise in the shipping world

Therefore much information is necessary to the shipping companies in

order to offer

appropriate transport services and satisfy their clientsrsquo needs More

specifically persons

occupied with chartering of ships exchange such a great volume of

information useful for

understanding the tendencies of the charter market and necessary for

correct decision making

and correct planning The information exchanged between shipowners

agents

charterers and shippers concerns matters such as demand and supply of

ships port dues

canal dues fuel prices congestion in certain ports etc4 With the

assistance of information

systems ship administrators would be able to review marketing strategies

in time to meet

new challenges and satisfy transportation needs of their clients

Phase Two Analysis of Threats and Opportunities in Marketing Environment

The shipping marketing environment changes continuously creating new

opportunities

and threats According to Kotler P (1991) as a marketing opportunity is

defined an

attractive arena for marketing action of a company in which the company

will have a

competitive advantage On the other hand environmental threat is a

challenge presented by

an adverse trend or development in the environment which can

undermine the position of

the company if no appropriate marketing action is undertaken6 Threats in

the shipping

marketing environment are caused by the institution of new IMO stricter

regulations with

consequences in ship management as well as the reduction in the supply

of able seamen

with an increase of wages as a result Opportunities in the shipping

marketing environment

are created by new technology as well as by development of world trade

In order for a

shipping enterprise to draw up noteworthy marketing plans it must firstly

gather the

appropriate information concerning its internal and external environment

and thereafter it

has to investigate the environmentrsquos opportunities and threats With the

assistance of

information systems shipping companies may review marketing

strategies in order to

exploit new opportunities to avoid threats and satisfy their clients

Phase Three Shipping Marketrsquos Segmentation

The main objective of segmentation is to help the company focus its

efforts to the most promising opportunities The segmentation of the

shipping market is a behavioural one since it is based on the buying

behaviour of the charterers ndashshippers The market segments are based on

the charterers ndash shippersrsquo needs for sea transport of cargo with a specific

type of vessel to a specific geographical region and with specific

chartering terms The shipping market is constituted by separate

segments differentiated as to the type of cargo the type of ship the trade

routes the type and duration of charter In every segment the buying

behavior of the charterers ndash shippers presents common characteristics

The segmentation criteria are the following

1 According to the type of ships the shipping market may be divided into

the Dry Bulk

Carrier Tanker LNGLPG Combined Carrier Containership RORO and

Reefer Market

2 According to the type of cargo the shipping market may be broadly

divided into the Dry

Bulk Cargo Liquid Bulk Cargo Specialised Cargo and General Cargo

Market

3 According to the type of trade routes the shipping market may be

divided into many

segments such as the market of Mediterranean Sea the market of

Caribbean Sea etc

4 According to the duration of the charter the shipping market is divided

into the spot

market and the time-charter market

5 According to the type of charter the market is divided into the Voyage

Charter Market the Time Charter Market the Bareboat Charter Market

and the Contract of Affreightment market

The type of ship and the type of cargo could be named as fundamental

criteria because ship

and cargo are the leading players in every commercial sea transport

Geographical criterion and type of charter have a determinative meaning

and constitute the basis for sub-apportionment for every main segment

ensued from the fundamental criteria It must be noted that the

fundamental criteria do not operate cumulatively in forming the

segments What happens in practice is that a group of cargoes is

transported by one category of ships

The charterersrsquo needs as well as their buying behaviour are differentiated

from segment

to segment8 In each segment the buying behaviour of the charterers

displays common

characteristics A precondition of effective shipping marketing is the

understanding of the

different needs the charterers ndash shippers have in the above market

segments For each

segment of the shipping market appropriate marketing strategies must be

designed and

appropriate marketing mix must be offered

Phase Four Evaluation of Shipping Market Segments

The shipping enterprise must evaluate the market segments by studying the

1 Size of a Segment

The appropriate size of a segment is relative because large shipping

enterprises usually prefer segments with large volume of charters and

avoid small segmentswhereas small companies avoid large segments

because they demand many resources

2 Development of a Segment

The development of a segment is desirable in the degree the companies

wish to increase charters However there is a risk that competitors enter

quickly into the developing segments and limit the companyrsquos

profitability

3 Structured Attractiveness of a Segment

A segment may have the desired size and development but not be

attractive in view of profitability The company should evaluate possible

consequences of those forces to the long-term profitability of the

segment Such forces are the possible new shipping enterprises entering

the market the substitutes of sea transport services such as air transport

etc

4 Company Objectives and Resources

Even if a segment has the appropriate size and development and from

structural point of view is good the shipping enterprise must take into

account the objectives and resources it possesses in relation to this

segment

Phase Five Choice Of The Target-Market

The shipping enterprise should target on the best possible segment or

segments of the

market and select the target - market The target - market is the sum of

shippers ndash

charterers that have the same transportation needs they express

eagerness in buying the

transport services and they show a high degree of buying force A

substantial

precondition for the recognition of a segment as target - market is its

financial viability

in order to justify the drawing up of marketing programmes for attracting

it

The shipping enterprise should apply one of the following selection models

of the target

market which were defined by Abell D (1980)9

1 Segmental Concentration where the enterprise offers transport

services to one and only

one market segment An example of concentrated marketing is the

company ldquoLavinia

Corprdquo (Greece) which manages ldquoReefer Vesselsrdquo and offers transport

services exclusively

to the Reefer market Through concentrating marketing an enterprise

achieves a strong

position in the market segment due to the better knowledge of the

segmentrsquos needs and

the specific gravity it lends itself If the enterprise achieves a good

position in the

segment it may ensure high performance for its investments

2 Selective Specialization where the enterprise selects to offer its

transport services to a

number of market segments which are promising and match the

enterprisersquos resources

There might be minimum or no cooperation between the segments An

example of

company which implements selective specialization is the ldquoBergesenrdquo

(Norway) The

company possesses ldquoGas Carriersrdquo ldquoBulk Carriersrdquo and ldquoTankersrdquo and

offers its transport

services to the liquid bulk as well as to the dry bulk cargo market The

strategy of this

multi-segmental coverage has an advantage over the segmental

concentration concerning

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

occupied with chartering of ships exchange such a great volume of

information useful for

understanding the tendencies of the charter market and necessary for

correct decision making

and correct planning The information exchanged between shipowners

agents

charterers and shippers concerns matters such as demand and supply of

ships port dues

canal dues fuel prices congestion in certain ports etc4 With the

assistance of information

systems ship administrators would be able to review marketing strategies

in time to meet

new challenges and satisfy transportation needs of their clients

Phase Two Analysis of Threats and Opportunities in Marketing Environment

The shipping marketing environment changes continuously creating new

opportunities

and threats According to Kotler P (1991) as a marketing opportunity is

defined an

attractive arena for marketing action of a company in which the company

will have a

competitive advantage On the other hand environmental threat is a

challenge presented by

an adverse trend or development in the environment which can

undermine the position of

the company if no appropriate marketing action is undertaken6 Threats in

the shipping

marketing environment are caused by the institution of new IMO stricter

regulations with

consequences in ship management as well as the reduction in the supply

of able seamen

with an increase of wages as a result Opportunities in the shipping

marketing environment

are created by new technology as well as by development of world trade

In order for a

shipping enterprise to draw up noteworthy marketing plans it must firstly

gather the

appropriate information concerning its internal and external environment

and thereafter it

has to investigate the environmentrsquos opportunities and threats With the

assistance of

information systems shipping companies may review marketing

strategies in order to

exploit new opportunities to avoid threats and satisfy their clients

Phase Three Shipping Marketrsquos Segmentation

The main objective of segmentation is to help the company focus its

efforts to the most promising opportunities The segmentation of the

shipping market is a behavioural one since it is based on the buying

behaviour of the charterers ndashshippers The market segments are based on

the charterers ndash shippersrsquo needs for sea transport of cargo with a specific

type of vessel to a specific geographical region and with specific

chartering terms The shipping market is constituted by separate

segments differentiated as to the type of cargo the type of ship the trade

routes the type and duration of charter In every segment the buying

behavior of the charterers ndash shippers presents common characteristics

The segmentation criteria are the following

1 According to the type of ships the shipping market may be divided into

the Dry Bulk

Carrier Tanker LNGLPG Combined Carrier Containership RORO and

Reefer Market

2 According to the type of cargo the shipping market may be broadly

divided into the Dry

Bulk Cargo Liquid Bulk Cargo Specialised Cargo and General Cargo

Market

3 According to the type of trade routes the shipping market may be

divided into many

segments such as the market of Mediterranean Sea the market of

Caribbean Sea etc

4 According to the duration of the charter the shipping market is divided

into the spot

market and the time-charter market

5 According to the type of charter the market is divided into the Voyage

Charter Market the Time Charter Market the Bareboat Charter Market

and the Contract of Affreightment market

The type of ship and the type of cargo could be named as fundamental

criteria because ship

and cargo are the leading players in every commercial sea transport

Geographical criterion and type of charter have a determinative meaning

and constitute the basis for sub-apportionment for every main segment

ensued from the fundamental criteria It must be noted that the

fundamental criteria do not operate cumulatively in forming the

segments What happens in practice is that a group of cargoes is

transported by one category of ships

The charterersrsquo needs as well as their buying behaviour are differentiated

from segment

to segment8 In each segment the buying behaviour of the charterers

displays common

characteristics A precondition of effective shipping marketing is the

understanding of the

different needs the charterers ndash shippers have in the above market

segments For each

segment of the shipping market appropriate marketing strategies must be

designed and

appropriate marketing mix must be offered

Phase Four Evaluation of Shipping Market Segments

The shipping enterprise must evaluate the market segments by studying the

1 Size of a Segment

The appropriate size of a segment is relative because large shipping

enterprises usually prefer segments with large volume of charters and

avoid small segmentswhereas small companies avoid large segments

because they demand many resources

2 Development of a Segment

The development of a segment is desirable in the degree the companies

wish to increase charters However there is a risk that competitors enter

quickly into the developing segments and limit the companyrsquos

profitability

3 Structured Attractiveness of a Segment

A segment may have the desired size and development but not be

attractive in view of profitability The company should evaluate possible

consequences of those forces to the long-term profitability of the

segment Such forces are the possible new shipping enterprises entering

the market the substitutes of sea transport services such as air transport

etc

4 Company Objectives and Resources

Even if a segment has the appropriate size and development and from

structural point of view is good the shipping enterprise must take into

account the objectives and resources it possesses in relation to this

segment

Phase Five Choice Of The Target-Market

The shipping enterprise should target on the best possible segment or

segments of the

market and select the target - market The target - market is the sum of

shippers ndash

charterers that have the same transportation needs they express

eagerness in buying the

transport services and they show a high degree of buying force A

substantial

precondition for the recognition of a segment as target - market is its

financial viability

in order to justify the drawing up of marketing programmes for attracting

it

The shipping enterprise should apply one of the following selection models

of the target

market which were defined by Abell D (1980)9

1 Segmental Concentration where the enterprise offers transport

services to one and only

one market segment An example of concentrated marketing is the

company ldquoLavinia

Corprdquo (Greece) which manages ldquoReefer Vesselsrdquo and offers transport

services exclusively

to the Reefer market Through concentrating marketing an enterprise

achieves a strong

position in the market segment due to the better knowledge of the

segmentrsquos needs and

the specific gravity it lends itself If the enterprise achieves a good

position in the

segment it may ensure high performance for its investments

2 Selective Specialization where the enterprise selects to offer its

transport services to a

number of market segments which are promising and match the

enterprisersquos resources

There might be minimum or no cooperation between the segments An

example of

company which implements selective specialization is the ldquoBergesenrdquo

(Norway) The

company possesses ldquoGas Carriersrdquo ldquoBulk Carriersrdquo and ldquoTankersrdquo and

offers its transport

services to the liquid bulk as well as to the dry bulk cargo market The

strategy of this

multi-segmental coverage has an advantage over the segmental

concentration concerning

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

the company if no appropriate marketing action is undertaken6 Threats in

the shipping

marketing environment are caused by the institution of new IMO stricter

regulations with

consequences in ship management as well as the reduction in the supply

of able seamen

with an increase of wages as a result Opportunities in the shipping

marketing environment

are created by new technology as well as by development of world trade

In order for a

shipping enterprise to draw up noteworthy marketing plans it must firstly

gather the

appropriate information concerning its internal and external environment

and thereafter it

has to investigate the environmentrsquos opportunities and threats With the

assistance of

information systems shipping companies may review marketing

strategies in order to

exploit new opportunities to avoid threats and satisfy their clients

Phase Three Shipping Marketrsquos Segmentation

The main objective of segmentation is to help the company focus its

efforts to the most promising opportunities The segmentation of the

shipping market is a behavioural one since it is based on the buying

behaviour of the charterers ndashshippers The market segments are based on

the charterers ndash shippersrsquo needs for sea transport of cargo with a specific

type of vessel to a specific geographical region and with specific

chartering terms The shipping market is constituted by separate

segments differentiated as to the type of cargo the type of ship the trade

routes the type and duration of charter In every segment the buying

behavior of the charterers ndash shippers presents common characteristics

The segmentation criteria are the following

1 According to the type of ships the shipping market may be divided into

the Dry Bulk

Carrier Tanker LNGLPG Combined Carrier Containership RORO and

Reefer Market

2 According to the type of cargo the shipping market may be broadly

divided into the Dry

Bulk Cargo Liquid Bulk Cargo Specialised Cargo and General Cargo

Market

3 According to the type of trade routes the shipping market may be

divided into many

segments such as the market of Mediterranean Sea the market of

Caribbean Sea etc

4 According to the duration of the charter the shipping market is divided

into the spot

market and the time-charter market

5 According to the type of charter the market is divided into the Voyage

Charter Market the Time Charter Market the Bareboat Charter Market

and the Contract of Affreightment market

The type of ship and the type of cargo could be named as fundamental

criteria because ship

and cargo are the leading players in every commercial sea transport

Geographical criterion and type of charter have a determinative meaning

and constitute the basis for sub-apportionment for every main segment

ensued from the fundamental criteria It must be noted that the

fundamental criteria do not operate cumulatively in forming the

segments What happens in practice is that a group of cargoes is

transported by one category of ships

The charterersrsquo needs as well as their buying behaviour are differentiated

from segment

to segment8 In each segment the buying behaviour of the charterers

displays common

characteristics A precondition of effective shipping marketing is the

understanding of the

different needs the charterers ndash shippers have in the above market

segments For each

segment of the shipping market appropriate marketing strategies must be

designed and

appropriate marketing mix must be offered

Phase Four Evaluation of Shipping Market Segments

The shipping enterprise must evaluate the market segments by studying the

1 Size of a Segment

The appropriate size of a segment is relative because large shipping

enterprises usually prefer segments with large volume of charters and

avoid small segmentswhereas small companies avoid large segments

because they demand many resources

2 Development of a Segment

The development of a segment is desirable in the degree the companies

wish to increase charters However there is a risk that competitors enter

quickly into the developing segments and limit the companyrsquos

profitability

3 Structured Attractiveness of a Segment

A segment may have the desired size and development but not be

attractive in view of profitability The company should evaluate possible

consequences of those forces to the long-term profitability of the

segment Such forces are the possible new shipping enterprises entering

the market the substitutes of sea transport services such as air transport

etc

4 Company Objectives and Resources

Even if a segment has the appropriate size and development and from

structural point of view is good the shipping enterprise must take into

account the objectives and resources it possesses in relation to this

segment

Phase Five Choice Of The Target-Market

The shipping enterprise should target on the best possible segment or

segments of the

market and select the target - market The target - market is the sum of

shippers ndash

charterers that have the same transportation needs they express

eagerness in buying the

transport services and they show a high degree of buying force A

substantial

precondition for the recognition of a segment as target - market is its

financial viability

in order to justify the drawing up of marketing programmes for attracting

it

The shipping enterprise should apply one of the following selection models

of the target

market which were defined by Abell D (1980)9

1 Segmental Concentration where the enterprise offers transport

services to one and only

one market segment An example of concentrated marketing is the

company ldquoLavinia

Corprdquo (Greece) which manages ldquoReefer Vesselsrdquo and offers transport

services exclusively

to the Reefer market Through concentrating marketing an enterprise

achieves a strong

position in the market segment due to the better knowledge of the

segmentrsquos needs and

the specific gravity it lends itself If the enterprise achieves a good

position in the

segment it may ensure high performance for its investments

2 Selective Specialization where the enterprise selects to offer its

transport services to a

number of market segments which are promising and match the

enterprisersquos resources

There might be minimum or no cooperation between the segments An

example of

company which implements selective specialization is the ldquoBergesenrdquo

(Norway) The

company possesses ldquoGas Carriersrdquo ldquoBulk Carriersrdquo and ldquoTankersrdquo and

offers its transport

services to the liquid bulk as well as to the dry bulk cargo market The

strategy of this

multi-segmental coverage has an advantage over the segmental

concentration concerning

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

behaviour of the charterers ndashshippers The market segments are based on

the charterers ndash shippersrsquo needs for sea transport of cargo with a specific

type of vessel to a specific geographical region and with specific

chartering terms The shipping market is constituted by separate

segments differentiated as to the type of cargo the type of ship the trade

routes the type and duration of charter In every segment the buying

behavior of the charterers ndash shippers presents common characteristics

The segmentation criteria are the following

1 According to the type of ships the shipping market may be divided into

the Dry Bulk

Carrier Tanker LNGLPG Combined Carrier Containership RORO and

Reefer Market

2 According to the type of cargo the shipping market may be broadly

divided into the Dry

Bulk Cargo Liquid Bulk Cargo Specialised Cargo and General Cargo

Market

3 According to the type of trade routes the shipping market may be

divided into many

segments such as the market of Mediterranean Sea the market of

Caribbean Sea etc

4 According to the duration of the charter the shipping market is divided

into the spot

market and the time-charter market

5 According to the type of charter the market is divided into the Voyage

Charter Market the Time Charter Market the Bareboat Charter Market

and the Contract of Affreightment market

The type of ship and the type of cargo could be named as fundamental

criteria because ship

and cargo are the leading players in every commercial sea transport

Geographical criterion and type of charter have a determinative meaning

and constitute the basis for sub-apportionment for every main segment

ensued from the fundamental criteria It must be noted that the

fundamental criteria do not operate cumulatively in forming the

segments What happens in practice is that a group of cargoes is

transported by one category of ships

The charterersrsquo needs as well as their buying behaviour are differentiated

from segment

to segment8 In each segment the buying behaviour of the charterers

displays common

characteristics A precondition of effective shipping marketing is the

understanding of the

different needs the charterers ndash shippers have in the above market

segments For each

segment of the shipping market appropriate marketing strategies must be

designed and

appropriate marketing mix must be offered

Phase Four Evaluation of Shipping Market Segments

The shipping enterprise must evaluate the market segments by studying the

1 Size of a Segment

The appropriate size of a segment is relative because large shipping

enterprises usually prefer segments with large volume of charters and

avoid small segmentswhereas small companies avoid large segments

because they demand many resources

2 Development of a Segment

The development of a segment is desirable in the degree the companies

wish to increase charters However there is a risk that competitors enter

quickly into the developing segments and limit the companyrsquos

profitability

3 Structured Attractiveness of a Segment

A segment may have the desired size and development but not be

attractive in view of profitability The company should evaluate possible

consequences of those forces to the long-term profitability of the

segment Such forces are the possible new shipping enterprises entering

the market the substitutes of sea transport services such as air transport

etc

4 Company Objectives and Resources

Even if a segment has the appropriate size and development and from

structural point of view is good the shipping enterprise must take into

account the objectives and resources it possesses in relation to this

segment

Phase Five Choice Of The Target-Market

The shipping enterprise should target on the best possible segment or

segments of the

market and select the target - market The target - market is the sum of

shippers ndash

charterers that have the same transportation needs they express

eagerness in buying the

transport services and they show a high degree of buying force A

substantial

precondition for the recognition of a segment as target - market is its

financial viability

in order to justify the drawing up of marketing programmes for attracting

it

The shipping enterprise should apply one of the following selection models

of the target

market which were defined by Abell D (1980)9

1 Segmental Concentration where the enterprise offers transport

services to one and only

one market segment An example of concentrated marketing is the

company ldquoLavinia

Corprdquo (Greece) which manages ldquoReefer Vesselsrdquo and offers transport

services exclusively

to the Reefer market Through concentrating marketing an enterprise

achieves a strong

position in the market segment due to the better knowledge of the

segmentrsquos needs and

the specific gravity it lends itself If the enterprise achieves a good

position in the

segment it may ensure high performance for its investments

2 Selective Specialization where the enterprise selects to offer its

transport services to a

number of market segments which are promising and match the

enterprisersquos resources

There might be minimum or no cooperation between the segments An

example of

company which implements selective specialization is the ldquoBergesenrdquo

(Norway) The

company possesses ldquoGas Carriersrdquo ldquoBulk Carriersrdquo and ldquoTankersrdquo and

offers its transport

services to the liquid bulk as well as to the dry bulk cargo market The

strategy of this

multi-segmental coverage has an advantage over the segmental

concentration concerning

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

market and the time-charter market

5 According to the type of charter the market is divided into the Voyage

Charter Market the Time Charter Market the Bareboat Charter Market

and the Contract of Affreightment market

The type of ship and the type of cargo could be named as fundamental

criteria because ship

and cargo are the leading players in every commercial sea transport

Geographical criterion and type of charter have a determinative meaning

and constitute the basis for sub-apportionment for every main segment

ensued from the fundamental criteria It must be noted that the

fundamental criteria do not operate cumulatively in forming the

segments What happens in practice is that a group of cargoes is

transported by one category of ships

The charterersrsquo needs as well as their buying behaviour are differentiated

from segment

to segment8 In each segment the buying behaviour of the charterers

displays common

characteristics A precondition of effective shipping marketing is the

understanding of the

different needs the charterers ndash shippers have in the above market

segments For each

segment of the shipping market appropriate marketing strategies must be

designed and

appropriate marketing mix must be offered

Phase Four Evaluation of Shipping Market Segments

The shipping enterprise must evaluate the market segments by studying the

1 Size of a Segment

The appropriate size of a segment is relative because large shipping

enterprises usually prefer segments with large volume of charters and

avoid small segmentswhereas small companies avoid large segments

because they demand many resources

2 Development of a Segment

The development of a segment is desirable in the degree the companies

wish to increase charters However there is a risk that competitors enter

quickly into the developing segments and limit the companyrsquos

profitability

3 Structured Attractiveness of a Segment

A segment may have the desired size and development but not be

attractive in view of profitability The company should evaluate possible

consequences of those forces to the long-term profitability of the

segment Such forces are the possible new shipping enterprises entering

the market the substitutes of sea transport services such as air transport

etc

4 Company Objectives and Resources

Even if a segment has the appropriate size and development and from

structural point of view is good the shipping enterprise must take into

account the objectives and resources it possesses in relation to this

segment

Phase Five Choice Of The Target-Market

The shipping enterprise should target on the best possible segment or

segments of the

market and select the target - market The target - market is the sum of

shippers ndash

charterers that have the same transportation needs they express

eagerness in buying the

transport services and they show a high degree of buying force A

substantial

precondition for the recognition of a segment as target - market is its

financial viability

in order to justify the drawing up of marketing programmes for attracting

it

The shipping enterprise should apply one of the following selection models

of the target

market which were defined by Abell D (1980)9

1 Segmental Concentration where the enterprise offers transport

services to one and only

one market segment An example of concentrated marketing is the

company ldquoLavinia

Corprdquo (Greece) which manages ldquoReefer Vesselsrdquo and offers transport

services exclusively

to the Reefer market Through concentrating marketing an enterprise

achieves a strong

position in the market segment due to the better knowledge of the

segmentrsquos needs and

the specific gravity it lends itself If the enterprise achieves a good

position in the

segment it may ensure high performance for its investments

2 Selective Specialization where the enterprise selects to offer its

transport services to a

number of market segments which are promising and match the

enterprisersquos resources

There might be minimum or no cooperation between the segments An

example of

company which implements selective specialization is the ldquoBergesenrdquo

(Norway) The

company possesses ldquoGas Carriersrdquo ldquoBulk Carriersrdquo and ldquoTankersrdquo and

offers its transport

services to the liquid bulk as well as to the dry bulk cargo market The

strategy of this

multi-segmental coverage has an advantage over the segmental

concentration concerning

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

Phase Four Evaluation of Shipping Market Segments

The shipping enterprise must evaluate the market segments by studying the

1 Size of a Segment

The appropriate size of a segment is relative because large shipping

enterprises usually prefer segments with large volume of charters and

avoid small segmentswhereas small companies avoid large segments

because they demand many resources

2 Development of a Segment

The development of a segment is desirable in the degree the companies

wish to increase charters However there is a risk that competitors enter

quickly into the developing segments and limit the companyrsquos

profitability

3 Structured Attractiveness of a Segment

A segment may have the desired size and development but not be

attractive in view of profitability The company should evaluate possible

consequences of those forces to the long-term profitability of the

segment Such forces are the possible new shipping enterprises entering

the market the substitutes of sea transport services such as air transport

etc

4 Company Objectives and Resources

Even if a segment has the appropriate size and development and from

structural point of view is good the shipping enterprise must take into

account the objectives and resources it possesses in relation to this

segment

Phase Five Choice Of The Target-Market

The shipping enterprise should target on the best possible segment or

segments of the

market and select the target - market The target - market is the sum of

shippers ndash

charterers that have the same transportation needs they express

eagerness in buying the

transport services and they show a high degree of buying force A

substantial

precondition for the recognition of a segment as target - market is its

financial viability

in order to justify the drawing up of marketing programmes for attracting

it

The shipping enterprise should apply one of the following selection models

of the target

market which were defined by Abell D (1980)9

1 Segmental Concentration where the enterprise offers transport

services to one and only

one market segment An example of concentrated marketing is the

company ldquoLavinia

Corprdquo (Greece) which manages ldquoReefer Vesselsrdquo and offers transport

services exclusively

to the Reefer market Through concentrating marketing an enterprise

achieves a strong

position in the market segment due to the better knowledge of the

segmentrsquos needs and

the specific gravity it lends itself If the enterprise achieves a good

position in the

segment it may ensure high performance for its investments

2 Selective Specialization where the enterprise selects to offer its

transport services to a

number of market segments which are promising and match the

enterprisersquos resources

There might be minimum or no cooperation between the segments An

example of

company which implements selective specialization is the ldquoBergesenrdquo

(Norway) The

company possesses ldquoGas Carriersrdquo ldquoBulk Carriersrdquo and ldquoTankersrdquo and

offers its transport

services to the liquid bulk as well as to the dry bulk cargo market The

strategy of this

multi-segmental coverage has an advantage over the segmental

concentration concerning

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

account the objectives and resources it possesses in relation to this

segment

Phase Five Choice Of The Target-Market

The shipping enterprise should target on the best possible segment or

segments of the

market and select the target - market The target - market is the sum of

shippers ndash

charterers that have the same transportation needs they express

eagerness in buying the

transport services and they show a high degree of buying force A

substantial

precondition for the recognition of a segment as target - market is its

financial viability

in order to justify the drawing up of marketing programmes for attracting

it

The shipping enterprise should apply one of the following selection models

of the target

market which were defined by Abell D (1980)9

1 Segmental Concentration where the enterprise offers transport

services to one and only

one market segment An example of concentrated marketing is the

company ldquoLavinia

Corprdquo (Greece) which manages ldquoReefer Vesselsrdquo and offers transport

services exclusively

to the Reefer market Through concentrating marketing an enterprise

achieves a strong

position in the market segment due to the better knowledge of the

segmentrsquos needs and

the specific gravity it lends itself If the enterprise achieves a good

position in the

segment it may ensure high performance for its investments

2 Selective Specialization where the enterprise selects to offer its

transport services to a

number of market segments which are promising and match the

enterprisersquos resources

There might be minimum or no cooperation between the segments An

example of

company which implements selective specialization is the ldquoBergesenrdquo

(Norway) The

company possesses ldquoGas Carriersrdquo ldquoBulk Carriersrdquo and ldquoTankersrdquo and

offers its transport

services to the liquid bulk as well as to the dry bulk cargo market The

strategy of this

multi-segmental coverage has an advantage over the segmental

concentration concerning

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

Corprdquo (Greece) which manages ldquoReefer Vesselsrdquo and offers transport

services exclusively

to the Reefer market Through concentrating marketing an enterprise

achieves a strong

position in the market segment due to the better knowledge of the

segmentrsquos needs and

the specific gravity it lends itself If the enterprise achieves a good

position in the

segment it may ensure high performance for its investments

2 Selective Specialization where the enterprise selects to offer its

transport services to a

number of market segments which are promising and match the

enterprisersquos resources

There might be minimum or no cooperation between the segments An

example of

company which implements selective specialization is the ldquoBergesenrdquo

(Norway) The

company possesses ldquoGas Carriersrdquo ldquoBulk Carriersrdquo and ldquoTankersrdquo and

offers its transport

services to the liquid bulk as well as to the dry bulk cargo market The

strategy of this

multi-segmental coverage has an advantage over the segmental

concentration concerning

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

the differentiation of the business risk Even if some segments cease to be

beneficial the

enterprise can be profitable in the remaining segments

3 Service Specialization where the enterprise focuses its attention to

the production of a

specific type of transport service which it offers to many segments An

example of

company which implements service specialization is the ldquoCostamare

Shipping

Company SArdquo (Greece) which time charters its container ships to liner

operators

Through this strategy the enterprise achieves a good reputation in the

specialized sector

4 Market Specialization where the enterprise focuses its attention in

servicing many

needs of a specific group of charterers An example of company which

implements

market specialization is the ldquoTeekay Shippingrdquo (Canada) which manages

a large fleet

comprising all types and sizes of tankers for servicing all transportation

needs of

charterers in the oil market The enterprise achieves reputation due to the

fact that it is

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

specialized in servicing a specific group of charterers

5 Full Market Coverage where the enterprise tries to service all

charterersrsquo groups

through all type of ships possibly needed Only the large shipping

enterprises ndash

colossuses as is ldquoMitsui OSKrdquo (Japan) can undertake a strategy for fully

covering the

entire shipping market through differentiated marketing by designing

various marketing

programmes and by offering various transport services in each market

segment In this

case the enterprise cannot offer a non-differentiated marketing

The Stage of Planning

The planning of marketing includes the strategy planning and the

programme planning of

marketing Worsam M (1998) defines marketing planning as the planned

application of

marketing resources aiming to achieve marketing objectives10 The

planning process

includes the following phases

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

1 During the first phase the missions of the enterprise as well as the

business objectives

are determined Most activity sectors of the enterprise aim at a mix of

objectives that

includes increase of fleetrsquos effectiveness improvement of market share

interception of

shipping risk fixture of profitable charters etc

2 During the second phase the tracking down of the strengths and

weaknesses of the

enterprise in relation to opportunities and threats from the external

environment is

conducted Therefore in this phase the company may understand its

relation to the

shipping environment in which it is activated

3 During the third phase the marketing strategies and programmes are

determined

4 The last phase includes the evaluation of expected results and the

tracking down of

alternative marketing plans

The planning of marketing ends up at a document called ldquomarketing

planrdquo McDonald M

adds that success of a marketing plan depends on the quality of

information gathered during

the previous marketing process stages

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

Marketing strategies are the means by which a company achieves

marketing objectives

and is related to the tools of marketing mix

Marketing mix is the sum of marketing tools used by the enterprise in

order to achieve its objectives in the target - market The tools of

marketing mix for a shipping enterprise which is activated in tramp or

liner shipping marketare the Product (Tramp or Liner Service) the Price

(Freight or Hire) the Process (Negotiationsrsquo Procedure amp Execution of the

Charter) the People (Office Personnel amp Shiprsquos Crew) the Place (Ports amp

Geographical Area of Shiprsquos Employment) the Promotion (advertising

programs) and the Physical Evidence (Shiprsquos Characteristics amp

Seaworthiness of the Vessel)

Additionally a new tool of the shipping marketing mix is the ldquoPAPERLESS

TRADErdquo and constitutes the eighth tool of the shipping marketing mix

Shipping companies in order to respond fully to the demands of the

competitive shipping market is necessary to

use modern electronic communication means by which time cost and

effort are saved and

quality improvement in the services offered is achieved

The action plans must be applied correctly so that the proper transport

service be

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

provided to the appropriate charterer at the right time and port with the

appropriate vessel

and at freight levels that satisfy not only the shipping enterprise but also

its client

The planning of marketing programmes consists of the basic decisions

concerning the

distribution of marketing resources marketing expenses and marketing

budget among the

various tools of marketing mix Shipping enterprises have unique

capabilities with regard

to the means resources and abilities of managing their ships which

means it is

impossible to exploit all the opportunities of the shipping market as

efficiently as other

companies do The combination of the shipping enterprisersquos capabilities

together with the

needs of the clients is a basic factor for the provision of desired transport

services the

satisfaction and retention of the charterers and therefore for the

commercial success of the

enterprise The shipping company must organize its resources in such a

manner as to be

able to apply the marketing plan

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

The management of a marketing department should also decide which

level of marketing

expenses is necessary in order to achieve the marketing objectives The

enterprise already

knows from the previous stage the means and resources it possesses for

materializing its

objectives Companies entering a market try to learn what is the ratio of

marketing budget

to the sales of their competitors A company should analyze the marketing

work required

in order to achieve a given volume of sales and then to cost this work The

distribution of

marketing budget among the tools of marketing mix constitutes a basic

stage in the

planning procedure of marketing programmes

23 The Stage of OrganizationThe function of organization determines which objectives will be met and by whom Inthis stage all the resources of a shipping enterprise are utilized depending on thedemands and opportunities of the market Appropriate individuals must staff themarketing and sales departments Persons employed in marketing departments should bequalified with marketing knowledge chartering knowledge and knowledge of shippingfinancial policy In addition employers of marketing department should be updated withregard to developments in shipping economy and politicsAccording to McDonald M (1999) the operation of a typical marketing department is

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

not necessary for planning and controlling the marketing process13 This is the case insmall shipping companies that manage two or three ships where the general managerunderstands the needs of clients in depth However as the enterprisersquos fleet grows thespectrum of its services increase and the competitive pressures in global environmentare broadened the need for organizing the marketing by a central body becomes moreand more imperative The benefits of a marketing department are1048707 It ensures that every employee of the enterprise understands the marketing philosophyand the policy of the enterprise and executes his duties according to it1048707 It plans the activities of the shipping enterprise concerning the market research thepromotion and publicity of the sea transport services924 The Stage of ImplementationA correct drawing up of the shipping enterprise strategy is achieved via rationallyplanned business actions and via the provision of appropriate transport services Marinetransport services are priced promoted and offered to charterers for a payment offreight The action plans must be applied correctly so that the proper transport service isprovided to the appropriate charterer at the right time and port with the appropriate shipand at freight levels satisfying not only the shipping enterprise but also its clientsMarketing of shipping companies is the provision of appropriate sea transport services bythe right people (personnel and crew) to right people (charterers - shippers) at the properplace (ports) and time at a fair price (freight or hire) with a suitable promotion1425 The Stage of ControlThe last step of the process is control which includes the follow up of above actionsand the correction of any deviations The shipping company needs processes ofmeasuring the marketing plansrsquo results and of re-feeding them in order to be ascertainedthat objectives of the marketing department will be achieved Control of the yearly planis the means by which one may be certain that the company achieves its marketing

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

objectives According to Berkowits Kerin Hartley and Rudelius (1997) during thecontrol process the performance achieved is measured a comparative analysis ofexemplary performance of marketing plans against current performance is carried outcauses for possible deviations are sought and business measures are taken for theircorrection15 The control may be preventive if it precedes the marketing plan parallelif the marketing plan is currently in progress or repressive if it is carried out after themarketing planrsquos implementation3 AN EMPIRICAL RESEARCH OF MARKETING IMPLEMENTATION IN THE LARGESTTANKER AND LINER COMPANIES IN THE WORLD RESEARCH METHODOLOGYAn empirical research was carried out for the ten largest tanker shipping companies andfor the ten largest liner operators of container ships in order to be confirmed that thecompanies ndash organization models in the world understand the importance of marketingand apply improved marketing strategies16 According to Hoffman D and Bateson J(1997) the study process of the most successful enterprises in the world and the effort forinterpreting their strategy is called ldquobenchmarkingrdquo17 According to ldquobenchmarkingrdquo thebest enterprises in a market are determined as organization models and as a comparisonmeasure for the smaller enterprises of the branchEmpirical research was based on advertising material of the above enterprises as well ason data requested directly from the companies18 More specifically information wasgathered for their competitive advantages their business relationships to charterers theirshipsrsquo performance their safety system etc The data was appropriate and sufficient fordrawing significant conclusions from them regarding the marketing philosophies theyadopt and the marketing strategies they apply The accuracy of collected information isnot questioned to the degree that this was drawn out of its initial source of gathering Inaddition the reliability of each source is a basic evaluation criterion of researcherrsquos skillsThe companies from which the data was gathered maintain separate market research

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

depts which are manned with appropriate trained analysts The work of these analysts isthe systematic collection of the necessary information and its distribution to the decisionmakers of the enterprise After the critical appreciation of sufficiency accuracy and10reliability of collected data and after the careful study of the records considerableconclusions ensued regarding the manner by which they perceive their clientsrsquorequirements the segmentation differentiation and promotion strategies they apply andthe marketing philosophies they adopt31 Empirical Research in the Largest Tanker Shipping CompaniesThe tanker shipping companies participating in the research were the following FrontlineMitsui OSK Lines Teekay Shipping Worldwide Overseas Shipholding Bergesen TankerPacific Management APMoller ndash Maersk Group Nippon Yusen Kaisha andAngelicoussis Shiphld which manage 738 mil dwt (440 tankers) ie the 33 of the totaltankers tonnage in the world19 The above companies are the ten largest shipping companiesin the tanker market worldwide and they offer high quality maritime transport servicesHow do they Perceive the Charterersrsquo RequirementsThe study showed that the largest tanker companies in the world have a very clear pictureof their clientsrsquo requirements All companies classify the charterersrsquo requirements in thesame manner with the one the charterers rank their needs The tanker companies believethat their selection criteria from a charterer is the provision of safe carriage of goods bysea and the compliance of the company with international safety standards regarding theconstruction operation and management of ship The image of the shipowning companyin the market and the history of losses and damages play a decisive role in the selectionof a tanker company by the charterer The freight though it is taken seriously intoconsideration by the charterers does not constitute the decisive factor for selecting a shipowner The largest tanker companies in the world have perceived that the decisions of thecharterers are oriented towards safety and not towards freight This deep knowledge for

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

their clientsrsquo transportation needs is due to two reasons Firstly the companies maintainmarket research department manned with experienced analysts who provide to themanagement the appropriate information concerning the charterers and secondly thecompanies apply a policy of maintaining good business relations with their clientsWhich Marketing Philosophy do they AdoptThe largest tanker companies know that the charterersrsquo requirements are orientatedtowards safety and so they have adopted the philosophy of social marketing Accordingto Kotler P (1994) the philosophy of social marketing presupposes that the duty of theenterprise is to determine the clientsrsquo needs and to provide the desirable satisfactionmore effectively and efficiently than their competitors in a manner that promotes theprotection of environment20 Based on the above philosophy the tanker companies haveset the following objectives104870710487071048707 Primary aim of the companies is their compliance to the international standards of shipsafety and management104870710487071048707 The companies are specially sensitized in environmental matters resulting in paying largeamount of money for research and development of environment protection programs104870710487071048707 Another objective is to provide an appropriate chartering negotiation procedure whichis based on the rules of honest negotiation as defined by BIMCO104870710487071048707 The companies aim to provide high quality transport services This includes appropriatevoyage planning trade and itinerary flexibility rapid voyage execution rapid and correctloading and unloading process and reduction of the ldquoturn aroundrdquo time to the minimum104870710487071048707 The companies seek to maintain good business relationships with charterers11Which Marketing Strategy do they ApplyThe largest tanker companies apply a high degree differentiated marketing strategyaccording to which they address to selected market segments by adapting their policy toeach one of them Thus the segmentation of the tanker market is based onbull The type of cargo they distinguish the market into two basic categories The oil market

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

and the oil product market The latter includes as many categories as the products arebull The geographical field of tankers employment various market segments ensuebull The type and duration of charters every charter market has a segment that includes shorttermcharters (spot market) and a corresponding one which includes long-term chartersThe needs of charterers are differentiated from market segment to market segment Theappropriate marketing mix is offered in every market segment The tanker companies usedifferentiation strategies of transport service in order to gain the preference of the charterersThe tanker companies use geographical quality personnel and image differentiation Theircompetitive advantages that differentiate them from their competitors are the following104870710487071048707 Frontline possesses a large and modern fleet of tankers which can meet the strictlegislation of the extremely sensitized environmentally regions Frontline achievesgeographical and quality differentiation through its capacity to possess a hightechnology fleet employed in any sea without trading and geographical restrictions104870710487071048707 Mitsui OSK Lines has created a strict management system called the ldquoMOLEnvironmental Management Systemrdquo According to this system the crews aretrained at the simulation centers of the company In addition the ships areconstructed in such a manner (PBCF system) so that risk of the marineenvironmental pollution is reduced fuels are saved and speed is increased by 2Mitsui obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Mitsui achieves personnel differentiation through theapplication of continuous training programs as well as quality differentiationthrough the application of a strict environmental protection policy104870710487071048707 Teekay Shipping has created a marine management system called the ldquoMarineOperations Management Systemrdquo which imparts the philosophy of safetymanagement to the entire organization The system includes efficiency indicators forconstant monitoring and improvement of all enterprisersquos operations Teekay obtained

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

in 2003 the ldquoCertificate of Environment Management International Standards - ISO14001rdquo Teekay achieves quality differentiation through the application of a strictsafety management policy104870710487071048707 Worldwide spends large amounts of money for research and development of marineenvironment protection programs Its fleet includes high technology ecological tankersWorldwide won in 2003 the ldquoGreen Awardrdquo Worldwide achieves quality differentiationthrough the application of an environmental protection policy as well as imagedifferentiation through the public acknowledgement of its active role in the environmentalprotection efforts104870710487071048707 Overseas Shipholding Group applies a technologically advanced system for the unificationof management of chartering department and of fleet called the ldquoOSGrsquos NetworkingSystemrdquo The system coordinates the orders and actions at company and onboard the vesselThe company obtained in 2003 the ldquoCertificate of Environment Management InternationalStandards - ISO 14001rdquo Overseas achieves quality differentiation through the applicationof technologically advanced intracommunication systems104870710487071048707 Bergesen gives high priority in maintaining a safe work environment for seamen Thisis achieved through maintaining a safety committee for each ship (Protection andEnvironment Committee) The committeesrsquo annual reports help the company in12planning strategies for improving the work conditions and for increasing the shipefficiency Thus Bergesen achieves quality and personnel differentiation104870710487071048707 Tanker Pacific Management has made a good image in the tanker market and has builtthe reputation of the most reliable and responsible company This has as a result themaintenance of long-term relations with charterers The company achieves imagedifferentiation through the application of good business relationsrsquo policy104870710487071048707 The APMoller ndash Maersk Group achieves quality differentiation through theimplementation of auxiliary marine activitiesrsquo policy (such as oil processing industries)

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

and through the application of an environmental protection policy The companyachieves also personnel differentiation through constant training programs104870710487071048707 Nippon Yusen Kaisha achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itineraries104870710487071048707 Angelicoussis Shiphld also achieves quality differentiation through maintaining newmodern and specialized fleet which can provide safe rapid and reliable itinerariesIn addition the largest tanker companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisements In this way they place their competitors in an inferiorposition if the last provides lower quality services The tanker companies have developedvarious advertising programs These programs include design of web page on the internetcreation of brochures donations in researches advertisements in shipping press etc32 Empirical Research at the Largest Liner OperatorsThe liner companies participated in the research were the following APMoller ndash MaerskGroup Evergreen Cosco PampO Nedloyd NOLAPL MSC NYK KLine YangMing andHapag Lloyd which manage 1988980 mil TEU (703 containerships) ie 476 of the totalnumber of containerships in the world and the 35 of total TEU21 The above companies arethe ten largest liner operators and they provide high quality transport services Empiricalresearch showed similar results to those showed for the tanker companies It should benoted that the liner operators were the first companies in the world which understood theimportance of marketing and were the first which applied improved marketing strategiesHow do they Perceive the Shippersrsquo RequirementsThe study showed that the largest liner companies in the world have a very clear picture oftheir clientsrsquo requirements All companies classify the shippersrsquo requirements in the samemanner the shippers rank their needs More specifically the liner companies believe that

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

their selection criteria from a shipper are the voyage duration the frequency and theflexibility of the itineraries the reliable execution of the transport and the immediacy of theitineraries The provision of a safe carriage of goods and the compliance of company withthe international safety standards are important selection criteria of the carrier by shipperThe carrierrsquos image in the market and the history of losses and damages play decisive rolein selecting the liner company by the shipper The freight although it is taken seriouslyunder consideration by the shippers is not the decisive carriersrsquo selection criteria This deepknowledge of their clientsrsquo desires are owed to the fact that the companies maintain goodbusiness relationships as well as market research departments manned by experiencedanalysts who collect the necessary information regarding the shippers13Which Marketing Philosophy do they AdoptThe largest liner companies know that the clientsrsquo requirements are orientated towardsquality Therefore the companies have adopted the marketing philosophy with themarket as a focal point which according to Kotler P (1994) presupposes that the dutyof the enterprise is to determine the needs of its clients and offer the desired satisfactionmore effectively and efficiently than its competitors22 Based on the above philosophythe liner companies have set the following objectives104870710487071048707 Primary aim of the companies is the provision of high quality shipping services104870710487071048707 The liner companies give special emphasis to the provision of logistic services104870710487071048707 The next objective of the companies is their compliance with the international standardsof shiprsquos safety management104870710487071048707 The companies seek to maintain a good reputation and image among banks insurerssuppliers agents and shippers104870710487071048707 The liner companies maintain advanced systems of transport monitoring and ofconstant updating of shippersWhich Marketing Strategy do they ApplyThe container is a means of cargoesrsquo transport which is based on the system of unitizationAccording to this philosophy cargo is transported in identical units of standard dimensions

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

that are loaded and unloaded in the same manner constraining the cost of transportpackaging and handling to the minimum The above ndash mentioned system leads touniformity of the transport service provided However in order to cover the differenttransportation needs of shippers and to serve the specialized cargoes special containerswere created Thus the largest liner companies of containerships apply a low degree ofdifferentiated marketing strategy They address to selected market segments by adaptingtheir policy to each one of these The segmentation of the liner market is based onbull The type and volume of the cargo the market is distinguished into two basiccategories The market of standard containers and the market of special containers Thelatter includes as many subcategories as the special containers arebull The geographical field of containerships employment a series of individual markets ensueThe shippersrsquo needs are differentiated from market segment to market segment In everyindividual segment the buying behavior of the freighters displays common characteristicsThe liner companies understand the different needs the shippers have in the above marketsegments and plan the appropriate marketing programs so that they provide the desiredtransport services The appropriate marketing mix is provided in each segmentThe liner companies use differentiation strategies for the transport service in order to winthe shippersrsquo preference The liner companies use geographical quality personnel andimage differentiation The competitive advantages of the largest liner companies thatdifferentiate them from their competitors are the following104870710487071048707 The APMoller ndash Maersk Group possesses a large and modern fleet of containershipsand manages a large network of routes servicing the needs of trade throughout theworld In this way the company achieves geographical differentiation In addition thecompany achieves quality differentiation through the application of Safety and RiskManagement System The company has won the awards ldquoISPrdquo ldquoCustoms-Trade

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

Partnerships Against Terrorist Validation Awardrdquo ldquoMaritime Excellence LifetimeAchievements Awardsrdquo and the ldquoTransportation Safety Administration Awardrdquo14104870710487071048707 Evergreen achieves quality differentiation for the service provided through theapplication of a technologically advanced EDI System between the company and theshippers The system provides fast and valid information while time and effort aresaved The company won the ldquoE-Commerce Excellence Award 2004rdquo104870710487071048707 Cosco has built the best image in the market of containerships and has the reputationof the most reliable company As a result the company maintains long-term businessrelationships and achieves image differentiation Cosco won the ldquoSailing ScheduleReliability Reward on Australia ndash East Asia Traderdquo as well as the ldquoInternationalQuality Management Platina Medalrdquo104870710487071048707 PampO Nedloyd (like Evergreen) achieves quality differentiation through theapplication of a technologically advanced EDI system between company and shippers104870710487071048707 NOL APL achieves quality differentiation through maintaining a new and modernfleet of specialized containerships such as reefer containerships with ventilation ofpressurized gas with movable sides of liquid bulk cargoes etc104870710487071048707 MSC gives high priority to the development of its fleet During the last six years thecompany showed a remarkable doubling of its fleet (from 120 ships in 1997 to 240ships in 2003) In this manner MSC achieves quality differentiation104870710487071048707 NYK in comparison with the other liner companies possesses the most advanced andorganized logistics services system ie a complete cargo transport from the storagearea to the point of destination In this way NYK achieves quality differentiationbull K Line has created a strict management system called the ldquoK Line EnvironmentalManagement Programrdquo which transpires the safety management philosophythroughout the organization In this way the company achieves quality differentiation104870710487071048707 Yang Ming has built a very good image in the liner market and has the reputation of a

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

company which is based on teamwork innovation honesty and pragmatism In thismanner the company achieves image differentiation104870710487071048707 Hapag Lloyd Group achieves quality differentiation through the policy ofconstructing hiring and selling containers to other liner companies The Hapag LloydGroup is the largest manufacturer and leasing company of containershipsIn addition the largest liner companies use advertising as a basic competition toolThe companies provide high quality transport services and have as a motive to reveal thisquality through advertisement The liner companies have developed similar advertisingprograms to those developed by tanker companies Figure 4 presents the basic results ofempirical researchCONCLUSIONSThis article presents the stages of marketing implementation in shipping companiesMarketing of shipping companies is the provision from the right people (the personnelof shipping enterprise) the appropriate maritime transport services to the appropriateclients (charterers ndash shippers) at the right place (port or geographical area) at the rightmoment of time at the appropriate freight with the appropriate promotionAdditionally the article attempts a comparative analysis of marketing implementationin the largest tanker and liner shipping companies in the world The empirical researchproved that the tanker and liner shipping companies - organization models in the world -understand the importance of marketing implementation and apply improved marketingstrategies (differentiation segmentation promotional strategies) The marketing15administration is carried out by a separate department which undertakes the analysisplanning application and control of the marketing processFigure 4 Results of empirical researchREFERENCES1 PLOMARITOU E (2006) Marketing of Shipping Companies Athens Stamoulis Publicationspp 112GOULIELMOS Α(2001) Operational Management of Shipping CompaniesAthens StamoulisPublications pp 457

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

3 KEEGAN W J (1974) Multinational Marketing Management New Jersey Prentice ndash Hall pp150-1634GIZIAKIS K PAPADOPOULOS A PLOMARITOU E (2006) Chartering Athens StamoulisPublications 2nd Edition pp 182165 LITTLE J Decision Support Systems for Marketing Μanagers Journal of Marketing No 43 pp 10-166 KOTLER P (1994) Marketing Management Athens Interbooks pp 1077 EVANS M (1997) Market Segmentation in Marketing Book CIM Marketing Series pp 303-3078 PLOMARITOU E (2005) Marketing the Greek Way Shipping Network No 1 Issue 6 pp 79 ABELL D (1980) Defining the Business The Starting Point of Strategic Planning USAEnglewood Cliffs Prentice Hall pp 192-19610 WORSAM M (1998) Marketing Operations 1998-1999 the workbook produced jointly withthe CIM for advanced certificate recommended by the CIM chief examiner London CIM pp10711 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp3412PLOMARITOU E (1996) The Implementation of EDI in Ports Special Reference to EDIImplementation in the Port of Piraeus Dissertation Thesis University of Wales Cardiff pp 19-2313 McDONALD M (1999) Marketing Plans England Butterworth-Heinemann 4th Edition pp15-1614 PLOMARITOU E (2004) Marketing of Shipping Companies a Necessity in Modern ShippingBusiness Economic Outlook Issue 4696 No 87 pp 1415 BERKOWITS KERIN HARTLEY RUDELIUS (1997) Marketing Irwin McGraw Hill pp60016 PLOMARITOU E (2005) The Implementation of Marketing in Shipping Companies as a Toolfor Improvement of Chartering Policy A Comparative Analysis of Marketing Implementation inShipping Companies Worldwide and in Greece a Case Study in Containership Market andTanker Market PhD Thesis University of Piraeus17 HOFFMAN D BATESON J(1997) Essentials of Services Marketing USA The Dryden Presspp 4818 ldquoMinutes of the Annual Frontlinersquos Meeting 2004rdquo ldquoMOL Group Management Plan 2004-2006rdquo ldquoWorldwide Mission and Statementrdquo ldquoOverseas Shipholdingrsquos Client FocusrdquoldquoTankerPacific Core Valuesrdquo ldquoAP Moller ndash Maersk Business Areasrdquo ldquoNYK Business Credordquo ldquoVision ofFrontline 2004rdquo ldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoTeekayrsquos Core Purposeand Valuesrdquo ldquoBergesenrsquos Business StrategiesrdquoldquoAngelicoussis Company ProfilerdquoldquoStrategy ofFrontline 2004rdquoldquoMOL STEP Mid Term Management Plan 2004rdquo ldquoOverseas Annual report2004rdquo ldquoTanker Pacific Annual Report 2004rdquo ldquoAnnual Report of Frontline 2004rdquo ldquoMOLEnvironmental and Social Report 2004rdquo ldquoTeekayrsquos Marine Operations Management SystemrdquoldquoOSGrsquos Networking Systemrdquo ldquoBergesenrsquos Environment Committeesrdquo ldquoMaersk Values and

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76

Philosophyrdquo ldquoEvergreenrsquos Annual Reportrdquo ldquoMission Statement of Coscordquo ldquoPampO NedlloydrsquosCompany Profilerdquo ldquoMSCrsquos Company Profilerdquo ldquoK Linersquos Company Profilerdquo ldquoYang MingBusiness Reportrdquo ldquoHapag Lloyd Philosophyrdquo ldquoEvergreenrsquos Business Development OutlinerdquoldquoPress Releases of Cosco Grouprdquo ldquoEvergreenrsquos Market AnalysisrdquoldquoHapag Lloyd BriefPortraitrdquoldquoAP Moller - Maersk Group Security Policyrdquo ldquoMSCrsquos Facts and Figuresrdquo ldquoNYK LineWorld-Wide Businessrdquo19 Intertanko Tanker Facts Report Intertanko January 200420 KOTLER P (1991) Marketing Management Athens Interbooks pp 7321 STOPFORD M (2004) Container Intelligence Monthly Clarkson Research Studies22 KOTLER P (1991) Marketing Management Athens Interbooks pp 73-76