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					    I/AME : INTERNATIONAL ACADEMY
        of MANAGEMENT and ECONOMICS
                      Title of Thesis                     Version 1.0                   Page1of 121
    AN ASSESSMENT OF THE MARKETING                        Submitted by :                Submission Date :
    STRATEGIES AND PROBLEMS OF                             Romel M. Aropo               April 2008
    RMA CARGO LOGISTICS, INC.

                                      CHAPTER 1

                       THE PROBLEM AND ITS BACKGROUND


Introduction

           In the midst of trade facilitation and globalization, every nation must continue to

formulate and re-formulate, marketing strategies design for greater local and global

competitiveness. The freight forwarding industry has an important role in this area of trade

liberalization and globalization. The freight forwarder provides services which may range

from customs clearance to a comprehensive package of services including the total

distribution   and   transportation   process.   Specifically,   the       service   includes    cargo

consolidation, break-bulk agent, non-vessel operating common carrier (NVOCC), trucking,

warehousing, traffic consultation, logistics and other forms of cargo management.

           In this connection, RMA Cargo Logistics, Inc. was formally established as a

corporation in 2001(although it has been operating as a freight forwarder since 1996) soon

after its founder, Romel M. Aropo, who has just resigned from a multinational freight

company, Kuehne and Nagel realized the growing demand for reliable services of moving

goods and capital equipment to and from the Philippines and                  worldwide. The logical

consequence was expansion in all facets of forwarding. As one of the emerging dynamic

forwarding agents all over the world, RMA Cargo Logistics, Inc. nowadays offers a

complete range of logistics services which include sea freight, Less Container Load/Full

Container Load,(LCL/FCL), overland transport, customs clearance, door-to-door concepts,

air cargo consolidation, industrial project, heavy and over sized cargoes, import and export
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    RMA CARGO LOGISTICS, INC.

documentation and formalities, consultation on insurance, packing and crating, removals,

personal effects and bank procedures.

          RMA Cargo Logistics, Inc.‟s mission is to be a provider of world-class surface

and air transport service for the Philippine export import markets and be a dependable and

competent logistic partner in industrialization.

          According to Kotler (2002) distribution logistics is the anticipation, management

and satisfaction and of demand through the exchange process. This involves the goods,

services, organization, people, places and ideas. He emphasizes that includes anticipating,

managing and satisfying demand.

          Indeed, freight forwarders have a significant role, not only in facilitating the

delivery of goods and services but also in marketing their service like arranging the

customs clearance for their clients, import and export, both sea freight and airfreight.

          Individual freight forwarders may also start looking at the possibility of forming

partnerships. Expertise and skills may be combined for increased capabilities. The more

established customs brokerage/freight forwarding companies may do well to integrate their

service by including forwarding, logistic and/or warehousing.

          Brokers/Forwarders can also expand their knowledge of total supply chain

management where opportunities are great. The rules are the games in this field have been

redefined with the advent of information technology; and the proverbial gold mine may be

outside of customs, just waiting to be discovered.

          Dickson (2004) posited the emergence of integrated shippers and full service

freight forwarders has enabled these new channel entities to offer multi-mode
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transportation service packages (for example, truck to rail to truck) that combined the

advantage. It has also made the different modes, price and service highly competitive.

Containerization has also contributed to the ease of switching modes as well as reducing

handling, damage and pilferage. A further advantage of container is that they can often

serve as a temporary storage area. Consolidation warehouses have evolved to take

advantage of full track load or container efficiencies. Located strategically to the buyer, the

warehouses receive goods from a number of suppliers, consolidate and ship full track loads

to the buyers. Some freight forwarding companies are using the information system of their

shippers to keep track of goods in transit, identify sources of delay and unreliability, and

control the performance of the transport supplier.

          Distribution logistics is the management of the flow of materials and goods form

the point of final consumption. The customer benefits from a channel‟s logistics by

receiving goods on time, at the right place, in the right quantity, in the right condition and at

the lowest total cost. Among marketing management functions, logistics maybe the

Cinderella story whose time has in the freight forwarding industry, a number of recent

events and trends have led them to pay much more attention to this dimension of the

marketing and exchange process.

          The major concern with transportation management is the value received for the

money spent on transportation. Air travel and trucking are faster, thus reducing in-transit

inventory carrying costs (which can become large when goods travel by rail or water) and

enabling express or expedited delivery. Air and road transportation are also more reliable,

more convenient and more flexible. Air transportation also has the lowest pilferage and
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     RMA CARGO LOGISTICS, INC.

damage. Transportation by rail or water is inexpensive, and the volume of discounts can be

great. The transit time are reliability of these services are less attractive but improving. The

deregulation of rai, air transportation and trucking has led to the introducing of new

services, price competition and the possibility of negotiating better deals.

              In their attempts to gain competitive service and total cost advantages, an

increasing number of freight forwarding companies are going beyond the conventional

approaches to improving logistics (such as changing transportation modes and warehouse

location) and are adopting one or more strategies. Each of these strategies fundamentally

involves using the information from customer and employees. In most cases, adoption

these strategies is enhanced by electronic data interchange (EDI). Information is shared

among channel partners on such factors as customers, goods in transit, shipping and

payments. Thus, this information is being used creatively to reduce cost and increase

customer service, often both at the same time.

              In an atmosphere of keen competition, like in the freight forwarding industry,

where only the fittest will survive, and business firms like the Commercial Freights Service,

Inc., will to strategic marketing management. This defined by Schernerhorn and Chappell

as continually asking the question “are we doing the right thing?” it consists of the following

activities:

              1. Formulation of the future mission of the organization in the light of changing

                 external factors such as regulation, competition, technology and customers.

              2. Development of competitive marketing strategy to achieve the mission.
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    RMA CARGO LOGISTICS, INC.

           3. Creation of an organizational structure which deploy resources to carry out its

              competitive strategy, requiring attention to the big picture and a willingness to

              adapt to challenging competitive circumstances.



           Indeed, during this era of changes and challenges, of trade liberation and

globalization, there is a need to asses and re-asses the marketing strategies and problems

of freight forwarding firms like. RMA Cargo Logistics, Inc. to be able to respond to said

changes and challenges in the marketplace relative to competition.

           As the president and r and one who is directly involved in marketing and sales of

RMA Cargo Logistics, Inc., this researcher is profoundly interested on marketing strategies

and problems of said forwarding firm.




Statement of the Problem

           The major problem of this study is to assess the marketing practices and

problems of RMA Cargo Logistics, Inc.

           More specifically, the study has endeavored to answer the following question:

           How do selected respondents asses the marketing practices of RMA Cargo

Logistics, Inc. in terms of:

                  a. People (on the target market);

                  b. Product (or Service in the Freight Forwarding industry);

                  c. Price (or Service fees);

                  d. Promotion (or Advertising and Personal Selling); and
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                e. Place (Location of Freight Forwarding Firm)?

         How effective are the over-all marketing practices of RMA Cargo Logistics Inc as

perceived by the respondents?

         2. What are the marketing problems encountered by RMA Cargo Logistics Inc

            as assessed by the respondents?

         3. What are the proposed solutions to said assessed problems?



Significance of the Study


         It is hoped that this study is beneficial to the following :

         1. The freight forwarders like RMA Cargo Logistics, Inc., who is interested in the

            formulation, evaluation and enhancement of the marketing strategies of their

            respective freight forwarding firms.

         2. The government agencies like the Philippines Shippers Bureau, which are

            involved in policy formulation and regulation of the freight forwarding industry;

         3. The occasions of freight forwarders, including their employees, which are

            protecting and promoting the interests of their members;

         4. The potential freight forwarders who plan to establish their own freight

            forwarding firms; and

         5. The students, professors and other researchers who are conducting germane

            studies on the marketing practices of the freight forwarding industry.



                       FIGURE 1. CONCEPTUAL FRAMEWORK
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    RMA CARGO LOGISTICS, INC.




Respondents‟
Demographic variables
in terms of :

Age;                       Analysis and evaluation
Civil status; Gender;      of the respondents‟ and    Enhanced marketing
Highest Educational        respondents firms‟         strategies and operations
Attainment; and            demographic variables      of RMA Cargo Logistics,
Years of services at the   as well as the             Inc.
RMA Cargo Logistics,       respondents‟ perceptions
Inc.                       on the marketing
                           practices and problems
Respondents‟               of RMA Cargo Logistics,
Perceptions on the         Inc.
Marketing practices and
problems of RMA Cargo
Logistics, Inc.




        INPUTS                 PROCESS                      OUTPUTS




Conceptual Framework of the Study
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    RMA CARGO LOGISTICS, INC.

       The study‟s concept revolves around the system approach of input, process and

output. The input includes the demographic variables of RMA Cargo Logistics Inc. in terms

of number of years in operation, estimated number of clients; the respondents‟

demographic variables in terms of age, status, highest educational attainment and years of

services at RMA Cargo Logistics Inc. as well as their perception on the marketing practices

terms of people (or target market), product (services), price, promotion and place, and the

marketing problems encountered by RMA Cargo Logistics, Inc.

       The process refers to the analysis and evaluation of the respondents‟ and

respondent firms‟ demographic variables as well as the respondents‟ perceptions on the

marketing practices and problems of RMA Cargo Logistics, Inc.

       The output involves the enhanced marketing strategies and operations of RMA

Cargo Logistics, Inc.



       Scope and Limitation of the Study

       The study‟s scoped limited to the respondents‟ demographic variables in terms of

age, civil status, highest educational attainment and years of service at RMA Cargo

Logistics, Inc as well as their perceptions on the marketing in terms of people ( or target

market), product ( or services), price, promotion and place; and the marketing problems

encountered by RMA Cargo Logistics Inc

       The study is confined to fifty (50) respondents from RMA Cargo Logistics Inc. the

time frame of the study is limited from, June, 2001 to June 2006. It should be clarified that
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    RMA CARGO LOGISTICS, INC.

the respondents includes those employees who have resigned but who are exposed to the

marketing practice and problems of RMA Cargo Logistics, Inc.



       Definition of Terms

       The following terms have been operationally defined in the context of the study for

greater clarity and understanding, to wit:



       Accreditation. A legal recognition conferred by the Philippine Shipper‟s Bureau –

Department of Trade and Industry (PSB- DTI) upon a entity authorizing it to engage in sea

freight forwarding business.

       Advertising. It is marketing strategy which is paid form of non-personal

presentation, communication and promotion intending to influence a customer to buy a

product or get service.

       Bill of Lading. It means a document which evidence as contract of carrier, and by

which the carrier undertakes to deliver the goods against surrender of documents.

       Breakbulk Cargo. It refers to a consolidated consignment which is broken down on

delivery for distribution to individual consignees.

       Carrier. This refers to any kind of conveyance used to carry and transport person or

goods from one place to another, whether by land, sea, or air.
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         Certificate of Accreditation. A document issued by PSB officially authorizing the

entity named therein to engage in the specific sea freight forwarding function and/or

category/ies it can operate.

         C.I.F. These letters stands for costs, insurance and freight, signifying that the price

fixed covered not only the costs of the goods but also the expenses to the freight and

insurance to pay by the buyer.

         Communicating. It refers to the transfer of information or message from the sender

to a receiver for the purpose of attaining a desired result.

         Commodity Box Rate. It means a rate classified by commodity and quoted per

container.

         Consignees. It refers to the importer or the person to whom goods are delivered.

         Consignor. It refers to the exporter or the person who delivers the goods to an

agent.

         Consolidation Shipment. This refers to two (2) or more shipments from two (2) or

more consignors/senders abroad, assembled and consolidates at the point of origin/

exportation and shipped together under a single master bill of lading or master air way bill

by a freight forwarder/ consolidator to a break bulk/consolidator ion the Philippines.

         Container. It means an item of equipment for the transport of goods.

         Container Yard. It means a location at which stuffed and/or empty containers are

received from or delivered to the merchant by the carrier.
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       Customs Broker. He is a registered and licensed professional practitioner in

customs matters involving the processing and release of goods at the Bureau of Customs

for his clients, the importers and exporters.

       Customers. He is the client who seeks the service of a freight forwarding firm.

       Descriptive research. It involves the description, collection, collation, analysis and

interpretation of data regarding the present or current nature, composition or processes of

phenomena or situation.

       Decision-making. It is the process by which a course of action is consciously

chosen from available alternatives for the purpose of achieving an objective or solving a

specific problem.

       Directing. It refers to the management function of leading of the subordinates by the

supervisor or the manager toward the attainment of the organizational goals.

       EDI. It refers to the Electronic Data Interchange which allows the users to utilize their

own computer system and communicate with Bureau of Customs through Commercial

Communication Network of Value Added Networks, which is operated 7 days a week and

24 hours a day. Messages which are exchanged through EDI follow standard formats so

that the receiver, in this case, Customs, gets the same message format from everyone. The

standard format being used is UN/EDFACT of the United Nations EDI for administration

Commerce and Transport.

        Express Consignments. It refers to consolidated air shipments of articles/goods

which are time-sensitive in character, usually under a door-to-door service arrangement
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with on-time delivery commitment, which are shipped under a master air waybill (MAWB)

consigned to Express Cargo Operator (ECO).

       F.C.L. These letters stand for “Full Container Load,” signifying that the goods are

shipped in container equipments.

       FEDPAP. This refers to the Federation of Freight Forwarders Association in the

Philippines.

       FIATA. It refers to the International Federation of Freight Forwarders‟ Association.

       Forwarding Agent. He is an official representative of the carrier in a particular

area, place or region.

       F.O.B. These letters stand for the words, “free on board,” signifying that the seller

shall bear all the expenses until the goods are delivered where they are F.O.B.

       Freight Forwarder. This refers to a duly registered freight forwarding entity which

procures the transport of goods and issue in its name when acting as a principal or

contractor or when acting as an agent on behalf of the shipper or of the consignee

depending on whether the freight forwarder is dealing in export or import trade.

       Going-Rate Pricing. It is strategy used in pricing where the price or the rate of

service is kept close to the existing rate in the customs brokerage industry.

       Goods. The term includes articles, wares, merchandise, commodities, commercial

items, containers, pallets or similar article of transport or packaging.

       House Air Waybill (HAWB). It refers to an air waybill issued by the freight

forwarders, showing all the essential data elements of an individual consignment and its

ultimate consignee at destination.
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       Import/Export Duties and Taxes. They mean the customs duties and all other

duties, taxes, fees, or other charges which are collected on or in connection with the

import/export of goods but not including fees and charges which are limited in amount to

the approximate cost of services rendered.

       Intermodal Transport. It refers to a transport system usually operated by a carrier

with more than one mode of transport under the control or ownership of operator.

       International Transit Cargo (ITC) . It refers to shipment of articles which origin and

final destination is outside the Philippines but passes through in-transit at the center to be

handled at the Transit Facility (or diversion facility e.g. SBIA) solely for sorting and

immediate reshipment onward to their respective final destination out of the Philippines.

       ISO. These letters stand for International Organization for Standardization.

       L.C.L. These letters stands for “Less than container Load.” Signifying that the goods

are shipped as break bulk or a group age.

       Logistics. It refers to the process of planning, implementing, and controlling the

efficient, effective flow and storage of goods, service, and related information from the point

of origin to the point of consumption for the purpose of conforming to Customer

requirements as regard to the right goods, at the right place, at the right time, at the right

quality and quantity, and at the right price.

       Marketing. It is a system of business activities designed to plan, price, promote and

distribute something of value to the benefit of the market.
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       Marketing Practices. This refers to the various ways and means of attracting and

maintaining clients in terms of the pricing scheme, promotion, place strategy and service to

people, particularly to the target market of RMA Cargo Logistics, Inc

       Marketing Tools. These refers to the 6 P‟s of the marketing pix corresponding to

the customer 4C‟s namely: customer needs and wants (products, goods or availability),

communication (promotion or informing, reminding and persuading target customers).

       Motivating. It is a management function of inspiring and providing incentives to the

subordinates by a supervisor or a manager in an effort to achieve organizational goals.

       NVO. It refers to non-vessel operators arranging port-to-port ocean transport under a

house bill of lading or an ocean bill of lading, who may cover land transportation and as

non-vessel-operating international transport operators.

       NVOCC. It refers to non-vessel-operating common carriers who advertise regular

sailing schedules and arrange consolidation or intermodal transport service under house

bills of lading (HBL) of FIATA bills of lading (FBL).

       Organizing. it is the process by which the structure and allocation of jobs are

determined.

       People. The term refers to the target market of freight forwarders.

       Perceptions. These refer to the opinions or viewpoints of selected respondents on

the marketing strategies and problems of RMA Cargo Logistics Inc.

       Personal Selling. It is a face-to-face interaction with one or more prospective client

for the purpose of offering freight forwarding services.
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       PISFA. These letters refer to the Philippine International Sea freight Forwarding

Association, Inc., the association of domestic freight forwarders.

       Planning. It refers to the management function of looking for ways and means to

achieve the goals of an organization taking into account its internal strength and weakness

as well as the external threats and opportunities.

       Price. It refers to the amount of money a customer has to pay in exchanged for

value, goods, or services relative to competition.

       Product. It refers to anything tangible or intangible that accompany, group,

individual offers to target customers for profit, use, acquisition, sale, or exchanged for the

purpose of obtaining value or benefits in order to satisfy a client.

       Promotion. It refers to a form of communication intended to inform, remind and the

target client to buy or use the product or service.

       Promotion Mix.      It refers to the various communication activities to reach the

marketing channels and target customer, such as: sampling publicity, public relation, direct

mail, and telemarketing service.

       Public Relation. It refers to a variety of program designed to promote and /or

protect a company‟s image or individual services.

       Service Fees They refer to such fees as handling fees, documentation and

processing fees paid by the importer to the licensed custom broker.

       Shipment. It means one or more consignment(s) of goods of one consignor/sipper

under one multi-modal transport document/bill of lading to one consignee.
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       Subsisting Certificate of Accreditation. One that existing and has not expired,

not cancelled, not under suspension, not automatically/deemed revoked, and not acquired

by way of transfer/alienation/inheritance.

       Tariff and Customs Laws These include the provisions of the Tariff and Customs

Code of the Philippines (TCCP) as amended,            and related implementing rules and

regulations, and    Customs Administrative Orders (CAO‟s) and Customs Memorandum

Orders (CAO‟s) being enforced by the Bureau of Customs.

       Training. It is the systematic development of the attitude, knowledge, skills and

behavioral pattern required for the adequate performance of a given job or task.

       Transaction Value. This refers to the price actually paid or payable when goods

exported into the country of introduction/importation subject to the provision of Article 8 of

the WTO agreement, which requires adjustment.
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                                            CHAPTER 2

                  REVIEW OF RELATED LITERATURE AND STUDIES



       This chapter presents the related literature and studies, both local and foreign; and

explains briefly their relevance to this study. It also indicates that there are no duplication of

previous studies but just another contribution in the field of custom administration,

particularly in the foreign forwarding industry.



Related Literature

       Belch, George. Introduction of Advertising and Promotion: An Integrated

Marketing Communication Perspective.. Chicago: Irwin Publisher, 1995.



       Integrated Marketing Communication is a concept of marketing communication

planning that recognizes the added value of a comprehensive plan that evaluate the

strategic roles of the communication program and combines all these provide clarity,

consistency and maximum impact for the audience. Promotion tools are of no use if the

service is an efficient, the place is not accessible and the price is affordable. Hence the

marketing communication plans must be integrated with the marketing mix strategies.

This book is very useful to the current study because it gives the researcher a general

outlook of the marketing communication programs being integrated to deliver a single,

coherent message and avoid duplication of appeals to the desired target audience.

Moreover, the Integrated Marketing Communication Planning Model has given the
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researcher an idea on how to systematically conduct a study. The model begins with the

review of the marketing plan, analyst of the promotion program situation and

communication       process,   budget   determination,   developing       integrated      marketing

communication program, implementation of the marketing strategies band ends of

monitoring, evaluation and control of the program.



Corey, Raymond E. Strategy Marketing Management: Marketing Strategy-An

Overview. Ed Robert J. Dolan. Boston Harvard Business School Publishing, 1998.



       According to Corey, the marketing strategy must involve in response to changing

customer and competitive demand; as product or market grow, matures and declines over

time. There are several stages of growth, firstly, the introductory phase. In the early stage,

marketing strategies typically stress market education which includes communicating with

potential end-users regarding the use of the product or service. In pricing an Market

selection, the strategy is typically to skim, which serves to generate high margins with

which to fund the cost of research and development. The market tends to be relatively

insensitive to pricings long as the new product or service offers significant advantages over

what it replaces.

       Secondly, rapid growth can take place when the new product or services takes hold;

and the potential customer realize that he has options with regards to price or rates, quality

of service and related customer consideration. The strategy for building demand typically

takes the form of a variety of service to meet the specific needs an identified market.
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       Thirdly, at the leveling off-stage, the product or service strategy used is maximum

differentiation to permit latitude and pricing and to provide substance to promotional

message intended to attract and maintain client. This market strategy evolves as customers

become more concerned with pricing or rate, quality of product or service and sensitivity to

market communications in various form.

       This reference is related to this study since it discusses the marketing strategies in

the context of market growth, maturity and decline; which is true in most businesses,

including custom brokerage.

Kotler, Philip. Marketing Management. New Jersey: Prentice-Hall, Inc., 1997.

       According to the author, management goes through a strategic marketing process

consisting of analyzing opportunities, choosing objectives, developing strategy, formulating

plans and carrying out implementation and control.

       The author also maintains that marketing strategies must be focused on the needs

and wants of consumers and also on the strategies of competitors. A thorough competitor

can put the firm one step ahead of its competitors. It can identify the strength, weaknesses,

opportunities and threats.

       The reference is germane to this study in the same that it also touches on the

marketing strategies focused on the needs of the freight forwarder‟s client and on the

important of said strategies to be ahead of the competitors in the freight forwarding

industry.
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The Economic and Social Commission for Asia and the Pacific, The Development of

      Freight Forwarding in the ESCAP Region. New York: UN, 1995.

      The Economic and Social Commission for Asia and the Pacific (ESCAP has

discussed: (1) the resent developments in the freight forwarding industry in the ESCAP

region, (2) the resent changes in the demand for transport service, (3) the development of

transport in the Asian and the Pacific region, and (4) the changing role of the freight

forwarders in selected countries in the ESCAP region.

      1.    Recent Developments in Freight Forwarding

              Based on the information given in the questionnaire received by ESCAP from

              a number of national Freight Forwarder‟s association and recent country

              reports submitted at the last meeting of Chief Executives of National Freight

              Forwarders‟ Association held at Bangkok from the 26 th to the 27th of October,

              1995, the following issues and developments in freight forwarding each of the

              heading are outlined in some detail.

           a. Forwarders‟ Organizational National Level

                    Freight forwarders‟ organizational at national level are fairly well

               organized. Although the chief executives and council members of the

               association are people of experience and responsibility, they cannot devote

               full attention to the associations‟ business because of their on commitment

               and occupation. Few association employ full-time staff. It is noted that the

               report of national association with shippers‟ council, government institution

               and agencies is found to be generally good.
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    b. Scope and Standard of Service

     In some countries, the scope and standard service of the freight forwarders are

     relatively underdeveloped in that their perform only simple and outline

     forwarding services, such as booking and shippers             space and securing

     customs clearance for shippers‟ cargo. There is a wide room for improvement

     for modernizing the industry in the light of rapid technological developments in

     shipping. This can be attributing to the fact that most forwarder in the ESCAP

     region has been initially establishes as custom clearance agents and

     household goods mover. The industry has not developed until after the advent

     of containerization in the early 1960‟s. In resent years, in a number of countries,

     the majority of the freight forwarding companies in the ESCAP region are

     involve in relatively small business operation owing to the lack of management

     skills and financial resources to adopt modern transport concept. Another

     reason for the lack of development in the freight forwarding industry in this

     region is that in some countries primary products and raw materials continue to

     remain the major export commodities. In said countries, the scope of freight

     forwarding is limited. However, in the ESCAP region, there are also many local

     and foreign freight forwarding firms which are capable of operating on a large

     and international scale with a comprehensive package of international services.
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    c. Standard Trading Condition

               Standard trading conditions have already been introduced by most of

       the national associations for use by their member. Essentially, standard

       trading conditions clearly define the role, responsibility and liability aspect of

       freight forwarder in their capacity as agents or as principle contractor; specify

       the place of jurisdiction and applicable law in case of dispute; and serve and

       to identify the risks to the local insurance market and the limit of liability that

       they may be requested to insure.

    d. Freight Forwarders‟ Document

       The freight forwarding documents often used by the freight forwarders within

    the ESCAP region are: Forwarders Certificate of Receipt (FCR), Forwarder‟s

    House Bill of Lading (HBL), and FIATA Multimodal Transport of Bill of Lading

    (FBL). These document provide the tool for door-to-door transport, which is the

    especially of the forwarder.

      1.   The forwarder‟s Certificate of Receipt (FCR) is widely used. In this case,

    the shipper did not have to wait for the goods to be loaded on board ship before

    obtaining their document; they got the document (FCR) immediately after the

    goods were delivered to the freight forwarder‟s warehouse. Although the

    document is not accepted by bank as a negotiable document, it is found that the

    shippers, in these cases, had no problem with the banks because the FCR was

    already stipulated in the letter of credit (LC).
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         2. A forwarder‟s House of Lading would not be accepted normally by banks

    without authority under of a letter of credit In 1968, FIATA began work on a

    standard bill of lading to enable forwarder to meet customer requirement for the

    document acceptable under a letter of credit. FIATA sought and obtained

    approval of the FBL from the International Chamber of Commerce, the

    organizational that issues guidelines in the assurance of letter of credits

    practices.

  (1)    For the purpose of preserving the high reputation of the FIATA Multimodal

        Transport Bill of Lading (FBL), FIATA restrict the use of FBL to members of

        the national associations. It also requires that an issuer‟s liabilities under the

        FBL be directly ensured.

    e. Protection of the Freight Forwarding Industry

           Protection in generally afforded by the government to indigenous

        forwarding industry against competition from foreign operators. Even today in

        a number of countries in the ESCAP region, foreign freight forwarders are not

        allowed to establish their own offices while in a few countries the foreign

        freight forwarders would only permit joint ventures with ingenuous freight

        forwarders to be established.

    f. Government Control on the Freight Forwarder‟s Licensing

           Control exercised by the government for freight forwarders‟ licensing is

        minimal although such control measures could have been welcome by the

        industry. It is reported that in a number of countries, the lack of government
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      control has led to numerous freight forwarding firms being operated without

      proper facilities. Hence, appropriate legislative measures to facilitate the

      proper development of the freight forwarding industry is needed.

    g. Human Resources Development

             One of the most important factors in the development of the freight

        forwarding industry in the ESCAP region is human resources‟ development.

        Most of the freight forwarders in some developing countries lack the

        management and technical s kills to perform their task efficiently. This lack

        of skills may be attributing to the absence of vocational training and the

        inability of the national association of freight forwarders to fund such training

        program in a regular basis

        2.   Recent Changes in Demand for Transport Services

         Some of the changes which have implications on the development of the

        freight forwarding industry are outlined below:

        a. Industrial and Technological Dynamism the ESCAP Region

             The changing pattern of world trade in favor of the ESCAP region and

        the increasing share of trade among countries and said region imply a need

        for government to adopt a new set of priorities of the development of

        transport and communications infrastructures with greater emphasis to the

        development of the interregional transport and communications link. The

        companies which are engage to the provision of transport service must be

        able to respond fast to these changing needs to be more competitive.
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       b.    The Used of Advanced Information Technology

       The key to expansion of the containerization, multi-modalism and logistic

       providers in recent years is the use of advanced information technologies.

       There is mounting pressure for the introduction of all aspects of Electronic

       Data Interchanges (EDI) ranging from order entry invoicing, custom

       formalities, and trade and transport documents to billing. The on-line system

       allows real time information and electronic processing 24 hours a day.

       c.   The Postponement-based Strategy

        The objective of such a strategy is to maximize competitive advantage

       within a reasonable level of logistics expenditure. Thought this method ,

       firms maximize competitive advantage and reduce overall system cost by

       eliminating inventory and forward warehousing and handling cost.

       d.   The Emergency of the Multimodal Transport Operator

            The ever-increasing demand on the transportation system and the

       need to synchronize the variety of operation in the logistic chain has

       resulted in the evolution of multimodal transport operator, offering a new

       type of service, door-to-door transportation trough fully integrated networks.

       International traders seek partners who will manage the supply chain and

       provide logistic package a single point of contact, irrespective of the relative

       location of customers.
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        e. Needs for Harmonizing Legal Issues and Commercial Practice

            Harmonization would minimize delayed payment of freight forwarding

            services, especially where the local currency is not convertible and

            foreign exchange procedures are time consuming. An important aspect

            of regional cooperation relates to the establishment of harmonize

            legislation and commercial practices on multimodal transport operations

            of the region.

    3. Air Transport Development in the ESCAP Region

             Individual countries of the ESCAP Region which appear to be

       achieving a faster rate of air cargo growth than that of a region of a whole

       include Malaysia, the Republic of Korea, Singapore and Thailand. Several

       countries   have      allowed    their   domestic       carriers   to    enter       the

       regional/international market, namely: Australia, China Indonesia, Nepal,

       Pakistan and the Philippines have liberalized their air transport policies and

       have allowed the private sector to establish domestic carries and a number of

       them are already in operation.

    4. The Changing Role of the Freight Forwarders

       Originally, a freight forwarder was a commission agent, performing on behalf

       of the shipper routine task such as loading/unloading of goods in the safest,

       quickest and most economical way. They need to be aware of transport cost,

       proper packing, documentation, custom clearance, consular requirements,

       banking and other related activities. They serve as consolidation agents
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              grouping small consignments to a large shipping unit. Forwarders also

              influence the introduction of the new modes of transport, the development of

              new transport routes and the introduction of the new tariff. In short, they play

              a decisive role in the international movement of goods.

                 The foregoing reference is germane to this study since both deal with the

              freight forwarding industry.

Evangelista, Felicitas. Principles of Marketing. Quezon City:

Kalayaan Press Marketing Enterprise, Inc, 1994.

       The author states that strategic marketing management is the process of identifying,

analyzing, choosing and exploiting marketing opportunities to fulfill the company‟s mission

and objectives, More specifically, it consist the major following steps:

       1. Analyzing the marketing opportunities

       The strategic marketing process entails a search for and an assessment of the

       marketing opportunities that will contribute to the attainment of the firm‟s goals and

       objectives.

       2. Selecting the target market

       Once the firm has decided to develop a particular market, it has to define its target

       or the specific group +of customer whose needs and wants it intends to satisfy.

       3. Formulating the marketing mix strategy is then developing to achieve the

          particular target market. The strategy decision involved here is how to fit together

          product, pricing and promotion strategies into a marketing program.

       4. Implementing the Marketing Strategy
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      The implementation of a marketing strategy requires effective organization. For an

existing firm, implementing the marketing strategy can simply mean the assignment to

activities of different offices in such a manner that unnecessary duplication is avoided, from

timing is achieve and no vital activity is left undone.

          5.    Controlling the Marketing Process

       The implementation of the marketing program requires regular monitoring to

determine if actual efforts are in accordance with plan, to enable the manager to spot

deviations and to undertake remedial action.

       This reference is related to this study since it deals with the major steps in strategic

marketing management, including the formulation, implementation and evaluation of

marketing strategies designed to meet stiff competition during these economic difficulties.

Cravens, David. Strategic Marketing. Chicago: McGraw-Hill

Company. 1997

                Craven discusses the role of marketing in helping a company gain

competitive edge over its competitors. It also dwells on the two responsibilities in a

company that gives premium to quality. First, marketing management must undertake

formulating programs and strategies that will help the company win trough total quality

excellence. Second, marketing management must deliver marketing quality as well as

production or service quality.

       This reference is related to this study since it also deal with marketing strategy in

helping a business entity gain competitive edge over its competition and win in the
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competition through the quality excellence in its service provided by freight forwarding firms

like RMA Cargo Logistics, Inc.

Go, Josiah. Marketing Mix Strategy in the Philippine Setting.

Manila: Josiah Go Foundation. 1995.

       The author discussed marketing mix. An important component of a marketing

strategy. Firms which enhanced their product or service quality, pricing structure and other

service considerations of the customer relative to the competitors enjoy greater gains than

those whose quality ratings remained constant or event declined. A product or service

quality is evaluated as high or low depending on its relative excellence or superiority among

products or services that are viewed as substitutes by the customers.

       This reference is also related to this study since it also recognizes the importance of

the marketing mix like product or service or piecing in formulating a marketing strategy for

freight forwarding firms like Commercial Freight Services, Inc.

String, Robert. Management of Men. Quezon City: Capitol House Press, 1991.

       This reference is, as its title indicates, about the management of men in Philippine

organizations. The academic designation of the field of study behavior. However, it really

involves the effective use of human resources in attaining the organizational goals. It is not

intended as a solution to all management problems; rather, it is intended to train Filipino

managers who, by solving the true-to-life cases in the book, can enhance their problem-

solving skills, particularly in freight forwarding firms like RMA Cargo Logistics, Inc.
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       This reference is germane to this study since it also deals with the management of

human resources, particularly the marketing managers and personnel in Philippine

organizations like RMA Cargo Logistics, Inc.



Sison, Perfecto. Personnel and Human Resources Management, Manila: Rex Book

Store, 1991.



       This reference cited the method of management development through understudy;

especially used for managerial positions. It is a good training method to permit him to sit in

discussions of various activities and problems of the organization. Finally, providing him the

chance to manage a unit of an organization, of not the organization itself, in the absence of

the superior, shall expose him to actual managerial functions and will help develop vital

managerial skills.



       This reference is related to this study since it also involves the management function

of training managers and others employees through the understudy method which may

also be applicable to by freight forwarding firms like RMA Cargo Logistics, Inc. particularly

those involved in the formulation and implementation of marketing management strategies

designed to attract and maintain their clients through the services of better-trained

managers and other employees.
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Martinez, Esdras. Human Resources Management. Manila: GIC Enterprise and Co.,

1992.



        This reference deals with the restructuring of the Philippine Resources Management

and the concepts and attitudes on the employee and the working man. The continuing

changes in the Labor Code of the Philippines designed to humanize the status of the

employee and the working man and harmonize labor-management-government relations,

are compiling various industries to look for top-caliber manager to supervise their

employees, like those involved in the formulation and implementation of marketing

management strategies.

        This reference also stressed that in planning for the development of managers and

the rank-and-file employees, there must be a relation on the present and future needs of an

organization and to the abilities and potentials of said manager and rank-and-file

employees.

        This reference is related to the study since there human resources in any

organization like commercial freight services, Inc., which should be managed, Developed

and motivated to work more efficiency and effectively in the fulfillment of the individual and

the organizational needs like the formulation and Implementation of more effective

marketing management strategies.



Andres, Tomas. Excellent Customer Relations and Services. Metro Manila: Giraffe,

Inc., 1998.
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       The references provide a simplistic approach to understanding customer‟s service.

The author presents to simple but important principle of customers service: his principle is

to find out what the customers needs and values are and the second principle is do

whatever is necessary to satisfy that needs, By listening the costumer‟s needs, one can be

able to discern those needs, one must be able to identify his basic needs (i.e. acceptance

by others, recognition, treated with respect, etc.). It is like putting oneself on the shoe of the

other and feeling what he needs.



Teare, Richard. Service Quality Problems and Opportunity for Hospitality Firms.

USA: MCB University Press,1997.



       The study stresses that responsibility for organizational success lies squarely on the

shoulders of management; and that in the hospitality industry, effective quality

management is particularly important. In every hospitality firm, to management must take

the leadership gaps and provide the structure and empowerment for effective service

provision. There is perceive need for hospitality firm to adopt a proactive approach to

quality management. By providing proactive service, customer service employees go

beyond what is asked and anticipate and fulfill the customer‟s unexpressed needs.

       Teare‟s, references is relevant to this study with no respect to the need for quality

client service particularly at the selected freight forwarding firm like commercial freight

services, Inc.
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Perreult Jr., William D. Basic Marketing: A Global Managerial Approach. U.S.A.:

University of North Carolina.1996.



             Perreult states that “marketing is design to satisfy our needs.” At its essence,

      marketing strategy planning is about figuring out how to do superior job of satisfying

      customers. He further states that it is very important to practice what we preach.



             This reference id related to this study since it deals with the very basic

      fundamentals pf marketing strategies concerning customer satisfaction. It deals with

      how customers are being treated in terms of services by freight forwarding

      companies s like commercial freight Services, Inc.



Dahringer , Lee D. International Marketing: A Global perspective. U.S.A: Emory

      University, 1991.

             The author‟s underlying idea is that any firm-regardless of size can compete

      globally. The author further avers that success is a function of opportunity,

      perspective, motivation and knowledge. International opportunities are plentiful. The

      challenge for today‟s marketing manager is to identify those opportunities

      appropriate for the firm.

             This reference is also related to this study as it involves global market

      partnership with freight forwarders in the world like the services offered by RMA
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      Cargo Logistics Inc catering as an International Logistics Provider, employing foreign

      agents worldwide.

Kelly, Kim. Exceeding Expectation: A key to Service Success,,USA: Resource,1995.

USA: RESOURCE, 1995



             Kelly‟s survey indicated that client expectation for quality service has

      escalated over the fast few years as a result of experiencing superior service from

      that organization which have been leaders in quality movement. He found out that

      there is a correlation between quality service and retention of clients. Organization

      has to pay close attention to their client „complaints. By understanding what their

      client are telling them, as opposed to simply responding to a situation, an

      organization can have the right objective and know what quality service to provide.

             To enhance client retention, organization should take every opportunity to

      strengthen relationships with client, satisfaction being the primordial consideration.

      Said reference is, therefore, related and relevant to this study since it also involves

      client satisfaction and quality service by freight forwarding firms like RMA Cargo

      Logistics Inc



      Perrult Jr., William D. Basic Marketing: A Global Managerial Approach. U.S.A:

      University of North Carolina, 1996.

             Perreult states that “marketing is designed to satisfy your needs.” As its

      essence, marketing strategy planning is about figuring out how to do superior job of
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      satisfying customers. He further states that it is very important to practice what we

      preach.

             This reference is related to this study since it deals with the very basic

      fundamentals of marketing strategies concerning customer satisfaction. It deals with

      how are being treated in terms of superior service from those organizations which

      have been leaders in quality movement. He found out that there is a correlation

      between quality service and retention of clients. Organization have to pay close

      attention to their client‟ complaints. By understanding what their clients are telling

      them, as opposed to simply responding to a situation, an organization can have right

      objective and know what quality service to provide.

             To enhance client retention, organizations should take every opportunity to

      strengthen relationship with client, satisfaction being the primordial consideration.

      Said reference is therefore, related and relevant to this study since it also involves

      client satisfaction and quality service by freight forwarding firms like RMA Cargo

      Logistics Inc.

   Related Studies

Menon, Anie, et al. “Antecedents and Consequences of Marketing Strategy Making

(MSM): A Model and Test.” Journal of Marketing.

Vol. 63 No.2, April, 1999.

      This study discusses a discovery oriented to develop:

   1. Multi-faceted conceptualization of MSM, looking at the marketing strategy from

      various Angles, including the perspective of the clients and the entrepreneurs;
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2. Model of antecedents and consequences of MSM, taking into account the areas of

   consideration in the formulation, implementation and evaluation of the marketing

   strategies; and

3. Test of the model using Zap-related marketing decisions, focusing on the discovery-

   oriented approach.

   The authors found that strategy creativity affects market performance and

organizational learning.

The afforested study is related to this study since the discovery oriented and creative

approach to develop a marketing strategy can also be applied in the formulation and

implementation of marketing strategies by freight forwarding firms like RMA Cargo

Logistics Inc

Satich, Jayachandran, et. Al. “The Theory of Multi-market Competition: A

Synthesis and journal Implications for marketing Strategy.”„ Journal of Marketing.

Vol. 63, No. 3, July, 1999.

   The writer avers that multi-market competition affects the marketing strategies of

firms by influencing their capacity and motivation to repel competitors.

   Moreover, rivalry in any industry should be considered a welcome opportunity to

show the company‟s forbearance to succeed. Competition serves as a stimulus for firms

to exert more creative efforts to find ways and mean of improving their marketing

strategies to beat their competitors in business.
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   The affricated study is related to this study since it involves the need for marketing

strategies for firms like RMA Cargo Logistics Inc. to enhance their competitive situation.



Li, Haiyang.            “Marketing Strategies and New Venture Performance.”

Unpublished Dissertation. University of Hong Kong, 1998.



   This study investigates the relationships between marketing strategies and new

venture performance in a transitional economy. It seeks to integrate the marketing and

new venture literature by understanding how new technology ventures can benefit

through the formulation and implementation of creative marketing strategies to achieve

market and financial success.

   Li‟s dissertation is relevant to this study since it stresses the important of marketing

strategies for the success of new technology ventures and also of freight forwarding

firms like RMA Cargo Logistics Inc.



Garden, Timothy. “A Study of Customer Satisfaction: The Relationship between

the Perception of Capability of Customer Satisfaction and Motivation to Satisfy

Customer.” Unpublished Master‟s Thesis, Ohio States University, 1996.



   Garden‟s study revealed that employees and supervisors working under an incentive

system were tested; and the results indicated that motivation to satisfy a customer of

the organization is related to the reception of the capability of influencing and achieving
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   customer satisfaction. Moreover, the study noted that a well motivated employee also

   helps to provide greater customer satisfaction.

      The Gardner study is germane to this study in the sense that customer or client

   satisfaction is also a function of employee satisfaction and that a well-motivated

   employee helps to provide client satisfaction, for instance, in the implementation of

   marketing strategies in freight forwarding firms like RMA Cargo Logistics, Inc



   Kim. Je-Gan. The Promotion Tools of Top 10 Korean Companies in the Phillipinrs.

   Unpublished Dissertation. University of Sto. Tomas, 1997.



      Kim tried to identify the promotion tools of the top 10 Korean firms in the Philippines,

   namely: personal selling, advertising, publicity and sales promotion.

      The findings showed that sales promotion was effective in increasing sales volume,

   however, in reducing costs and creating goodwill, they were moderately effective.

      This dissertation is related to the current study since it involves promotion tools

   which are also germane to this study.



   Ching, Elvis. “Marketing Strategies of Selected Seafood Market Restaurant in

   Metro Manila.” Unpublished Master‟s Thesis, U.S.T., 1995.



      The researcher found out that the marketing strategies used by the selected seafood

market restaurants were effective in making business profits. The marketing strategies
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using the 4 P‟s were found to be effective in terms of quality service, cleanliness and value

characteristics. Moreover, management was continually motivated to provide quality

service and the best food at reasonable prices.

       This thesis is related to this study since it also highlights the important of marketing

strategies on making business profits.



Gray, Gordon. T. “A Study of Relationship between Environment, Marketing Strategy

and Performance at the Business Level in Organization.” Unpublished Doctoral,

University of Oklahoma, 1994.



       Gray‟s study develops and assesses a set of measure for one marketing study

construct, business Level Marketing Strategy (MLMS). These measure are used to test

hypothesized relationship among five BLMS dimensions (aggressiveness, defensiveness,

adaptability, attractiveness and competitive position), and one performance variable

(business profitability). Focusing on both construct measurement and test at substantive

relationship, the study aims to strengthen the empirical foundation of marketing strategy

research.

       Results indicate that market attractiveness positively affects defensiveness and

adaptability and negatively affects differentiation and cooperation. Aggressiveness

negatively affects profitability. Both market attractiveness and competitive position

positively impact on business profitability.
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        Gray‟s dissertation is relevant to this study since the aforementioned tests of

substantive relationships among environmental, marketing strategies and performance

variables strengthen the empirical foundation of marketing strategy research like this study

in the context of freight forwarding firms like RMA Cargo Logistics, Inc.



Situmurong, Robert. “Total Quality Management, A Philippine Experience.”

Unpublished Master‟s Thesis, U.S.T., 1994.



        This study focuses on the maximum achievement of organizational goal; and to

attain such goals, ways and means like total quality management (TQM) have been

developed, studied and tried. TQM is one of the methods or approaches towards ISO

(International Standards Organization) certification that has come to importance due to

global competitiveness. On essence, In essence, it refers to the production of goods and

services which are consistent with the customer‟s requirements, needs and wants. In this

sense, careful direction and leadership are necessary so that planned objectives are fully

met.

        The above reference is related to this study since it involves quality service which is

related to marketing strategies in business like RMA Cargo Logistics Inc.



Satwan, Muhammad. “Marketing Strategies of Jeans in Metro Manila: An Analysis.”

Unpublished Master‟s Thesis. M.L.Q., 1993.
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       He researcher conducted a comparative study between Levi‟s and Wrangler. His

study revealed that both companies used direct channel of distribution. Wrangler, however,

utilized three other channels, namely:



   1. One-Middleman (retailer or wholesaler);

   2. two-middlemen (retailer and wholesaler); and

   3. Three-middlemen (agent, retailer and wholesaler).



Capitalized and volume of sales.



Uy, Willibalds.” A Marketing Strategy for the Scribbler Ballpen.” Unpublished

Master‟s Thesis. Ateneo de Manila University, 1992.



       This thesis developed a marketing strategy for the Scribbler ball pen line. The

objectives of the study included arriving at a fairly accurate situation analysis that included

historical annotation of the sales of the Scribbler ball pen. The thesis also described the

existing conditions or features of the ball pen market to which Scribble market objectives,

strategies and action plans can be addressed and adjusted.

       This thesis is related in marketing strategy, albeit in the ball pen industry; while this

study is focused on the marketing practices and problems of a freight forwarding firm, RMA

Cargo Logistics Inc.
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Vasallo, Ruth.” Customer Services Practices of Selected Commercial Banks in

Binondo, Manila.” Unpublished Master‟s Thesis, Manila: U.S.T., 1999.



       The study deals on the extent of effectiveness of the banks‟ customer services in

terms of its personnel, service delivery and bank facilities. Furthermore, the study has

solicited from the respondents the usual problems they encounter as well as their proposed

solutions. Both the employees and the clients were the respondents of the research.

       The results of the research have been generally good as there are no significant

differences on the respondents‟ perceptions of costumer service which include criteria like

reliability, responsiveness, assurance, and empathy. The recommendations for the

improvement of service include regular workshops and seminars; reduction of processing

time over the counter; improvements on the parking spaces, lighting and ventilation; and

the addition of front-line personnel for efficiency of service.

       The reference is related to this study since it also covers the improvement of the

costumer services, not in the context of a freight forwarding firm like RMA Cargo Logistics

Inc but in the milieu of a commercial bank, albeit germane and relevant in the field of

marketing strategies.



Businos, Erlinda. The Four P‟s of Marketing as Perceived by the Personnel of a

Certain Manufacturing Plant: An Empirical Analysis Unpublished Master‟s Thesis.

Manila: UE Graduate School, 1990.
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       This thesis studied the perceptions of the marketing department of a certain

manufacturing company in relation to how the four factors of product, price, promotion and

channel affect a consumer‟s satisfaction. Included in the discussion and analysis of data

were two organizational variables level of management and departments. It was perceived

to certain the satisfaction of the costumers.

       The research is related since the present study also deals with the P‟s of marketing

like product (or service), price, and promotion.



Patmawidjaja, Indradi. “Customer Service Practices of Selected Restaurants in

Makati, Metro Manila.” Unpublished Master‟s Thesis, University of Sto. Tomas, 1996.

       `This study concentrated on the determination of customer service according to the

mission/vision, structural/vision, facilities, management style and personnel service of

selected restaurants in Makati. The study recommended that all employees should be

trained to make on-the-spot decisions and provide quick, relevant actions on customer

problems within their sphere of authority. Front-line employees should be trained on topics

such as effective ways and means to solve customer problems promptly, creatively and

decisively, thereby empowering said employees to exercise flexibility, initiative and

independence in dealing with customers for the good of the service.

       The Patawidjaja study is related to this study in so far as customer service and the

need to train employees at a freight forwarding firm like RMA Cargo Logistics, Inc. to solve

on-the-spot marketing problems within their sphere of authority promptly, creatively and

decisively, is concerned.
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The foregoing review of related literature and studies has shown that this study does not

  duplicate any existing study; as there is no study as of this writing on the marketing

     practices and problems of a freight forwarding firm, RMA Cargo Logistics Inc.
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                                           CHAPTER 3

                               RESERCH AND METHODOLOGY



       This chapter presents and discusses the research design and methodology used in

the study, including the research method, the respondents and the sampling technique, the

research instrument, and the statistical treatment of data.



Research Method

       The study utilized the descriptive survey method, considered as appropriate and

germane to the presentation and analysis of current perceptions on the marketing practices

and problems of RMA Cargo Logistics Inc.

       The descriptive survey method, according to J. Best (1995), involved the gathering

of data through a questionnaire, to answer queries on the existing or current conditions of

the subject of the study and the assessment of perceptions towards events, procedures, or

problems. The descriptive method was designed for the investigator to gather information

about the perceptions of the respondents on the marketing practices and the problems of

RMA Cargo Logistics, Inc.



Responding and Sampling Technique

       Using purposive sampling technique, the researcher chose fifty (50) respondents,

complying with the criteria:
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     1. They must have exposed to the marketing practices and problems of RMA Cargo

         Logistics Inc. for at least 5 years.

     2. They must be at least college graduates. It must be clarified that the respondents

         include those who retired and resigned but were exposed to the marketing

         practices and problems of RMA Cargo Logistics Inc.



Research instruments

       The questionnaire and the interviews were the instruments used in obtaining the

primary data.

       The questionnaire was reviewed by the adviser and pre-tested to a group of fifteen

(15) employees of RMA Cargo Logistics, Inc., who were excluded in the final administration

of the questionnaire but whose suggestions for the improvement of the questionnaire were

duly incorporated in the final draft.

       During the pre-testing and final administration of said questionnaire, there was no

major problem perceived by the researcher or articulated by the respondents.

       The researcher utilized both the primary and secondary sources of data.            The

primary sources of data for the study included the questionnaire and the interviews to

clarify the answers in the questionnaire.

       The secondary sources of data included books, journals and other published

references and unpublished materials like theses and dissertations.
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Statistical Treatment of Data

       In this study, the following statistical tools were utilized in the analysis and

interpretation of data, to wit:

   1. Percentage. This is a descriptive statistical term used to show the relationship of the

       part to its whole, with the following

       formula:


                  P = _f_ x 100
                       N



       Where: P = Percentage



                  f = Frequent distribution



                  N = Total number of respondents.



   2. Ranking. This is another statistical tool used to reinforce the description of the

       percentage, indicating the priorities and importance of the responses.



   3. Average Weighted Mean. This tool has been utilized to show the average among

       different items like the perceptions on the marketing practices and problems of RMA

       Cargo Logistics Inc.
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    The formula is as follows:



           X = the sum of fx\N



   where: X = the computed weighted mean



           f = the frequency of responses



           N = the number of respondents



   The following mean values are interpreted based on the table, as

Follows:


    Mean Value                   Weight         Verbal interpretation

     4.51 – 5.00                     5             Highly effective

     3.51 – 4.50                     4                 Effective

     2.51 – 3.50                     3             Fairly effective

     1.51 – 2.50                     2                Ineffective

     1.00 – 1.50                     1            Highly ineffective
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                                       CHAPTER 4

           PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA



     The chapter presents, analyzes and interprets data on the profile of the selected

respondents and their perceptions on the marketing strategies and problems of RMA Cargo

Logistics, Inc.

     The profile of the selected respondents include their age group, civil status,

gender, highest educational attainment, and years of service at the RMA Cargo

Logistics Inc. The perceptions of the respondents covered the assessment on the

marketing practices of RMA Cargo Logistics Inc. in terms of people (or target market),

product (or service), price (or service fees), promotion (or advertisement and personal

selling) and place (or location of freight forwarding firm; the effectiveness of the over-all

marketing strategies of RMA Cargo Logistics Inc; its marketing problems and the

proposed solutions.

Profile of the Selected Respondents

   Table 1 presents the frequency and distribution of respondents by age group.
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                                          Table 1

                 Frequency and Percentage Distribution of Respondents

                                       By Age Group


                    Age                                F                %
Below 30                                              18                36
30 – 40                                               22                44
41 – 50                                                9                18
51 – 60                                                1                2
Over 60                                                0                0
                                        Total         50               100%

       Out of the 50 selected respondents from RMA Cargo Logistics Inc the largest

number of 22 respondents, or 44 %, belonged to the age bracket of 30 to 40 years;

followed by 18 respondents, or 36%, below 30 years; 9 respondents or 18%, 41 to 50

years; and 1 respondent, or 2% 51 to 60 years old.

       Table 1 indicated that the majority of the respondents, or 34%, were relatively

mature, ranging from 30 to 60 years.

       Table 2 manifests the frequency and percentage distribution of the respondents by

civil status.
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                                              Table 2

          Frequency and Percentage Distribution of Respondents by Civil Status


             Civil status                       F                          %
Single                                          17                         34
Married                                         32                         64
Separated/Widowed                               1                          2
                Total                           50                        100%


         Out of the 50 selected respondents, the majority of 32 respondents, or 64%, were

married: and the rest of he 17 respondents, 34% were single.



         Table 2 shows that the majority of respondents were married, indicating a position of

responsibility, not only at RMA Cargo Logistics Inc but also in their homes, either as

husbands, wives or breadwinners of their respective families.

         Table 3 shows the frequency and percentage distribution of the respondents by

gender.


                                       Table 3
            Frequency and Percentage Distribution of Respondents by Gender

         Civil Status                     F                                %

Male                                      27                               54

Female                                    23                               46

            Total                         50                              100%
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      Out of the 50 selected respondents, the majority of 27 respondents, or 54%,

belonged to the male gender, while the rest of the 23 respondents, or 46%, belonged to the

female gender.

      Table 3 indicates that the majority of the selected respondents were males.



      Table 4 presents the frequency and percentage distribution of respondents by

highest educational attainment.

      Forty six (46) out of the 50 selected respondents, or 92%, were college graduates; 2

respondents, or 4%, with master‟ units; and another 2 respondents, 4%, with master‟s

degree.



                                           Table 4

                 Frequency and Percentage Distribution of Respondents

                            By Highest Educational Attainment



          Educational Attainment                     F                     %
College Degree                                   46                        92
Master‟s Unit                                        2                     4
Master‟s Degree                                      2                     4
                                   Total         50                       100%
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      Table 4 shows that the selected respondents, who were at least college graduates

and a few who had master‟s units or a master‟s degree, were educated, indicating their

capability to answer the questionnaire and share useful perceptions in the survey.



                                            Table 5



                Frequency and Percentage Distribution of Respondents

                        By Years at the RMA Cargo Logistics Inc


    Length of Service                  F                                 %
Below 5 years                          18                                36
5 – 10                                 26                                52
11 – 15                                 6                                12
Over 15                                 0                                 0
                   Total               50                               100%

      Table 5 presents the frequency the percentage distribution of respondents by years

of service at the RMA Cargo Logistics Inc

      The largest group of 26 respondents, or 52%, had a length of service of 5 to 10

years at the RMA Cargo Logistics Inc; followed by 18 respondents, or 36%, below 5 years;

and 6 respondents, or 12%, 11 to 15 years.

        Table 5 shows that the majority of the respondents were in the length-of-service

bracket of 5 –10 years of service at the RMA Cargo Logistics Inc, indicating their

experiential qualification to answer the questionnaire with competence and to provide

helpful perceptions in the survey.
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Perceptions on the Marketing Strategies and Practices

         Table 6 presents the frequency, weighted mean and verbal interpretation on the

marketing strategies and practices of RMA Cargo Logistics Inc. as perceived by the

selected respondents.

         The marketing strategies and practices had been classified according to the 5 P‟s of

marketing: People (or the target market), Product (or service), Price (or service rates),

Promotion (or advertisement and personal selling) and Place (location of the freight

forwarding firm).


                                Table 6
      FREQUENCY, WEIGHTED MEAN AND VERBAL INTERPRETATION ON THE
     MARKETING STRATEGIES OF RMA CARGO LOGISTICS, INC. AS PERCEIVED
                    BY THE SELECTED RESPONDENTS
                                (N = 50)
MARKETING STRATEGIES                 5         4      3        2         1          Total   WM     VI
A. People (or the target
market)
1.clealy identifying the target    30/150   14/56    6/18    0/0        0/0      50/        4.48   A
market                                                                           224
2.determining its specific         26/130   16/64    8/24    0/0        0/0     50/218      4.36   A
forwarding needs
3.researching when, where and       1/5     5/20    44/132   0/0        0/0     50/157      3.14   A
how to meet needs
B. Product (or service)

1. fast and efficient freight      26/130   16/64    8/24    0/0        0/0     50/218      4.36   A
forwarding service
2. variety of freight forwarding   38/190   6/24     6/18    0/0        0/0     50/232      4.64   SA
services
3. Feedback mechanism on            2/10    12/48   36/108   0/0        0/0     50/166      3.32   FA
service satisfaction
C. Price (service fees)

1. Service rates or fees are       21/105   20/80    9/27    0/0        0/0     50/212      4.24   A
competitive..
2. Service rates or fees are       20/100   20/80   10/30    0/0        0/0     50/210      4.20   A
affordable.
3. Service rates or fees are       26/130   16/64    8/24    0/0        0/0     50/218      4.36   A
flexible.
D. Promotion (or
advertisement & personal
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selling)

1. use of internet                   44/220   4/16      2/6       0/0        0/0     50/242   4.84   SA

2. use of flyers to promote firm      1/5     3/12      6/18      40/80      0/0     50/118   2.30   D
3. stress on walk-in clients          2/10    12/48    36/108     0/0        0/0     50/166   3.32   FA
4. use of calling cards              44/220   4/16      2/6       0/0        0/0     50/242   4.84   A
5.pleasant and charming staff        28/140   14//56    8/24      0/0        0/0     50/220   4.40   A
6.informing and entertain clients    38/190   6/24                0/0        0/0     50/232   4.64   SA
E. Place (or location of freight                                                                     A
forwarding firm)
1. Place is convenient for fast      30/150   14/56     6/18      0/0        0/0     50/224   4.48   A
and efficient service
2. Place is easily located by        34/170   9/36      7/21      0/0        0/0     50/227   4.54   A
clients
3. Place is comfortable for          28/140   14/56     8/24      0/0        0/0     50/220   4.40   A
clients.
Ave. Weighted Mean                                                                            4.40   A

Legend:     5 - Strongly agree (SA) 3 – Fairly agree(FA)        1 – Strongly disagree(SD)
                    4 – Agree (A)   2 – Disagree




A.PEOPLE (or Target Market)



           The marketing strategies classified as People (or Target Market) with their

respective weighted mean (WM) and verbal interpretation wee perceived by the

respondents as follows:

     1. Clearly identifying the target market (4.48 - A);

     2. Determining its specific forwarding needs (4.36 - A); and

     3. Researching when, where and how to meet needs (3.14 - FA)

            The respondents agreed that there was a clear identification of the target market of

RMA Cargo Logistics Inc and determination of its specific forwarding needs. However, they

only fairly agreed that there was research on when, where and how to meet said needs of

the target market. It could be surmised that such a research would entail more time, money
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and effort; and therefore, it was not done as often as the first two activities under the

classification of people or the target market.



B. PRODUCT (or service)

       The marketing strategies classified as Product (or service) with their respective

weighted mean (WM) and verbal interpretation were perceived by the respondents as

follows:

    1. Fast and efficient freight forwarding services (4.36 - A);

    2. Variety of freight forwarding services (4.64 - SA); and

    3. Feedback mechanism on service satisfaction (3.32 - FA)



       The respondents agreed that there was fast and efficient freight forwarding service

at the RMA Cargo Logistics, Inc. They strongly agreed that there was a variety of freight

forwarding services. However, they only fairly agreed that there was a feedback

mechanism on service satisfaction. The only feedback mechanisms perceived by the

respondents was any complaint brought to the attention of RMA Cargo Logistics. Inc.;

which was immediately acted upon to the satisfaction of a client.



C. Price (or service fees)

           The marketing strategies classified as Price (or Service Fees) with their

respective weighted mean (WM) and verbal interpretation, were perceived by the

respondents as follows:
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      1. Service rates or fees are competitive (4.24 - A);

      2. Service rates or fees are affordable (4.20 - A);

      3. Service rates or fees are flexible (4.36 - A)

       The respondents agreed in all indicated activities under the category of price (or

service fees) which they perceived to be competitive, affordable and flexible. In fact, they

revealed that RMA Cargo Logistics, Inc considered the circumstances of the clients like the

volume and value of the clients in quoting service fees to the satisfaction of both the firm

and its clients.



D. Promotion (or Advertisement and Personal Selling)

       The marketing strategies classified as Promotion (or Advertisement and Personal

Selling) with their respective weighted mean (WM) and verbal interpretation, were

perceived by the respondents as follows:

     1. Use of the internet (4.84 - A);

     2. Use of flyers to promote firm (2.30 – D);

     3. Stress on walk (3.32 - FA);

     4. Use of calling cards (4.84 - SA);

     5. Pleasant and charming staff (4.40 - A); and

     6. Entertaining and informing potential clients (4.64 - SA).

       The respondents strongly agreed on the three activities classified as promotion,

namely: the use of the internet, the use of calling cards and informing and entertaining

clients. The use of the internet could be justified in this modern age of information
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technology where RMA Cargo Logistics, Inc., could easily reach a vast target both locally

and globally for its freight forwarding services. The use of the calling cards could be

considered as a relatively cheaper way of promoting the firm through immediate contacts

with its officers especially those involved in marketing the firm‟s forwarding services. The

promotion of the firm through personal information and entertainment of the clients, albeit

an old promotional practice, could still attract and maintain freight forwarding clients.



        The respondents agreed on the promotional services of pleasant and charming

staff members who could demonstrate good human relations with clients by making them

comfortable in the office and attending to their queries and problems on freight forwarding.

        The respondent only fairly agreed on the stress on walk-in clients a promotional

strategy. They believe that this was a passive way of getting clients.

        The respondents disagreed on the use of the flyers to promote the firm due to the

perceived ineffectiveness of such flyers based on their personal observations. Such flyers

were not common in the freight forwarding industry according to the interviewed

respondents.



E. Place (or Location of the Freight Forwarding Firm)

        The marketing strategies classified as Place (or Location of the Freight

Forwarding Firm) with their respective weighted mean (WM) and verbal interpretation,

were perceived by the respondents as follows:

          1. Place is convenient for fast and efficient service (4.48 - A);
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          2. Place is easily located by clients (4.54 - SA); and

          3. Place is comfortable for clients (4.40 - A).



         The respondents agreed on the location of RMA Cargo Logistics, Inc. as

convenient for fast and efficient service as well as comfortable for the clients. They strongly

agreed that RMA Cargo Logistics Inc could be easily located for “sea freight” clients due to

its location in Cebu near the Port of Cebu and its other branches located in Cagayan de

Oro and Manila. The firm for “air freight” clients could be found near the Ninoy Aquino

International Airport.



         The average weighted mean of all the marketing strategies involving the 5‟p,

namely People (or the target market), Product (or service), Price (or service rates),

Promotion (or advertising and personal), and Place (location of the freight forwarding firm)

as perceived by the selected respondents was: 4.40, or a verbal interpretation of “agree” on

the implementation of said marketing strategies at the RMA Cargo Logistics, Inc.



         Table 7 quantifies the perceptions of the respondents on the over all effectiveness

of the marketing strategies of RMA Cargo Logistics, Inc.



         Out of the selected respondents, the biggest number of 34 respondents, or 68%,

perceived the over-all effectiveness of the
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                                                Table7

                      Perceptions of the Respondents in the Effectiveness

                     Of the Marketing Strategies of RMA Cargo Logistics Inc.

        Category                            F                              %

      Very Effective                          5                            10
         (W - 5)                            (25)
        Effective                            34                            68
         (W – 4)                           (134)
     Fairly Effective                        11                            22
         (W – 3)                            (33)
       Ineffective                            0                            0
         (W – 2)                             (0)
     Very Ineffective                         0                            0
                                             (0)
             Total                           50                           100%
                                           (194)
   Weighted Average                         3.88

  Verbal Interpretation                 Effective


        Marketing strategies as “effective”; followed by 11 respondents, or 22%, “fairly

effective”; and 5 respondents, or 10%, “very effective.” No respondent gave the answer

“ineffective” and “very ineffective” implementation of said marketing strategies and

practices.



        The weighted average of all foregoing responses was 3.88, or a verbal

interpretation of “effective” over-all marketing strategies. Table 8, therefore, indicated
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generally “effective” over-all marketing strategies as evidenced by the number of responses

and the weighted average of all responses.



         It is surmised that the perceived effectiveness in the over-all marketing strategies

of RMA Cargo Logistics Inc, can be attributed to leadership commitment to the quality

vision, client focus and continuous efforts for the improvement in the marketing strategies

of the said firm.



         Despite the aforementioned effective perception on the marketing strategies of

RMA Cargo Logistics Inc, there were problems related to the marketing practices of RMA

Cargo Logistics Inc, which must be tackled and were presented in Table 8. After all

marketing could be considered as an ever-exciting concept and a never-ending process,

which requires continuous improvement as a major element.


                                          Table 8

    Marketing Problems of RMA Cargo Logistics Inc as Perceived by the selected
                                 Respondents

                      Problems                                fª         %ª     Rank
 Lower service fees of forwarding competitors locally         45         90      1
                    and globally
    Faster and more efficient service of forwarding           45         90       1
                    competitors
 Minimal employee participation in marketing strategy         39         78       2
 formulation and implementation to gain more clients
               Lack of employee training                      35         70       3
  Financial limitation in implementation of marketing         34         68       4
                        strategies
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   Insufficient motivational incentives for marketing            30         60     5
                       employees
    Inadequate feedback mechanism on marketing                   21         42     6
          strategies and client satisfaction
Problem of putting the right personnel for the right job         10         20     7
   Human relations problems between RMA Cargo                     5         10     8
          Logistics Inc and some clients
                 A total frequency surpasses 50 responses and the percentage exceeds 100% due
to the checking of more than (1) problem by the selected respondents.



Marketing Problems

    7. The marketing problems of RMA Cargo Logistics Inc as perceived by the selected

        respondents were ranked as follows:

         Ranked first by 45 respondents, or 90%, were problems on: “lower service fees of

forwarding competitors locally and globally” and “faster and more efficient service of

forwarding competitors.”

         The interviewed respondents in the survey explained that the major problems

confronting the RMA Cargo Logistics Inc involved the lower service fees of forwarding

competitors locally and globally and the faster and more efficient services of competing

firms. The RMA Cargo Logistics Inc therefore, was compelled to adjust to the highly

competitive situation to maintain its viability.

         Ranked second by 39 respondents, or 78%, was the problem: “minimal employee

participation in marketing strategy formulation and implementation to gain more clients.”

         The interviewed respondents felt that there was minimal employee participation in

marketing strategy formulation to gain more clients since they had other daily functions to
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perform; and there was not much more time left for such participation in creative

brainstorming for marketing strategies.



         Ranked third by the 35 respondents, or 70%, was the problem: “lack of employee

training.”

         The interviewed respondents confirmed that there was lack of regular training to

upgrade the skills of employees, because not only did training involve additional expenses

for the firm but it also required more time and efforts, which would otherwise be devoted to

the day-to-day employees duties at the RMA Cargo Logistics Inc.

         Ranked fourth by the 34 respondents, or 68%, was the problem: “financial

limitations in the implementation of marketing strategies.”

         The interviewed respondents recognized RMA Cargo Logistics Inc financial

limitations in the implementation of marketing strategies, including market research,

entertainment of existing and potential clients and other promotional activities like the use

of the internet.

         Ranked fifth by 30 respondents, or 60%, was the problem: “insufficient motivational

incentives for marketing employees.”

         The interviewed respondents revealed that there were insufficient motivational

incentives for marketing employees to gain and maintain more clients for RMA Cargo

Logistics, Inc. which were needed in the highly competitive freight forwarding industry.

         Ranked sixth by 21 respondents, or 42%, was the problem: “inadequate feedback

mechanism on marketing strategies and client satisfaction.”
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        The interviewed respondents observed that there was an inadequate feedback

mechanism on marketing strategies and client satisfaction, which relied mainly on the

complaints of clients to obtain feedback.

        Ranked seventh by 10 respondents, or 20%, was: “the problem of putting the right

personnel for the job.”


                                            Table 9

          Proposals for the Marketing Problems of RMA Cargo Logistics Inc
                     As Perceived by the Selected Respondents

                      Proposals                           fª           %ª   Rank
More competitive RMACLI service fees locally and          45           90    1
globally
Faster and more efficient RMACLI forwarding service       45           90    1
More active employee participation in marketing           39           78    2
strategy formulation and implementation to gain
more clients
Regular employee training and upgrading of skills         35           70    3
like communication with clients
Formulation and implementation of creative                34           68    4
marketing strategies within financial limitations
Added motivational incentives for marketing               30           60    5
employees like attractive commissions for bringing
more in clients
Enhanced feedback mechanism on marketing                  21           42    6
strategies and client satisfaction

Placement of the right personnel for the right job        10           20    7

Settling human relations problems between RMACLI          5            10    8
and some clients through dialogues and other means
of communications as soon as possible

        A the total frequency surpasses 50 responses and the percentage exceeds 100%
due to checking of more than (1) proposal by the selected respondents.
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        The interviewed respondents claimed that the problem arose especially in

situations where influential external personalities exerted pressures to recommend their

protégés for job placements at RMA Cargo Logistics Inc

        Ranked eighth by 5 respondents, or 10%, was the problem: “human relations

problems between RMA Cargo Logistics Inc and some clients.”

        The interviewed respondents perceived that human relations problems between

employees and some clients of RMA Cargo Logistics, Inc. should be resolved to maintain

the patronage and goodwill of its clients.



Perceived Proposals



 9. The perceived proposals of RMA Cargo Logistics, Inc. as perceived by the selected

respondents were ranked as follows:

        Ranked first by 45 respondent, or 90%, were the proposals: “more competitive

RMA Cargo Logistics, Inc. service fees locally and globally” and “faster and more efficient

RMA Cargo Logistics, Inc. forwarding service.”

        The interviewed respondents concurred with the proposals for more competitive

RMA Cargo Logistics, Inc. service fees locally and globally and faster and more efficient

RMA Cargo Logistics, Inc. forwarding service in the lights of the stiff competition in the

context of an economic recession worldwide.
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            Ranked second by 39 respondents, or 78%, was the proposal: “More active

employee participation in marketing strategy formulation and implementation to gain more

clients.”

            The interviewed respondents also agreed with the proposal for more active

employee participation in marketing strategy formulation for more creative ideas to gain and

maintain more clients in the context of economic trials and tribulations.



            Ranked third by 35 respondents, or 70%, was the proposal: “Regular employee

training and upgrading skills like communication with clients.”

            The interviewed respondents also noted the importance of regular training for the

upgrading of skills intended to render faster and more efficient service to the clients of RMA

Cargo Logistics, Inc.

            Ranked fourth by 34 respondents, or 68%, was the proposal: “Formulation and

implementation of creative marketing strategies within financial limitations.”

            The interviewed respondents considered as challenging the proposal to formulate

and implement creative marketing strategies within financial limitations, realizing that the

brain could be a source of many and useful ideas but that RMA Cargo Logistics, Inc. could

operate only within the parameters of limited resources.

            Ranked fifth by 30 respondents or 60% was the proposal: “Added motivational

incentives for marketing employees.”
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         The interviewed respondents confirmed the value of added motivational incentives

for marketing employee, and even for non – marketing employees, like attractive

commissions for bringing in, and providing more efficient service to, more clients.

         Ranked sixth by 21 respondents, or 42%, was the proposal: “Enhanced feedback

mechanism on marketing strategies and client satisfaction.”

         The interviewed respondents also concurred with the proposal for an enhanced

feedback mechanism which relied, not merely on clients‟ complaints but also on a

“suggestion box” system in the office or even in the internet, where clients would be able to

make suggestions for the improvement of the RMA Cargo Logistics, Inc. service.



         Ranked seventh by 10 respondents, or 20%, was the proposal: “Placement of the

right personnel for the right job.”

         The interviewed respondents agreed with the proposal for the placement of the

right personal for the right job, upholding the merit system and in the process, resisting any

extraneous pressures to accommodate less qualified protégées.

         Ranked eighth by 5 respondents, or 10%, was proposal: “Settling human relations

problems between RMA Cargo Logistics, Inc. and some clients through dialogues and

other means of communication as soon as possible.”

         The interviewed respondents concurred with the proposal to settle human relations

problems between some RMA Cargo Logistics, Inc. employees and some clients through

dialogues and other means of communication as soon as possible to generate more

goodwill and maintain the patronage of, the clients of RMA Cargo Logistics, Inc.
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                                       CHAPTER 5

            SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

The Study

        The major problem of this study is to assess the marketing practices and problems

of RMA Cargo Logistics, Inc.

        More specifically, the study has endeavored to answer the following questions:

        1. How do the selected respondents assess the marketing practices of RMA

            Cargo Logistics Inc. in terms of:



               a. People (or the target market);

               b. Product (or Service in the Freight Forwarding Industry);

               c. Price (or service fees);

               d. Promotion (or advertising and Personal Selling); and

               e. Place (Location of Freight Forwarding Firm)?



        2. How effective are the over – all marketing practices of RMA Cargo Logistics,

            Inc. as assessed by the respondents?

        3. What are the marketing problems encountered by RMA Cargo Logistics, Inc. as

            assessed by the respondents?

        4. What are the proposed solutions to said assessed problems?
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        The study utilized the descriptive survey method, considered as appropriate and

germane to the presentation and analysis of current perceptions on the marketing practices

and problems of RMA Cargo Logistics, Inc.



        The descriptive survey method, according to J. Best (1995), involved the gathering

of data through a questionnaire, to answer queries on the existing or current conditions of

the subject of the study and the assessment of perceptions towards events, procedures, or

problems,. The descriptive method was designed for the investigator to gather information

about the perceptions of the respondents on the marketing practices and problems of RMA

Cargo Logistics, Inc.



        Using the purposive sampling technique, the researcher chose fifty (50)

respondents, complying with following criteria:

          1. They must have been exposed to the marketing practices and problems of

                RMA Cargo Logistics, Inc. for 5 years.

          2. They must be at least college graduates.



        The questionnaire and interviews were the instruments used in obtaining the

primary data.

        The questionnaire was reviewed by the adviser and pre-tested to a group of fifteen

(15) employees of RMA Cargo Logistics, Inc. who were excluded in the final administration
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of the questionnaire but whose suggestions for the improvement of the questionnaire were

duly incorporated in the final draft.



         During the pre-testing and final administration of said questionnaire, there was no

major problem perceived by the researcher or articulated by the respondents.



         The researcher utilized both primary and secondary sources of data. The primary

sources of data for the study included the questionnaire and the interviews to clarify the

answers in the questionnaire.



         The secondary sources of data included books, journals and other published

references and unpublished materials like theses and desertions.



         In this study, the following statistical tools were utilized in the analysis and

interpretation of data, to wit: percentage, ranking and weighted mean.



Summary Findings



Profile of the Selected Respondents



            1. Out of the selected respondents from RMA Cargo Logistics, Inc. the largest

                number of 22 respondents, or 44%, belonged to the age bracket of 30 to 40
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             years; followed 18 respondents, or 36%, below 30 years; 9 respondents, or

             18%, 41 to 50 years; and 1 respondent, or 2%, 51 to 60 years old.



          2. Out of the selected respondents, the majority of 32 respondents, or 64%,

             was single.



          3. Out 50 selected respondents, the majority of 27 respondents, or 54%,

             belonged to the male gender; while the rest of the 23 respondents, or 46%,

             belonged to the female gender.



          4. Forty six (46) out of the 50 selected respondents or 92%, were college

             graduates; 2 respondents, or 4%, with masters unit; and another 2

             respondents, or 4%, with a master‟s degree.



          5. The largest group of 26 respondents, or 52%, had a length of service of 5

             years at the RMA Cargo Logistics, Inc. followed by 18 respondents, or 36%,

             below 5 years; and 6 respondents, or 12%, 11 to 15 years.



Perceptions on the Marketing Strategies and practices

          6. The frequency, weighted mean and verbal interpretation on the marketing

             strategies and practices of RMA Cargo Logistics, Inc. as perceived by the

             selected respondents were as follows:
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   A. People(or Target Market)

         1. Clearly identifying the target market (4.48 - A);

         2. Determining its specific forwarding needs (4.36 - A); and



2. Researching when, where and how to meet needs (3.14 - FA).



   B. Product (or service)

         1. Fast and efficiency freight forwarding services (4.36 – A);

         2. Variety of freight forwarding services (4.64 - SA); and

         3. Feedback mechanism on service satisfaction (3.32 - FA).



   C. Price (or Service Fees)

         1. Service rates or fees are competitive (4.24 – A);

         2. Services rates or fees are affordable (4.20 – A); and

         3. Services rates or fees are flexible (4.36 – A).



   D. Promotion(or Advertisement and Personal Selling)

         1. Used of the Internet (4.84 – SA);

         2. Used of flyers to promote firm (2.30 - D);

         3. Stress on walk-in clients (3.32 FA);

         4. Used of calling cards (4.84 - SA);

         5. Pleasant and charming staff (4.40 - A); and
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          6. Entertaining and informing potential clients (4.64 - SA).



   E. Place (or Location of the Freight Forwarding Firm)

          1. Place is convenient for fast and efficient service (4.48 - A);

          2. Place is easily located by clients (4.54 - SA); and

          3. Place is comfortable for clients (4.40 - A).



          7.   The perceptions of the respondents on the over-all effectiveness of the

marketing of the marketing strategies of RMA Cargo Logistics, Inc. were as follows:



        Out of the fifty (50) selected respondents, the biggest number of 34 respondents,

or 68%, perceived the over-all effectiveness of the marketing strategies as “effective”;

followed by 11 respondents, or 22%, “fairly effective”; and 5 respondents, or 10%, “very

effective.” No respondent gave the answers “ineffective” and “very ineffective”

implementation of said marketing strategies and practices.



Marketing Problems



 8. The marketing problems of RMA Cargo Logistics, Inc. as perceived by the selected

respondents.
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 Ranked first by 45 respondent, or 90%, were the problems: “Lower service fees of

forwarding competitors locally globally” and “faster and more efficient service of forwarding

competitors.”



 Ranked second by 39 respondents, or 78%, was the problem: “Minimal employee

participation in marketing strategy formulation and implement ration to gain more clients.”



 Ranked third by 35 respondents, or 70%, was the problem: “lack of employee training.”

 Ranked fourth by 34 respondents or 68% was the problem: “Financial limitations in the

implementation of marketing strategies.”



 Ranked fifth by 30 respondents, or 60%, was the problem: “Insufficient motivational

incentives for marketing employees.”



 Ranked sixth by 21 respondents, or 42%, was the problem: “Inadequate feedback

mechanism on marketing strategies and client satisfaction.”



 Ranked seventh by 10 respondents, or 20%, was the problem: “problem of putting the

right personnel for the right job.”



 Ranked eighth by 5 respondents, or 10%, was the problem: “Human relations problems

between RMA Cargo Logistics, Inc. and some clients.”
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Perceived Proposals

    8. The perceived proposals as perceived by the respondents were ranked as follows:



 Ranked first by 45 respondent, or 90%, was the proposal: “more competitive RMA Cargo

Logistics, Inc service fees locally and globally” and “faster and more efficient RMA Cargo

Logistics, Inc forwarding service”



 Ranked second by 39 respondents, or 78%, was the proposal:” More active employee

participation in marketing strategy formulation and implementation to gain more clients.”



 Ranked third by 35 respondents, or 70%, was the proposal: “Regular employee training

and upgrading of skills like communication with clients”



 Ranked fourth by 34 respondents, or 68%, was the proposal: “formulation and

implementation of creative marketing strategies within financial limitations.”



 Ranked fifth by 30 respondents, or 60%, was the proposal: “Added motivational

incentives for marketing employees.”



 Ranked sixth by 21 respondents, or 42%, was the proposal: “Enhanced feedback

mechanism on marketing strategies and client satisfaction.”
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 Ranked seventh by 10 respondents, or 20%, was the proposal: “Placement of the right

personnel for the right job.”



 Ranked eight by 5 respondents, or 10%, was the proposal: “Settling human relations

problems between RMA Cargo Logistics, Inc and some clients through dialogues and other

means of communication as soon as possible.”



Conclusions



Profile of the Selected Respondents



    1. The majority of the respondents were relatively mature, ranging from 30 to 60

        years.

    2. The majority of the respondents were married, indicating a position of responsibility,

        not only at RMA Cargo Logistics, Inc. but also in their homes.

    3. The majority of the selected respondents were males.

    4. The selected respondents were, at least, college graduates and a few who had

        master‟s units or a master‟s degree, were educated indicating their capability to

        answer the questionnaire and share useful perceptions in the survey.
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    5. The majority of the respondents had 5 to 10 years of service at the RMA Cargo

          Logistics, Inc. indicating their experiential qualification to answer the questionnaire

          with competence and to provide helpful perceptions in the survey.



Perception on the Marketing Strategies and Practices



     7.      The weighted average of all the foregoing responses was 3.88, or verbal

interpretation of “effective” over-all marketing strategies and practices. As evidenced by the

number of responses and the weighted average of all the responses.



Marketing Problems



     8.       The marketing problems of RMA Cargo Logistics, Inc. as perceived by the

selected respondents were as follows:

    1. Lower service fees of forwarding competitors locally globally and faster and more

          efficient service forwarding competitors;

    2. Minimal      employee      participation   in   marketing      strategy   formulation      and

          implementation to gain more clients;

    3. Lack of employee training;

    4. Financial limitations in the implementation of marketing strategies;

    5. Insufficient motivational incentives for marketing employees;

    6. Inadequate feedback mechanism on marketing strategies and client satisfaction;
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   7. Problem of putting the right personnel for the right job; and

   8. Human relations problems between RMA Cargo Logistics, Inc. and some clients.

Perceived Proposals

   9. The perceived proposals of RMA Cargo Logistics Inc as assessed by the

      respondents were ranked as follows:



        1. more competitive RMA Cargo Logistics, Inc. service fees locally and globally

            faster and more efficient RMA Cargo Logistics, Inc. forwarding service;

        2. more active employee participation in marketing strategy formulation and

            implementation to gain more clients;

        3. regular employee training and upgrading of skills like communication with

            clients;

        4. formulation and implementation of creative marketing strategies within

            financial limitations;

        5. added motivational incentives for marketing employees;

        6. enhanced         feedback mechanism     on   marketing        strategies    and      client

            satisfaction;

        7. placement of the right personnel for the right job; and

        8. Settling human relations problems between RMA Cargo Logistics, Inc. and

            some clients through dialogues and other means of communication as soon

            as possible.
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Recommendations



 Based on the foregoing findings and conclusions, derived were the following

recommendations:



    1. More competitive RMA Cargo Logistics, Inc. service fees locally and globally and

        faster and more efficient RMA Cargo Logistics, Inc. forwarding service should be

        given priority in the enhancement of the marketing strategies and practices of RMA

        Cargo Logistics, Inc. to meet the stiff competition in the freight forwarding industry.

        This can be achieved by negotiating with sub-contractors particularly the shipping

        lines and airlines to enter into a service contract, including truckers, handlers,

        insurance brokers, and the like, for reduction of tariff rates to stay in competition.



        By introduction and improvement of the capability in the advent of Information

Technology, data and information are shared among channel partners on such factors as

customers, goods in transit, shipping and payments. This information is being used

creatively to reduce cost, time, effort, and increase customer service efficiency. The on-line

system allows real-time information and electronic processing 24 hours a day, thereby

creating faster and more efficient service by RMA Cargo Logistics, Inc. to its customers.



    2. Employee participation in marketing strategy formulation and Implementation to

        gain more clients should also be given more attention to tap their hidden powers
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   and potentialities towards the development of additional creative marketing ideas.

   This can be realized by involving not only the marketing staff but also other

   departments like the operations, brokerage, and forwarding departments. A regular

   meeting, brainstorming and creative planning among employees concerned shall

   be made to properly formulate marketing strategies.

3. Regular employee training and upgrading of skills like communication with the

   clients should be conducted in recognition of the important role of the human

   resources in the attainment of RMA Cargo Logistics, Inc. marketing objectives in

   particular and the corporate profitability in general. Seminars and workshops shall

   be attended by all employees, not just a few, on the rotation basis within and

   outside the premises of RMA Cargo Logistics, Inc., whether domestic or

   international, relative to the company‟s line of business. Attendees shall impart to

   other employees the knowledge they have learned from such seminars, like

   attendance from PISFA, PSB, PEZA, Effort, CAB, LLAVE Review and Training

   Center, Inc. and other institutional assemblies.

4. The formulation and implementation of creative marketing strategies should be

   undertaken within financial limitations RMA Cargo Logistics, Inc. to maximize the

   utilization of limited resources. This can be done by negotiating with clients the

   implementation of strict credit lines facilities, and to educate clients to adhere within

   the agreed timeframe of settlement of accounts. An added example of which is

   that-rebates can only be disbursed in favor of the customer when the latter has fully

   settled the account on time.
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5. Added motivational incentives for marketing employees like more attractive

   commissions for bringing in more clients could be given. Giving rebates to

   marketing employees who can meet the required sales quota is also highly

   recommendable.



6. Enhanced feedback mechanism on marketing strategies and client satisfaction

   could be installed to be more proactive and less passive in obtaining the

   perceptions of the clients on RMA Cargo Logistics, Inc‟s forwarding services. A

   suggestion box could be placed on a conspicuous location within the RMA Cargo

   Logistics, Inc. office. Visiting and communicating with the clients to discuss a

   problem, if any. Even if there is no problem, a constant visit the client is

   recommended to maintain the highest level of satisfaction.



7. The placement of the right personnel for the right job should be more seriously

   considered in the light of pressures from influential outsiders who would

   recommend their protégés for positions in RMA Cargo Logistics, Inc.



8. Human relations problems between RMA Cargo Logistics, Inc. and some clients

   should be settled as soon as possible through dialogues and other means of

   communication and through positive action on negative perceptions.
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                                   BIBLIOGRAPHY



                                      A. Books

Andres, Tomas. Excellent Customer Relations and Service. Metro
   Manila: Giraffe, Inc., 1998

Belch, George. Introduction to Advertising and Promotion : An
    Integrated Marketing Communication Perspective. Chicago: Irwin
    Publishers, 1995.

Corey, Raymond E. Strategy Marketing Management: Marketing
   Strategy – an Overview. Ed Robert J. Dolan. Boston: Harvard
   1998

Cravens, David. Strategic Marketing. Chicago: McGraw-Hill
    Company, Inc., 997

Dahringer, Lee D. International Marketing: A Global Perspective.”
    U.S.A.: Emory University, 1991.

Dickson, Peter R. Marketing Management. U.S.A.: Ohio State
    University, 1994.

Evangelista, Felicitas. Principle of Marketing. Quezon City: Kalayan
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Gay, L.R. Educational research. Ohio: Merrill Publishing Co., 1986.

Go, Josiah. Marketing Mix Strategy in the Philippines Setting. Manila: Josiah Go
Foundation, 1995.

Keeley, Tim. Exceeding Expectation : A Key to Service Success. USA:
   Resource, 1995.

Kotler, Philip. Marketing Management. New Jersey: Prentice-Hall, inc.,
    1997.

Kotler, Philip and Gary Armstrong. Principles of Marketing. New
    Jersey: Prentice-Hall, Inc., 1994

Martinez, Esdras. Human Resource Management. Manila: GIC
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   Enterprise and Co., 1992


Perreult Jr., William D. Basic Marketing: A Global Managerial
    Approach. U.S.A.: University of North Carolina, 1996.

Satich, Jayachandran, et al. “The Theory of Multi-Market Competition:
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    Journal of Marketing. July, 1999.

Sison, Perfecto. Personnel and Human Resource Management . Manila:
    Rex Book Store, 1991.

Stringer, Robert. Management of Men. Quezon City: Capitol House
    Press, 1991.

Teare, Richard. Service Quality Problems and Opportunities for
   Hospitality Firms. USA: MCB University Press, 1997.


                            B. Theses and Dissertations


Ahran, Fahran. “Customer Service of Selected Travel Agencies: An
    Analysis.” Unpublished Master‟s Thesis, U.S.T.., 1996.

Businos, Erlinda. “The Four P‟s of Marketing as Perceived by the Personnel of a
certain Manufacturing Plant: An Empirical analysis.” Unpublished master‟s Thesis
Manila: U.E. Graduate School, 1990.

Ching, Elvis. “Marketing Strategies of Selected Seafood Market
    Restaurant in Metro Manila.” Unpublished Master‟s Thesis.
    UST, 1995

Gardner, Timothy. “A Study of customer satisfaction: The
    Relationship between the Perceptions of Capability of Influencing
   A Measure of Customer Satisfaction and Motivation to Satisfy
    Customer.” Unpublished Master‟s Thesis, Ohio State University,
   1996.

Gray, Gordon. “A Study of Relationship between Environments,
   Marketing Strategy and Performance at the Business Level in
   Organizations.” Unpublished Doctoral Dissertation. University of
   Oklahoma, 1994.
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Jawa, Iklas Mohamad. “Sales force training Programs of Duty free
   Philippines in Metro Manila.” Unpublished Master‟s Thesis,
   U.S.T. Graduate School, 1994.


Kim, Je Gan, “The Promotion Tools of Top10 Korean Companies in
   the Philippines.” Unpublished Dissertation. University of Sto.
   Tomas, 1997.

Lai, Haiyang. “Marketing Strategies and New Venture Performance.”
    Unpublished Dissertation. University of Hong Kong, 1998.

Patmawidjaja, Indradi. “Customer service Practices of Selected
Restaurants in Makati, Metro Manila.” Unpublished Master‟s
Thesis, U.S.T., 1996

Satwan, Muhammad. “Marketing Strategies of Jeans in Metro Manila:
   An Analysis.” Unpublished Master‟s Thesis, M.L.Q., 1993.

Situmurong, Robert. “Total Quality Management, A Philippine
     Experience. “Unpublished Master‟s Thesis, U.S.T., 1994

Uy, Willibalds. “A Marketing Strategy for the Scribbler Ballpen.”
    Unpublished Master‟s Thesis, Ateneo de Manila University, 1992.

Vasallo, Ruth. “Customer Service Practice of Selected Commercial
    Banks in Binondo, Manila. “Unpublished Master‟s Thesis, U.S.T., 1999

                          C. Journals

Holdway, Edward and Peter Meekison. “Strategic Planning at a
    Canadian University.” In Long Range Planning, v 23, August 19990

Lehtinen, Jarmo. “Customer Oriented service System.” Service
     Management Institute Jounal. Vol. 5, No. 2m December, 1993.

Menon, Anie, et al. “Antecedents and Consequences of Marketing
    Strategy Making (MSM): A Model and Test.” Journal of
    Marketing. April, 1999

Satich, Jayachandrtan, et al. “The Theory of Multi-Market Competition:
     A Synthesis and Journal Implications for Marketing Strategy.”
     Journal of Marketing. Vol 63, No. 3, July, 1999.
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                            SURVEY QUESTIONNAIRE


Instruction:

    This questionnaire is intended to determine and assess the marketing strategies
and problems of RMA Cargo Logistics, Inc. Please check or provide the data needed,
as the case may be.


Profile of the Respondent

 A. Respondent‟s Profile

     1. Age
      ______ Below 30 years
      ______ 30 -40
      ______ 41 - 50
      ______ 51 – 60
      ______ Over 60 years

     2. Civil Status
      ______ Single
       ______ Married
       ______ Others (Please specify)_______________

     3. Gender
      ______ Male
      ______ Female

     4. Highest Educational Attainment
      ______ College         ______ Master‟s units.     ______ Master‟s Degree
      ______ Doctorate Units                            ______ Doctorate Degree

     5. Years of Service in the Firm
      ______ Below 5 years
      ______ 5 – 10
      ______ 11 – 15
      ______ Over 15 years
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Perceptions of the Respondents:



Instruction:



Please fill in the blanks or encircle the number which corresponds to the degree of

perceived response, based on the following:



5 - Strong Agree, Very Effective

4 - Agree, Effective

3 - Fairly Agree, Fairly Effective

2 - Disagree, Slightly Effective

1 - Strongly Disagree, Not Effective



1. To what extent are the following marketing strategies utilized in your firm?

          a. People ( or the Target Market)

                  1) Clearly identifying the target market              54321

                  2) Determining its specific forwarding needs          54321

                  3) Researching when, where and how to meet need 5 4 3 2 1

          b. Product ( or Service Services )

                  1) Fast and efficient freight forwarding services     54321

                  2) Variety of freight forwarding services            54321
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                3) Feedback mechanism on service satisfaction           54321

         c. Price (or Service Fees)

                1) Service rates or fees are competitive                54321

                2) Service rates or fees are affordable                 54321

                3) Service rates or fees are flexible                   54321

         d. Promotion (or Advertising and Personal Selling)

                1) Use of the Internet                                  54321

                2) Use of flyers promote firm                           54321

                3) Stress on walk-in clients]                           54321

                4) Use of calling cards                                 54321

                5) Pleasant and informing staff                         54321

         e. Place (or Location of the Freight Forwarding Firm)

                1) Place is convenient for fast and efficient service   54321

                2) Place is easily located by clients.                  54321

                3) Place is comfortable for clients.                    54321



2. How effective are the over-all marketing strategies of your firm in attracting and

   maintaining your clients?



        ______ Very effective

        ______ Effective

        ______ Fairly effective
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        ______ Ineffective

        ______ Very ineffective

        Please explain briefly

3. Marketing Problems

       ______ Lower service fees of forwarding competitors locally and globally

       ______ Minimal employee participation in marketing strategy formulation

               And implementation to gain more clients

       ______ Faster and more efficient service of forwarding competitors

       ______ Insufficient motivational incentives for marketing employees

       ______ Inadequate feedback mechanism on marketing strategies and

               Client satisfaction

       ______ Problem of putting the right personnel for the right job

       ______ Human relations problems between RMA Cargo Logistics, Inc. and

               some clients

       ______ Financial limitation in the implementation of marketing strategies

       ______ Lack of employee training

       ______ Others (Please specify)

4. Proposed solutions

        ______ More competitive service fees of forwarding competitors locally

                and globally

        ______ More active employee participation in marketing strategy

                formulation and implementation to gain more clients
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       ______ Faster and more efficient RMA Cargo Logistics Inc forwarding service

       ______ Added motivational incentives for marketing employees

               like attractive commissions for bringing in more clients

       ______ Enhanced feedback mechanism on marketing strategies

               and client satisfaction

       ______ Placement of the right personnel for the right job

       ______ Settling human relations problems between RMA Cargo Logistics Inc

               and some clients

       ______ Formulation and implementation of creative marketing strategies

               within financial limitations

       ______ Regular employee training and upgrading of skills like

               communication with clients

       ______ Others (Please specify)

___________________________________________________________________
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                                 RMA Cargo Logistics, Inc.

                              “International Logistics Provider”

Mission:

       “Moving Cargoes WORLDWIDE”

About RMA Cargo…

       RMA Cargo Logistics is a young company established in Cebu City, Philippines, and

whose objective is to have a presence capable of offering a complete range of Logistics

Services though SEA, AIR, and LAND.

       Since then RMA has met its commitment and surpassed the needs and expectations

of all its customers by providing the highest quality of service standards.



Vision:

       “To be a vital part in world-wide chain machinery where Christian values prevail in

our daily transaction, employees are partners with all the freedom to pursue personal,

professional, financial and spiritual advancements, yet not forgetting that our customers are

our only reason for being”




Service Highlights

       RMA CARGO LOGISTICS, INC. has always been extremely attentive to the needs

of its customers and continues to grow into a world-class service chain company helping
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promote international economic prosperity and cooperation linking Asia to the rest of the

world.



         RMA CARGO LOGISTICS, INC. With its dynamic and flexible organization is able to

provide the best solution for any logistics problems while being supported by real-time

information and communication technology and an international network. Our range of

services allow us to conceive and carry out, with a personal touch, solutions which answer

precisely the specific needs of our customers, pro-active and cost-effective supply chain

concepts consistent with full customer satisfaction requirements.



Services Offered where our presence is very strong.



Import Origins



Japan – Tokyo, Osaka, Nagoya, Kobe, Yokohama, Hakata and Moji

Thailand – Bangkok and Laem Chabang

Taiwan – Kaohsiung, Keelung and Taichung

China – Tianjin, Shanghai, Dailan, Beijing, Fuzhou, Shenzhen, Guangzhou, Ningbo,

         Hangzhou, qingdao, Ziamen and Quanzhou

Korea – Pusan ad Incheon

Europe – Rotterdam, Hamburg, Le havre, Southampton, Felixtowe, Antwerp, Bremen

           and Bremenhaven
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USA – West Coast and East Coast

Spain – Valencia and Barcelona

Italy Genoa and La Spezia

Hongkong

Singapore



Export Destinations



Europe - Rotterdam, Hamburg, Le havre, Southampton, Felixtowe, Antwerp, Bremen and

        Bremenhaven

Japan – Tokyo, Osaka, Nagoya, Kobe, Yokohama, Hakata and Moji

Thailand – Bangkok and Laem Chabang

Taiwan – Kaohsiung, Keelung and Taichung

China – Tianjin, Shanghai, Dailan, Beijing, Fuzhou, Shenzhen, Guangzhou, Ningbo,

       Hangzhou, Qingdao, Ziamen and Quanzhou

Italy - Genoa and La Spezia

Spain – Valencia and Barcelona

Hongkong

Singapore
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Company Profile

       RMA CARGO LOGISTICS INC. was established in Soon after the management

realized the growing demand for reliable services of moving goods and capital equipment

to and from the Philippines worldwide. The logical consequence was expansion into all

facets of Forwarding. In cooperation with agents all over the world RMA Cargo Logistics Inc

nowadays offers a complete range of logistic services. RMA Cargo Logistics Inc service

means, sea freight LCL/FCL, overland transport, Customs clearance, Door-to-Door

concepts, Air cargo consolidation, Industrial projects, heavy and oversized cargoes,

Documentation and Formalities, consultation on insurance, packing, Bank procedures,

Household goods moving.


       RMA Cargo Logistics, Inc. mission is to be a provider of world class surface and air

transport services for the Philippine export and import market and to be a dependable and

competent logistic partner in the industrialization of the Philippines.


       RMA Cargo Logistics, Inc. and its key staff has attended training and seminars

pertaining to the freight forwarding Industry covering operational, customer relations, sales

and marketing, including general information on customs rules and regulations.
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          List of Corporate Officers and Key Personnel



                        Mr. Romel M. Aropo

                   President and General Manager

                    Mobile Phone: 0927 2418006



                        Ms. Perla M. Aropo

                      Vice President – Finance

                    Mobile Phone: 0918 6033223



                     Ms. Myraluna M. Bacordo

                      Documentation Manager

                    Mobile Phone: 0915 4270829



                       Ms. Rizalina A. Garcia

                     Customs Service Manager

                    Mobile Phone: 0916 4567316



                      Ms. Jocelyn C. Malubay

                         Finance Manager

                    Mobile Phone: 0917 9672772
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                        Mr. Isidro N. Casas

                        Operations Manager

                    Mobile Phone: 0927 2741306



                       Mr. Rene M. Arsolon

                    Customs Brokerage Manager

                    Mobile Phone: 0917 3788081



                         Mr. Jehu B. Malait

                     Branch Manager – Cagayan

                    Mobile Phone: 0910 6194004



                       Mr. Pedro H. Arendain

                      Branch Manager – Manila

                    Mobile Phone: 0919 4834425



                       Mr. Edmar P. Sanico

                        Operations Manager

                    Mobile Phone: 0920 4570776
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                          PSB ADMINISTRATIVE ORDER NO. 6
                                  SERIES OF 2005

SUBJECT: Philippine Shippers‟ Bureau (PSB) – Revised Rules on
         Freight Forwarding

           RULE I - General Principles and Objectives; Definition of Terms

Sec. 1. General Principles and Objectives.

WHEREAS, it is the declared policy of the State to facilitate and assist the development
and growth of the Philippine trade and the national economy by enhancing the legitimate
interest of the Philippine shippers;

WHEREAS, RA No. 7844 – The Export Development Act, Section 3 (f), provides among
others, that urgent attention must be given to policies affecting infrastructure in order to
ensure the adequate supply and quality of transportation (e.g. shipping and cargo handling)
to support the flow of goods and services in the context of the national export drive;

WHEREAS, Executive Order No. 913 and its implementing rules and regulations under
Ministry Order No. 69 strengthen the rule making and adjudicating powers of the Secretary
of Trade and Industry by providing the procedures under which juridical person and DTI
initiated complaint may be availed of;

WHEREAS, Executive Order No. 514 provides for the registration and accreditation of non-
vessel operating common carriers, freight forwarders, cargo consolidators and break-bulk
agents in accordance with existing agreements and charge reasonable fees thereof;

WHEREAS, PSB Administrative Order No. 2, Series of 1996 requires adopting appropriate
measures to promote and develop the Philippine trade and commerce through the
economical and efficient carriage of merchandise;

NOW, THEREFORE, the following rules and regulations are hereby provided for the
information, guidance and compliance of all concerned:
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In pursuance of these policies and principles, the PSB shall maintain and operate a
reasonable accreditation and regulation system for the covered firms, with the following
objectives:

   a. Lay down the minimum standards and requirements under which covered firms may
      legally do business;
   b. Upgrade the quality of services, capabilities, resources and expertise of the covered
      firms in order that may meet the demands of the Philippines‟ new global trade and
      upsurging domestic trade; and
   c. Curtail acts and practices inimical to the fast growth of the freight forwarding industry
      and prejudicial to the interest of the Philippines shippers.`

SEC. 2. Definition of Terms – The following terms shall be defined as follows:

   a. Accreditation – a legal recognition conferred by the Philippine Shippers‟ Bureau-
      Department of Trade and Industry (PSB-DTI_ upon a entity authorizing it to engage
      in sea freight forwarding business.
   b. Certificate of Accreditation – a document issued by PSB officially authorizing the
      entity named therein to engage in the specific sea freight forwarding functions and/or
      category/ies it can operate.
   c. Non-Vessel Operating Common Carrier (NVOOC) – an entity, without owning or
      operating a vessel, providing a point to point service which may include several
      modes of transport and/or undertakes groupage of Less Container Load (LCL)
      shipments and issuing a corresponding transport document.
   d. International Freight Forwarder – local entity that acts as a cargo intermediary and
      facilities transport of goods on behalf of its client without assuming the role of carrier.
      It can also perform other forwarding services, such as booking cargo space,
      negotiating freight rates, preparing documents, advancing freight payment, providing
      packing/crating, trucking and warehousing, engaging as an agent/representative of a
      foreign NVOCC/cargo consolidator named in Master Bill of Lading as consignee of a
      consolidated shipment, and other related undertakings.
   e. Domestic Freight Forwarder – an entity that facilitates and provides the transport of
      cargo and distribution of goods within the Philippines on behalf of its client.
   f. Shipper - the person whose name appears in the Bill of Lading or other transport
      document as the party contracting with the carrier for the carriage of goods by sea,
      such as the exporter, importer, cargo owner, freight forwarder, and cargo
      consolidator.
   g. Consignee - the person whose name appears in the Bill of Lading or other transport
      document as the party to whom the goods are to be delivered by the carrier.
   h. PSB – the Philippine Shippers‟ Bureau.
   i. Director of PSB - includes the Officer-in-Charge of PSB.
   j. RAD - Registration and Accreditation Division of PSB.
   k. Person - a natural person or juridical person.
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   l. This Order - this PSB Administrative Order.
   m. Working days - working days of PSB.
   n. Subsisting Certificate of Accreditation - one that is existing and has not expired, not
      cancelled, not under suspension, not automatically/deemed revoked, and not
      acquired by way of transfer/alienation/inheritance.

       RULE II - Covered Firms; Documentary Requirements for Accreditation

SEC. 3. Covered Firms – The five (5) categories namely: Non-vessel Operating Common
carrier (NVOCC), Cargo Consolidator (CC), International Freight Forwarder (IFF),
Breakbulk Agent (BBA) and Domestic Freight Forwarder (DFF) are hereby simplified into
three (3) namely: Non-Vessel Operating Common Carrier (NVOCC), International Freight
Forwarder (IFF) and Domestic Freight Forwarder (DFF) which are defined above. Non-
Vessel Operating Common Carrier includes are functions of a Cargo Consolidator;
International Freight Forwarder includes the functions of a Break-bulk Agent. These three
(3) categories are referred to as “covered firms” under this Order; hence they must be
accredited first before they can legally engage in the said functions and/or operations.

SEC 4. Documentary Requirements for Accreditations – The applicant shall file with the
PSB a written application under oath, in the prescribed form (in one copy only), together
with a clear copy of each of the following documents:

1. Company Profile and Partnerships:

      A photocopy of the SEC Certificate of Incorporation and the Articles of Incorporation/
Partnership and By-Laws.

       The category being applied for by the applicant must be specifically provided in the
Primary Purpose portion of its Articles of Incorporation/Partnership. However, if the
application is for NVOCC category and there is no specific provision in applicants‟ Articles
of Incorporation/Partnership allowing it to engage in NVOCC operations, the applicant shall
be required to file with SEC an amendment for that purpose. Upon submission to SEC of
the application for amendment, an accreditation shall be granted by PSB subject to the
condition that within ninety (90) days from the issuance of the Certificate of Accreditation, a
copy of the duly approved Amended Articles of Incorporation/Partnership shall be
submitted by the applicant to PSB.

          3. Audited Financial Statement (Latest Income Statement & Balance Sheet with
             supporting schedules), which must show a minimum paid-up capital as
             certified by the Securities and Exchange Commission (SEC) according to the
             category as follows:
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                                 Category                   Minimum Paid-up
                                                                 Capital
                                                              Requirement
                  a. NVOCC                                     P 4,000,000.00
                  b. International Freight Forwarder             2,000,000.00
                  c. Domestic Freight Forwarder                    250,000.00

       When the applicant is just a division of a company composed of two or more
divisions, it shall submit, in addition to the financial statements applicable to the entire
company, a statement of income and expenses applicable only to its freight forwarding
operations as a separate Profit Center.

        The applicant's net equity shall be equal to or greater than the above-prescribed
minimum paid-up capital for each category, and the amount shall not be impaired by the
operating losses, the long-term liabilities, or other operating aspects affecting the net equity
of the firm upon application for accreditation.

3. Copy of latest Mayor‟s Permit, BIR Certificate of Registration and SSS Certificate of
   Membership.
4. Board or Partnership Resolution, as the case may be, authorizing the company to apply
   for accreditation with the PSB and Identification of key officers authorized to sign, follow
   –up and receive the accreditation with the PSB and Identification of key officers
   authorized to sign, follow-up and receive the accreditation certificate.
5. List of Corporate Officers and Key Operating Personnel with corresponding bio-date
   and passport size pictures of its key officers.

    Any one (1) of the key operating officers must have at least three (3) years experience
in shipping, freight forwarding, and/or related activities, and must submit a certification or
proof of employment from previous employers

6. List of agents/principals/officers abroad and/or domestic agents with their respective
   company profile, and a copy of the existing contract and/or agency agreement. The
   applicant is given sixty (60) days in which to submit said requirement.
7. For NVOCC, original blank specimen of own House/Forwarder‟s Bill of Lading and
   Principal/Agent House/Forwarders Bill of lading. The applicant is given sixty (60) days in
   which to submit at least one (1) original copy of Principal/Agent House/Forwarders Bill
   of Lading
8. Proof of cargo insurance coverage, namely, a photocopy each of the policy and the
   official receipt showing payment of the premium.

     The type of cargo insurance required for accreditation under this Order is either the
Merchandise in Transit (Floater) Insurance or the Through Transport Club insurance. The
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MIT (Floater) Insurance shall cover Truck Risks Plus Robbery and Hijacking (Standard
Coverage) plus losses and damages due to loading and unloading, and losses and
damages whilst the vehicle is on stop overnight at an allowed territory. The Through
Transport Club Insurance is the standard comprehensive cargo liability insurance for freight
forwarders and transport operators covering destinations between the Philippines and
worldwide.

   Entities with global comprehensive cargo liability coverage must show proof that its
domestic insurance representative is authorized to process claims on behalf of its principal
insurer.

   The minimum amount of insurance coverage shall be as follows:

                          Category                 Minimum Amount
                                                     of Insurance
                                                       Coverage
             a. NVOCC                                   P 1,000,00.00
             b. International Freight Forwarder           500,000.00
             c. Domestic Freight Forwarder                250,000.00

9. Inventory of Office Equipment and, if any, a list of transport equipment and/or
    photocopies of contracts with trucking company/s. for vehicles owned by the applicant,
    a photocopy each of the vehicle registration papers shall also be submitted.
10. Location and Map of Office
11. In the prescribed form, (1) an authority to verify and inspect the applicant's office/s,
    warehouse/s, equipment, and documents/records; and to verify from whatever sources,
    even after the Certificate of Accreditation has been issued, the veracity of the
    entries/statements in the application form and supporting documents as well as the
    genuineness of the said documents; and (2) an authority to conduct the visitorial
    activities mentioned in Sections 34 and 35 hereof for the life-span of the Certificate of
    Accreditation.
12. For NVOCC, a copy of the freight tariff and transshipment fees.
13. PSB duly prescribed itemized service charges

B. For Sole Proprietorship

1. A photo copy of the subsisting Certificate of Business Name Registration.
2. Audited Financial Statement (Latest Income Statement and Balance Sheet with
   supporting schedules). For newly organized companies, an audited pre-operating
   balance sheet is required. The capitalization must be equivalent to the minimum paid-up
   capital and net equity requirement stated in Subsection (A) (2) of this Section.
3. Proofs of Financial Resources:
   a. Copy of Bank Certificate reflecting the minimum amount of capitalization required
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   b. Proof of Tangible Assets and Submission of undertaking in the PSB prescribed
      format, indicating its Fair Market value which should be equal to or greater than the
      required minimum capitalization.

4. Latest Income Tax Return for two (2) preceding years.
5. Proprietor‟s Authorization identifying the key officers authorized to sign, follow-up and
   receive the accreditation certificate.
6. List of Key Operating Officers, which includes the Owner, Chief Operating Officer,
   Operations Manager or equivalent and corresponding bio-date with passport size
   pictures.

        Any one (1) of the key operating officers must have at least three (3) years
experience in shipping, freight forwarding, and/or related activities, and must submit a
certification or proof of employment from previous employers.

   The following items of Subsection (A) of this Section shall be applicable to Sole
Proprietorships:

Item 3 – re – Mayor‟s Permit, BIR and SSS Registrations
Item 6 – re – agents/principals/officers abroad and/or domestic agents; contract
Item 7 – re – B/L specimen
Item 8 – re – insurance
Item 9 – re – office equipment/contracts/vehicle registration papers
Item 10 – re – location map
Item 11 – re – authority to verify and inspect; authority to conduct visitorial activities
Item 12 – re – freight tariff
Item 13 – re – local service charges

Notwithstanding the above, the PSB may require the submission of other documents as
may be necessary in the evaluation of the application.

SEC. 5 Additional categories – If the applicant is applying, on a single occasion, for more
than one category, his main category shall be charged the filing and processing fee of P
5,000.00, for Non-Vessel Operating Common Carrier, P 4,000.00 for International Freight
Forwarder or P 3,000.00 for Domestic Freight Forwarder, and every additional category
shall be charged a filling and processing fee of P 1,500.00 only. The same rule shall be
applied when a firm which has already an accredited category later on applies for additional
category/s. Provided however, that the life-span of the Certificates of Accreditation for the
additional categories shall be coterminous with that of the main/first accredited category,
and consequently all shall be renewed simultaneously and considered as one renewal
application entitling the applicant to pay only a single filing and processing fee (including
surcharge if applicable).
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SEC. 6. Branch offices must be accredited. - Every branch of the covered firms must be
accredited first before said branch can legally engage in business. For this purpose, the
applicant shall file an application under oath, in the prescribed form (in one copy only),
together with a clear copy of each of the following documentary requirements:

   a. Information regarding the branch office;
   b. Bio-date and recent passport-size ID picture of the Branch Manager (BM)-
      The BM should meet the experience requirements for Operation Manager as
   provided in Section 4 hereof;
   c. Latest Mayor‟s Permit;
   d. Insurance policy coverage;
           Territorial limits – should include a clause specifying the coverage of branch
             office‟s area of operations.

   e. Visitorial/Inspection Authority
   f. Tariff and local service charges Ex-Port nearest to the branch office‟s area of
      operations; and
   g. Other documents as may be necessary in the evaluation of the application, when
      required by the PSB

     RULE III - Processing of Application for Accreditation (Original or Renewal)

SEC. 7. When application is deemed filed. - The application for accreditation (original or
renewal) shall be deemed filed upon submission of all documentary requirements and
payment of the filing and processing fee and surcharge (if applicable).

SEC. 8. Action on the application. - Within fifteen (15) working days from the date the
application is deemed filed, the RAD shall: (1) verify, inspect and evaluate the office/s,
warehouse/s, equipment, and pertinent documents of the applicant; and (2) recommend to
the Director of PSB the approval or denial of the application, as the case may be. The
latter, in his discretion, may refer the application to the RMC for comment.

SEC. 9. Automatic accreditation. - The application shall be processed (including approval
or denial) within a period of twenty-one (21) working days reckoned from the date it is
deemed filed. After said period if no action has been taken on the application or the
processing thereof has not been completed, the application shall be deemed approved and
the applicant shall be entitled to the issuance and release of a Certificate of Accreditation
upon payment of the Accreditation Certificate Fee.

SEC. 10. Suspension of the running of the 21-working day period. - During the processing
of the application, clarificatory question/s may be posed by PSB to the applicant which
must be answered in writing within five (5) days from receipt of notice thereof, or PSB may
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 require the submission of additional document/s necessary in the evaluation of the
application, which must be submitted by the applicant within five (5) days from receipt of
notice thereof. The running of the 21-working day period shall be deemed suspended
when said question/s are thus posed or when said additional document/s are required. The
suspension shall begin from the date said notice is actually received by the applicant and
shall stop from the date PSB actually receives the written answer/s or document/s from the
applicant.
For non-compliance of rules and documentary requirements, the entity‟s application for
accreditation shall be disapproved.

SEC. 11. Ocular inspection. - The inspection mentioned in Section 9 hereof shall be
conducted by a duly authorized Inspection Team. It shall be conducted in the manner
provided in Section 34 and 35 hereof. An Inspection Report (in the prescribed form) shall
be submitted to the PSB Director within twenty-four (24) hours after the inspection.

                            RULE IV - Renewal of the Accreditation

      SEC. 12. Renewal period: renewal applications classified. - Renewal applications
are hereby classified as follows:

1. Regular application – If filed at any time on or before the expiry date of the
   Accreditation.
2. Late application:

   a.   From one (1) to fifteen (15) days after the expiry date.
   b.   From sixteen (16) to thirty (30) days after the expiry date
   c.   From thirty-one (31) to forty-five (45) days after the expiry date.
   d.   From forty-six (46) days after the expiry date and onwards

       In case the processing time of a regular, fast-track, or late application reaches or
goes beyond the expiry date of the Certificate being renewed, the Certificate being
renewed shall be deemed existing during the said processing time and up to the date of
release of the renewal certificate or date of actual receipt by the applicant of the written
notice of denial of his application, as the case may be. This is in order to avoid a hiatus
and disruption of private business (per Section 18, Book VII of the Administrative Code of
1987). And in case of approval of these three classes of applications, the effectivity of the
renewal Certificate shall retroact to the expiry date of the Certificate being renewed.

        The firm whose application for renewal is filed on or after the expiry date (but not
later than six months from the expiry date) shall be delisted from the monthly list mentioned
in Section 28 hereof until a renewal Certificate is issued and released to the applicant. If
said application is approved, the effectivity of the renewal Certificate shall retroact to the
expiry date of the Certificate being renewed.
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SEC. 13. Processing of the Renewal Application - The renewal application shall be subject
to the standards and documentary requirements provided in Rule II hereof, and shall
undergo the processing procedure provided in Rule III hereof.

                           RULE V - Certificate of Accreditation

SEC. 15. Certificate of Accreditation, when issued and released. - When the applicant
meets all the standards and requirements for accreditation, and has paid the prescribed
filing and processing fee (including surcharge if applicable), the Director of PSB shall
approve the application and issue the Certificate.

      The Certificate shall be signed by the Director of PSB, sealed with the seal of PSB,
and shall state:

a. The name of the accredited firm, stating whether it is the main/sole/branch office, and
   stating its address;
b. The specific freight forwarding operations it is authorized by the PSB to engage in;
c. The date of issue;
d. The life-span of the Certificate, and the exact inception date (date the Certificate shall
   start to be effective) and the exact expiry date;
e. The statement that it is non-transferable and cannot be used by another;
f. The statement that the original copy of the Certificate must be displayed in a
   conspicuous place in the accredited firm's main/sole/branch office, as the case may be;
g. The Certificate Number;
h. The number and date of the of the Official Receipt of the Accreditation Certificate Fee;
   and
i. Other pertinent data as may be required by the PSB.

       The original copy of the Certificate shall be released to the applicant upon payment
of the Accreditation Certificate Fee. A photo copy thereof shall be kept by PSB for record
purposes.

SEC. 15. Life-span of the Certificate. - The Certificate of Accreditation shall have a life-span
of two (2) years unless sooner cancelled under Rule XI hereof. Its life-span may also be
cut short when it is automatically/deemed revoked.

SEC. 16. Non-transferability of the Certificate. - The Certificate of Accreditation is issued
only after carefully evaluating the technical, financial, and other qualifications of the
applicant vis-a-vis the standards herein. Hence, the grantee of said Certificate shall not
transfer or alienate in whatever manner, nor authorize another to use, said Certificate.
Neither can the Certificate be inherited.
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SEC. 17. Display of the Certificate. - the original copy of the subsisting Certificate of
Accreditation shall be displayed in a conspicuous place in the accredited firm's
main/sole/branch office, as the case may be.

       However, when the original copy is lost or destroyed, the grantee shall file an
application under oath for the issuance of a substitute certified copy of the Certificate. Said
substitute copy shall be displayed as provided in this Section.

SEC. 18. Right of accredited firms. - Firms with subsisting Certificate of Accreditation shall
have the right to state in their advertisements through the print media, television, radio,
brochures, posters, and the like and in its letters, contracts, bills of lading, receipts,
signboards, stickers or signs in their vehicles the term -

"ACCREDITED BY PSB, CERTIFICATE OF ACCREDITATION NO. ________, EXPIRING
(state expiry date)"

                               Rule VI - Schedule of Fees Payable

SEC. 19. Accreditation Fees – The following fees shall be paid to PSB

A. For the Main /Sole Office:
            1. Original application for accreditation:

            a. Filing and Processing Fee                     NVOCC P 5,000.00
                                                             IFF    4,000.00
                                                             DFF    3,000.00
            b. Accreditation Certificate Fee                           200.00

            2. Renewal application for accreditation:
                                           Category        Filing       Surcharge:
                                                         Processing
                                                            Fee:
            Regular application            NVOCC          P 5,000.00            P 0.00
                                           IFF              4,000.00
                                           DFF              3,000.00

            Late application
            a. If filed from one (1)       NVOCC          P 5,000.00       2,000.00
               to fifteen (15) days        IFF              4,000.00
               after the expiry date.      DFF              3,000.00
            b. If filed from sixteen       NVOCC          P 5,000.00       4,000.00
               (16) to thirty (30)         IFF              4,000.00
               days after the expiry       DFF              3,000.00
               date
            c. If filed to forty-five      NVOCC          P 5,000.00       8,000.00
               (450 days after the         IFF              4,000.00
               expiry date                 DFF              3,000.00
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            d. If filed from forty-six   NVOCC     P 5,000.00       12,000.00
               (46) days after the       IFF         4,000.00
               expiry      date   and    DFF         3,000.00
               onwards
            Accreditation
            Certificate           Fee
            (Whether regular or                        200.00
            late application)

B. For the Branch Office:

1. Filing and Processing Fee - shall be 25% of the Filing and Processing Fee stated in (A)
   (1) or (A) (2) above, as the case may be, plus 25% of the corresponding surcharge if
   applicable.

2. Accreditation Certificate Fee                 P 200.00
   (Whether original or renewal –
   Regular or late application

SEC. 20. Other fees. - The following fees shall also be paid to PSB:
           a. For the issuance of a substitute certified        P 200.00
              copy of a lost or destroyed Certificate of
              Accreditation
           b. For the issuance of a PSB ID                         200.00
           c. For the issuance of a substitute PSB ID (in          200.00
              case of loss or destruction)
           d. For the issuance of a Certification that a           200.00
              certain firm has or has no pending case with
              PSB
           e. For the issuance of any other Certification          200.00

SEC 21. Crediting of money paid by mistake. - Money paid to PSB by mistake, such as
payment in excess, shall be credited to payor's account for future financial obligations to
PSB.
                  Rule VII - Certain Obligations of Accredited Firms

SEC 22. Manifest of Consolidated Shipments. - Accredited firms shall submit to PSB photo
copies of all inward and outward manifests covering consolidated shipments, when
required by PSB in protecting the interests of shippers and consignees.

SEC 23. Change in the List of Directors. - Every change in the List of Board Directors shall
be reported in writing to PSB within fifteen (15) days from the date the change occurred
(e.g., death) or was decided or approved.

SEC 24. Change of Operations Manager or Chief Operating Officer or equivalent or Branch
Manager. - The resignation, termination of services, or appointment of the accredited firm's
Operations Manager or Chief Operating Officer or equivalent or Branch Manager shall be
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reported in writing to PSB within fifteen              (15)    days      from   the      date     the
resignation/termination/appointment was made.

SEC 25. Change of overseas officers/agents/key personnel. - Every change of
officers/agents/key personnel abroad shall be reported in writing to PSB within thirty (30)
days from the date the resignation/termination/appointment was made.

SEC 26. Other obligations of accredited firms. - In addition to the obligations stated above
and elsewhere in this Order, every accredited firm shall have the following obligations:

 a. To renew without delay its cargo insurance coverage, and submit to PSB the proofs of
    said renewal Subsection A (8) of Section 4 hereof is applicable within thirty (30) days
    from receipt of the renewal policy.
 b. To submit to PSB a quarterly cargo statistics report within thirty (30) days after the
    lapse of the quarter covered by the report.
 c. To submit to PSB annual financial statements within thirty (30) days after the required
    filing date set by the Bureau of Internal Revenue (BIR) for corporate/individual tax
    returns.
 d. To submit to PSB a copy of the Amended Articles of Incorporation/Partnership (if any)
    within thirty (30) days from the date the firm received from SEC the said document.
 e. To report in writing to PSB the change of address of the Office or warehouse of the
    firm, within five (5) days from the date the change was made.

                               Rule VIII - Sundry Provisions

SEC 27. Register: Monthly List. - (a) the PSB shall establish, maintain and operate a
Register of accredited firms.

(a)    PSB shall also issue monthly an updated list of accredited firms containing the
      following data:

  1. The names of said firms;
  2. The expiry date of their respective Certificate of Accreditation; and
  3. Other pertinent data as may be required by PSB.

(b) PSB shall furnish with copies of said list the Bureau of Customs and government and
    private entities needing copies thereof.
(c) Firms not included in the said list of which have been delisted therefrom shall not be
    allowed by the Bureau of Customs, Philippine Ports Authority, and other government
    agencies to transact business with them.
(d) It shall be the duty of delisted firms to surrender their PSB IDs to PSB within five (5)
    days from receipt of notice of delisting.
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SEC 28. PSB Identification Cards. - PSB shall issue Identification Cards to official
representatives of the accredited firm who are authorized to transact business in its behalf.
For this purpose, the accredited firm shall file an application under oath (in the prescribed
form) stating the name, position in the firm, and other pertinent data as may be required by
the PSB, together with photo copies of records proving that the said representative is really
an employee of the accredited firm (e.g., SSS remittance records), and bio-data and two (2)
recent passport-size ID pictures of said representative, and pay the PSB ID Fee provided in
Section 21 (b) hereof.

       A maximum of three (3) IDs shall be issued for every category.          The ID shall
state/contain:

      a. The name, position in the firm, signature, and picture of the person to whom the
         ID is issued;
      b. The name and address of the accredited firm he is representing;
      c. The ID number;
      d. The exact inception and expiry dates;
      e. The signatures of the Director of PSB and RMC members from the government;
         and
      f. Other pertinent data as may be required by the PSB.

      The life-span of the PSB ID shall be coterminous with the life-span of the Certificate
of Accreditation. Thus, the cancellation, suspension, expiration, or automatic/deemed
revocation of the Certificate of Accreditation shall result in the automatic cancellation,
suspension, expiration, or revocation of the PSB ID.

SEC 29. Initialing of applications and documents. - When an application for accreditation,
or an application for the issuance of a PSB ID, or any other application is filed with PSB,
the very person signing the application shall also initial every page of the application
(except the page where his signature is) and every page of all supporting documents, on
the lower margin of said application and documents.

SEC 30. Bio-data. - PSB shall prescribe the form of the bio-data for Board Directors,
principal officers (including the Operations Manager or Chief Operating Officer or
equivalent), Sole Proprietors, Branch Managers, and authorized representatives to be
issued PSB IDs. Every person mentioned in this Section must disclose in the sworn bio-
data all of his present residential addresses in the Philippines as well as the names of the
province and municipality of which he is a native, and any conviction in a criminal case
involving dishonesty (e.g. estafa) and any pending criminal case against him involving
dishonesty.

SEC 31. Automatic revocation of Certificate. - The Certificate of Accreditation is
automatically revoked in case of a change in the relationship of the partners in a
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partnership which materially interrupts the course of business or results in the actual
dissolution of the partnership.

SEC 32. Transfer/change of ownership of a sole proprietorship. - When the ownership of an
accredited firm, which is a sole proprietorship, is transferred or changed, the new owner
must apply for the transfer in his name of the Certificate of Accreditation and submit
requirements which are necessary for the adjustment of the records of the accredited firm
on file with PSB. Said application must be filed within thirty (30) days from the date the
transfer/change of ownership took effect, otherwise the Certificate of Accreditation shall be
deemed revoked provided that the new owner is given the opportunity to show cause why it
should not be deemed revoked.

                                Rule IX - Visitorial Power

SEC 33. Purposes and extent of visitorial power. - In order that PSB can effectively enforce
and check compliance with this Order and the circulars and orders which may be issued
under this Order, it may exercise, through a duly authorized Inspection Team its inherent
and necessary visitorial power to enter, whenever necessary, any establishment, office,
and premises which is being used by a covered firm, accredited or not, as its office,
warehouse, garage, or for any of its business operations, and conduct therein one or more
of the following visitorial activities:

      a. Require the presentation of and inspect any pertinent books of account, record,
         document, paper, drawing, sketch, contract, and the like;
      b. Inspect any pertinent facility, equipment, vehicle, furniture, and the like;
      c. Inspect any pertinent work/activity being undertaken thereat;
      d. Take pictures/video recordings or make sketches of the premises or of any of the
         real or personal properties and of the work/activity mentioned above;
      e. Secure photo copies of the things mentioned in paragraph (a) above; and
      f. Interview any person who may be found at the premises entered.

SEC 34. Manner of conducting visitorial activities. - The Inspection Team duly authorized to
conduct any of the visitorial activities mentioned in the preceding Section shall conduct the
same in the following manner:

      a. Before entering the property, the Inspection Team shall exhibit their Mission
         Order and Office IDs to the owner, or person who has charge of said property at
         the time entrance is to be made, or to the lawful occupant thereof. The
         Inspection Team shall ascertain the danger areas in that place (e.g., high voltage
         area, no smoking area, dangerous equipment area, toxic area, etc.) for their
         safety.
      b. The visitorial activities shall be conducted in the presence of the owner, or
         person who has charge of said property at the time entrance is to be made, or
         lawful occupant thereof, or their respective authorized representative.
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      c. The visitorial activities shall be conducted at the reasonable hours, with
         promptness, in a professional manner, and without undue disturbance to any
         legitimate work/activity being undertaken thereat.
      d. A receipt shall be issued for photo copies of the things mentioned in paragraph
         (a) of Section 34 hereof which are taken by the Team.
      e. After conducting the visitorial activities, the witness to said conduct shall sign a
         certificate as to the manner the visitorial activities were conducted. Said
         certificate, in the prescribed form, shall contain a space where the witness can
         write briefly his complaints, if any, regarding the manner the visitorial activities
         were conducted (e.g., irregularities, discourtesy, things damaged, and things
         taken for personal purposes). Said certificate shall state/contain: a brief
         description of the premises, its address, name of witness and whether he is
         owner, occupant, etc., the date the visitorial activities were conducted and the
         precise time of entrance and egress. The Team Leader shall also sign it. A copy
         of the certificate shall be furnished said witness.

                                  Rule X - PSB Functions

SEC 35. Functions relative to accreditation. - PSB may perform the following functions, to
the extent necessary and as far as PSB resources may allow:

      a. To conduct studies on the Sea Freight Forwarding Industry to determine or verify
           the state of the Industry; its resources, problems, and prospects; number of
           people dependent on it for livelihood; extent of foreign participation in the capital
           and management; governmental assistance needed; the practices, acts,
           methods, schemes, arrangements, and modus operandi used in the Industry;
           and the Industry's desires and recommendations; and recommend to DTI the
           taking of promotional / developmental / remedial / facilitation measures for the
           Industry.
      b. To prepare the draft policies, measures, Memoranda of Agreement, letters,
           Administrative Orders, Executive Orders, and Congressional Bills which may be
           necessary to effectuate its recommendations mentioned in the preceding
           paragraph, or which may be needed by PSB to carry out the objectives declared
           in Section 1 hereof.
      c. To prescribe and promulgate Circulars and Orders.
      d. To enforce and monitor compliance with this Administrative Order, and the
           Circulars and other Order issued by PSB
      e. To enforce the prescribed Code of Conduct and Ethical Standards for Freight
           Forwarders for the covered firms.
      f. to perform such other functions as maybe authorized by law, rules and regulations,
           Circulars and/or Order.
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SEC 36. Means of securing data and evidence. - The data and evidence which may be
necessary in the performance of the functions listed in the preceding Section may be
secured by PSB through one or more of the following three (3) means:

      a. Voluntary means:

         1. Consultative meetings; and/or
         2. Written/verbal requests.

      b. Through the conduct of fact-finding investigation, hearing, and inquiry. The
         official/s authorized by the Director of PSB to conduct same shall have the
         power:

         1. To administer oaths and affirmations;
         2. To issue subpoena and subpoena duces tecum to compel the attendance of
            witness and the giving of testimony, and the production of the relevant and
            necessary data, records, documents, papers and the like; and
         3. To take data, testimony, and evidence.

      c. Require the submission to PSB periodically or otherwise, of any pertinent report,
         data, document, paper and the like.

      The persons or firms who are covered by these three (3) means are the following:

      a. Voluntary means: any person or firm, private or governmental.
      b. Persons who can be subpoenaed: any person, private or governmental, who may
         have knowledge or be in possession of data or evidence pertinent to the matter
         being investigated, heard, or inquired into.
      c. Persons who can be required to submit reports, data, etc.: Any covered firm,
         accredited or not.

            Rule XI - Administrative Adjudication of Offenses under this Order

SEC 37. Governing System. - The following offenses shall be subject to the existing DTI
Administrative Adjudication System provided under E.O. No. 913, Series of 1983 and DTI
Ministry Order No. 69, Series of 1983 as amended, and to the special adjudication rules
provided in Sections 42 to 48 hereof, without prejudice to criminal and civil actions:

      a. Unlawful acts and omissions, listed in Section 38 hereof;
      b. Unlawful acts and omissions relative to the visitorial power, listed in Section 39
         hereof;
      c. Unlawful acts and omissions relative to the gathering of data/evidence, listed in
         Section 40 hereof; and
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      d. Other violations of this Order which are not specifically included in Sections 38,
         39 and 40.

SEC 38. Unlawful acts and omissions. - The following acts and omissions are unlawful
under this order:

      a. Engaging in or transacting business by a covered firm, operating either as a
         main, sole, or branch office, without having a subsisting Certificate of
         Accreditation.
      b. Misrepresentation by a firm that it has a subsisting accreditation.
      c. Using a subsisting accreditation by another with authority from an accredited
         firm.
      d. Failure to display the valid and original copy of Certificate of Accreditation as
         required by Section 17 hereof
      e. Transacting business through an accredited firm‟s representative without the
         required PSB I.D. as provided in Section 28 hereof.
      f. Refusal/Failure to comply with any of the obligations mentioned in Rule VII
         hereof, or the submission under said Rule of report/s, document/s or paper/s
         which are false, or which contain false/misleading data.
      g. Misrepresentation by the applicant, of any material fact in obtaining the
         accreditation, or any other certification/s documents.
      h. Transferring or authorizing of an accredited firm to another, in whatever manner,
         its accreditation.
      i. Refusal or failure of an accredited firm to comply with lawful orders/
         administrative issuances and/or circulars of PSB
      j. Violation by covered firm of the CODE of Conduct and Ethical Standards for
         Freight forwarders mentioned in Section 35 (e) hereof.
      k. Overcharging
      l. Collecting and charging of fees not prescribed by PSB
      m. Failure to deliver cargo as required in the transport document
      n. Failure to deliver cargo to its rightful owner.
      o. Failure to comply with its contractual obligation to the shipper.
      p. Grant of Rebates.
      q. Delinquent freight forwarders.


SEC 39. Unlawful acts and omissions relative to the visitorial power. - It shall be unlawful
for any person, even though he is not a Board Director, officer, employee, owner, or agent
of the covered firm (accredited or not) -

      a. to refuse/prevent/obstruct/harass/delay the entrance, presentation, inspection,
         taking of pictures/video recordings, making of sketches, taking of copies;
         mentioned in Section 33 (a), (b), (c), (d), and (e) hereof; or
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    RMA CARGO LOGISTICS, INC.

      b. to refuse/prevent/obstruct/harass/delay the interview of himself or of another
         person; mentioned in Section 33 (f) hereof; or
      c. to refuse/prevent/obstruct/harass/delay the signing, by himself or another person,
         of the certificate as to the manner the visitorial activities were conducted;
         mentioned in Section 34 (e) hereof.

SEC 40. Unlawful acts and omissions relative to the gathering of data/evidence. - It shall be
unlawful -

      a. for any person to whom a subpoena or subpoena duces tecum has been issued,
         to refuse/fail to comply with the subpoena or subpoena duces tecum issued by
         the authorized official of PSB; or to refuse to be sworn to prior to giving of
         testimony; or to refuse to answer pertinent questions; or to give false or
         misleading testimony; or to produce records, documents, papers and the like
         which are false, or which contain false/misleading data on a material respect;
         mentioned in Section 36 (b) hereof; or
      b. for any covered firm to refuse/fail to submit on time, the required report, data,
         document, paper or the like; or to submit a report, data, document, paper or the
         like which is false/incomplete/blurred, or which contains a false/misleading data
         on a material respect; mentioned in Section 36 (c) hereof.

SEC 41. Schedule of Sanctions/Penalties – the following contains a listing of the various
offenses mentioned in Section 38 hereof with their corresponding sanctions/penalties taken
from E. O. 913 and Ministry Order No. 69. Said schedule may be used by PSB when
conducting the Mediation Stage of an administrative case, and by the DTI Office of Legal
Affairs (OLA) when conducting the Hearing and Decision Stage of the administrative case:
                       Violation                                Penalty/ Sanction

         a.   Engaging in or transacting           Issuance of cease and desist order for the
              business by a firm, operating         non-continuance of operation and a
              either as a main, sole, or branch     monetary fine of Php 50,000.00
              office without prior accreditation
         b.   Misrepresentation by a firm that
              it has subsisting accreditation
         c.   Using a subsisting accreditation
              by another with authority from
              an accredited firm.



                       Violation                               Penalty / Sanction
                                                    First Offense    Second        Third
                                                                     Offense      Offense
         d. Failure to display the valid            Stern warning       Fine   of      Revocation
            and      original   copy     of         from PSB and        Php            of
            Certificate of Accreditation as         violator’s          1,000.00       accreditation
            required by Section 17 hereof           submission of                      certificate
         e. Transacting           business          a       written
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RMA CARGO LOGISTICS, INC.

      through an accredited firm’s      voluntary
      representative without the        assurance of
      required PSB I.D. as provided     compliance of
      in Section 28 hereof              discontinuanc
                                        e     of   the
                                        violation
                                        committed


               Violation                            Penalty / Sanction
                                         Period of Delay:          Amount
   f. Refusal/Failure to comply with    1. Delay in the              P 1,000.00
       any    of   the    obligations      submission of
       mentioned in Rule VII hereof,       a report not
       or the submission under said        exceeding
       Rule of report/s document/s         two          (2)
       or paper/s which are false, or      months from
       which                  contain      due date
       false/misleading data.           2. Delay                       2,000.00
                                           exceeding two
                                           (2)     months
                                           but         not
                                           exceeding
                                           four         (4)
                                           months
                                        3. Delay                       4,000.00
                                           exceeding
                                           four         (4)
                                           months      but
                                           not exceeding
                                           six          (6)
                                           months

                                        4. Delay                           6,000.00
                                           exceeding six
                                           (6)   months
                                           but        not
                                           exceeding six
                                           (6) months
                                        5. Delay                           8,000.00
                                           exceeding
                                           eight       (8)
                                           months     but
                                           not exceeding
                                           ten       (10)
                                           months

                                        6. Delay                          10,000.00
                                           exceeding but
                                           not exceeding
                                           ten      (100
                                           months    but
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        of MANAGEMENT and ECONOMICS
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    RMA CARGO LOGISTICS, INC.

                                                     not exceeding
                                                     one (1) year
                                                  7. Delay beyond             P 12,000.00 and
                                                     one (1) year           suspension of PSB
                                                     period                accreditation for six
                                                  8. non-                           (6) months
                                                     compliance or
                                                     submission of                    10,000.00
                                                     false/mislead
                                                     ing reports




                      Violation                              Penalty / Sanction
                                                   First Offense      Second            Third
                                                                      Offense          Offense
        g.     Misrepresentation     by    the    Fine:                Fine:          Revocatio
            applicant, of any material fact in                                        n        of
            obtaining the accreditation, or       If   NVOCC     =     If NVOCC =     accreditat
            any other certification/s or          Php40,000.00         Php            ion
            documents                             If IFF = Php         200,000.00     certificate
        h. Transferring or authorizing of an      20,000.00            If IFF = Php
            accredited firm to another, in        If DFF = Php         100,000.00
            whatever        manner,         its   2,500.00    and      If DFF = Php
            accreditation.                        submission     of    12,500.00
        i. Refusal or failure of an accredited    written
            firm to comply with lawful orders     voluntary      of
            /administrative issuances and/or      assurance      of
            circulars of PSB.                     compliance    or
        j. Violation by covered firm of the       discontinuance
            Code of Conduct and Ethical           of the violation
            Standards for Freight Forwarders      committed.
            mentioned in Section 35 (e)
            hereof
        k. Overcharging
        l. Collecting and charging of fees not
            prescribed by PSB
        m. failure to deliver cargo as
            required     in   the    transport
            document.
        n. failure to deliver cargo to the
            rightful owner.
        o. Failure to comply with its
            contractual obligation to the
            shipper.
        p. Grant rebates
        r. Delinquent freight forwarders.

SEC 42. Modes of commencing administrative adjudication proceedings. - Administrative
adjudication proceedings for offenses under this Order shall be commenced either:

      a. by PSB motu propio, by issuing a Formal Charge to and against the offender; or
      b. by any other person, by filing with the PSB a sworn/verified Complaint.
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    RMA CARGO LOGISTICS, INC.


SEC 43. Mediation: three (3) types of decision renderable by the Director of PSB. - In either
of the two (2) modes above, the PSB shall conduct a Mediation of the case. During the
Mediation Stage, the Director of PSB may render the following types of Decision:

      a. Decision based on a Compromise Agreement between the Complainant (PSB or
         any person) and the Respondent. This type of Decision is immediately executory
         and cannot be appealed.
      b. Decision based on a Voluntary Undertaking. In this particular situation, the
         Respondent offers a written Voluntary Undertaking to the Director of PSB. If the
         latter finds the same to be meritorious, he may render decision quoting therein
         the Voluntary Undertaking, stating that it is accepted by PSB under Section 6 (b)
         of E.O. 913, and stating further that judgment is rendered in accordance with the
         terms and conditions of the Voluntary Undertaking. This type of decision is
         immediately executory and cannot be appealed.
      c. Decision based on admission by the Respondent of all the allegations of the
         Formal Charge/Complaint. Here, the Director of PSB shall impose appropriate
         and reasonable sanctions/penalties provided in E.O. 913 and M.O. 69. This type
         of decision shall be final unless appealed to the DTI Adjudication Officer within
         ten (10) days from receipt of the decision. The execution of this decision shall be
         as provided in M.O. 69 as amended.

SEC 44. Elevation of case. - If Mediation fails or the Respondent does not admit all the
allegations in the Formal Charge/Complaint, the PSB shall elevate the case, through a
Memorandum of Transmittal to OLA for the conduct of the second stage (Hearing and
decision Stage) of the System. In elevating the case, there is no need of filing with OLA a
Statement of Violation.

SEC 45. When summons not necessary. - When the Respondent has appeared in the
Mediation Stage, either in compliance with the directive in the Formal Charge/Notice of
Hearing or voluntarily even without receiving the Formal Charge/Notice of Hearing,
jurisdiction over his person is already acquired, hence there is no more need for OLA to
send summons to the Respondent when the case is thus elevated.

SEC 46. Probable cause rule. - In Section 16 of M.O. 69, the "probable cause" rule shall be
followed in lieu of the "prima facie case" rule.

SEC 47. Additional powers. - In addition to the powers already vested in Bureau Directors
and Mediation Officers under M.O. 69, the Director of PSB and PSB Mediation Officers
shall have the power provided in Section 59 (re - contempt) of M.O. 69 and the powers to
administer oaths and affirmations and issue subpoena and subpoena duces tecum.
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    RMA CARGO LOGISTICS, INC.


     Rule XII - Transitory Provisions; RMC; Secretary‟s Approval; Repealing and
                                   Effectivity Clauses

SEC 48. Transitory provisions. - (a) All existing Certificates of Accreditation and PSB IDs
issued under PSB Administrative Order No. 2, Series of 1996 shall continue to be effective
until they reach their respective expiry date. However, they shall henceforth be governed
by this Order as to other matters.

(b) All applications for accreditation pending on the date this Order takes effect shall be
processed on the bases of the criteria/standards, documentary requirements, and fees
provided under PSB Administrative Order No. 2, Series of 1996. But the processing
procedure that shall be followed is that provided in Rule III of this Order. None of said
applicants shall be deemed accredited already under the "automatic accreditation"
provisions of PSB AO2.

SEC 49. RMC. - The Registration and Monitoring Committee (RMC) shall continue to exist
pending the creation by Executive Order of an advisory committee with a membership
coming from both the public and private sectors: provided, however, that the RMC shall
henceforth perform only purely advisory /consultative/recommendatory duties.

SEC 50. Secretary's approval. - Section 36, Book IV of the Administrative Code of 1987
requires that Administrative Orders of line bureaus like PSB shall be submitted to the
Secretary concerned for approval in order that said orders shall be effective. With the
Secretary of Trade and Industry's approval of this Order, it shall be deemed that the
delegations contained in Sections 41 to 47 of this Order are his delegations, and that said
Sections 41 to 47 are his amendments to M.O. 69, and in view thereof, this Order shall be
published in two newspapers of general circulation in compliance with Section 3 of E.O.
913, and not in just one newspaper as provided in Section 18, Book I of the Adm. Code of
1987.

SEC 51. Repealing clause. – PSB Administrative Order No. 2, Series of 1996 is hereby
repealed. All other issuances of parts thereof which are inconsistent with this Order are
hereby repealed or amended accordingly.

SEC 52. Effectivity. - This Order shall take effect fifteen (15) days after its publication in full
in two (2) newspapers of general circulation while compliance with the capitalization
requirement mentioned in Section 4 (A) (2) shall made within two (2) year from the
effectivity of this Order.
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RMA CARGO LOGISTICS, INC.

 Done in Makati City this 23rd day of November 2005.




                                APPROVED:

                             PETER B. FAVILA
                              Secretary, DTI

                      RECOMMENDING APPROVAL:

                       USEC. ZENAIDA C. MAGLAYA
                              CWTRG, DTI



                   ATTY. PEDRO VICENTE C. MENDOZA
                             Director, PSB
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   AN ASSESSMENT OF THE MARKETING              Submitted by :          Submission Date :
   STRATEGIES AND PROBLEMS OF                   Romel M. Aropo         April 2008
   RMA CARGO LOGISTICS, INC.




                   ROMEL M. AROPO
          President, RMA Cargo Logistics, Inc.


PERSONAL INFORMATION

Date of Birth        :      December 27 1968
Birth Place          :      Tabango Leyte
Nationality          :      Filipino
Religion             :      Roman Catholic
Parent/Guardian      :      Melchor S. Aropo
Permanent Address    :      Burabod Tabango Leyte



EDUCATIONAL BACKGROUND


Elementary           :      Mandaue City Central School
                            1981

High School          :      Leyte National Agricultural College

College              :      Indiana Aerospace University
                            Bachelor of Science in Customs        Administration

Post Graduate        :      International Academy of Management
                            and Economics (I/AME)

                            Master in Business Administration
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       of MANAGEMENT and ECONOMICS
                  Title of Thesis               Version 1.0       Page1of 121
   AN ASSESSMENT OF THE MARKETING               Submitted by :    Submission Date :
   STRATEGIES AND PROBLEMS OF                    Romel M. Aropo   April 2008
   RMA CARGO LOGISTICS, INC.

                              with major in International
                              Trade and Customs Management




WORK EXPERIENCE

RMA CARGO LOGISTICS, INC.
(International Logistics Provider)
President & CEO
Cebu Head Office:         No. 888 A.C. Cortes Avenue
                          Mandaue City Cebu City
                          Tel Nos: 032 – 3436771
                                     032 – 3436772
                          Fax No: 032 – 3436773
                          Email:        rma@rmacarlogistics.com


Manila Branch:         7348 – C.A. Bonifacio Extension,
                       San Dionisio Parañaque City, Manila
                       Tel Nos: 02 – 5130907
                       Fax No: 02 – 5130813
                       Email: rmacargomnl@pacific.net.ph



Cagayan De Oro Branch :    No. 291 Corrales Extension
                     Cagayan De Oro City
                     Tel. No: 088 – 8567146
                     Fax No: 088 – 2714721
                     Email: jehu@rmacargologistics.com
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    of MANAGEMENT and ECONOMICS
           Title of Thesis       Version 1.0      Page1of 121
AN ASSESSMENT OF THE MARKETING   Submitted by :   Submission Date :
STRATEGIES AND PROBLEMS OF       Romel M. Aropo   April 2008
RMA CARGO LOGISTICS, INC.

				
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