Airline Marketing by pptfiles


									   Airline Marketing

AWSC 3200 Air Transportation
        Air Carrier Marketing
• What is marketing?- is the process of
  getting buyers and sellers together in an
  specific place (market) in order to
  interchange the adequate amount money
  (price) for a product (or service) that
  satisfies the buyers needs.
• Air carrier marketing -is an organized
  system of activities by which the air carrier
  are matched with the market of users.
    Air Carrier 4 Basic Economic
• Form- producing an air transportation
  service which is an available seat.
• Time- Having the services of an available
  seat when needed
• Place- having the seat to take the
  passenger where they want to go.
• Possession- a system of selling the seat to
  the passenger and delivering the desire
           4 P’s of Marketing
• Product- the tangible or intangible good to be
• Place- is the place where the buyer and seller
  will perform the transaction. It also refer to
  reaching the customer.
• Price- establishing a fair and reasonable
  economic compensation for the good
• Promotion- is the information transmitted
  through communication channel to possible
  buyers related to your product
• Is the tangible or intangible (service) good to be
  produce and interchange in the market
• Airlines are service business; and services are
  highly variable, perishable and intangible.
• 3 additional P’s are involve when marketing a
  service: People, Process, and Physical Evidence
• After WWII the design of products have followed
  a pooling rather than a pushing technique.
                      3 Additional P’s
•   People- Any person coming into contact with customers can have an impact
    on overall satisfaction. Whether as part of a supporting service to a product
    or involved in a total service, people are particularly important because, in
    the customer's eyes, they are generally inseparable from the total service

•   Process- This is the process(es) involved in providing a service and the
    behavior of people, which can be crucial to customer satisfaction.
    Standardization is a Best Practice

•   Physical Evidence- Unlike a product, a service cannot be experienced
    before it is delivered, which makes it intangible. This, therefore, means that
    potential customers could perceive greater risk when deciding whether to
    use a service. To reduce the feeling of risk, thus improving the chance for
    success, it is often vital to offer potential customers the chance to see what
    a service would be like. This is done by providing physical evidence, such
    as case studies, testimonials or demonstrations.
• Supply and demand
  – Curves
• Product Elasticity (demand)
• It most cover at least operating cost
  (Break even)
• Airline have mattered Yield Management
• Promotion should be measure against
• The distribution Channel- how to reach
• Sale department in airlines are smaller of
  what they use to be
• Telephone
• Travel agencies
• Websites
• Counters (direct sales)- about 20%
•   Customer profiling (intelligence)
•   Personal selling
•   Directed promotion
•   Mass promotion

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