Marketing Environment in Airline Industry

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Airline Marketing and Management, Sixth Edition

Description:    Through five previous editions Airline Marketing and Management by Stephen Shaw has established
                itself as the preferred textbook for students of the principles of marketing and their application in
                today's airline industry; as well as a reliable reference work for those with a professional interest in
                the area.

                Carefully revised, the sixth edition of this internationally successful book includes new material on:

                -The impact of the Trade Cycle and the current period of high oil prices on the demand for air
                travel.
                -The effect of current trends towards regulatory reform and the relaxation of Ownership and
                Control rules on the structure of the international airline industry.
                -The continuing strong impact of Low Cost Carriers, and the strategic options open to so-called
                'Legacy' airlines as they respond to the challenges facing them.
                -The setting up of new 'Business Class Only' airlines. Why are they appearing now, and what are
                their long-term chances of success?

                An initial review of the structure of the air transport market and the industry marketing
                environment is followed by detailed chapters examining airline business and marketing strategies,
                product design and management, pricing and revenue management, current and possible future
                distribution channels, and selling, advertising and promotional policies.

                The reader will benefit from greater understanding of both marketing and airline industry jargon
                and from the knowledge obtained regarding the significant strategic challenges facing aviation at
                the present time.

                Written in a straightforward, easy-to-read style and combining up-to-date and relevant examples
                drawn from the worldwide aviation industry, this new edition will further enhance the book's
                reputation for providing the ideal introduction to the subject.

                Reviews

                With ready availability of routes, more efficient aircraft and simplified sales distribution systems,
                the success of an airline depends centrally on the ability of managers to understand and correctly
                respond to market opportunities. This 6th edition of Stephen Shaw's respected book brings a
                framework to airline marketing that is essential reading to all involved in air transport.
                Prof. Roger Wootton FREng, Course Director, Masters Air Transport Management, City University,
                London, UK

                'Stephen Shaw's Airline Marketing and Management has set the standard for airline marketing
                textbooks. The sixth edition is as useful as the first was all those years ago and focuses on both the
                long-term problems that the industry continues to face, as well as the new ones that are constantly
                emerging. As the author points out, there is certainly no shortage of the latter, which makes a new
                edition of the book particularly timely.'
                Barry Humphreys, Director of External Affairs & Route Development, Virgin Atlantic Airways

                About the Author/Editor
                Stephen Shaw is Managing Director of SSA Ltd, UK, a firm specialising in providing courses in
                marketing and economics to airlines and aerospace firms, located at Chinnor, Oxford, England.



Contents:       1 The Fundamentals
                1:1 What is Marketing?
                1:1:1 Definition
                1:1:2 The“Marketing Mix”
                1:1:3 Stages in the Application of Marketing Principles to Airline Management
Successful Airlines ……

2 The Market for Air Transport Services
2:1 What Business are we in?
2:2 Who is the “Customer”?
2:2:1 Definitions
2:2:2 “Apparent” and “True” Needs
2:2:3 Industrial Buying Behaviour
2:2:4 The “Customer” in the Business Air Travel Market
2:2:5 The “Customer” in the Leisure Air Travel Market
2:2:6 The “Customer” in the Air Freight Market
2:3 Market Segmentation – Air Passenger Market
2:3:1 The Concept
2:3:2 Segmentation Variables in the Air Passenger Market
2:3:3 Customer Requirements – Business Travel Market
2:3:4 The Business Travel Market - Demographics and Psychographics
2:3:5 The Leisure Segment of Demand
2:4 Segmentation of the Air Freight Market
2:4:1 Differences between the Air Passenger and Air Freight Markets
2:4:2 Segmentation Variables – Air Freight Market
Successful Airlines ……

3 The Marketing Environment
3:1 The Theoretical Basis - PESTE Analysis
3:2 PESTE Analysis - Political Factors
3:2:1 Terrorism Fears/Political Instability
3:2:2 Deregulation and “Open Skies”
3:2:3 Marketing Policies for a Deregulated Environment
3:2:4 Privatisation
3:2:5 “State Aid”
3:2:6 Airport Slot Allocation
3:3 PESTE Analysis - Economic Factors
3:3:1 Economic Growth and the Trade Cycle
3:4 PESTE Analysis - Social Factors
3:4:1 The Ageing Population
3:4:2 Changing Family Structures
3:4:3 Changing Tastes and Fashions in Holidays
3:4:4 The Uncertain, Deregulated Labour Market
3:4:5 The Female Business Traveller
3:5 PESTE Analysis - Technological Factors
3:5:1 Video-conferencing
3:5:2 The Internet
3:5:3 Surface Transport Investment
3:6 PESTE Analysis - Environmental Factors
3:6:1 Climate Change and Global Warming
3:6:2 Shortages of Infrastructure Capacity
3:6:3 “Tourism Saturation”
Successful Airlines ……

4 Airline Business and Marketing Strategies
4:1 Porter’s “Five Forces” and their Application to the Airline Industry
4:1:1 Rivalry amongst Existing Firms
4:1:2 Substitution
4:1:3 New Entry
4:1:4 Power of Customers
4:1:5 Power of Suppliers
4:1:6 “Disintermediation”
4:2 Strategic Families
4:2:1 Cost Leadership, Differentiation and Focus – The Principles
4:2:2 Cost Leadership in the Airline Industry: Background
4:2:3 Fundamentals of the Business Model
4:2:4 Cost Leader Airlines: Current Issues
4:2:5 Cost Leader Airlines: The Future
4:2:6 “Differentiation” in the Airline Industry
4:2:7 Airline Alliances
4:3 “Differentiation” Airlines – The Future
4:3:1 The Concept of the “Legacy Airline”
4:3:2 “Legacy Airlines” – Strategic Options
4:4 “Focus” Strategies
4:4:1 Types of Focussing in the Airline Industry
4:4:2 “Value-Added” Focussing
4:4:3 “Low Cost” Focussing
4:4:4 “Lost-in-the-Middle”
4:5 Airline Business and Marketing Strategies – Common Mistakes
4:5:1 Objectives
4:5:2 Diversification vs. Specialisation
4:5:3 Pace of Expansion
4:5:4 Competitive Response
4:5:5 “Control”
4:5:6 Over-optimism/Fall Back Position
Successful Airlines ……

5 Product Analysis in Airline Marketing
5:1 What is the “Product”?
5:2 The Theory of Product Analysis and its Application to the Airline Industry
5:2:1 The Product Life Cycle
5:2:2 Product Life Cycles in the Aviation Industry
5:2:3 Managing a Product Portfolio – the “Boston Box”
5:2:4 Balancing Risk and Opportunity – the Ansoff Matrix
5:3 Fleet and Schedules-Related Product Features
5:3:1 Cabin Configuration and Classes of Service
5:3:2 Network, Frequencies and Timings
5:3:3 Punctuality
5:4 Customer Service-Related Product Features
5:4:1 Point-of-Sale Service
5:4:2 Reservations and Overbooking
5:4:3 Airport Service
5:4:4 In-Flight Service
5:5 Controlling Product Quality
5:6 The Air Freight Product
5:6:1 Air Freight Capacity
Successful Airlines ……

6 Pricing and Revenue Management
6:1 Building Blocks in Airline Pricing Policy
6:1:1 Pricing – A Part of the Marketing Mix
6:1:2 Deregulation
6:1:3 Dissemination of Fares Information
6:1:4 Revenue Management Systems
6:2 “Uniform” and “Differential” Pricing
6:2:1 The Principles
6:2:2 Management of Discount Fares
6:2:3 Pricing Response and Pricing Initiatives
6:3 The Structure of Air Freight Pricing
Successful Airlines ……

7 Distributing the Product
7:1 Distribution Channel Strategies
7:1:1 Types of Distribution Channel
7:1:2 The Concept of “Super Profits”
7:2 The Travel Agency Distribution System
7:2:1 Advantages and Disadvantages
7:2:2 Today’s Distribution Channels
7:2:3 The Future of Distribution
7:3 Global Distribution Systems (GDSs)
7:3:1 History and Background
            7:3:2 Current Issues
            7:4 Distribution Channels in the Air Freight Market
            Successful Airlines ……

            8 Brands Management in Airline Marketing
            8:1 “Brands” and “Commodities”
            8:1:1 What is a “Brand”?
            8:1:2 Why Brands?
            8:2 Brand-Building in the Airline Industry
            8:2:1 Foundations for Brand-Building
            8:2:2 Positioning Brands
            8:2:3 The Brand-Building Process
            8:3 Brand Strategies
            Successful Airlines ……

            9 Relationship Marketing
            9:1 Fundamentals of Relationship Marketing
            9:1:1 Some Definitions
            9:1:2 Building Advocate Relationships
            9:2 Components of a Relationship Marketing Strategy
            9:2:1 The Management of Quality
            9:2:2 Customer Relations
            9:2:3 Marketing Communication
            9:2:4 Loyalty Schemes
            9:3 Frequent Flyer Programmes
            9:3:1 History and Current Status
            9:3:2 FFPs – Programme Member Requirements
            9:3:3 FFPs – Airline Requirements
            9:3:4 The Future
            Successful Airlines ……

            10 Airline Selling, Advertising and Promotional Policies
            10:1 The Anatomy of a Sale
            10:1:1 The AIDA Model and the SPIN Cycle
            10:2 Sales Planning
            10:2:1 The Sales Budget
            10:2:2 The “Communications Mix”
            10:3 Marketing Communication Techniques
            10:3:1 Sponsorship Policy
            10:3:2 Database Marketing
            10:3:3 Media Relations
            10:3:4 The Field Sales Team
            10:4 Airline Advertising
            10:4:1 The Functions of Advertising
            10:4:2 Advertising Decisions
            10:4:3 What are the Features of “Good” Airline Advertising?
            10:5 Selling in the Air Freight Market
            10:5:1 The Sales Task in the Air Freight Market
            10:5:2 Marketing Communication Methods
            Successful Airlines ……

            11 The Future of Airline Marketing
            Glossary of Aviation Terms
            Glossary of Marketing Terms
            Index



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