Types of airline marketing strategies and approaches

Airline Marketing Approaches

Importance of Airlines marketing, and types of marketing approaches

a) Briefly explain the concept of airline marketing approach

Airline marketing is a vital activity for air transportation. As with any marketing activity, it is aimed at increasing the number of passengers and satisfying their travelling needs. Marketing involves analysis of consumer trends and specifying products that are in line with these trends. Pricing considerations are also vital, and they are carried out in marketing. Airline marketing should ensure that ticket prices are pocket friendly and attractive (Miseti?, Steiner, & Tatalovi?, 2012). The prices should not be so low that the airline is not able to meet its cost nor too high that consumers are unable to afford. The concept of airline marketing is involved with specifying the different products, coming up with the product prices, informing consumers regarding the products, and coordinating the delivery of the products. In the airline business, marketing is not only reserved for marketers, but all personnel conduct marketing activities. An airline's marketing concept is prone to some uncontrollable factors. There is little that the marketing team can do about these factors. The marketing team should recognize and develop strategies that would assist to counter these factors.

Airline marketing will also involve the development of new products or refurbishing or existing products. This would allow the airline to cater for new and existing customers. Product differentiation is vital, as it would allow the airline to differentiate its products from its competitors. In order for an airline to retain and attracts new customers, it would increase or improve upon its existing services. Allowing customers the luxury to book and check-in online was once used as a marketing strategy. The airline marketing concept makes use of the four Ps. These are product, price, promotion, and place. Using the four Ps would allow the airline to target its marketing to specific markets and consumers. Having the correct product ensures that the airline is able to compete with others and differentiate itself. The right product must be sold at a fair price. Price should ensure that the airline meets its costs and revenue, but does not overcharge the consumers. If not promotion is carried out consumers will not be aware of the products and prices. Advertising the products and availing communications to consumers would increase sales. Different places have different requirements. One product cannot suit all the market places for an airline. It is vital that the airline does develop different products and use the right channels to communicate and distribute the product.

b) Discuss the different marketing approaches. State examples for each approach

There are three main marketing approaches employed by airlines namely production-oriented, sales-oriented, and consumer-oriented approach. Production-oriented approach focuses solely on the product been developed (Zou, Elke, Hansen, & Kafle, 2014). Ensuring that the product been developed is of high quality and standard would guarantee sales. In the past, the airline industry was not concerned with the consumer, but rather on the products they offered. Airlines offered only minimal services and they did not care much about adding or improving on the services. In order to increase revenue and passenger numbers airlines were forced to incorporate different approaches. Focusing only on the product denied the airlines the opportunity to learn and understand its consumers needs and wants.

The sales-oriented approach focuses on making profits by persuading more people to fly instead of using the other means of travel. Failing to concentrate on the wants of the consumer, this approach demanded that the airlines advertised their products and services. There was reinforcement for the sales teams, and additional incentives provided based on the sales made. This is not a long-term approach since an airline can only run a promotion for limited time. An example of this approach is providing promotional fares during off-peak seasons. This would be an effective way of filling up the seats in an airline. Sales-oriented approach does not focus on the needs of the consumer, but rather it is concerned with ensuring that the airline has enough consumers. Failing to concentrate on the wants of the consumers makes the airlines to develop promotions, and advertisements that increase sales.

The consumer-oriented approach focuses on satisfying the needs of the passengers. Focusing on the needs of the consumer ensures that the airline is able to cater for its different consumers and provide satisfactory services to them. This approach is concerned with ensuring that it satisfies its customers. Each business decision will reflect the airline's desire to satisfy its customers. Using the consumer-oriented approach the airline is able to retain more consumers and attract new ones. The airline is able to categorize its customers based on their preferences. This way it targets its different advertisements to specific customer categories. For example, conducting a survey on passenger demographics would provide an airline with information regarding the different kinds of passengers it attracts. This information would allow the airline to understand and develop promotions geared towards them.

c) From your opinion, which is the best concept of airline marketing approach would you adopt for your airline company and state your reasons