Custom «Marketing Strategy for Airlines» Essay Paper

How Marketing Strategy Affect Airlines

Marketing strategy can affect airlines through product positioning. This is a marketing strategy that requires businesses to clearly define their products in a competitive environment. Airline companies operate in a world of competition hence, need to project their image to their clients. For instance, an airline company could position itself as the only low-fare, short-haul, and high-frequency airline to hire its services (Vessenes, 2007). These services may also include a dignified treatment to all the clients on an equal basis. For instance, the airline could fail to offer opportunities for first class, or special food to their consumers or offer it on request. This would, in turn, make the clients feel the hunch to use the airline in all their travels.

Marketing positioning strategies can also affect the marketing strategy for airlines since the business has to be cost-effective. This includes how the airline handles its activities. For example, if the airline offers single aircraft type, short-hauls, as well as secondary airports, it will have to cut down its costs. This will attract diverse consumers once they compare such services with other airline companies. An airline company could distinguish itself by not assigning seats in the flights, which will help strengthen their image. This helps the passengers get to their destinations whenever they want on the lowest price possible. This is an advantage to the airline company since it can have several routes flown every day. Having several trips on a daily basis boosts the revenue in the airline company hence, a lower costs in offering the services.

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Building brand loyalty is also a marketing strategy that can affect the airline companies either positively or negatively. The negative impact of building brand loyalty could occur when an airline company causes an urban sprawl by building an airport near the residential areas. On the other hand, the positive effect of an airline company through building brand loyalty is attracting tourist traffic and keeping the flight tickets at a lower price.

Some Common Marketing Strategies that Airlines Use

Most airlines use marketing strategies such as pricing. This entails creating value for a certain product so as to satisfy the consumers’ needs. The total satisfaction of the consumer is achieved once the value of the product is high. This means that the airline companies ought to place a great value on their services so as to attract more consumers. The fact that consumers are savvy makes them judge the types of services the airlines offer, as well as make them buy the products with the corresponding price.

Market research, as well as competitive intelligence, is also used by airlines as a marketing strategy. This helps the airline companies understand the trends in the market, as well as the strategies the competitors use to make more profits (Stauffer, 2003). This urges the airlines to conduct market research, which aids in making firmwide decisions. This helps in communicating the associated benefits in an effective and efficient manner. The market research model is also commonly used since it helps the airline company define the problem, as well as the research objectives. The plan is presented and analyzed through collecting data. The process is completed through interpreting the findings of the research where the airline company makes informative decisions on the steps to take.

Yet another marketing strategy by the airline company is placement. This entails the process making the airline services and products easy to access. Some of the placement channels include online purchase of plane tickets, as well as several booking offices in several regions. This makes the purchasing process easier and convenient for consumers. Once the consumer is able to buy a flight ticket at any point in the country, the process becomes easier. This means that the client does not have to go through the same procedure once the travelling day arrives. Value chain is also a strategy used by airlines to make their marketing strategy effective. For instance, the inbound logistics that aims at bringing new clients, as well as new ideas into the business. Operations are also components of the value chain that aim at the total and strategic management of the necessary processes to create the required services to consumers. Firm infrastructure also enables the airline company to maximize their efforts to their consumers. Outbound logistics is also included in the value chain strategy that entails distributing the airline services to consumers. This may be through the retailers, as well as the wholesalers. This avails the required services to the consumers.

Some of the Past and Current Successful Marketing Strategies that Particular Airlines Used and Made a Difference or Brought Profits

Marketing strategies vary from one airline to the other, which call for a special attention to be adapted for sales and marketing. For instance, the Fly Emirates Airline Company has applied diverse marketing strategies in the past, as well as currently. This ensures that the company has an efficient operation and dominance in the airline business. More so, Fly Emirates has ensured the use of advanced and modern technology to address all the needs of the consumers. The company also has various departments, which have the responsibility of making the business successful. This is dependent on the factor that Emirates Airline is one of the major airlines in the Middle East, as well as a subsidiary of the Emirates Group. The Company operates all over the world and handles their clients with care. This is depicted in the number of passengers’ flight per week, which ranges to 2200. The mutual relationship the Emirates Airline has created all over the world has led to a major boost in the business due to the convenience of their services.

Southwest Airlines is also among the successful ones in the business. This is due to the application of several marketing strategies, which helps the Company differ from the other airlines in America before and currently. For example, their mission statement emphasizes on quality of services to their clients. This is by use of information technology to enhance customer service. Southwest Airlines have created a website to interact with their clients, as well as get feedback on the quality of services offered (Dunford, 2003). The effectiveness of the IT system helps cut down the cost and enhance the services offered by Southwest Airlines. There is also the increase in the spread of breaking down the load factor, as well as the actual load factor. The results of the Southwest Airline Company, as compared to the other Airlines in America, as well as British Airways, are the consistent profits on an annual basis. In addition, Southwest Airlines has received several awards for an outstanding performance through service excellence and cost leadership. This made the Company famous all over the world hence, help it expand its business territories.

Some Failure Examples of Bad Marketing Strategies

Bad marketing strategies would lead to a failure in the business, as well as wastage of resources. This could be caused by improper management of the Airline business or use of poor methods of handling the consumers. Airlines, like any industry, are vulnerable to market fluctuations along with economic difficulties. The economic organization of the airline industry may, perhaps, add to airline bankruptcies, as well. One key element in almost every airline bankruptcy is the denunciation by the debtor of its recent bargaining accords combined with employees (Scott, 2009). Some of the airline companies that have become bankrupt include the New York Airways, a Helicopter Airline that was declared bankrupt later. This was due to the many accidents that the Airline had, for instance, in 1963, Flight 600 (a Boeing-Vertol 107 registered N6673D) crashed. This made the consumers lose confidence in the flights and saw the company as a risk to their lives. This was a bad marketing strategy of brand positioning of the New York Airline, as well as lack of efficiency in their skills while dealing with the consumers. Mexicana was also an Airline that was declared bankrupt in 2010.  Mexicana Airline operated flights to various destinations like North America, Central America and Europe. However, bad marketing strategies such as high labor costs, as well as a new administration led to their bankruptcy.

Significance of Using the Right Marketing Strategies to Airlines

The use of the right marketing strategy for airlines aids in the fast growth of the airline business. For instance, offering the best customer care services creates a good foundation for future referral of the business by other people. The consumers recommend other people to the best airline, thus, brings more profits and revenue to the airline business. Additionally, the right marketing strategy helps the airline business boost the economic growth both nationally and internationally. This is through taxation, social funding of crucial programs such as health care and education among others. The right marketing strategy also helps the airline business network and maintains strong relationships with their clients. This is because; the airline business deals with people from all over the world hence, bring new personalities together to interact.  In conclusion, the marketing strategy for airlines is successful when dealt with following the right channels.