This assessment will cover the following questions:
- Evaluate the marketing concepts and terminology applicable to air Canada or British Airways.
- Elaborate on the marketing programs which help Air Canada and British Airways to achieve their objectives.
- Discuss marketing concepts and principles used in Air Canada and British Airways in daily organizational operations.
Marketing is defined as the activity with help of which the products and services of the company are promoted among the consumers with help of different techniques. In this competitive world it is very necessary for the company to promote its products in an attractive manner to attain a high consumer base (Shaw, 2016). The present report will outline the airline industry and will specifically focus on the marketing of the British Airways. The airline industry in UK is at boom and is growing as many different companies have joined the aviation industry. The industry makes an increasing contribution to the development of the economy of UK because this is a major earning sector in the whole economy.
It is very important for the airline industry to market its services majorly because of the fact that there are many companies’ dealings in airline industry and for this the most important thing is the advertising and promotion of products and services. Thus, the present report will outline the key concepts and terms applicable on British Airways. Further the discussion will take place on different marketing strategies and two of the marketing concepts used by British Airways. Next the different relation of marketing function with other function of the company will be discussed. In the end some recommendation will be outlined for the improvement of the marketing and different theories of marketing.
Marketing concept and terminology applicable to British Airways
Marketing concepts is the plan or strategy that firms utilized to satisfy client’s needs, beat competitors, increase profitability and sales rather than before effectively. It is belief that organizations assess needs of their consumers first and foremost. Different types of concept and terminology of marketing is available for firm.
- Product strategy: Product strategy defined the clear map of services and products, British Airways used suitable and appropriate product strategy for their goods. Firm clear in terms of target consumers of products to plan activities required in order to reach decided position and to achieve business goals within market. Range of product strategy is available for company, that they can use for their products. Differentiation strategy, cost leadership strategy and cots or price strategy (Jayaswal and Jewkes, 2016). British Airways is famous for full consumers service global airline in their sector, company provide low fare with wider route network flying to placed airports. Among several product strategy, differentiation strategy is applicable for this organization. It allows firm to satisfy their passengers by providing unique services and products which is much better than its competitors within industry. Through this strategy organization offer good quantity, quality and pricing services to people, it helps to retain existing consumers and garb the attention of new people towards purchasing flight tickets. The successful differentiation strategy for product creates brand loyalty among existing clients. It permits form to complete in area other than price, product differentiation strategy gains market share with the help of perceived service quality and cost savings that create loyalty from passengers.
- Branding:Branding is marketing concepts, companies used branding strategies to promote their brand name or logowithin market place. It is the procedure of creating different name for products in mind of target consumers, via promotional plan and advertising on range of sources with consistent theme. With the help of using suitable and appropriate branding concept, British airways can strengthen their image effectively. It helps to established differentiated presence of organization in market to attract loyal consumers and retain them with business for long period of time. Branding is important for firm growth and success within their sector, it makes memorable impression on people and target market and permits consumers to know what to except from its business (Huertas-García, Lengler and Consolación-Segura, 2017). Strategies related to this marketing concept is set of action plan that firm used to differentiate their services or products from competitors. Brand extension is suitable approach for British Airways, which they can used. It occurs when one of flagship brand ventures into new market.
- Promotional strategy: Range of promotional strategies for product inform and influence customer decisions, it support British Airways cater correct business information, increase sales, differentiate goods and accentuate value for goods. It consists of plans of four promotional components for example advertising, personal selling, publicity and promotion to put design into practice. Organization have to design and create effective promotional strategy, which provide many benefits to overall business. Suitable promotional strategy help firm to generate awareness, through provision of products info, people become aware of accessibility of goods in market. In simple words, it contributes to generate consumer traffic and build profits rather than before in context of airline business. One of the best promotional approach is consumer or public relations, it refers to creating positive business image in media (Cronin, 2018). With the help of making good impression with public relations via social media and other marketing channels British airways can retain passengers with them for longer. It is the procedure follow by firm to connect with their target consumers by sharing info related to products or services that they offer. Organization conduct effective public relations through press releases interviews, press conference and media interviews, they can used traditional tools for promoting brand or its products in market. Firm will use sponsorships as public relations approach to establish good image for business. British airways increase their revenue with sales promotions, it is the best way to improve bottom line in short period, this type of marketing concept includes coupons, prizes, discounts and loyalty programs to entice consumers to buy tickets immediately.
Marketing strategies and programs that helped organization to achieve business objectives
There are different types of marketing strategies and programs being used by British Airways in order to promote the product and services of the company. The different type of marketing strategy and program which helped the company in achieving the objectives are as follows-
- Increase the sales- this is the first strategy for achieving the business objectives. This is pertaining to the fact that if the marketing will be proper then the sales of the company will increase (Kotabe and Helsen, 2020). This is majorly because of the reason that good marketing strategies will attract more of the consumers and will like to travel through British Airways.
- Brand image- this is also an important strategy of increasing the sales and achieving the objectives of the business. This is pertaining to the fact that for increasing the brand image the company will use many good and advanced promotional tools and techniques. This is will enhance the brand image of the company as the consumers will like the new and innovative methods of promoting the goods (Chaffey and Ellis-Chadwick, 2019). Thus, this increases the goodwill and the brand image of the company in the competitive market.
- Strategic social media campaign-marketing strategies is used to promote the products and business services within target market. Social media campaign is one of the best and mots popular marketing approach can use by British airways. It is coordinated marketing activity use to reinforce with business goal using suitable social media sources. Campaigns differ from day to day social media because of increased focus, measurability and targeting consumers. You tube, Instagram, Facebook, Twitter etc. are major social media tools that company can use to increase profit margin and to reach target consumers. Firm has to start paid advertising on above platform; it helps business to support generating sales. Before, taking any action management within British airways need to make assure that they are reaching to passengers on social media to deepen connections and improve their brand. Organization will find out which social media platforms their passengers or target market frequent on page. The marketing team of firm use that page to provide promotional updates, give people fun behind actual scenes and provide the consumers services. British airline marketing workers will create content that promote its products or services which they want to offer. For example, by creating promotional video the marketing workers create brand awareness which is quite beneficial for them.
- Flight perks- it is one of the great marketing programs that British Airways can used to become leader within airline sector, that is the business objective of firm. It refers to the procedure of entertaining passengers while travelling duration. For example, the management of organization can create entertaining experience in flight by focusing on attractive features like in seat programs that play interesting TV channels, Shows and movies that enhance the travelling experience of consumers effectively. Company can set display on back seat of every passengers that help to entertain all of them. Firm can incorporate perks into their product marketing strategy.
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Two concepts and principles
There are many different types of concepts and strategies and principles being used by British Airways in order to market its product and services in the market. The main concept and principle used by British Airways are discussed in the following points connected below-
- Marketing mix- this includes the 7 Ps of marketing which includes a combination of all the Ps in order to market the products and services of the company. The 7 Ps of British Airways are discussed below-
- Product- the product includes the goods in which the company is dealing or doing business of. Many a time the company deals in providing of the services instead of providing of the product. In the case of British Airways, the product includes the flight through which the service of transportation is being provided. Along with this product some services are also provided like different classes of flight tickets, food facility at time of journey and many others.
- Price- this includes the money or the amount which is charged by British Airways in exchange of the services provided to the consumers (Felix, Rauschnabel and Hinsch, 2017). The pricing strategy used by British Airways is differentiation pricing. Under this pricing strategy the company charges different price for the different types of services. Like for instance for economy class the price is different as compared to the business class.
- Place- this is defined as the pace form where the company operates like online presence or physical stores (Homburg, Jozić and Kuehnl, 2017). In case of British Airways, the company is having both options that is the consumer can avail the services and tickets from online websites as well as by going to the physical stores at the airport.
- Promotion- there is huge competition in the airline industry and thus, it is very necessary to have good use of promotional tools and techniques. The British Airways advertise with the help of traditional tools like television advertisements, newspaper and many other sources (Baker, 2016). Also, the company sponsor different event and festivals in order to market their goods and services within the market. This is majorly because of the fact that in such event high profile people comes and this grabs their attention and this promotes the goods and services of British Airways.
- People- this includes all the people and the employees involved in the working and running of the business (Wirtz and Lovelock, 2016). It is very necessary for the company to have effective and efficient people in its management team so that very work is effectively managed. Thus, for this British Airways has made different team for every department which takes care of the working of that department. For instance, team for customer handling, operations, legal department, engineering department and many others.
- Process- this includes the different process which are being used by the company in order to complete any of the given task. For the process the British Airways is using the latest process for the ticketing that is the process of e- ticketing. This is majorly because of the reason that due to technological advancement online ticket have become more popular and British Airways has adopted this method.
- Physical evidence- this includes the environment in which the business is operating and working. This includes the services which are being provided to the consumers, the environment and ambiance of the place, the timing of the facilities and services, the equipment used by the company and many others.
- STP- this is a tool which is being used in order to target a particular group of consumer and then focus on promoting the goods and services to that particular segment only (The segmentation, targeting and positioning model, 2019). The STP model used by British Airways is discussed in the following points discussed below-
- Segmenting- this is the stage where the company groups its consumer in different segment on basis of some common characteristics. The major segment of the British Airways is demographic and psychographic segment. This is used because of the reason that demographic includes many aspects like gender, age, income and many others. The reason for choosing the psychographic segment is that the trend is increasing towards the air travel.
- Targeting- this is the stage where from the different selected segment some specific group of consumers are being selected and targeted (Wedel and Kannan, 2016). In the case of British Airways, the major target is on basis of income because the high-income group tend to spend more in the travelling through air as compared to low or medium income group. Another target is the business class people as they tend to travel more for the purpose of business.
- Positioning- this is defined as the ways through which the product or the service is placed in front of the consumers (Moorman and Day, 2016). Here British Airways uses the experiential positioning which includes connecting with the consumer on the emotional level. This is because of the fact that this connects the consumer directly with the company and its products and services.
- The marketing is a function which is very important for British Airways to sustain in the highly competitive world. This is majorly because of the reason that without marketing the company cannot survive in the highly competitive market. Also, the marketing function is related to all the other function performed in British Airways. The interrelation of marketing department with other functional department of British Airways is discussed in the following points-
- Marketing and finance- this is the most important relation of marketing with the finance. This is majorly because of the fact that the marketing is an important function as without this the company cannot grow. In the same manner the finance is the one thing without which no activity of the business is done and the marketing department requires heavy funding. Thus, the marketing department passes its marketing budget to the finance department and if the finance department approves it than the marketing department get the money.
- Marketing with operations- operations deal with the making and taking care of product and services with which, the company is dealing. On the other hand, marketing deals with researching for the needs and preferences of the consumers within the market. The marketing function researches for the requirements of the consumer and then passes this information to the operations team, and then they make necessary changes in the products and services of the company.
- Marketing and research and development- the business world is very dynamic and ever changing and for this it is very necessary for the company to study these changes. For this British Airways has research and development department which continuously researches for the latest new changes. In the field of marketing also there are many changes so the marketing of British Airways is dependent on research and development department for new updates relating to marketing tools and techniques.
- Marketing with Information Technology function- there is a great link between marketing and IT function because in the current world the there are many new technological advancements and this need to be taken into consideration. In field of marketing there are a good deal of technological advancement like use of social media marketing, email marketing and many others. Thus, this knowledge can be gained with help of the IT department only. Thus, there is interdependence among both the IT and marketing department.
- Thus, in the end it can be summarized that the marketing function is the most crucial function for the success of any organization and also there is relation among all the function and the marketing function.
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CONCLUSION AND RECOMMENDATIONS
From the study of the report it can be summarised that marketing is very essential for any company to have proper use of marketing tools and techniques. In the report it is inferred that marketing is very useful for the promotion of business activities to sustain in the competitive market. From the study it was gained that there are many different concept and terminologies which are applicable to British Airways like branding, promotional strategies, product strategy and many more. Further for achieving business objectives certain strategies was discussed like increase in sales, strategic social media campaign, flight perks and many other was used. Next the marketing mix that is 7 Ps of company along with their STP was discussed. In the end the interrelation with the other business function was discussed like with operations, IT and other.
- The major recommendation for British Airways is to use the latest methods and techniques of marketing that is the digital marketing. In present era where there are many advancements taking place in the marketing field which need to be adapted by British Airways.
- Another major recommendation is to change the pricing strategy. This is because the competition is high within the airline industry thus, this will help the company in setting the prices in accordance with the competitors.
- One more recommendation for British Airways is to provide for self-help kiosk at their counters at the airport so that if there are more people than the consumers can avail the services in their own. This will help the company in managing the consumers with great efficiency and to increase the consumer base.
- Another recommendation is to use good technique of market research. This is necessary because of the reason that the needs and demand of consumer changes very frequently and it is very crucial for the company to take these into consideration. It is so because if the company not provide things relating to requirement of consumer then they will not like it.
- Baker, M.J., 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.
- Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson UK.
- Cronin, A.M., 2018. Public relations capitalism: promotional culture, publics and commercial democracy. Springer.
- Felix, R., Rauschnabel, P.A. and Hinsch, C., 2017. Elements of strategic social media marketing: A holistic framework. Journal of Business Research. 70. pp.118-126.
- Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward implementing an evolving marketing concept. Journal of the Academy of Marketing Science. 45(3). pp.377-401.