Marketing Principles Report 2022

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Executive summary
The report begins with a brief introduction to the airline industry and the case study airline which
is British Airways. It gives a brief history of the company. Also, the introduction is how the
researcher will tackle the study. This is then followed by the main body which discusses the key
marketing concepts and terminologies likely to be encountered in the study. This is then
followed by the marketing concepts that have aided British Airways to accomplish their
objectives. After that are the 7ps and STP of the company which is discussed in detail. This is
then followed by a poster and explanation of how the marketing department works together and
after that is the conclusion. Finally is the list of references from where the information was
sourced.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Literature review..............................................................................................................................3
Part one............................................................................................................................................3
Part 2................................................................................................................................................5
Part three..........................................................................................................................................8
Part 4..............................................................................................................................................12
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction
The airline industry is a business that involves the transportation of goods and people via air with
the use of vessels such as planes and helicopters. The first airplane was invented by the Wright
Brothers in 1903. (Hobbs, 2019). However, the first-ever commercial flight took off between St.
Petersburg and Tampa in 1914 in the United States. The industry can be subdivided into three,
namely; general, military and commercial. The commercial section includes international,
regional, national and cargo. In this report, the case study will be British Airlines (BA) in the
commercial sector. BA was founded on 31st March 1974. Its headquarters are in Waterside,
Harmondsworth. BA is the second-largest airline company in Britain in terms of passengers’
ferried and fleet size. In 2011, BA and Iberia merged to create the International Airline Group
(AIG) which is the second-largest airline in Europe and third in the world based on revenue. The
company became the first airline to accrue more than $1 billion in a year from a single air route,
(London Heathrow – New York JFK). (Airways, 2017). The report will look into the marketing
strategies and concepts the company has adopted to achieve its objectives. This will be
highlighted in details and also justification will be provided based on facts. It will also contain
how the marketing department works closely with other departments to achieve the company’s
objectives.
Literature review
Part one
For a company to be successful, it must have a well-planned marketing strategy. Marketing
concepts can be defined as the analysis undertaken by a firm on their customer needs and then
make decisions that satisfy them in a better way than its competitors. (Baker and Saren, 2016).
The key marketing concepts and terminologies that will be applicable for BA and will be
discussed in this report are as follows:
a) Product concept

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This concept implies that consumers are willing to spend on a product with regards to their
perceived quality, performance and features. Thus, products with high quality, performance and
features will sell more. (Cassia, et al, 2015)
b) Production concept
This means that consumers will prefer products that cheaper over expensive similar products.
The company thus prefers to sell more of the cheap products as they will sell more units at a
cheaper price thus making them more profitable.
c) Selling concept
This is where a company puts its efforts aggressively in making actual sales of their products
regards of their quality or customer needs. However, this concept does not incorporate customer
relation thus customer loyalty and repeat purchases are quite rare. (Zeithammer, 2015).
d) Marketing concept
Here, the company takes into account the consumer wants and needs and endeavors to meet them
for customer satisfaction. Since customers are satisfied, this leads to customer loyalty as it
emphasizes on the “pull strategy”. (Baker, 2014).
e) Societal market concept
This involves putting into consideration the well-being of society to build a company's name and
thus create consumer loyalty and also win new consumers. It involves compromising company
profits.
f) Marketing mix
This involves the combination of various tactics that firms adopt to promote their products to
consumers. The tool is commonly used is the 7ps of marketing, that is; price, place, product,
promotion, process and physical evidence. The 7p’s will be discussed later in detail in the report.
(Mohammad, 2015).
g) Market segmentation