Marketing Principles and Strategies: A Case Study of British Airways

This report examines the marketing principles and strategies employed by British Airways to achieve its objectives. It discusses the concepts of segmentation, targeting, and positioning, as well as the relationship between marketing and other functional areas in the organization.

Marketing
Principles

INTRODUCTION
Marketing is the activity of promoting, advertising and selling of products or services to
the potential customers. it is very important for achieving the objectives of making profit and
sales. The scope of marketing is huge which involves different types of methods for pursuing the
customers and reach them. In order to achieve the marketing goals of a company, there are
marketing principles which are followed. This comprises elements of price, product, place and
many more. These are helpful in formulating effective strategies which can be applied for
accomplishing the target identified in the marketing activity. In this report, British Airways (BA)
has been chosen which has the headquarters in Hermondsworth, United Kingdom. It is known as
flag Carrier airlines of UK and it merged with Iberia in the year 2011 which created International
Airlines Group. It is one of the major player of airline industry in UK which rely greatly e on
strategies formulated by it. This industry is facing intense competition at current situation due to
which BA and other competitors have to change their marketing strategies. it has number of rules
and regulations within which the airlines have to operate. Earlier, the focus of every airline was
negligible of customers demand and needs because of the support from the government.
MAIN BODY
a) Marketing concepts and terminologies
Marketing concept refers to the philosophy which emphasize on analysis of the needs of
customers and development of strategies which can provide higher customer satisfaction. It is
imperative to understand the requirements of target customers in order to have competitive
advantage in the fuse competition. Furthermore, every organisation should review the adopted
marketing concept in order to make changes. Apart from this, there are various terminologies
which are used in a business to help it grow through the cut throat competition and survive in the
market for a long time. BA is an airline having strong position in the market and provide services
of good quality. It is a major shift in the traditional approaches followed by the above mentioned
company which helped it to design itself according to the requirements of target audience. Some
of the related market concepts and terminologies have been described below:
Product strategy- It refers to the blueprint for document that describe an organisation to focus
on the development of product on the basis of needs and requirements of target customers. It
enables the company to assess whether the product is according to the marketplace or not.
Furthermore, 8 it helps in determining the significant effect that the goods are going to take on

the customer and the business. The products offered by British Airways are according to the
needs and wants of the buyers in order to satisfy them. These are available at a price which is a
affordable by a large number of customers. Some of the major flights are connected to all
destinations. Also it provides the customers with best possible in flight services on the basis of
comfortable seats, hot and fresh meals, drinks and even the entertainment. In addition to this, it
has divided the services into three classes for the customers such as gold executive class, silver
class and economy. These are helpful in in making the customer choose the seeds and services
according to the package as provided in the above mentioned classes. Along with this, it has
separate area in the lounges present in the airport where the customers from gold and silver class
can rest, spend quality time, access the facility of airport gym and so on.
Branding- It is the identity of a company through which the customers get attracted to the
offered products and services. It is an important asset which holds huge value and every
organisation make sure to reflect the brand in such a manner that encourage potential buyers to
buy the services or products on a repetitive mode as compared to competitors. Huge investment
is made to enhance the brand image in the marketplace. In the context of British Airways, it has
redesigned itself to fit in the global perspective by undertaking culturally diverse branding. It is
using social media and other modes for promoting the brand by showing enhanced customer
services. It has made a strong position in the market due to the brand image which has helped it
gaining popularity among the competitors.
Promotional strategy: This is about reaching the customers by advertising products or services
with a view to attract them. There are different modes through which an organisation can
promote itself. It should be designed which is suitable and cost-effective to the entity as well as
appropriate for the customers. British Airways uses direct marketing strategy for reaching the
target customers. With the help of this way it presents the special charges, offers etc. To the
customers. These include membership which can be upgraded at a later date and can be e gained
by signing up online. Apart from this, newspaper is also one of the ways which is used for
promoting the services. Apart from this, British Airways also follow event marketing strategy
where the ticket prices are reduced to a major extent and sometimes the gold and silver class
customers receive the flight ticket for free.
Pricing strategy- It one of the major factors that attract the customers and influence them to
make the decision of purchasing a particular service or product. Every organisation should fix

the prices which the customers are willing to. Similarly, British Airways has decided the level of
services according to the price which the target customers are able to pay. It focuses on Superior
quality for greater price. On this basis, it has always said the price a little higher than the price
offered by the competitors. However in the current scenario of recession, it has reduced the price
in order to survive in the competition. It adjust the prices according to the peak time, if the
demand is less the rates will be comparatively lower and vice versa.
b) Identification of marketing strategies and programs to achieve the objectives
Marketing is an activity with broad scope which covers all the efforts of an organisation to
persuade the customers. It is an essential element in in keeping the organisation survive in the
challenges and issues arising in economy as well as in the industry. Therefore, it is important to
formulate strategies related to marketing which can help an organisation survive and sustain for a
long time. There is a tool called marketing mix which helps an organisation to identify the
market according to which are developed. The context of British Airways, various strategies and
programmes related to marketing have been identified underneath:
 Product- The services offered by British Airways are of highest quality as per the needs
of the customers. This means that a person can book the flight and travel from one place
to another easily as British Airways has large fleet of flights which are connected to
majority of the destinations. However, services are categorised into different classes and
on the basis of which the service quality depends. All the changes in the services have
been introduced by considering the demands and needs of the customers. This has created
the opportunity for British Airways to redesign the flights interior in order to provide
higher satisfaction to the customers in terms of comfort and other related services.
 Pricing- it rely on the fact that everybody should be able to afford the ticket prices and
therefore, it make sure to keep the prices of the tickets at reasonable value. Economic
class has the lowest prices whereas business and premium economy are a little bit
expensive because of the services provided by British Airways. For this purpose, it
follows differentiation pricing strategy which allows it to make adjustments according to
the destinations and the time of booking. For example, if an individual is booking the
ticket at a very early stage then there are high chances that prices are likely to be low.
 Place- it source to more than 400 destinations with a fleet of 273 aircraft which include
Boeing 747s, 777 s and 787s. These are big aircrafts which can include huge number of

customers at a time. This also means that it holds 40% of slots at Heathrow airport and is
the most operational there. In addition to this, there has been tie ups and collaboration
with other Airlines in order to smoothen the activities. Also, it has given the opportunity
to the customers to book the services through websites and phone application. These are
very handy and useful which also helps in tracking the departure and arrival times
without having to go to the counter again and again. Furthermore, one can check in
through de website of British Airways. It is a good initiative which has reduce the hassle
at the airport and make the customers comfortable without having to rush for obtaining
boarding pass.
 Promotion- it greatly relies on promoting the offers through television, billboards and
newspaper. These are traditional ways which are very classy and messages can be
provided in a sophisticated way. Furthermore, large number of population in UK still rely
on these modes for obtaining the information about products or services. However with
the change in the time, it has developed mobile app as well as website for giving the
opportunity to the customers to book tickets online. Along with this, British Airways
airline partners for London Paralympic and Olympic games in 2012. Which is a great
platform to to promote the brand.
Apart from this, there are customer membership programs where in people can and get the
membership of different classes viz. Gold executive, silver and economy. Each of such classes
has different subscription fees and services in terms of quality and prices. it is a program to retain
the customers and make them associated with the company for a long time. Also, the privileges
to the customer for such membership can be given in the form of free tickets for one way and
selected routes.
By analysing the above marketing strategies and programs, it can be said that all the goals and
objectives of the organisation as well as marketing have been achieved in an ethical manna
without creating adverse effect on anyone. It is a major contribution for raising the brand image.
Additionally, this has helped it go through the tough competition and sustain in the long run.
c) Explain two of the marketing concepts and principles
STP is the abbreviated form of segmenting, targeting and positioning. It is an approach of
modern marketing which helps and Organisation conducts business in the normal practices. It is
useful in developing market communication plan in order to assess the marketers to prioritize

preposition followed by development and delivering of personalized and relevant message to
engage with different audience. It has been explained in the context of British Airways in the
following manner:
Segmenting: It refers to the activity of categorising the market into subdivision or sab market
based on certain features. It can be done in numerous ways in order to to target a particular
market. Some of the divisions made by British Airways are as follows:
 Demographic variable- British Airways has targeted the people who belongs to the
middle as well as higher class. This is to attract them by providing low cost prices of the
services. In addition to this, millennials falling In the age group of 18 to 230 are some of
its major customers.
 Psychographic variables- BA has also focused on lifestyle and attitudes of customers on
the basis of which British Airways has segmented the customers who are willing to pay
for high quality food and drink. It make sure to make them brand loyal customers.
 Geographic- It refers to the categorisation of individuals on the basis of region and
density of customers. In the context of British Airways, majority of flights are in the
category of domestic which flies in the regions UK and Europe. In addition to this,
international flights have also been connected to major cities and destinations in the
world in order to make it easy for customers to move around the world.
 Behavioural- This segmentation is according to the characteristics of people towards the
goods or services. British Airways target the customers who avail its services on
repetitive mode in order to make them loyal customers.
Targeting: this is about to choose a specific market segment which day organisation is going to
Target for selling the products and services. There are different kinds of patterns on the basis of
which company can choose the target market and these may be single market with single product
or target market with various products. British Airways greatly concentrate on single segment
market which allows it to to offer for different service packages to different customer segments.
There are economy, premium economy, first class and executive level of services which are
offered by British Airways. The services are for the citizens who have preference of high class
services. Also, these include short haul market where strategies are developed to attract diverse
set of customers. Therefore, British Airways is focused on a single market but with diversity of

services according to the needs of the specific target market. It is beneficial in attracting the
customers and concentrate on them in order to provide higher satisfaction.
Positioning: The process of STP and with step which refers to the selection of marketing mix
that is suitable to the target audience. British Airways does not promote itself on the basis of
having cheapest flights as its competitors do. The target areas are metropolitan cities which
involves majority of owners work and busy life of the people. It has made strategies for creating
a position of the brand that is very well appreciated by the customers. Also, it has taken
initiatives for positioning the products and services which present or give message about the
services of high quality.
On coming to the market research about British Airways, it can be said that it has change the
patterns and practices to fulfilling the customers need and demand. It is has analyse that fulfilling
the needs of the customer is required for surviving in the competition. Apart from this, it has
customer retention program and also did alliances to build the. Along with this, it has included
diverse work culture who can help it attaining the goals and objectives in different areas of the
world by providing good quality services to the customers.
Relationship of the marketing functions to other functional areas in the organisations
 Marketing and human resource- human resources department for hiring the employees
who can serve the company and help it achieve goals and objectives. on the other hand
the main aim of marketing department is to create a brand in made by delivering a
message to the target customers. The activities of marketing can be done by the
employees who can become brand ambassadors with the mission of spreading the brand
message to the customers. In the context of HR, the marketing team can help making
healthy connections with consumers which ultimately promotes the values and mission of
the company. It is helpful in attracting potential candidates to work in the company.
 Marketing and finance- finance department is responsible for procuring and allocating
funds according to the budget prepared for each activity. Therefore, the requirement of
budget by the marketing department is communicated to the finance department which
helps in carrying out the activities related to marketing in a smooth manner. It is useful
and managing the money and finances effectively so that all the activities can be carried
within the budget.

 Marketing and production department- marketing functions are related to a certain
meaning and identifying needs and requirements of customers. These are for the purpose
of fulfilling the demands of the target audience in order to provide higher satisfaction and
meet their expectations. The information and research conducted by the marketing
department is communicated to the production department for designing and
manufacturing goods in the same manner which can provide her satisfaction to the
customers. Also, details like quality and quantity of the product are given to the
production department.
 Marketing and sales department- sales department is responsible for selling the goods or
services to the audience that are being targeted by the company. There are various
strategies and approaches which are followed for this purpose. On coming to the
marketing function, it makes the product look attractive and present in such a way that
attracts customers which ultimately leads to highest sales. Therefore it is very important
to elaborate the functions of marketing with the sales department.
Conclusion
From the above report it can be concluded that marketing principles are important for the
success and growth of an organisation. These are the fundamentals for carrying all the
activities without any hurdles. British Airways is a company which holds a leading position
in the market which made changes in the marketing activities according to the transformation
taking place in business environment. there has been some major changes made by focusing
on the needs and requirements of customers. It can opt for social media marketing which is
one of the best ways to reach the large number of customers. It should also so make
adjustments in the cost so that final prices can be reduced. This is to attract and give chance
to individuals outside the target customer to enjoy the services of British Airways.
Furthermore, there should be more emphasize on collaboration with renowned airlines so that
new routes can be developed. This is going to help the company achieve growth and
objectives. As well as, competitive edge can be achieved through this.