Analysis of Marketing Theory: Satisfaction, Loyalty, and Relationship
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This essay analyzes marketing theory concerning satisfaction, loyalty, and the relationship between the two. It focuses on Emirates Airlines as a case study.
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Marketing Ali Saud Qasim AlQasmi I.D. MBA1137
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Introduction This essay throws light on the overall analysis of marketing theory concerning satisfaction, loyalty, and the relationship between the two. Furthermore, critical review is required to be done which will be helpful in understanding and developing marketing strategies which will play a significant role in increasing satisfaction along with loyalty among the different employees in the real world. So et al. (2016), have commented that nowadays in acompetitive environment, satisfaction of customers is one of the major aspects which should be analysed by organisations to increase loyalty among existing customers and awareness about the organizationamongpeople in acompetitive business environment. This research will be covering and analysing related literature reviews and defining the most effective marketing strategy which will be affecting customer loyalty in the market. Overview of Emirates Airlines Emirates Airlines is one of the largest global airline organizations and is based in Dubai, United Arab Emirates. The airline is the subsidiary of the Emirates Group, and it is one of the biggest airline companies in the Middle-East operating over 3600 flights per week from the hub at Dubai International Airport and in more than 150 cities in more than 80 countries across six continents (Emirates.com 2019). The key people who are involved in the foundation of the company are inclusive of Ahmed bin Saeed Al Maktoum who is the chairman of the company. The number of employees working in Emirates Airlines is 64,768 up to the year 2018 and the annual revenue which has been earned by the company has increased to US$ 13.3 billion up to the year 2018.
Critical Analysis of Marketing Theory Concerning Satisfaction, Loyalty, and Relationship Between the Two Relationship between Marketing Strategies and Loyalty among Customers As commented by Ryu and Lee (2017), customers of different organizations need to be assured that the different needs are being adequately catered for. It is very crucial for companies to ensure that their customers are being appreciated and marketing strategies are essential and significant towards achieving this goal. As hypothesized by Rahimi and Kozak (2017), every company chose the best marketing strategy for achieving the different objectives which are dependent on the environment in which it operates. As defined by Pansari and Kumar (2017), marketing strategies are the various procedures along with practices which allow the companies to focus on limited resources so as to make them the most significant opportunities to increase overall sales and enhance the profits and accomplish the sustainable competitive advantage in the market. Furthermore, as commented by Morschett, Schramm-Klein and Zentes (2015), the main goal of organizations is to enhance the level of customer satisfaction along with maximization of profits which will be beneficial for their growth. The level of customer satisfaction helps the company to determine the level of success, and the main reason is due to the customer satisfaction as it is one of the primary aims of the company towards improving their overall brand image in the market. As opined by Kim, Vogt and Knutson (2015), customer satisfaction is the measure in analyzing howthedifferentproductsandserviceswhicharebeingsuppliedbythe organizations meet the expectations of the customers in the market.
Kim et al. (2015) have hypothesized that the effect of the relationship satisfaction on the relationship commitment is based on the marketing mix. As argued by Hur, Moon and Jung (2015), measuringquality is one ofthe significant tools along with fundamental strategy used by different organizations providing the most interest for stakeholders,managers,partnersandcustomerspresentinthemarket.The maintenance of appropriate standards of quality of the service and knowledge relating to expectations and satisfaction among customers constitute significant challenges which affect the overall marketing of products and competitiveness in the market. To maintain customer loyalty, it is one of the essential elements in determining the success or failure of an organization. Hence, as commented by Hollensen and Opresnik (2015), companies aim at striving to build a proper relationship with their customers and additionally, providing the superior and quality service products is one of the critical factors in improving the overall profitability in the market as well. On the other hand, Hollebeek, Conduit and Brodie (2016), have opined that poor quality of the service is one of the primary reasons due to which the customers switchtoothercompetitorspresentinthemarket.Properdevelopmentand maintaining loyalty among customers or creating long term relationship with the different customers is the key to survival along with the growth of the various companies.Therefore,therelationshipbetweenloyaltyamongcustomersand service quality has been widely investigated.
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Impact of Consumer Behavior on Marketing Strategy As commented by Harrison-Walker (2011), marketing strategies impact the daily lives of customers in a significant manner which is inclusive of the following aspects: Firstly, they act as the source of information for different new products and services which are available in the market. Secondly, it helps in influencing the way they perceive and think regarding a particular product and service. It is inclusive of the different beliefs, perceptions and buying decisions of customers in the market. As hypothesized by Harker et al. (2015), marketing strategies such as marketing mix (4Ps) can be considered which will help manage different changes. The impact of marketing strategies on the behavior of customers is defined wherein Drummond, EnsorandAshford(2010)havecommentedthatunderstandingtheactionof customers is the first step in the design of an accurate and successful marketing strategy. It is one of the major processes which should be helpful in indicating whether the organization has been successful in fulfilling customers’ needs and wants along with analysis of the impact of the same on wider society. Dimensions of Marketing Strategies As commented by Chernev (2018), the three dimensions of the worldwide marketing strategy of multinational corporations (MNCs)are as follows: Standardisation-Adaption-It is one of the major key elements which refer to the use of the same or different products and services, advertising, distribution channels along with other elements of the marketing mix across different countries. As opined by Bowie (2016), different MNCs follow a standardization strategy as the tastes and
preferences of customers are changing in the competitive business environment, and they are becoming homogenous. This is one of the major aspectswhichis the primary source ofcompetitive advantage in the market and it has the overall ability to produce high quality and low- priced products which will be beneficial in attaining low cost position and optimum worldwide marketing strategy is to sell the standardized products along with services with the usage of the standardized marketing programs. Configuration-This is another technique being used in which the MNC operates and configures its upstream, downstream, along with different other internal value- adding, activities. In the particular aspect, Blythe (2009) has commented that the firm can choose to concentrate on different kinds of activities in a specific country and export the similar range of products and services in foreign countries. Concentration is the other technique through which companies can attract different customers and improve their profitability in the market. Strategic Integration-It is the technique wherein it is being considered as the comprehensive strategy of marketing which is being used in the major markets in different parts of the world as to gain the competitive advantage in the market. As opined by Bernstein, Ottenfeld and Haug (2017), the different MNCs may manage to fight with the different competitors in the market and it is, therefore, essential to integrate the competitive forces of the firms across major markets in the world which will be beneficial for the success of the firm in the overall competitive market.
Impact of Marketing Mix on Customer Satisfaction and Loyalty As opined by Banerjee (2017), the marketing mix is one of the significant elements which are being used by the companies to improve performance. Pricing strategy is described as the effective approach which will help determine whether the price skimming strategy will be used, or a penetration strategy. The product development growth strategy helps introduce a new set of products in the existing market which will be beneficial for enhancing the quality of the products. As hypothesised byAttia (2013), products and services should be viewed as fostering value for money. There are different pricing strategiesavailable in the market: market penetration in pricing is where the firm price their products low as they have a more significant market share which is done after securing a large percentage in the market when they will be gaining strong competitive advantage. As commented by Armstrong et al. (2015), customer loyalty is the emotional and physical commitment given by different customers in exchange of the various goods and services for their needs being met. It is one of the essential concepts to keep the customer happy as he/she will have more business with the respective company and it will enhance their brand image as well. Furthermore, as opined by Amini (2012), in order to keep the customers for more business, the satisfaction of the customers is required to be warranted by the market. In the competitive business environment, whoever provides the best quality products and better services to different customers; such companies will have an advantage over the other competitors who are present in the market. Moreover, Armstrong et al. (2015) have commented that maintaining loyalty among customers for the respective brand, it is an essential element for determining the overall
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success of the firm and hence the different organizations have started striving to build a good relationship with the various customers. Additionally, Amini (2012) has commented that providing superior quality is one of the critical factors in improving the overall profitability of the firm. On the contrary, poor quality of the products and services is the other reason due to which the customers shift to the other competitor brand. Development of Marketing Strategies to Increase both Satisfaction and Loyalty with Customers In the case of Emirates Airlines, the respective organization has been able to develop successful travel along with tourism presence known the world over for providing the most appropriate services to different customers in the world. The business of Emirates incorporates: ï‚·The award-winning international cargo division ï‚·Airline IT developer ï‚·Leisure and destination management Emirates Airlines have a mixed fleet in the portfolio of the product which is inclusive of Airbuses and Boeing wide body aircraft. Emirates Airlines tries to provide customers with excellent services as it works to maintain a highly competitive stake in the overall market. Emirates Airlines is one of the largest airlines to date and the products include excellent and consistent services which have paved the way for rapid growth along with revenues. As to render the different qualitative services, Emirates Airlines has maintained both personal along with a professional approach towards customers (Armstrong et al. (2015).
Furthermore, in comparison to other airlines, Emirates Airlines have been able to satisfy the different needs of customers through supplying personalized services, and they are the ones who will be providing showers in flights. Additionally, Emirates try to deliver passengers with various functions which are inclusive of the Business Class Services along with Economic Class Services (Banerjee 2017). To give satisfactionamong customers,it can be identified thatEmirates Airlines have introduced comfortable seats for passengers wherein there are flatbeds, the storage facility for privacy along with private suites which will help attract more customers. EmiratesAirlineshavetriedtoprovidebetterservicessuchashousingand healthcare benefits which are offered to employees and other staff present and working under Emirates Airlines. The primary motive is to provide employees with happinessandloyaltywhichwillhelpattractandmanageloyaltyamongthe customers as well. In addition to the same, price is the other element which is being operated effectively by Emirates Airlines (Blythe 2009). As Dubai is one of the significant links between east and west, the organization has been able to serve low cost tickets to different customers in comparison to the other airlines. In the present scenario, the company has been able to help the customers with shortest available routes and direct flights to different destinations and at reasonable rates which have been able to satisfy the requirements of the customers (Blythe 2009). Due to direct flights, it has been able to maintain the effective policy of pricing as different customers can save due to the undue stopovers. In the present scenario, different passengers such as business travellers and students appreciate low cost airlines as much as budget airlines.
With the implementation of a low cost pricing strategy, this has provided them with a strong competitive advantage over other competitors in the market. It helps them in generating revenues because of the volumeof different passengers. Emirates Airlines has further adopted the strategy of dynamic pricing wherein it has resulted in flexible pricing of seats (Attia 2013). The policy of pricing is diversified, and therefore it has been able to manage the overall demands of various classes in society such as luxury and the premium rate travellers along with middle-class individuals. Due to the flexible pricing strategy, Emirates Airlines has been able to improve the overall effectiveness of the airlines in comparison to the other competitors such as Etihad Airlines and Qatar Airlines. The promotional strategies which have been adopted by Emirates Airlines are very competitive in comparison to other competitors. Additionally, the different services which are being provided by Emirates help them in improving their services day by day and satisfying customers. Furthermore, Emirates follow both the traditional and modern marketing techniques that have helped them in catering to the wider market along with its unique base of customers in the market (Drummond, Ensor and Ashford 2010). The other notable activity which is performed by Emirates Airlines is that they are associated with the non-profit organizations and initiatives and they provide funds to different areas irrespective of geographic boundaries. From the above analysis of the different marketing strategies of Emirates Airlines, it can be identified that the respective airlines have been able to meet the different demands of various groups of customers in the market and they have satisfied the diverse requirements of customers appropriately. By providing them with several types of low cost and budget airlines, Emirates Airlines have been successful in improving their reputation in the market, and it can be beneficial in improving their
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overall brand image in the market. The other marketing aspects which have been used by Emirates Airlines is to offer the customers with regular information regarding the flights and ticket booking on their official website which is readily available for customers. Due to the implementation of the various amenities which are being provided by Emirates Airlines, it has been useful for them to improve loyalty among customers. In the present scenario, all the customers in the competitive business environment prefer to travel with comfort, however at a low cost that is being adopted by Emirates and it helps them in managing the different demands of customers and improves overall satisfaction. Recommendations Therefore, from the above analysis of the different marketing strategies of Emirates and its relation with customer satisfaction and loyalty, these all play crucial roles in improving the overall brand image of the company. However, there are a few aspects which can be enhanced by Emirates to improve overall satisfaction among clients, and they can generate better revenues and profits in the market as well. An absolute amount of sales promotion is required to be adopted by the sales and marketing experts of Emirates Airlines as it will be helpful for them in attracting a large number of customers and gain competitiveness. The advertisement should be advertised in every country in a way which will be matching the respective cultures of different countries. So as to improve the loyalty program of the company, Emirates need to offer extra incentives along with premium coupons for those customers who have shown loyalty towards the brand of Emirates.
So as to improve the overall brand awareness and sales of the company, Emirates Airlinesneedtoencouragesalesbyofferingdiscountstocustomersandbe competitive in comparison to other airlines present in the market. So as to build proper and strong public relations with customers, Emirates can be launching an online marketing campaign in which the customers can be winning vacation related packages and engage in different types of promotions and rewards as well. Conclusion Therefore, it can be concluded that the airline sector is complex as well as dynamic in nature and to improve the overall brand competitiveness in the competitive business environment, it is required for them to understand the mindset of their customers which will be beneficial in improving the overall effectiveness of the firm. Additionally, behavioral and demographic factors play a vital role in managing the customer's satisfaction and loyalty. In the case of Emirates Airlines, the company has been able to improve the overall comfort of the customers through proper implementation of the various low cost budget airline tickets and other amenities of the airlines thathave been able toattractcustomersand gaina competitive advantage in the market.
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