Importance of Marketing in Airline Industry

This document discusses the growing importance of marketing in the airline industry, specifically focusing on Air Canada. It explores key marketing concepts and terminology applicable to Air Canada, identifies the marketing strategies and programs that helped Air Canada achieve their objectives, and examines the ethical considerations in their marketing practices. Additionally, it explains the marketing concepts and principles used in Air Canada's daily organizational operations, including the 7Ps and STP model. The document concludes with a discussion on the relationship of the marketing function to other functional areas in organizations.

Marketing

Table of Contents
INTRODUCTION...........................................................................................................................2
Introduction to Airline industry..................................................................................................2
Introduction to Air Canada..........................................................................................................3
Growing importance of marketing in airline industry.................................................................3
Structural response to the assessment task..................................................................................3
2. The Main Body............................................................................................................................4
a) Explain key marketing concepts and terminology applicable to Air Canada.........................4
b) Identify the marketing strategies and programs that helped Air Canada achieve their
objectives. Were these objectives achieved in an ethical manner?.............................................5
c) Explain the marketing concepts and principles used in Air Canada daily organisational
operations: 7Ps and STP..............................................................................................................6
3. Explain the relationship of the marketing function to other functional areas in organisations.. .9
CONCLUSIONS..............................................................................................................................9
RECOMMENDATIONS...............................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Introduction to Airline industry
Airlines industry is mainly a business related to transporting paying passengers as well as
freight via air. This form of industry is termed as a corporate sector that are mainly engaged in
the process of designing, usage, operations and manufacturing of airlines (Allyson Dooley, Jones
and Iverson, 2012). Airlines industry mainly witness passengers transportation along with freight
from one location to other for which prices get charged from consumers. This industry
significantly contributes towards economic development while enabling easier and faster
movement of passengers as well as good.
Introduction to Air Canada
Air Canada is listed as Canada's largest international and domestic airline that serves in
210 more than airports. In addition to this, it has been identified that Canada's flag carrier is duly
ranked among 20 largest airlines worldwide while serving 50 million of more than consumers
each year. If it is seen in Corporate governance of Air Canada, it is duly governed by eleven-
member Board of Director those who are effectively committed towards fulfilling high standards
of corporate governance. Along with this, it has been seen that with the assistance of 28 member
airline network organisation offer their services over 1320 destinations all around the world.
Growing importance of marketing in airline industry
It has been ascertained that product marketing is much easier as compared to services. In
relation to this, one of the foremost distinguished and growing sectors across the world is
considered as airlines industry. In order to stay the highest positioning of this sector maintained,
corporations concerning this trade undertake advantage of depth promoting techniques moreover
as channels. The several sector witnesses an oversized range of technological trends on a fast
basis, by ascertaining this upon airlines introduce many changes among its compass. It is
essential for airline industry to engage in the offerings of attractive services in order to attract
and influence customers in well defined manner. With the help of this organisation within airline
industry can effectively able to build in depth goodwill across the worldwide fringe.
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Structural response to the assessment task
In this report formative discussion has been made in key marketing concepts along with
terms that mainly pertained towards airline sector. In addition to this, marketing strategies has
also been covered in this report with the help of which Air Canada can effectively able to
provide best effective services to their customers with an aim to significantly increase their
overall profitability index ratio. Further, this report also include marketing principles as well as
concepts that are mainly undertaken in respective airlines. Along with this, in this report
discussion has been undertake on interrelationship of marketing with other departmental units.
Lastly, report include recommendations that are provided to organisation in order to make an
increase in overall profitability and productivity of organisation with the assistance of marketing
programmes, concept and strategies.
2. The Main Body
a) Explain key marketing concepts and terminology applicable to Air Canada
Branding
Branding is termed as a creation of unique image and name of product and service in the
mind of customer's. This is mainly done with the help of advertising campaigns. Main aim of
branding is to effectively establish a significant as well as differentiated form of presence in
within marketplace in order to attract loyal consumers (Kotler and Armstrong, 2013). In context
with, Air Canada this is being identified that best effective form of branding strategy has been
undertaken by manager while considering all form of business activities into account. In addition
to this, it has been evaluated that manager of company effectively determined customers need
and requirements and further provide them services accordingly as to ensure organisational
success. Air Canada undertake advantage of hashtag campaigns as their branding strategy as to
effectively ensure organisation brand image in marketplace.
Product Strategy
Product strategy is mainly consider as road map of a product. In this outline of end-to-end
vision of product is being done. With the help of assistance of this organization can initiate from
zero stage and further develop best effective form of services and product as per in accordance
with the needs and demand of customers. In context with Air Canada, manager of entity
effectively make sure that they determined needs of customer and them develop strategies as to
fulfill them accordingly. This further lead them towards offering effective satisfaction to them at
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higher extent. At present context organization is mainly tend toward providing airline services to
their consumers at affordable price range that can be further afforded by every income group of
individual.
Promotional Strategy
It is termed as strategies with the help of which organisation promote their services and
product in best effective manner. In relation with Air Canada, organisation manager prefer to
take advantage of social media in order to conduct their promotional activity as to attract large
base of customers. As with the help of this platform Air Canada can attract customers from
different locations all around the world. In addition to this, entity also undertake use of
promotional campaigns that aid them to educate customers relayed to upcoming offering of
entity. It lead company towards high sales performance.
b) Identify the marketing strategies and programs that helped Air Canada achieve their
objectives. Were these objectives achieved in an ethical manner?
Air Canada effectively offer their services and is globally renowned airlines industry
within Canadian provinces. Company conduct their functioning by making significant expansion
in their international and local networking scale via Capacity Purchase Agreements entered into,
with regional airline companies. This organization effectively engage in the marketing process a
to ensure more competitive edge and further make significant increase in their overall share
value. Mentioned below Air Canada marketing overview is being defined:
Mission: Mission statement that has been held by Air Canada is “Connecting Canada and the
Globe.”
Vision: Management of Air Canada laid down vision of organisation which is “Building loyalty
through passion and innovation.”
Objectives: Air Canada management effectively laid certain objectives for FY19 -20:
 To accomplish annual EBITDAR margin of 15-25%.
 To ensure annual Return on Invested Capital of 15-19%.
 To make significant increase in reach of organisation by 15%. To maximise overall revenue and profitability rate of organisation by undertaking social
media marketing campaigns.
Overall marketing strategy: It has been identified that Air Canada undertake use of social media
marketing campaigns in order to attract large base of customers by fulfilling their perceptions
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and demands as per according to their need and further assuring high market growth of entity at
international marketplace.
Ethical Considerations
Air Canada effectively operate their functioning while considering the ethical factor of safety
and security concerns. Within this management to company make sure that consumer group of
organisation have safe and secure access to travel. This is undertaken into account by
organisation as to effectively increase satisfaction level of customers in well defined manner
(Shaw, 2016). Along with this, it has been determined that Air Canada manager ensure that
proper ethical consideration is being undertaken by entity as to safeguard company from being
get engaged in any kind of legal complications.
c) Explain the marketing concepts and principles used in Air Canada daily organisational
operations: 7Ps and STP
Marketing is consider as an activity within which there are numerous form of principles
as well as concepts in being applied within an organisation (Gbadamosi, 2013). In relation with
Air Canada it has been identified that entity undertake advantage of different principles as well
as marketing concepts. In addition to this, it has been identified that respective organisation
implement marketing mix (7Ps) and STP model in order to effectively conduct their daily basis
operations and practices in well defined manner:
Marketing Mix (7Ps)
Marketing mix is a strategic tool that has been undertaken by management of Air Canada
in order to frame marketing strategies for effective growth of organisation. In relation to this,
marketing mix in context with airline entity is being depicted below:
Product:
Air Canada operate their functioning by being largest international and local airlines of
Canada in terms if overall number of passengers and size of fleet that has been carried by them.
It has been identified that respective airline offer their services in 6 continents and over 200
airports. Further this is being evaluated that present airline have number of subsidiaries those
who offer their services with a motive to satisfy customers in well defined manner: Air Canada Cargo –Cargo service of Air Canada is listed in one of the largest air
provider of air cargo services. Air Canada Vacations –Leisure travel packages tour operator
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 Air Canada Rouge – This organisation offer low cost airline services to customers. Air Canada Express –This entity mainly have four regional airlines that are Air
Georgian, Sky Regional Airlines, Jazz Aviation LP and Exploits Valley Air Services
that also connect small cities with domestic hub airports as well as prime cities.
 Air Canada Jetz – Charter aviation service of Air Canada provide business class services
to professional sports team as well as corporate clients. Air Canada engage in the offering of premium economy, business (executive pod and
classic pod) and economy classes to their consumers.
Price:
It has been identified that Air Canada offer their customers with exceptional services with
low price guarantee. In addition to this one of the most attractive service that has been offered by
Air Canada is that, if any individual find ticket with low price range as compared to Air Canada
within 24 hour of time span from execution of ticket that are purchased by website of
organisation, them entity will offer $50 promo code with the difference implicit among both the
prices will be further offered to customer. This states that organisation have full faith over their
pricing strategy that states that entity offer affordable tickets in industry as compared to others.
Place:
Air Canada mainly offer their service with having four primary hubs that are situated in
Montreal, Toronto, Calgary and Vancouver. In addition to this, it has been identified that
organisation offer their services to passengers within 185 or more than locations along with in 6
continents.
Promotion:
With the advantage of their own social media accounts have further developed an online
community in which they directly leave direct links to the app that will further lead towards
making increase in the their usage. In addition to this, entity undertake use of hashtag campaigns
and further execute them on different types of social media accounts. It has been identified that
most renowned campaigns of Air Canada are “Hello/Goodbye”, “You and I were meant to fly”
etc. With the help of this, company effectively attract attention of customers towards
organisational offerings.
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People:
One of the most important aim for which Air Canada offer their services is to increase
satisfaction level of customers. This has been evaluated that company is having string market
positioning in Canadian marketplace. Further organisation undertake staff members and
customers feedback on regular basis as to effectively satisfy their need in best effective manner.
Company consider their employees as their most important asset. A tag line “Flight Path” has
been undertaken by organisation that depicts overall commitment as well as professionalism of
organisational staff members towards their roles and responsibilities.
Process:
In order to effectively satisfy need and demand of customers Air Canada have their own
process for staff members and consumers. If it is talked about customers, company allowed them
to book their tickets from online and mobile applications and further ensure that they get
satisfied in best effective manner (Alserhan, B. A., 2017). In addition to this, organisation ensure
that they offer timely services to their customers that further aid organisation to make significant
increase in sales and profitability of company.
Physical Evidence:
During their initial stage, Air Canada have light blue colour that later get converted into
black & white colour with a black belly in addition with red Maple Leaf accents. This
significantly depicts Canadian contrasting season and nation wildlife. Further it has been
identified that organisation rebrands their entity structure with an aim to offer positive working
environment to their staff members along with ensuring attraction of large base of customers
towards organisation.
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3. Explain the relationship of the marketing function to other functional areas in
organisations.
CONCLUSIONS
As per the above mentioned report, it has been concluded that marketing is one of the
most important and significant unit in any organisation regardless of their size. It has been
identified that with the help of best effective form of marketing function organisation can
measure significant increase in their overall sales ration. In addition to this, it has been identified
that report include STP model that further aid company to determine their targeted audience and
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attract them towards organisational offerings. Along with this, there are numerous form of
strategies such as promotional, product and branding that aid respective airline industry to
increase their market share. In addition this, project include interrelationship of marketing with
different unit with the help of which company can ensure high growth opportunities.
RECOMMENDATIONS
According to the above given discussion in context with Air Canada, some certain
recommendations is being given below:
CHIP CARD:
It is being recommended to respective airline to undertake use of Unique Selling point
with the assistance of launching new system of CHIP CARD. This will aid travellers to directly
swipe and enter into lounge without wasting their time while waiting for their boarding passes.
This form of technique is not being undertaken by any airline around the globe. Thus, with the
help of this, technique Air Canada can effectively satisfy their customers at its best.
Tactical Marketing:
Air Canada is recommended to focus upon installation of 4 pistons over its engine. This
further allow organisation to effectively inflates their horsepower that aid entity to execute their
operations in best effective manner. For this marketing department is required to advertise
related to the mission of organisation.
Web Analytics:
Air Canada is recommended to undertake utilization of web analytics tool in order to
effectively measure range of advertisement as well as promotional campaigns. With the help of
this company can effectively able to undertake knowledge related to their customer behaviour
and can further foster healthy relationship. It allow entity to make significant increase in their
productivity and profitability.
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REFERENCES
Books and Journals
Allyson Dooley, Jones and Iverson, 2012. Web 2.0: an assessment of social marketing
principles. Journal of Social Marketing 2(3). pp.207-221.
Alserhan, B. A., 2017. The principles of Islamic marketing. Routledge.
Armstrong, G. and et. al., 2014. Principles of marketing. Pearson Australia.
Baker, M. J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Burns, A. C., Bush, R. F. and Sinha, N., 2014. Marketing research (Vol. 7). Harlow: Pearson.
Christopher, M. and Peck, H., 2012. Marketing logistics. Routledge.
Ennew, C., Waite, N. and Waite, R., 2013. Financial services marketing: An international guide
to principles and practice. Routledge.
Gbadamosi, A., 2013. Principles of marketing: A value-based approach. Macmillan
International Higher Education.
Kotler, P. and Armstrong, G., 2013. Principles of Marketing (16th Global Edition).
Kotler, P. and et. al., 2014. Principles of Marketing, 4th European edition. Financial
times/Prentice hall.
Lilien, G. L., Rangaswamy, A. and De Bruyn, A., 2013. Principles of marketing engineering.
DecisionPro.
Shaw, S., 2016. Airline marketing and management. Routledge.
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