Marketing Concepts and Strategies for British Airways
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This report explores the key marketing concepts and strategies used by British Airways, including branding, product strategy, and promotional strategy. It also discusses the relationship between marketing and other departments within the company.
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Marketing Principles & Practice
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Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 TASK 1............................................................................................................................................3 a. Key marketing concepts concluded with terminology that are applicable to the entity..........3 b. Identification of marketing strategies and programs which help the entity in achieving objectives....................................................................................................................................6 c. Two marketing concepts with principles used in organisational daily operational.................7 TASK 2 (Covered in mini poster)..................................................................................................10 Explanation of relationships of marketing with other departments of the company................10 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
INTRODUCTION Airline industry is consider as a business that provides air transportation services for travelling passengers and freight. All business needs marketing and promotional activities which helps to increase the organisational activities and maintain good performance. Airlines uses aircraft to supply these services to people who wants to travel from one place to another place. In other words, Airline is a company that delivers air transport services by utilising aircraft moderate for travellers. To increase their services such airline industry uses different sources of marketing which make easier and successful business(Benzo, Mohsen and Fourali, 2017). With the help of marketing, air line is growing which assist organisation to analyse apparent needs with true preference of customers. This is important for businesses to use marketing and increase their performance in business area. The rationale behind this assessment to understand the importance of marketing and its practices which helps to maintain high productivity. For such assessment, British Airways has beenchosenthatisflagcarrierofUnitedKingdom.IthasheadquarteratWaterside, Harmondsworth which is near by London. This is second largestairline company, based on Fleet size and passengers carried. This report covers marketing concepts and its terminology which are applicable on industry, cross functional relationship between marketing and other department and last recommendation to improve the business effectiveness. MAIN BODY TASK 1 a. Key marketing concepts concluded with terminology that are applicable to the entity Marketing concept is the defined philosophy that is used by organisational managers to analysing the needs and frame the implementation for satisfying the customers. Every customers has different need and wants which is important to satisfied them and increase the productivity (Worth,2018).IncontexttoBritishAirways,managersaresuingfewconceptsand terminologies in their business which helps to respond the changes effectively. Different types of terminologies in context to chosen organisation is defined below: Branding –This refers as a name, term, design, symbol and others which identifies goods and services in distinct form. People are so much curious about brand which helps them to make right buying decision and feel comfortable. The main aim of branding is to build
differentiate its products and services from others and maintain a significance presence in dynamic market. In context to British Airways effective brand strategy is used by managers which helps to distinct the airline services from others. This also creates sub brands and brand extension which helps to increase the number of airline services and maintain the sustainability (Bush, Bell and Middlewood, eds., 2019). This uses three ways to present their identity in different environment that are Corporate identity, Brand prefix and In- journey. Moreover, different types of brand extension strategy is adopted by using Re positioning, getting franchise and maintaining relationship, changing design and prices which attracts people and increase the organisational image and productivity. British Airways also uses hashtag campaigns which is attractive branding strategy for the purpose of increasing brand image and keeping good position. Product strategy –It can be a roadmap which outlines products and services, providing by organisation in order to increase the sale and profits. This is another strategy which influences people to use end to end products for capturing big market share and sustain in business environment(Dennison and Shenton, 2018). In context to British Airways products level are air carriers (flights), intangible services. This offers different types of classes to customers for travelling that are executive class, business class, economic class, club class and premium class which affects people to buy services. Products which is sold by British Airways that are divided in to different level, first is core product, basic product and last is expected product which includes complimentary meals, drinks, on board entertainment and seats.
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Promotional strategy –Promotion is the part of business and marketing which helps to define and recognise the products. With the help of promotion organisation sale their products and services and increase their production level. The rationale to adopt the promotional strategy is to inform, aware and persuade together with inform targeted audience for products and services(Slack and Brandon-Jones, 2018). In relevance to British Airways, marketing team and managers are prefers unique advertisement, different flight perks, social media, changing pricing strategy, accommodation etc. that increases sales volume of flights. For example, marketing team of British Airways usesa team of top celebrity endorsement includes Rob Brydon, Sir Ian McKellen and Thandie Newton make appearances and increases sales. This helps to increase the organisational productivity and profitability of organisation and maintain the good performance.
b. Identification of marketing strategies and programs which help the entity in achieving objectives. Marketing strategy is consider as overall plan which uses by organisation to reach the prospective audience. If marketing strategy is used by management then only then can attracts customers and increase the productivity(Kaynak and Kucukemiroglu, 1993). Marketing strategy comprises with data related target customers, value proposition, demographicsand brand messaging at high level of dimensions which attracts people. In context to British Airways effective marketing strategy is used by management in order to accomplish their objectives that are as defined: Mission -“One Destination seeks to ensure our customers fly confident that, together, are acting responsibly to take care of the world”. Vision –“To build loyalty through innovation and passion”. Objectives –The objectives of British Airways are as follows: To meet with customer's needs and improve margins through new revenue stream. Grow the presence in global cities. Sustain and build leadership status in London. Deliver better quality of services and increase the brand image. Improve the market proportion by 40%. Be the airline of choice for long haul premium customers. Overall marketing strategies –British Airways is a large size organisation which offers quality airline services to its customers at different prices which they wants and build good relationship with customers as well as diverse market. To increase its marketing strategy management team uses marketing strategies by involving product strategy, promotional strategy and branding which helps to increase the organisational productivity and profitability. By using product strategy, British Airways organise programmes which assist and provide information to about new services. This helps to increase the workings for reach market enhancing by providing flight services at reasonable cost(Messner, 2017). It helps to improve brand image and increase market share that accomplish organisational objectives. At the same time, promotional strategy is used by respective company through campaigns, social media, brand ambassador etc. which helps to increase the number of customers and get high profits which aims of organisation. On the other hand, branding strategy is uses wide campaigns that helps to attracts people and
improvemarketreachthroughprogrammesandadvertisementwhichincreasespeople's knowledge and increase customers. Ethical consideration and objectives It has determined that all objectives of British Airways are achieved in ethical manner in which they focuses on safety and security travelling that attracts people and give them safe and secureride.Bygettingsafetravellingcustomerdrivessatisfactionlevel.Moreover,top management of British Airways follows legal compliance and properly booking tickets which solves customer's problem(Child, 2015). It has also defined that British Airways is making efforts to become first airline to offset carbon emissions on domestic flights. The management of such organisationwill offset by investing in several global carbon reduction projects. Some programmesarealsorun bymanagementsuchasrainforestprotectionand reforestation programmes. c. Two marketing concepts with principles used in organisational daily operational Marketing is extensive human activity that consider different concepts and principles to operate a business across domestic territory. All corporation wants to run their business by providing better quality of products and services and maintain high productivity. Different marketing concepts and principles are consider as suitable strategy which attracts people and maintain high productivity(Folinas and Fotiadis, 2017). ForBritish Airways, marketing team is using different types of marketing concepts and principles which helps in daily operation that are as explained: Marketing mix The marketing concept is related with set of tactics and plans which can be used in marketing brand and increases number of customers. Organisation are using guidelines and path to put the products at right place and maintain the high profitability. With the help of marketing mix British Airways attracts people and managing the administration properly which are as explained: 7Ps strategy The strategy of 7Ps is related to marketing mix elements which are combined factors which a company control for influencing targetted audiences for making purchase of the commodities. With this strategy, organisations makes promotions of the brand within competing market. The administrators of British Airways uses 7Ps for developing strengths along with
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limiting weaknesses, improving profitable collaboration among partners and departments within daily operations. The 7Ps in context to the respective entity are discussed as: Product: It is tangible substance that organisation manufactures and refined to sale. The product element is used at British Airways for satisfying clients needs in suitable manner. The company offers airline services to various segment which is its core product. Along with this, other products are accessories, technology, quality services and many more that helps in satisfying customers along with retaining their loyalty. Price: It is the money amount which is expected, required as well as given for making payments to acquire something. Pricing strategies includes penetrating, cost plus, skimming, differentiation and many more. Among all, marketers ofBritish Airways uses differentiation strategy for charging distinct prices as compared to other airlines for the similar services with higher quality(Kumar and Sharma, 2015). Promotion: The another marketing mix element used at entities for informing addition to improving awareness of population towards merits of products and its features. Special offers, free gifts, endorsements, direct mailing, advertising and user traits are part of promotions. At British Airways, promotions of brand are done through TV commercials, billboards, Internet ads and many more. Promotions are used at selected firm for increasing awareness, creating brand loyalty and generating interest of population. British Airways also uses Brand ambassador to promote its air line services which attracts people and increase the organisational sale. Place: It is defines as physical location that customers uses for purchasing organisational product. British airways flies around more than 450 locations across world an d have major presence in Gatwick, London addition to Heathrow city Airport. It uses multi channel, Internet and sales orders for selling sits tickets. Along with it, a customer also purchases tickets from sales agents addition to other intermediaries. Physical environment:It is related to the ways organisational functions are operated. With this element, a business is distinguished from competitors. AtBritish Airways, physical environment in form of comfort, smart, run down, facilities are interfaces are used for charging prices for services as well as establishing positive experience. Process: The element encompasses interfaces among consumers and business. It also includes the ways both deals at distinct service stage with each other. Wide types of processes are used at British Airways for achieving marketing, growth and other goals. Service delivery is
essential consumer touchpoint which company uses to provide essentials so that consumers consumes the services(Oswald and Oswald, 2015). People: These are said to the individuals who operates practices for the company. All organisations employs wide types and number of people along withthis, also provide them training for goal achievements. In regards to British Airways, its key people are customers, management, employees and other stakeholders. STP: This is another marketing strategy which helps to operate the business effectively and increasethebusinessoperations.Thisstrategyisrelatedwithsegmenting,targetingand positioning that demonstrate connection between entire market and states ways to face the competition. British Airways uses marketing principle in which management divide whole market in smaller group that are as defined: Segmentation –In this, market is categories in to smaller groups which possess different characteristics and suits to target market. The market team of British Airways has segmented the market in to following dimensions: Demographics –In this, management of British Airwaysfocuses on income group, education level and family status which helps to increase the operation of organisation. Geographic –In this, British Airways has segmented the market audience as per location such as city, Continent, District, Region. Psycho-graphic –The management focus on lifestyle, perception, interest and attitude of air travellers which helps to maintain the daily organisational operation](Rowley, 2017). Behavioural –In this, market people are divided on the basis of previous behaviour for brand. Management increases awareness of people in ticket rating, usage level, purchase pattern, product knowledge and more purchase. Targetting –This means targeting people and provide products and services accordingly which helps to maintain the which helps to maintain the profits. The manager of British Airways mainly focuses on targeting population between the age group of 20years to 65 years, high profile and medium status who purchases tickets to travel. Positioning –This consider as final component of STP processes in which British Airways emphasis on different ways by providing airline services. By offering airline services at different classes and advertisement campaigns it is maintaining good position in business world.
TASK 2 (Covered in mini poster) Explanation of relationships of marketing with other departments of the company. CONCLUSION From the above report it can be concluded that marketing is the important area or function of organisation which helps to9 increase the sales volume and capture high market share. In business environment there are different strategy such as product, promotion and branding which is used by organisation to increase the production and profitability. In airline industry, there are many services which is provided by managers to increase their sales volume and operate business successfully.Marketing mix is the combination of different products and services which attracts people and encourage them to buy them. This involves product, price, place, promotion, physical evidence, process and people which operate business easily and maintain high profitability.
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REFERENCES Books and Journals: Benzo, R., Mohsen, M. G. and Fourali, C., 2017.Marketing research: planning, process, practice. Sage. Worth, M. J., 2018.Nonprofit management: Principles and practice. Sage Publications. Bush, T., Bell, L. and Middlewood, D. eds., 2019.Principles of Educational Leadership & Management. SAGE Publications Limited. Dennison, W. F. and Shenton, K., 2018.Challenges in educational management: Principles into practice. Routledge. Slack, N. and Brandon-Jones, A., 2018.Operations and process management: principles and practice for strategic impact. Pearson UK. Kaynak, E. and Kucukemiroglu, O., 1993. Successful marketing for survival: The airline industry. Management Decision, 31(5), pp. 32. Messner, W., 2017. Does Value forMoney Create Advocates? A Study in the International Airline Services Industry. Journal of Glob Child, J., 2015.Organization: contemporary principles and practice. John Wiley & Sons. Folinas, D. and Fotiadis, T., 2017.Marketing and Supply Chain Management: A Systemic Approach. Routledge. Kumar, R. and Sharma, V., 2015.Auditing: Principles and practice. PHI Learning Pvt. Ltd.. Oswald, L. R. and Oswald, L., 2015.Creating value: the theory and practice of marketing semiotics research. Oxford University Press, USA. Rowley, J. E., 2017.Information marketing. Routledge. (Benzo, Mohsen and Fourali, 2017)(Worth, 2018)(Bush, Bell and Middlewood, eds., 2019) (DennisonandShenton,2018)(SlackandBrandon-Jones,2018)(Kaynakand Kucukemiroglu,1993)(Messner,2017)(Child,2015)(FolinasandFotiadis,2017) (Kumar and Sharma, 2015)(Oswald and Oswald, 2015)(Rowley, 2017)