Marketing Principles & Practice

This report discusses the marketing concepts, strategies, and programs of British Airways, one of the largest airline companies in the UK. It explores the product strategy, branding, promotional strategies, and marketing mix of the company. The report also highlights the marketing strategies and programs that have helped British Airways achieve its objectives.

Marketing Principles & Practice

Table of Contents
Marketing Principles & Practice......................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Marketing concepts and terminology..........................................................................................3
Marketing strategies and programs that helped British Airways to achieve its objectives.........5
Marketing Concepts of British Airways.....................................................................................7
Relationship of marketing with other functional area in British Airways.......................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Airline industry that engages itself in giving services of air transport to its customers and
for that purpose industry uses aircraft. Earlier this industry was seller oriented and does not had
much scope of competition but presently increasing number of airlines and different kind of
services being provided by them have increased competition in this industry. One major factor
that contribute to competition is that industry has now become buyer oriented. All the airline
companies are now focused on providing services that are required to customers. This phase of
the business have also increased importance of marketing in this industry. This report discuss
various perspectives and factors of marketing of one of the biggest airline industry British
Airways. Airline is second largest airline company of UK, headquartered at Waterside,
Harmondsworth. Main hub of the airline is London Heathrow Airport. Airline has a fleet size of
more than 181 and employs around 45000 employees that contribute to its generation of more
than 13000 million pounds and net income of more than 1900 million pounds. In context with
marketing company have employed some of best practices to promote its product and also othr
practices that are concerned with marketing. This have made British Airways a successful airline
in UK and worldwide.
MAIN BODY
Marketing concepts and terminology
Product strategy
Strategies developed and implemented by the companies that are directly related to the
product and service they chose to offer their customers. Most of the companies including airline
companies nowadays are engaged in making strategies regarding product that are needed to
customers. The main consideration regarding product is quantity and quality of the product,
variables available for the product and value that company want to create for the product they are
offering. Regarding British Airways, this is an airline company and product of the company is in
form of its services (Hanlon, 2017). Company provides services of air transport and strategies of
product includes its availability and in terms of availability airline has a fleet size of more than
180 and provide first class services to its customers/passengers. This airline connects to some of
the most busy airport and destinations with an excellent flight schedules of the world. During
travel of customers to other destinations this airline also provides best in flight service to the
making their journey comfortable and memorable. In flight services that are also part of airlines'

product include services related to seats, food and drink offered to passengers and entertainment
during flight. Airline provides vary comfortable seats and hot and fresh food and various means
of entertainment including magazines, movies and programs. Airline also provides their services
based on class that are economy, premium economy, business and first class (Shaw, 2016).
Services offered in these differ on the basis of class and ticket price for these also differs on the
basis of class and service.
Branding-
Branding refers to the perception of customers regarding a product or service on the basis
of price they are paying. This is based on any feature of the product or service that differentiate
one product from another specially those who belongs to the category of the product. For
instance one airline is compared with other in terms of services provided by them and what
customers think about these services, value given by customers (Chen and et.al., 2017). When it
comes to British Airways in terms of Branding, company have managed to secure no. one place
of consumer index in 'Travel-Airlines' and have been voted no. 1 British company. For this
brands are judged on the basis of quality that is provided by the company, reliability and
distinction from other brands and companies providing same type of products and services.
There are various factors that contribute for a company to become a brand. British Airways has
spent quite a huge amount of money and efforts to become a brand. These are promotional
strategies, product of a company etc. company employs very effective promotional strategies and
product in terms of services are also excellent. All this collectively have made British Airways a
brand in its industry.
Promotional strategy-
Promotional strategies refers to strategies developed by companies to communicate their
message and promote their brand to customers and potential customers in order to increase
customer base and profitability of the organisation (Holt, 2016). Promotional strategies include
various strategies and planning in which company chose to deliver its message and value to its
customers through various mediums like print and digital advertisements and other methods of
promotion. British Airways employs excellent promotional strategies that include all type of
mediums to promote itself that are traditional mediums like advertisement in newspaper and TV,
and at Billboards. Company also promote their services using social and digital media and
through their own website and application.

Advertisement- TV and newspaper advertisement are traditional mediums company uses and
these are vaey effective when company intends to communicate its message and deliver their
brand value to a large number of customers and potential customers in single attempt (Chong and
et.al., 2017). Though in present time these mediums have lost their charm and have become
ignorant because people have used to get many types of creative and unique promotion
strategies. Social and Digital media marketing are new age promotional strategies which are cost
efficient and helpful in increasing visibility of the brand. Important feature of this promotional
strategy is that this allows to promote brand to a selected group of people or target audience.
Other strategies of the company include discount and offerings, celebrity endorsement
and event sponsorship.
Marketing strategies and programs that helped British Airways to achieve its objectives
Marketing strategies that are wide in scope and include various sub parts in it. In its
vague form it is known as efforts and planning that company employ to increase its profits and
that are directly and indirectly are part of its marketing strategies. Precisely marketing strategies
include following-
Market analysis- Analysing market in relation to uncertain events that can appear in market.
This include analysis of various factors that are related with business and have potential to affect
it (Berman, 2016). In relation to British Airways market analysis includes political events that
affect it are unrest in EU, terror attacks, Brexit, change in prices of fuel and other competitors
and their strategies that affect business and its operations.
Customer analysis- As the name refers customer analysis is an systematic analysis and
evaluation of customer requirements and their wants. Companies undertake various processes
like survey and interview using other related data in order to find out what customers want and
what are the things that are not adequate in order to fill the needs and requirements of customers.
This analysis helps companies to design their products and services in such manner that are able
to cater needs of customers (Berman and Thelen, 2018). It also enables companies to design and
develop marketing and promotional activities for customers so that they can address right group
of people and customers. British Airways' effective product and promotional strategies are result
of this analysis.
Marketing programs on the other hand refers to programs that are undertaken by the company to
promote its product by addressing customers and potential customers. There are various

mediums from where company can address its customers (Sohail, Al-Jabri and Wahid, 2017). To
do the same British Airways chose TV, Newspaper, Billboards, social media, digital media and
events.
Advertisement- traditional medium like TV and newspaper. Newspaper allows conveying
message in creative print form and TV allows conveying message in form of video and audio.
Both these mediums are effective in communicating message to a large audience in one attempt.
These mediums have proven to be quite effective and have contributed to create customer base
for the companies and increase their profitability. However now a days popularity of digital and
social media marketing have interrupted its success. Audience have been used to various forms
of advertisement which are different, unique and creative. But these mediums are still useful for
promotion in remote places where company cannot use and employ any other promotional
strategies. Billboards also allow for some eye-catching and attention seeking advertisements at
city streets (Adhikari, 2018). British Airways use all these mediums to promote itself and
advertisements of British Airways is very sophisticated in terms of content and are also very
classy.
Social media and Digital media Marketing- Increasing popularity and user base of various
social media sites have generated a new opportunity for companies to promote their product on
these sites. These sites allow companies to increase their visibility and also promote their product
to those who are actually interested in their product. Promotions on social media are of two types
organic and paid social media promotions. Organic social media promotions are when companies
promote their product creating their own pages and profile on social media and users can follow
them. Followers of company on social media are subject to its popularity so it allows companies
to know about their popularity through their followers (Abdul-Hamid and et.al., 2017). Paid
marketing means when companies promote their product through someone else's page and
profiles. So that followers of that social media page can see advertisement of company. Digital
media promotions are those where companies can promote their products on digital mediums
like on mobile and through blogging. Companies collect data from other websites and digital
mediums and use for their promotion. Companies also promote through websites and
applications that are also part of digital promotion and British Airways is promoting itself from
all these mediums.

These strategies when tested on the basis of ethical and non ethical. Strategies employed by
British Airways is completely ethical as when companies are collecting data from wrong and
illegal sources that can be considered unethical (Kumar, 2017). Companies when address wrong
and untrue message and coat its content with wrong meaning that can also be considered as
wrong and British Airways has not known to be doing any of these activities.
Marketing Concepts of British Airways
7 P's of Marketing Mix
Price strategies- Price strategies refers to price decided by the company for the product
they are providing to customers. Price needs to be on a level that company can earn adequate
profit and that does not seem more to customers on the basis of quality being provided by the
company. British Airways' price is moderate and is reasonable to all its customers. Customers
can select type of service on the basis of their budget (GÜREL and AYDIN, 2016). Company's
pricing policy aims to cater needs of all its customers and is reasonable for every customer.
Tickets of the company are divided on the basis of class that are economy, premium economy,
business and first class and prices of the ticket increase respectively. Along with this policy
company also give many discounts and offerings to its loyal and regular customers.
Place- Place refers to places where customers can avail product and service of a
company. This also plays an important role in company's marketing strategies. In relation with
marketing British Airways has undertaken many mergers and alliances so that company can
provide effective services to customers of the place where it is not physically available (Iancu,
2016). Other than this company serves to more than 160 destinations that include some of the
busiest airports. Services like ticket booking and travel inquiry are also available at website and
applications of British Airways.
People- This include internal and external people. External people are customers of the
company and internal people are employees of the company who plays an important role in
success of the company and caters needs of its customers. British Airways employs more than
45000 employees from which 3600 are pilots, 15000 cabin crew and other staff engineers and
ground staff (Saputri and Sari, 2019). Pilots in British Airways are selected after tough test and
simulation and cabin crew of the airline is recruited from top institutes of hospitality training and
after induction all the staff is again need to undergo a rigorous training.

Process- From the time customer books tickets for the travel and even before from the
time customer chose to travel with a particular airline. Its process start firstly process of ticket
booking then getting boarding pass, luggages checking, flying that includes process of in-flight
service and lastly when customers get their luggage back. All these are process of airline
companies and British Airways provides all this services in best and most efficient manner
(Florido-Benítez, 2016). For instance to book tickets customers can use website and application
of the airline making it very easy and short term process.
Physical Evidence- In relation with British Airways its physical Evidence are its
services, its cabin interior which company keep improving, designing of its lounges, behaviour
of its flight attendants, interior and ambiance of the flight, sophistication and lastly most
important 'experience' that airline provides are all its physical evidence. Experience is important
physical evidence as British Airways is a service company and cannot provide any tangible
evidence as services are intangible products provided by the company.
Segmentation, Targeting and positioning of British Airways
Segmentation- Segmentation refers to selection of company in terms of its suitable
market segment with intention of focusing needs and desires of companies' offerings and
marketing activities towards group of customers. This groups can be more than one. This
segments are classified on the basis of demographic and psychographic. In which demographic
segmentation includes division on the basis age, gender, ethnicity and education. Psychographic
segmentation includes division on the basis of hobbies, attitude, lifestyle, others are belief and
values, behaviour, life stages and geography etc. British Airways which is a airline company
operating worldwide have segmentation of demographic and psychographic mix.
Targeting- this refers to perception of target market about offerings of a company in
terms of key features and benefits and those of competitors (Waguespack, 2018). Company here
evaluate potential and commercial attractiveness and return on investment. Segments are targeted
on the basis of size, difference, money, accessibility and different benefits. British airways uses
differentiated targeting in order to identify attractiveness of each group.
Positioning- Positioning refers to where one product stands in relation to its competitors
and where company wants to establish itself. Companies have to thoughtfully position itself so it
can take advantage of competitive advantage. In relation to British Airways company have
managed to position itself as leader in its market.

Relationship of marketing with other functional area in British Airways
Covered in Poster.
CONCLUSION
On the basis of this report and above discussion it can be concluded that marketing is an
crucial activity performed in all the organisations including airlines. There are various factors
that affect marketing which are product quality and quantity and variables of the product. Price,
of the product and values being provided by the product in relation to price being charged by the
product. Place, where product is available. People, who are working for the company that
contribute to marketing success and efficiency of the product and service. Promotion, methods
and mediums chosen by the company to promote and market its product. Process, that is
followed by company and physical evidence that is followed by company for product it is
providing. In order to achieve goals and objectives British Airways have to ensure that all these
factors affect marketing of the company in a positive manner and functions included in these
factors are performed efficiently. Along with this, strategies that British Airways employs to
achieve its objectives also need to be effective and on the basis of above discussion it can be
concluded that British Airways follows best practices for promotion and other related functions.

REFERENCES
Books and journals
Abdul-Hamid, I.K and et.al., 2017, June. Sustainability Marketing: The 7ps Perspectives. In 5 th
International Conference on Contemporary Marketing Issues ICCMI June 21-23, 2017
Thessaloniki, Greece. (p. 595).
Adhikari, A. ed., 2018. Strategic Marketing Issues in Emerging Markets. Springer.
Airlines: A study of Scoot Airlines Indonesia. In 1st International Conference on Economics,
Business, Entrepreneurship, and Finance (ICEBEF 2018). Atlantis Press.
Berman, B. and Thelen, S., 2018. Planning and implementing an effective omnichannel
marketing program. International Journal of Retail & Distribution Management. 46(7).
pp.598-614.
Berman, B., 2016. Planning and implementing effective mobile marketing programs. Business
Horizons. 59(4). pp.431-439.
Buratti, N., Lanzara, R. and Simoni, M., 2016. Technological innovation and marketing. a multi-
perspective analysis. Mercati e competitività.
Chen, T and et.al., 2017. Does rivals' innovation matter? A competitive dynamics perspective on
firms' product strategy. Journal of Business Research. 76. pp.1-7.
Chong, A.Y.L and et.al., 2017. Predicting consumer product demands via Big Data: the roles of
online promotional marketing and online reviews. International Journal of Production
Research. 55(17). pp.5142-5156.
Florido-Benítez, L., 2016. The impact of mobile marketing in airports. Journal of airline and
airport management. 6(1). pp.1-18.
GÜREL, E. and AYDIN, S.İ., 2016. PUBLIC RELATIONS IN SERVICE MARKETING.
Journal of International Social Research. 9(45).
Hanlon, A., 2017. British Airways: a case study in social media management. The Business &
Management Collection.
Holt, D., 2016. Branding in the age of social media. Harvard business review. 94(3). pp.40-50.
Iancu, I.A., 2016. Marketing mix in financial investment services companies. SEA–Practical
Application of Science. 4(10). pp.59-64.
Kumar, R.R., 2017. SERVICE MARKETING: AN OVERVIEW.
Matthyssens, P and et.al., 2016. Aligning marketing and purchasing for new value creation.
Industrial Marketing Management. 52. pp.60-73.
Saputri, M.E. and Sari, D., 2019, May. The Effect of Service Marketing Mix in Low Cost
Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets. In Global
Marketing Strategy(pp. 63-82). Springer, Cham.
Shaw, S., 2016. Airline marketing and management. Routledge.
Sohail, M.S., Al-Jabri, I.M. and Wahid, K.M., 2017. Relationship between marketing program
and brand loyalty: Is there an influence of gender? Journal for Global Business
Advancement. 10(2). pp.109-124.
Waguespack, B.P., 2018. Airline marketing. In The Routledge Companion to Air Transport
Management. (pp. 206-219). Routledge.
Online
Marketing Mix. 2019. [Online]. Available Through:
<https://www.investopedia.com/terms/m/marketing-mix.asp>.