Explaining key concepts and terminology of marketing

This report provides an explanation of key concepts and terminology of marketing, focusing on the product strategy, branding strategy, and promotion strategy of British Airways. It also discusses the cross-functional relationship of marketing with various departments. The report includes a PEST analysis of British Airways and identifies marketing programs and strategies that help the company achieve its objectives.

Report

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Explaining key concepts and terminology of marketing-...........................................................3
Explanation of marketing principles and concepts-....................................................................5
Identification marketing program and strategies which helps the British Airways in gaining
their objectives-...........................................................................................................................7
Discussing cross-functional relationship of the marketing and various departments-................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Airline industry is business of the transporting the payed freight and passengers by air
with the regular scheduled route, typically by airplane as well as helicopters. An airline is the
company which provides the air transport service for freight and passengers for traveling.
Airlines use the aircraft for supplying those services and may also have alliance or partnerships
with any other airline by sharing code agreements. The importance of marketing in this industry
have been steadily rising as nowadays peoples are opting the airlines more for traveling and
transporting which saves their time.
British Airways is established in 1974. The company had its headquarter in Waterside,
Harmondsworth, United Kingdom. Alex Curz is the CEO of company. It is second biggest
airlines in whole UK based on the passengers carried and fleet size which is behind easyJet. The
revenue of company is £13,020 million in 2018. It is first passengers airlines who have generated
more than $1 billion in one single route during the financial year. The above report includes
explanation to marketing terminology, concepts and principles. Identification of marketing
strategies and various program which is helpful for gaining their objectives. Report ends with
cross-functional relationship of the marketing and various departments.
MAIN BODY
Explaining key concepts and terminology of marketing-
Product strategy-
The product strategy of British Airlines help company to retain their customers by
rendering them high quality services with amazing features and are innovative for the consumers.
They are continuously focusing on innovating their product and services. They offer the flights
to their customers which are integrated with the latest technology. It also has various classes in it
so that the consumer can enjoy the flight experience as per their budget and thus the individual
with minimum budget can also travel in their airplanes (Chernev, 2018). The different classes are
economy, business, premium economy and first class. They also provided their consumer with
class services which attract wide range of consumers to the company. The company also had
competition with the many other international airlines so they had to maintain their brand
position in the market place so that they can easily compete with them and maintain their brand
position among their customers. With the analysation of the macro environment they can also
cop up with the changing trend of the consumer in market place and develop new changes

according to the trend in market of consumers so that they offer amazing service to their
customers. They can make changes according to the countries in which they are implementing
their services so that they can satisfy their consumers easily.
Branding Strategy-
British Airlines value their employees just as they value their consumer. As if they
maintain good relations with workers so that they can raise their brand reputation. So the airlines
can maintain and formulate their culture and value they have in their business operation
activities. Airline sticks with its objectives and goals of company can be achieved by rendering
the same quality services to their customers and further maintaining the brand consistency and do
not affecting image of brand (French, 2017). For improvement and up-gradation in company's
consistency they had developed several guidelines for the brand. The another brand strategy
which is used by company is connecting with customers through emotions. They founded
various ways through which they can easily connect with their customers so that they can easily
enhance retain of consumer for long term period. The main purpose of company is to raise
competitive advantage and improving quality of the service which is rendered by them to their
customers. By which the airline's revenue can be increase and thus they can easily compete with
their rivals and can gain huge market share.
Promotion Strategy-
The content marketing is used by British Airlines which is helpful for company in
gaining attention of the consumers so that company's market share can be increase. It is the best
technique for getting satisfactory consumer satisfaction. Company can gain success due to their
strategy as they could share contents of attributes with audience which are targeted by them. It is
main part of digital marketing which is helpful for company in reaching bigger and raising the
awareness among consumers. So the British Airlines can increase their sales by offering their
customers such as various features in flights, safety to customers, amazing services in flight with
affordable pricing as compare to their airlines companies. They also allow their customers with
refunding of amount on cancellation of flights or tickets. This facility is provided to some of
there permanent and usual customers. They advertise through newspapers, advertisements
through TV and billboards. Their promotion activities are so classy and sophisticated as message
which highlight company and its brand image. They endorse the celebrities also for attracting the
customers to their airlines and enjoy their services (Gordon and Oades, 2017). The sports and

charitable programs are also sponsored by them so that they can grab attention of huge amount of
population and where they also render offers to the customers so thus they can let individuals to
attract with their airlines and its services which they provide to their customers.
Explanation of marketing principles and concepts-
7 P's of British Airways-
Marketing Mix of the British Airways examining company's 7P's and marketing strategy
which is used by company that are described below-
Product-
British Airways renders high quality services to their consumers. It offers individual the
transport facility from one place to another by the flight which is part of marketing mix product
and the various service strategy. The services which are offered by them are integrated with the
latest technologies. The fleet of airlines contains Boeing 747s, 777s and 787s that renders array
of in-flight service to the customers (Palmatier and Sridhar, 2017). They also have various
classes for ticketing in their flights that are business, economy, first class and premium economy.
Airways also renders the cabins, main meal course, entertainment screens, extra space and beds
so that the luxurious and more sophisticated services are rendered by them to their customers.
Price-
British Airways has their main objective that every individual can afford ticket prices and
also has pricing policy and strategies which renders strategic value to consumers. The pricing of
the ticket can vary as per the destinations and thus consumer can book their ticket as soon so that
they had to pay less amount for ticket. It is the differentiation pricing strategy. They also provide
offers and discounts to the consumers who had their frequent travels during the period of festival
like Christmas. The raising fuel price also have pressure on airways thus they also need to assure
that they earn maximum profit which is helpful for them in better functioning of company
(Pasquier and Villeneuve, 2017).
Place-
The airways serve in more than 400 destinations across the world with fleet of around
273 aircraft and planes that includes Boeing 777s, 747s and 787s. The British Airways had its
headquarter in Waterside near London Heathrow airport. The 40% of Heathrow airports slots are
occupied by British Airlines and its major operational activities held there. For conducting

smooth operations they also had done partnership with airport authorities of world's airport.
There service are distributed by phone app and website of airlines.
Promotion-
The company had huge competition with international airlines thus they had to develop
appropriate promotion strategy so that they can compete with them easily. British Airways uses
advertisements by billboards, newspapers and TV advertisements. The brand ambassador of
company is golfer Justin Rose (Venkatesh and et.al.,2017). They also allow their customers to
book the tickets from their website and mobile app which is convenient for their consumers so
that they can easily book tickets. They have also sponsored the Olympic games and London
Paralympics in 2012. They also promote their brand with the help of film such as “Planes”.
People-
The CEO of British Airways is Willie Walsh who is head management of the teams.
Further it is followed by the management boards that contains of strategy, sales & marketing,
finance units, engineering and customers. The British Airways have over 40000 employees in
which there are 15000 are cabin crews, 5500 are engineers and 3600 pilots (French and Gordon,
2015). They also have particular team for operation and customer that contains customer
management, communication, operation team, flight operations and engineering executives.
Process-
The new ticket service is being launched by British Airways is e-ticketing so the time
which is consumed in booking ticket is saved and tickets can easily booked in one minute. This
service is available in Germany and Britain only. They had also launched airways Holiday that
renders nine type of packages for holiday. British Airways also offers the cargo services which
render their consumer delivery service for perishable or dangerous goods, funerals, pets and
scheduled services.
Physical Evidence-
It is all about the service and experience which is offer by them to their consumers and
also way in which their consumer uses its brand. It is intangible aspect of business. The service
which are offered that is attendants behavior in flight, flight's interior, designed lounges, cabin
designs, flights ambiance, sophistication is symbol of Airways and color that is used all forms
physical evidence for British Airways (Keegan, 2017).

STP of British Airways-
Segmentation-
The British Airways use the demographic and Psycho graphic segmentation for market
segments which is helpful for them in analyzing marketing features that are useful for company
for evaluating each and every segment of consumers and also their nature (Světlík, 2017).
Targeting-
The consumers that are segmented are rewarded by British Airways through loyalty
program that's why company can put itself with differentiated strategy of target. The attention
and attractiveness can be identify of each segment. The young generation from the age 22-35 are
mainly targeted by the company.
Positioning-
British Airways has established their position on the basis of position leadership in
consumer groups, strategic market that are alliance and diverse. The class consumer based
strategy is used by company for positioning themselves in the marketplace and compete with its
international rivals easily (French and Russell-Bennett, 2015). They had created a brand image
among their customers and had maintained the competitive advantage for their rivals.
Identification marketing program and strategies which helps the British Airways in
gaining their objectives-
PEST Analysis of British Airways-
Political Factor-
The frequent strike from the employee unions in United Kingdom affected airline
services and its brand image. The employees had stricken over various issues such as pensions,
job redundancies, low pay and benefits. Post Brexit had impacted the UK Airlines who had loss
the influence over development of the European Aviation Safety Agency (EASA). Thus, the
Brexit has an adverse effect on airlines so further the purchasing power of consumer has also
been declined in the market. So the spending of consumer had been declined thus the sales of
airlines had declined. The company had also faced many difficulties as they were rendering
services at the time of terrorist attacks in many areas that is Nice, Paris, Brussels etc., The
sudden drop in the Euro against US dollar had also impacted the business of Airways
significantly.

Economic Factors-
The low fuel prices also has raised profitability for airlines industry in short term. It had
created an advantage for company to gain huge profit margin for British Airways. Uncertainty
over Brexit had impacted for reducing major investment by United Kingdom carrier in nearby
term (Kotlarsky, van den Hooff and Houtman, 2015). The planned third runway for British
Airways at Heathrow that result in shifting of the airline's airport operational office which had
increased the cost of airlines. The sudden fall of sterling had impacted the economy of airways
very adversely. Thus, this affected the economic aspect of company.
Social Factors-
British Airways need to develop and formulate new strategies for the target group. British
Airways has faced many losses due to air traffic control in France due to that there are many
cancellation in flights. Along with this company must focus on factors that are related to cultural
and social which doesn't have consideration by that there consumer can be satisfies with the
company. They can also meet the needs and demands of consumers. Airways must put their
emphasis on changing trend of the customers, their preference and taste and how the individual
maintains their lifestyles. It is very important for company to consider these factor so that they
can raise their market share and attract more and more consumer to the company and increase
their profits and revenues.
Technological Factors-
The British Airways had implemented many technological changes in it. They aim to
provide the innovative technological services to their consumers. The company had developed
the e-ticketing service for their consumers so that their customer can be easily book their ticket in
one minute by using their website and phone app which saves their consumer's time. They had
also invested in warehouse and technology management system so that they can render the
satisfactory services to their customers and thus the costing can also be reduced (Enz and
Lambert, 2015). They had also implemented many technological changes in their services and
security checking also which saves the time of their passengers and they can also maintain the
security of their passengers. This is helpful for company in rendering satisfactory services to
their customers and attracting wide range of customers to their airlines.

Discussing cross-functional relationship of the marketing and various departments-
Interrelationship of Marketing with department of Production-
The production department and marketing department may vary in many areas could
have conflicts among each other at several levels. For instance if production department needs to
implement changes in the plan so that demand of technological change can be meet up but at the
same point marketing department won't agree on that. Other than that the marketing department
doesn't emphasis more on spending huge amount of money which is helpful for them in
rendering high quality to customers but production department keeps insisting for it. It is very
important for both department to work together so that company can grow steadily and attains
their goals and objectives. The marketing is very helpful for promoting the production and
showcasing the changes which are implemented by the production department in the plane.
Interrelationship of Marketing with Human Resource-
The marketing and the Human Resource are interlinked and relied on each other. The HR
department of British Airways is helpful for gaining the information for marketing, supplying
and sales. The HR department of airlines gives training and development program to the
employees so that they can easily market and promote the airlines with higher approach. Thus,
the HR department can also gain the success if great marketing and promotion of brand is being
done by the marketing department. The both works together for the growth and development of
company (Bienstock, 2015). HR department also recruits the appropriate and skilled talent for
the airliners so that they can market the product easily and gain huge consumer attraction
towards airlines and along with proper training and development program employees can
perform the marketing activities which benefits the company.
Interrelationship of Marketing with Research and Development department-
The Research and development department and marketing are interlinked because
research and development is very essential step for promoting and marketing the airlines. With
the help of proper research and development the marketing of the airlines can be easily done and
by targeting market segment. The marketing is also important for the development of company
and further research can be done on marketing concept. Both of the deportment plays a major
role and contribute a much more in the growth and development of British Airways. The new
ideas of marketing is being generated by research and development department so that they can
implement in their marketing strategies. Marketing also helpful for research and development

department for reaching the particular segment, taste and preference of consumer which are at
presented attracted by company so they can have more emphasis on such segment and achieve
goal and objective of airlines (Azad, AliAkbar and Zomorodian, 2016).
Interrelationship of Marketing with Finance department-
Marketing and Finance are interrelated and they must work with coordination among
each other so that the British Airways goal and objectives can be achieved. The finance
department allots the particular fund for the department of marketing. The finance department of
airlines is much concerned about the company's budget so that the flow of operation can be
maintain by them without any disruptions. The payment cycle, expense control and credit
decisions all are maintained and controlled by them. Both the department need to work with each
other as the marketing department gets their fund with the approval of finance department
(Blank, 2018). The appropriate budget is developed by finance department with the help pf
marketing department as they can render them how much amount can be needed in what areas.
CONCLUSION
From the above study it has been concluded that effective marketing strategies, principles
and plannings are helpful for company in gaining competitive advantages for company. The
company can attract wide range of consumers to their service so that the number of traveler can
be raised. Company can have developed different marketing strategies so that they can compete
with its rivals and promote their brand and product among consumer so that their profits and
revenue can be raised. The company can implement changes according to their target segment
taste and preference so that they can easily target the segment and implement changes in their
operations of company. By the effective principles company can have significant growth and
development for them.

REFERENCES
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