MKT20031 | Marketing and Innovation

   

Added on  2020-03-13

5 Pages977 Words72 Views
Running head: MARKETING AND INNOVATIONMarketing and innovationName of studentName of UniversityAuthor note
MKT20031 | Marketing and Innovation_1
1MARKETING AND INNOVATIONIntroductionThe topic is based on the marketing and innovation managed by the two most popularairlines companies in Australia named Qantas and Virgin Australia. The price and non-pricecompetition strategies followed by these companies and impact of innovation and technologyhave been demonstrated here (Ngo and O'Cass 2012).Price competition strategiesThe price competition strategies or competitive pricing strategy has allowed theorganizations Qantas and Virgin Australia to lower the prices of services according to the pricesthat have been charged by its competitors in business (Lertpachin, Wingwon and Noithonglek2013). The service attributes remain same and in order to create sustainability and bringsomething new to enter new market, these two companies have followed the competitive pricingstrategy. The profitability margin for Virgin Australia has increased from 1.5 % to 5.6 %. Thecost of services is reduced with improved yields, thereby making VA earn profit, which is muchmore than Qantas (virginaustralia.com 2017). The price competition strategies followed by these two airlines companies have helped inenabling the products and services delivered to compete in the immensely competitivemarketplace. The competitive pricing allows the customers to judge the two similar kinds ofproducts based on the pricing and then prefer that one, which is cost effective and reliable. Theincreasing competition arises while entering new market segments and expanding services(Lertpachin, Wingwon and Noithonglek 2013). The need for capital in high and prevent othernew airlines to enter. The cost of switching for customers is low and thus it is essential for the
MKT20031 | Marketing and Innovation_2

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