British Airways: B2B and B2C Marketing Strategies and Evaluation

This report provides a comprehensive analysis of British Airways' marketing strategies, focusing on its operations in both the Business-to-Business (B2B) and Business-to-Customer (B2C) markets within the service sector. The report begins by examining the size and structure of the service sector and its contribution to the UK economy, followed by a clear definition of service marketing. It then selects British Airways as a case study, evaluating its marketing strategies and marketing mix in B2B and B2C operations. The report also explores the application of the GAPS model and CRM theory by British Airways, offering critical insights into the airline's approach to customer relationship management. The report concludes with a summary of the key findings and their implications for the airline's marketing effectiveness.

Business-to-Business
and Services Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Size and structure of the service sector and its contribution to economy of nation................1
2. Set out a clear definition of what service marketing is within the Service sector...................2
3. British Airlines company that operates within service sector and that operates within both
the B2C and B2B market place. .................................................................................................1
4. Critical evaluation of the structures of Bristish Airlines and its operation in marketing
strategy and marketing mix in both its B2B and B2C operations...............................................3
5. GAPS Model...........................................................................................................................4
6. Examine how British Airlines has deployed CRM theory.....................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Service sector is the most essential sector in business. Business to business marketing
means where one business sell its products to another business in order to use of sell on to other
business for their own purpose. The service sector is also known as tertiary sector. There are
activities which are included in service sectors are retail, banks, and real estate, education, hotels,
health, social work and computer services. Additionally, service marketing refers to continuous,
sequential procedures by which company plans, investigate, apply, control and evaluates
activities which are designed to satisfy the needs and wants of consumers and helps in achieving
the objectives and goals of marketing as well. This report will analyse size and structure of
service sector in UK and contribution of service sector in the economy of nation. In this report,
the British Airlines company has been chosen. The net income of British Airlines Company is
£1,473 million in 2017. The slogan of company is To Fly. To Serve.
MAIN BODY
1. Size and structure of the service sector and its contribution to economy of nation
Service sectors are sectors which do not produce goods but render services that satisfy
needs and wants of customers. It is also known as the economic sector that unlike industry and
agriculture. Since, independence services have great role in shaping the entire historical
development of UK. The service sector makes an essential contribution to GDP in UK as by
giving jobs, inputs and services of public. The service sector is a crucial element in the economy
of UK. There are some activities which have direct contribution in the growth and development
of nation which are health, education, water and sanitation sectors. These sectors not only
achieve economic development as it directly contributes to social development as well. The
contribution of service sector of UK economy is about 50% of GDP of nation. About £119
billion contributes by financial service sectors to the economy of UK (Madhavaram and Hunt,
2017). It was also found that there is the fastest rate of growth in the service sector of UK which
was noted 6 months. The service sectors contribute about 80% of GDP, the industry of finance is
especially essential. The largest financial centre in UK is located in London. The second largest
industry in UK is Britain Aerospace Industry. There are number of service sector jobs in UK
which are housekeeping, nursing, tours and travel and teaching.
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In 2013, the service sector contributes about 79% from service sectors which has a great
amount of development as in 1948 it was only 46%. There are some characteristics and features
which show that UK export companies are ranking amongst the largest international trade
players in the world which are Anglo American PLC, AstraZeneca, BP, British American
tobacco and many others which are contributing large to exports. According to the Central
Intelligence Agency World Fact-book, the goods exported by UK plus services represent about
30.1% of total output of economy. About 22.6% of exported goods are sold to Asian importer
while 54.4% of UK export is delivered to other European trade partners. Service sector of UK is
providing employment to large number of people (Mittal, Han, Lee and Sridhar, 2017). The rate
of unemployment is 4.3% in 2017 which comes down up-to 4.8% in 2018. The rate of
unemployment in UK is largely controlled by tertiary sector. About 70.4% of global shipment is
accounted by top 10 exports.
The main exports of England are manufactured goods, fuels, chemicals, food, beverages
and tobacco. UK is mainly popular for contribution made by service sector of England as it is
famous for so many things like David Beckham, Fish and Chips, Big Ben, Red Buses, Black
cabs, Oasis, and last London and tea. The oldest residence of England which still in use is
Windsor Castle. The main and immense contribution is from its education institutes. England is
also popular for William Shakespeare.
2. Set out a clear definition of what service marketing is within the Service sector.
Service marketing is an activity of marketing based on relationship and value. The main
purpose of marketing to make awareness among the customers about the product or services. In
the era of globalization, service marketing has become the subject that needs to be studied. There
are vast differences in between marketing of service and marketing of goods. The marketing of
services is planned that directly satisfies the needs and wants of consumers. There are some
features of marketing of services which are as follows- Intangibility, Inseparability,
heterogeneity, perish-ability, and change in demand, direct channel and pricing of services.
These are all are the features of services which influence the decision of marketing. Service
marketing is somewhat a complex task. There are so many problems arises in the service
marketing but marketing of services is very important as marketing makes a key differentiation
in services, it has essential role in maintaining effective relationships and also builds customer
retention.
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The following are the problems of marketing-
 Service cannot be demonstrated- This is the major problems in marketing as it is
tangible it cannot be seen or touch. So to resolve this problem, it is very important to use
techniques in marketing of service (Lindgreen and Di Benedetto, 2017). For example, a
teacher cannot show his teaching skills in object or substance.
 In service marketing, Sales, production and consumption takes place at the same
time- It is the biggest issue in marketing of services as it is produces, sales and consume
simultaneously. For example- in hospitality business, teaching services and many others.
 Services isn't be stored- This is also the main issues of marketing of services as it is not
possible to store services in warehouse or any place.
 Services isn't be protected through patents- This is also a big problem in service is that
it cannot be secured by patents. For example- a teacher has no rights on teaching a
particular topic.
 Services cannot be separated from the service provider- This is also the big problem
of service that it cannot be isolated or it cannot be separated from whom service is
providing. For example- a musician cannot separate his singing skills from himself.
3. British Airlines company that operates within service sector and that operates within both the
B2C and B2B market place.
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British Airline company is operating both in service sector and also in B2B and B2C
market place as it deals with customers and with suppliers, vendors as well. Business to Business
market consist of all the companies that purchase goods and services to use for manufacturing
other goods and services that are sold, rented or supplies to others (Heirati and Siahtiri, 2017). It
also aids in retailing and wholesaling industries that adopt goods for purpose of reselling or
renting them to others at a profit. B2B is generally used in general operations of business for
example in office supplies, wholesaler selling to a retailer. This is the transaction in between
business. There are several elements in B2B marketing strategies which are Target audience,
Clear conversation goals, Boost your communication, Measurement and analysis, Ability to scale
and last brand messaging. British Airlines company is using all these techniques of B2B
marketing. Company is targeting its audience in order to promote the services of products.
Company is deep focusing on its target audience. Secondly, after targeting the audience,
company is going to understand the needs and wants of customers in order to clear the
conversation goals. Company is also boosting its level of communication to high level, as
communication is the critical part of B2B marketing strategy. British Airline company is directly
stay in touch with customers through emails, phone calls, text messages or tweets.
Business to customers is defined as the transaction conducted in between company and
customers. It describes the activities of business in selling products or services. British Airlines is
selling its services to customers and customers are satisfied from its services. There are many
opportunities for brands in the B2C sector to attract potential customers. There are some
elements of marketing which are social media marketing, tailor content for mobile, use mobile
friendly emails, happy targeted Ads, responsive designs and last building a mobile marketing
strategy. British Airline company is using social media marketing in order to reach many
customers. Company has effective and good looking sites. Company has make long time clients
by using B2C elements of marketing. It is also using friendly emails and messaging in order to
connect with large audience. Company communicated its offers and discounts by messaging and
email to customer's. The advertisement of company is also very advance and effective which
directly affect the mind of customers.
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4. Critical evaluation of the structures of Bristish Airlines and its operation in marketing strategy
and marketing mix in both its B2B and B2C operations.
British Airlines is using both marketing strategies and marketing mix in both B2B and
B2C operations. Marketing mix is the set of actions or techniques that company uses to promote
its brand or products in the market. British airlines is using marketing mix in the operation of
B2B and B2C in order to promote its brand in the market place (Johnson and Sohi, 2017).
Marketing strategies are the long term approach in planning with fundamental goal of the
company and it is advanced-looking approach as well. These strategies mainly focus on gaining
the sustainable competitive reward in the market. British Airlines is making its marketing
strategies with aim of increasing sales, attracting new customers, getting existing customers to
buy more, launching a new product or services, increasing market shares, and last establish its
brand in the market.
British Airline is operating in B2B and B2C in its operation. Marketing mix helps to analysis the
unique selling points in building a brand. Factors in marketing mix are price, place, promotion
and products, people, process and physical evidence.
Price- Price is the most important elements as customers are more focus on price and value. This
element directly affects the profitability of customers and organization as well. These elements
of price are also influenced by B2B as because company has to deal with many other business
for business purposes.
Promotion- it can be very largely between B2B and B2C as individual customers tends to seek
out information differently than business buyers. There are some communication channels
included in B2B is Pamphlets, Emails. But in B2C operation, social media, advertising on
television, banners are the best communication channels for promotion.
People- People are the important element of marketing mix as because it when it comes to selling
goods or services to customers, a good marketer is not concern about themselves with sales
people. British Airline has homogeneous services it doesn't need a sales man to persuade the
buyers.
Process- The buying process becomes a key selling points of the offering of British Airlines. In
B2B marketing mix, process plays key roles in demonstrating the services of company.
As per the (Eggert, Ulaga, Frow and Payne, 2018) marketing mix and marketing
strategies are very much important for British Airlines as without implementing these marketing
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techniques and tools, company will losses its existence in the market. These tools provide fruitful
and better response of customers and from other businesses as well.
As per the (Tomczak, Reinecke and Kuss, 2018) Marketing mix and marketing strategies
are beneficial for company but these techniques and tools are very time consuming, and they are
very costly affairs. To implement these techniques in the organization, effective skills and traits
is required.
5. GAPS Model.
GAPS Model is a gap method that measure the quality of service. It is an instrument
which can be used by all the companies. British Airlines is also using this model to analysis the
gap in between the expectations of customers and the actuals service provided at different stages
of delivery of service. The expectation of customers is what they expect accordant to the
resources available and it is determined by the culture, family background. Standard of living,
personality and experience. The perception of customers is totally subjective and it is based on
the interaction made by customers in products and services. In order to derive the level of
perception, satisfaction of customers plays a critical role. The customer gap is the most
significant gap and in an idealistic world the expectation of consumers would be almost same to
the perception of consumers.
British Airlines is doing its best to understand its customers in order to minimize and
close the gap. Company is doing better in understanding the expectations of consumers. There
are some gaps, which company is affecting which are customer gap, knowledge gap, policy gap,
delivery gap and communication gap (Gummesson, 2017).
Customer gap- The difference between expectations of customers and perception of customers is
known as customer gap. This gap plays a critical role in any organization as customers are the
backbone of company. If company is not able to satisfy its customers then company will be no
more able to sustain.
Knowledge gap- The difference between expectations of customers and perception of
management is known as Knowledge gap. In this gap, the management of company is not able to
understand the expectations of customers. We know that, in the era of modernization, market has
become the customers oriented market, company has to understand and analysis the needs and
wants of customers before manufacturing the products or services.
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Policy gap- The difference between perception of management and specialization of quality of
services. There are some companies which face difficulties translating consumer expectations
into particular delivery of service quality. This variation can be from lack of standardisation.
Delivery gap- The gap between specialization in quality of service and delivery of service. This
difference arises by the weaknesses in the performance of workers in the organization. In order
to support the customers it is very necessary to trained the employees in the organization. Poor
human resources policies in organization leads to delivery gap.
Communication gap- The difference between delivery of services and external communication.
When company makes promises in advertisement of product or services and does not render the
actual services than it creates communication gap.
As per the (Di Benedetto, and Lindgreen, 2018) British Airlines is using various tools and
techniques of marketing in order to minimize and close the gap in between customers and
company. Company is using 7P's of marketing in order to promote the products as per the
techniques mentioned in marketing mix strategies. British Airline is also using marketing
strategies to increase the sales, target the audience and many other which helps in minimizing
and close the gap.
As per the (Gregory, Ngo and Karavdic, 2017) – British Airlines is using all these
strategies but still facing the gaps. It is very important to cover all those gaps. Lack of trained
employees and skills leads to increase in cost and wastage of time.
6. Examine how British Airlines has deployed CRM theory.
Customer Relationship Management (CRM)- It is the theory which relates to managing
corporate customer relationships in the industries of services such as transportation industries. It
is an approach to manage the interaction with the present customers, future customers and
potential customers (Tate, Ellram and Schmelzle, 2017). This theory specially focus on customer
retention and growth in sales and profit of organization. The primary role of CRM is to engage
each consumers in a productive exchange of dialogue that will assist company to produce its
product or services. This helps company to understand the thoughts of CRM and modulate the
recent concepts of CRM. This theory includes- support, sales, services, orders, analysis, strategy
and marketing. CRM is a procedure of acquiring, retraining and growing customers. In-line and
off-line both are included in the management of relationship. CRM theory is a broad concept, it
does not only cover the marketing but it covers strategic management, management of human
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resources, management of service, management of knowledge, management of sales,
management of research and last management of development and growth.
CRM theory is a critical approach it requires alignment of various aspects of a business.
The critical success of CRM is leadership and management, change management and applying
correct technologies. Maintaining relationship looks like a straight forward concept but it is very
complex process as making relations are easy but maintaining them is a critical task.
British Airlines is using CRM theory to maintaining the relationship with customers. The
management of company is using various models of theory such as QCI Model, IDIC Model,
Value Chain Model. These all model are very effective in making customer's relationship and
retention of customer's as well (Charter, 2017). The customers of British Airlines are happy form
their services as because they are proving quality of services and company is also doing its best
to close the gaps in between customer and themselves.
CONCLUSION
From the above report it was concluded that service sectors plays prominent role in
growth and development of the economy of United Kingdom. The report also concluded the size
and structure of the service sector and its contribution on UK economy. Further, the report also
analyses the concept of service marketing and how it is difficult for British Airlines to conduct
service marketing. Organization is using GAAP model, CRM theory, Marketing Mix and
Marketing Strategies in B2B and B2C areas of organization. Moreover, the report covers critical
evaluation of structures and operates its marketing strategies and marketing mix.
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REFERENCES
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customers and suppliers: Evidence from business-to-business services. Industrial
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Customer Satisfaction, and Performance Outcomes in Business-to-Business Firms.
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Tate, W.L., Ellram, L.M. and Schmelzle, U., 2017. A little help from my friends: how
purchasing gains influence in complex business-to-business services: the case of legal. Journal
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