Marketing Essay: Analyzing Marketing Strategies for Customer Loyalty

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This essay provides a comprehensive analysis of marketing theory, focusing on the critical relationship between customer satisfaction and loyalty. It delves into the significance of marketing strategies in fostering both satisfaction and loyalty, especially within a competitive business environment. The essay examines the impact of marketing strategies on consumer behavior, exploring dimensions such as standardization-adaptation and strategic integration. The marketing mix, including pricing and product development, is analyzed for its effect on customer satisfaction and loyalty. The essay then uses Emirates Airlines as a case study, highlighting the airline's approach to delivering excellent services and building customer loyalty through personalized experiences, comfortable amenities, and employee benefits. The essay underscores the importance of quality service, competitive pricing, and customer relationship management in achieving sustainable success in the airline industry.
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Marketing
Ali Saud Qasim AlQasmi
I.D. MBA1137
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Introduction
This essay throws light on the overall analysis of marketing theory concerning
satisfaction, loyalty, and the relationship between the two. Furthermore, critical
review is required to be done which will be helpful in understanding and developing
marketing strategies which will play a significant role in increasing satisfaction along
with loyalty among the different employees in the real world.
So et al. (2016), have commented that nowadays in a competitive environment,
satisfaction of customers is one of the major aspects which should be analysed by
organisations to increase loyalty among existing customers and awareness about
the organization among people in a competitive business environment. This
research will be covering and analysing related literature reviews and defining the
most effective marketing strategy which will be affecting customer loyalty in the
market.
Overview of Emirates Airlines
Emirates Airlines is one of the largest global airline organizations and is based in
Dubai, United Arab Emirates. The airline is the subsidiary of the Emirates Group,
and it is one of the biggest airline companies in the Middle-East operating over 3600
flights per week from the hub at Dubai International Airport and in more than 150
cities in more than 80 countries across six continents (Emirates.com 2019). The key
people who are involved in the foundation of the company are inclusive of Ahmed bin
Saeed Al Maktoum who is the chairman of the company. The number of employees
working in Emirates Airlines is 64,768 up to the year 2018 and the annual revenue
which has been earned by the company has increased to US$ 13.3 billion up to the
year 2018.
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Critical Analysis of Marketing Theory Concerning Satisfaction, Loyalty, and
Relationship Between the Two
Relationship between Marketing Strategies and Loyalty among Customers
As commented by Ryu and Lee (2017), customers of different organizations need to
be assured that the different needs are being adequately catered for. It is very crucial
for companies to ensure that their customers are being appreciated and marketing
strategies are essential and significant towards achieving this goal. As hypothesized
by Rahimi and Kozak (2017), every company chose the best marketing strategy for
achieving the different objectives which are dependent on the environment in which it
operates. As defined by Pansari and Kumar (2017), marketing strategies are the
various procedures along with practices which allow the companies to focus on
limited resources so as to make them the most significant opportunities to increase
overall sales and enhance the profits and accomplish the sustainable competitive
advantage in the market.
Furthermore, as commented by Morschett, Schramm-Klein and Zentes (2015), the
main goal of organizations is to enhance the level of customer satisfaction along with
maximization of profits which will be beneficial for their growth. The level of customer
satisfaction helps the company to determine the level of success, and the main
reason is due to the customer satisfaction as it is one of the primary aims of the
company towards improving their overall brand image in the market. As opined by
Kim, Vogt and Knutson (2015), customer satisfaction is the measure in analyzing
how the different products and services which are being supplied by the
organizations meet the expectations of the customers in the market.
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Kim et al. (2015) have hypothesized that the effect of the relationship satisfaction on
the relationship commitment is based on the marketing mix. As argued by Hur, Moon
and Jung (2015), measuring quality is one of the significant tools along with
fundamental strategy used by different organizations providing the most interest for
stakeholders, managers, partners and customers present in the market. The
maintenance of appropriate standards of quality of the service and knowledge
relating to expectations and satisfaction among customers constitute significant
challenges which affect the overall marketing of products and competitiveness in the
market.
To maintain customer loyalty, it is one of the essential elements in determining the
success or failure of an organization. Hence, as commented by Hollensen and
Opresnik (2015), companies aim at striving to build a proper relationship with their
customers and additionally, providing the superior and quality service products is
one of the critical factors in improving the overall profitability in the market as well.
On the other hand, Hollebeek, Conduit and Brodie (2016), have opined that poor
quality of the service is one of the primary reasons due to which the customers
switch to other competitors present in the market. Proper development and
maintaining loyalty among customers or creating long term relationship with the
different customers is the key to survival along with the growth of the various
companies. Therefore, the relationship between loyalty among customers and
service quality has been widely investigated.
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Impact of Consumer Behavior on Marketing Strategy
As commented by Harrison-Walker (2011), marketing strategies impact the daily
lives of customers in a significant manner which is inclusive of the following aspects:
Firstly, they act as the source of information for different new products and services
which are available in the market.
Secondly, it helps in influencing the way they perceive and think regarding a
particular product and service. It is inclusive of the different beliefs, perceptions and
buying decisions of customers in the market.
As hypothesized by Harker et al. (2015), marketing strategies such as marketing mix
(4Ps) can be considered which will help manage different changes. The impact of
marketing strategies on the behavior of customers is defined wherein Drummond,
Ensor and Ashford (2010) have commented that understanding the action of
customers is the first step in the design of an accurate and successful marketing
strategy. It is one of the major processes which should be helpful in indicating
whether the organization has been successful in fulfilling customers’ needs and
wants along with analysis of the impact of the same on wider society.
Dimensions of Marketing Strategies
As commented by Chernev (2018), the three dimensions of the worldwide marketing
strategy of multinational corporations (MNCs) are as follows:
Standardisation-Adaption- It is one of the major key elements which refer to the
use of the same or different products and services, advertising, distribution channels
along with other elements of the marketing mix across different countries. As opined
by Bowie (2016), different MNCs follow a standardization strategy as the tastes and
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preferences of customers are changing in the competitive business environment,
and they are becoming homogenous.
This is one of the major aspects which is the primary source of competitive
advantage in the market and it has the overall ability to produce high quality and low-
priced products which will be beneficial in attaining low cost position and optimum
worldwide marketing strategy is to sell the standardized products along with services
with the usage of the standardized marketing programs.
Configuration- This is another technique being used in which the MNC operates
and configures its upstream, downstream, along with different other internal value-
adding, activities. In the particular aspect, Blythe (2009) has commented that the firm
can choose to concentrate on different kinds of activities in a specific country and
export the similar range of products and services in foreign countries. Concentration
is the other technique through which companies can attract different customers and
improve their profitability in the market.
Strategic Integration- It is the technique wherein it is being considered as the
comprehensive strategy of marketing which is being used in the major markets in
different parts of the world as to gain the competitive advantage in the market. As
opined by Bernstein, Ottenfeld and Haug (2017), the different MNCs may manage to
fight with the different competitors in the market and it is, therefore, essential to
integrate the competitive forces of the firms across major markets in the world which
will be beneficial for the success of the firm in the overall competitive market.
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Impact of Marketing Mix on Customer Satisfaction and Loyalty
As opined by Banerjee (2017), the marketing mix is one of the significant elements
which are being used by the companies to improve performance. Pricing strategy is
described as the effective approach which will help determine whether the price
skimming strategy will be used, or a penetration strategy. The product development
growth strategy helps introduce a new set of products in the existing market which
will be beneficial for enhancing the quality of the products.
As hypothesised by Attia (2013), products and services should be viewed as
fostering value for money. There are different pricing strategies available in the
market: market penetration in pricing is where the firm price their products low as
they have a more significant market share which is done after securing a large
percentage in the market when they will be gaining strong competitive advantage. As
commented by Armstrong et al. (2015), customer loyalty is the emotional and
physical commitment given by different customers in exchange of the various goods
and services for their needs being met. It is one of the essential concepts to keep the
customer happy as he/she will have more business with the respective company and
it will enhance their brand image as well.
Furthermore, as opined by Amini (2012), in order to keep the customers for more
business, the satisfaction of the customers is required to be warranted by the
market. In the competitive business environment, whoever provides the best quality
products and better services to different customers; such companies will have an
advantage over the other competitors who are present in the market. Moreover,
Armstrong et al. (2015) have commented that maintaining loyalty among customers
for the respective brand, it is an essential element for determining the overall
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success of the firm and hence the different organizations have started striving to
build a good relationship with the various customers. Additionally, Amini (2012) has
commented that providing superior quality is one of the critical factors in improving
the overall profitability of the firm. On the contrary, poor quality of the products and
services is the other reason due to which the customers shift to the other competitor
brand.
Development of Marketing Strategies to Increase both Satisfaction and Loyalty
with Customers
In the case of Emirates Airlines, the respective organization has been able to
develop successful travel along with tourism presence known the world over for
providing the most appropriate services to different customers in the world. The
business of Emirates incorporates:
ï‚· The award-winning international cargo division
ï‚· Airline IT developer
ï‚· Leisure and destination management
Emirates Airlines have a mixed fleet in the portfolio of the product which is
inclusive of Airbuses and Boeing wide body aircraft. Emirates Airlines tries to provide
customers with excellent services as it works to maintain a highly competitive stake
in the overall market. Emirates Airlines is one of the largest airlines to date and the
products include excellent and consistent services which have paved the way for
rapid growth along with revenues. As to render the different qualitative services,
Emirates Airlines has maintained both personal along with a professional approach
towards customers (Armstrong et al. (2015).
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Furthermore, in comparison to other airlines, Emirates Airlines have been able to
satisfy the different needs of customers through supplying personalized services,
and they are the ones who will be providing showers in flights. Additionally, Emirates
try to deliver passengers with various functions which are inclusive of the Business
Class Services along with Economic Class Services (Banerjee 2017). To give
satisfaction among customers, it can be identified that Emirates Airlines have
introduced comfortable seats for passengers wherein there are flatbeds, the storage
facility for privacy along with private suites which will help attract more customers.
Emirates Airlines have tried to provide better services such as housing and
healthcare benefits which are offered to employees and other staff present and
working under Emirates Airlines. The primary motive is to provide employees with
happiness and loyalty which will help attract and manage loyalty among the
customers as well. In addition to the same, price is the other element which is being
operated effectively by Emirates Airlines (Blythe 2009). As Dubai is one of the
significant links between east and west, the organization has been able to serve low
cost tickets to different customers in comparison to the other airlines.
In the present scenario, the company has been able to help the customers with
shortest available routes and direct flights to different destinations and at reasonable
rates which have been able to satisfy the requirements of the customers (Blythe
2009). Due to direct flights, it has been able to maintain the effective policy of pricing
as different customers can save due to the undue stopovers. In the present scenario,
different passengers such as business travellers and students appreciate low cost
airlines as much as budget airlines.
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With the implementation of a low cost pricing strategy, this has provided them with a
strong competitive advantage over other competitors in the market. It helps them in
generating revenues because of the volume of different passengers. Emirates
Airlines has further adopted the strategy of dynamic pricing wherein it has resulted in
flexible pricing of seats (Attia 2013). The policy of pricing is diversified, and therefore
it has been able to manage the overall demands of various classes in society such
as luxury and the premium rate travellers along with middle-class individuals. Due to
the flexible pricing strategy, Emirates Airlines has been able to improve the overall
effectiveness of the airlines in comparison to the other competitors such as Etihad
Airlines and Qatar Airlines.
The promotional strategies which have been adopted by Emirates Airlines are very
competitive in comparison to other competitors. Additionally, the different services
which are being provided by Emirates help them in improving their services day by
day and satisfying customers. Furthermore, Emirates follow both the traditional and
modern marketing techniques that have helped them in catering to the wider market
along with its unique base of customers in the market (Drummond, Ensor and
Ashford 2010). The other notable activity which is performed by Emirates Airlines is
that they are associated with the non-profit organizations and initiatives and they
provide funds to different areas irrespective of geographic boundaries.
From the above analysis of the different marketing strategies of Emirates Airlines, it
can be identified that the respective airlines have been able to meet the different
demands of various groups of customers in the market and they have satisfied the
diverse requirements of customers appropriately. By providing them with several
types of low cost and budget airlines, Emirates Airlines have been successful in
improving their reputation in the market, and it can be beneficial in improving their
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overall brand image in the market. The other marketing aspects which have been
used by Emirates Airlines is to offer the customers with regular information regarding
the flights and ticket booking on their official website which is readily available for
customers.
Due to the implementation of the various amenities which are being provided by
Emirates Airlines, it has been useful for them to improve loyalty among customers. In
the present scenario, all the customers in the competitive business environment
prefer to travel with comfort, however at a low cost that is being adopted by Emirates
and it helps them in managing the different demands of customers and improves
overall satisfaction.
Recommendations
Therefore, from the above analysis of the different marketing strategies of Emirates
and its relation with customer satisfaction and loyalty, these all play crucial roles in
improving the overall brand image of the company. However, there are a few
aspects which can be enhanced by Emirates to improve overall satisfaction among
clients, and they can generate better revenues and profits in the market as well.
An absolute amount of sales promotion is required to be adopted by the sales and
marketing experts of Emirates Airlines as it will be helpful for them in attracting a
large number of customers and gain competitiveness. The advertisement should be
advertised in every country in a way which will be matching the respective cultures of
different countries. So as to improve the loyalty program of the company, Emirates
need to offer extra incentives along with premium coupons for those customers who
have shown loyalty towards the brand of Emirates.
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So as to improve the overall brand awareness and sales of the company, Emirates
Airlines need to encourage sales by offering discounts to customers and be
competitive in comparison to other airlines present in the market. So as to build
proper and strong public relations with customers, Emirates can be launching an
online marketing campaign in which the customers can be winning vacation related
packages and engage in different types of promotions and rewards as well.
Conclusion
Therefore, it can be concluded that the airline sector is complex as well as dynamic
in nature and to improve the overall brand competitiveness in the competitive
business environment, it is required for them to understand the mindset of their
customers which will be beneficial in improving the overall effectiveness of the firm.
Additionally, behavioral and demographic factors play a vital role in managing the
customer's satisfaction and loyalty. In the case of Emirates Airlines, the company
has been able to improve the overall comfort of the customers through proper
implementation of the various low cost budget airline tickets and other amenities of
the airlines that have been able to attract customers and gain a competitive
advantage in the market.
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