UNIVERSITI TEKNOLOGI MARA SHAH ALAM

BACHELOR OF APPLIED LANGUAGE STUDIES (Hons.)

ENGLISH FOR PROFESSIONAL COMMUNICATION

MKT410:
INTRODUCTION TO MARKETING

ASSIGNMENT 1:
INDIVIDUAL ASSIGNMENT - MARKETING MANAGEMENT ORIENTATION (20%)

PREPARED BY:

NAME STUDENT NUMBER CLASS

TUN AMIRUL ISYRAF FARHAT BIN 2022961353 LG2403A

TUN BAHARUM

PREPARED FOR:
MADAM AINUN NADZIRAH MAHMOOD

DATE OF SUBMISSION:
15 MAY 2023
 TABLE OF CONTENT

NO CONTENT PAGE

1.0 INTRODUCTION 1

2.0 SERVICES OFFERED 2

3.0 MARKETING MANAGEMENT ORIENTATION

3.1 The Production Concept 4

3.2 The Product Concept 5

3.3 The Selling Concept 5

3.4 The Marketing Concept 5

3.5 The Societal Concept 6

4.0 MARKETING CONCEPT USED BY AIRASIA 6

5.0 CONCLUSION

6.0 REFERENCES
1.0 INTRODUCTION

AirAsia was established in 1993, and on November 18th, 1996, it started its operations. It was
primarily founded by the government-owned company DRB-Hicom. The profoundly indebted airline
was purchased on December 2nd, 2001, by Melody Air Sdn Bhd, a business owned by former Time
Warner CEO Tony Fernandes, for a symbolic sum of 1 Malaysian Ringgit. Fernandes's turned the
company around by removing Malaysian Airlines and providing promotional rates as low as 1 RM,
earning profits in 2002 and launching a new route out of its hub in Kuala Lumpur.

AirAsia is regarded as the greatest cheap-fare airline in the modern day which offers low-cost air
travel in Asia. AirAsia is also known as the biggest airline which can carry an impressive number of
passengers in all of Asia. The company received The World’s Best Low-Cost Airline award back in 2009
and 2010 as an additional accolade. The company’s headquarters are currently located at Kuala Lumpur
International Airport (KLIA), Sepang’s Low-Cost Carrier Terminal (LCCT)

Since its establishment in 2001, AirAsia has experienced remarkable growth and presently
operates a fleet of 72 entirely Airbus A320-200 aircraft, making it one of the most prestigious and
significant low-cost carriers in Asia. Since "Now Everyone Can Fly," AirAsia has gained a reputation for
providing competitive rates and top-notch services. AirAsia provides service to 51 domestic and
international sites with 108 routes and 400 daily flights from hubs in Malaysia, Thailand, and Indonesia.
Because it adheres to the no-frills, no-hassle cheap ticket business strategy and considers keeping costs
down, AirAsia has transported 51 million passengers so far.

A mission statement and a vision statement should both be included in the organizational plan of
a corporation. Most well-established companies create management mission and vision statements, which
are crucial tools for establishing business objectives. The goal of AirAsia is to become the premier low-
cost airline in Asia so that it can provide a low-cost service that will allow the three billion people who
currently live on the planet to travel to more locations nearby. They work to become a true ASEAN
aviation corporation while taking into account the interests of each member.
2.0 PRODUCTS OR SERVICES OFFERED

Low-cost airline provider Capital A Bhd (AirAsia), previously AirAsia Group Berhad. The
business offers transport services for people and goods in both domestic and foreign markets. The
business offers airline network operations, a travel and lifestyle commerce platform, banking and
insurance services, logistical services, lifestyle and entertainment services, as well as other services
through its linked businesses. The firm offers courier services, cafés, and charter flights as additional
services.

Additionally, under the name AirAsia Red Tix, the corporation organizes theatrical, musical,
athletic, and concert events as well as automobile rentals. Additionally, users may play games, participate
in similar groups, have real-time chats, and much more. On the AirAsia Super App, there is always
something for everyone, from travel necessities to necessities for daily life.

3.0 MARKETING MANAGEMENT ORIENTATION

3.1 THE PRODUCTION CONCEPT

This idea operates under the presumption that customers favour an accessible, affordable product.
Says Law, which states that "Supply creates its own demand," perfectly captures this point of view.
Therefore, businesses concentrate on creating more of the product and ensuring that it is readily available
to customers everywhere. Businesses benefit from economies of scale as a result of increased product
production. Because of the product's lower production costs, it is more affordable and appealing to
consumers.

New clients may be drawn in by a low price, but the focus is on manufacturing rather than
product quality. If the product does not meet the criteria, this might lead to a decline in sales. This theory
only functions when there is a surplus of demand over available supply. Additionally, a buyer may not
always choose an affordable product over another. Numerous other considerations also play a role in his
choice to buy.
3.2 THE PRODUCT CONCEPT

The concept works on the presumption that consumers like "higher quality" items and that "price
and availability" have no bearing on their choice to buy. As a result, the corporation spends the majority
of its time creating a higher-quality product, which is typically more expensive. Since product quality is
the marketers' primary concern, they frequently miss or fall short in their attempts to appeal to clients
whose needs are influenced by other criteria like price, availability, usability, etc.

3.3 THE SELLING CONCEPT

While both the production and the product concepts are centred on production, the selling idea is
centred on actually selling the goods. Selling Concept emphasises on selling the product as much as
possible, regardless of its quality or the needs of the buyer. Making money is the main priority. Building
relationships with consumers is not a part of this ideology. Therefore, repeat business is relatively rare.
Businesses that adopt this philosophy may even try to trick people into purchasing their goods. These
businesses have a limited perspective because they "try to sell what they make rather than what the
market wants."

3.4 THE MARKETING CONCEPT

A corporation cannot survive long on the market without a selling concept. After all, this is a
market for customers. Producing a product that meets the demands of one's clients is necessary for
success in the twenty-first century. Consequently, the marketing notion was born. This idea operates
under the presumption that people purchase goods that meet their wants. Businesses that use the
marketing idea do research to understand the requirements and desires of their clients and then develop
goods that better satisfy those needs and wants than their rivals. By doing this, the company builds a
connection with the client and eventually makes money. The sole concept that all firms should adhere to,
nevertheless, is not this one. Many companies continue to operate profitably using different ideas.
3.5 THE SOCIETAL MARKETING CONCEPT

In addition to the marketing concept, this philosophy emphasizes the welfare of society as a
whole. The company's main goal is to satisfy client demands while minimizing any negative effects on
the environment, natural resources, or the welfare of society. According to this theory, businesses should
participate in social activities like eradicating poverty and illiteracy, reducing exponential population
growth, etc. because they are a part of society.

4.0 MARKETING CONCEPT USED BY AIRASIA (SELLING CONCEPT)

As hinted by the name Air Asia, segmentation by region reveals that AirAsia predominantly
caters to the Asian market. They practice geographic segmentation by heavily focusing their services in
Asia. As a low-cost airline, they cater to the low- to medium-income market, according to demographic
segmentation. Last but not least, psychographic segmentation reveals that their target market is
predominantly the frugal traveler. Given their entire branding, it is clear who AirAsia is targeting. Their
target audience consists of tourists looking for inexpensive airfares. In other words, AirAsia's target
market is made up of people who are motivated primarily by affordability and simplicity. They have
been able to successfully target this demographic by making their name associated with economical
services. This has been possible because of the powerful brand positioning. A crucial aspect of AirAsia's
positioning is its low cost. This has been made possible by the company's continual touch through a
variety of marketing channels.

AirAsia is one of Asia's top-performing budget carriers. This international airline, which had its
headquarters in Malaysia at first, has expanded to provide services to countries all throughout Asia,
including Thailand and India. The foundation of its marketing strategy is the company's reasonably
priced aviation services. In addition to providing frequent service and secure point-to-point connection,
AirAsia places a high priority on providing its guests with cosy lodging that complies with industry
standards. AirAsia is a significant airline with operations in more than 160 locations across 25 countries.
It offers domestic and international flights on its itineraries.
5.0 CONCLUSION

In conclusion, AirAsia's marketing strategy has greatly aided the company in reaching customers
with its message. The company may increase profits during these epidemic times by using its inexpensive
aircraft. consumers worry a lot about the in-flight experience, especially hygiene, given the present
situation, thus AirAsia should vigorously promote its hospitality and make consumers feel at ease when
utilising its services.

In order to stay ahead of the competition, the company must continually invest in upgrading the
extra facilities that are essential to customers in today's environment, such as disposable in-flight meals,
free WiFi, entertainment options, and a range of seat options. In addition to these changes, AirAsia will
surely maintain its distinct position in the industry if it can effectively reach its target market.

Last but not least, Air Asia offers an in-flight magazine to keep its customers from getting bored.
The business also trains its personnel on how to treat clients well. Excellent customer service is a crucial
business strategy for Air Asia's success. Additionally, on a few of its flights, Air Asia is giving away
tickets. As a result, Air Asia is Malaysia's most successful low-cost carrier. It is also a significant low-
cost airline.
6.0 REFERENCES

AirAsia- The Marketing Strategy Behind the Company’s Soaring Success.

From https://iide.co/case-studies/airasia-marketing-strategy/

Now Everyone Can Fly (2007) Country and Language. Retrieved From:
http://www.airasia.com/my/en/aboutus/irstrategy.htmlstory.asp?file=/2008/4/1/central/20795
047&sec=central

AirAsia in Business Competition Era (2009) SWOT Analysis.

http://elearning.lib.fcu.edu.tw/bitstream/2377/28913/1/M980005798101.pdf

AirAsia- The Marketing Strategy Behind the Company’s Soaring Success.

From https://iide.co/case-studies/airasia-marketing-strategy/