Faculty of Science, Engineering

and Technology (FSET)

AVA10004!
Aviation Marketing!
Lecture 1 - Part 2!
Introduction to Marketing

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Lecture 1 - Content
 Agenda ! !
➢ Marketing !
➢Definition !
➢Who is doing marketing !
➢Development of marketing practice !
➢Service marketing !
➢Corporate strategy and marketing !
➢Importance of marketing

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 Marketing
➢ Questions for you to answer: !
➢How did you become aware of Swinburne’s Aviation Degree?!
➢Where do you go shopping for your personal stuff, online or
physical store?!
➢Have you organised any events? What are they and how did
you do it?!
➢What is the purpose of the event, and !
➢how you have achieved it!
➢ Have you attended or watched sporting event: Olympics/
Melbourne Open/World Cup?!
➢How about the sponsorship

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 Airline Marketing
➢ Airlines are constantly marketing: !
➢Fares!
➢Product!
➢Packages!
➢Ancillary items!
➢etc
➢And this Airline marketing is through multiple channels: !
➢Website!
➢Mobile!
➢Social!
➢Print!
➢Radio!
➢TV!
➢etc
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 Airline Marketing
But when was the last time you watched an
Airline advertising on TV or heard an Airline
radio ad or saw an Airline print ad?!
!

Maybe you saw a recent Qantas or Jetstar fare

sale domestically in Australia i.e. SYD-BNK???!
!

Airlines have changed their marketing message!!

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 Airline Marketing
The new marketing message is
less about price and more about a
new product……Personal Safety!!!

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The Airlines Response
Pre-flight
!
Contactless check-in (via online/app) and self-serve bag drop
strongly encouraged
!
Temperature checks
!
Temporary changes to, including increased physical distancing,
hand sanitising stations, enhanced disinfection of surfaces and
adjustments to food and drink service
!
Onboard AF staff disinfects one of its planes
!
Enhanced cleaning of aircraft with a disinfectant effective
against coronaviruses, with a focus on high contact areas –
seats, seatbelts, overhead lockers, air vents and toilets
!
Mandatory wearing of face masks
!
Sanitising wipes given to all passengers to wipe down seat
belts, trays and armrests
!
Simplified service and catering to minimise contact for crew
and passengers

EK staff hands out a “hygiene” kit

The Airlines Response
!
Airline crew uniforms will change, with PPE being worn

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 Even Airports have changed….
"Permanent social distancing would require an
unsustainable hike in airfares, and airport terminals six
times larger than they currently are," Sydney Airport chief
executive Geoff Culbert said. "That’s not going to work."

Sign at SYD Airport

Screen at HNL Airport Signs at LHR Airport

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 Social Distancing - At Airports
How are airports going to maintain social distancing at :!
!
Check In!
Security Screening!
Passport Control!
Lounges!
Boarding Gate!
Air Bridges!
Buses

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Screen at DL Check In Sign at FRA Airport
Definition of marketing

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 Marketing!
➢ What is marketing!
➢ A social and managerial process by which individuals and
groups obtain what they need and want through creating and
exchanging products and value with others (Kotler, et al, 2006).!
➢ the management process which identifies, anticipates, and
supplies customer requirements efficiently and profitably
(Chartered Institute of Marketing, CIM). !
➢ The process of planning and executing the competition, pricing,
promotion, and distribution of ideas, goods and services to
create exchange and satisfy individual and organizational
objectives (American Marketing Association, AMA, 2004)

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 The key words
➢ Process!
➢A process is a collection of interrelated work tasks
initiated in response to an event that achieves a specific
result for the customer of the process.!
➢ Need and want, requirements, and objectives !
➢Needs are state of felt deprivation, essential to survival!
➢Wants: the form taken by human needs and are shaped
by culture and individual personality

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 Maslow’s needs theory (1970)

Self-actualisation needs, self-

development and realisation

Pre COVID
Esteem needs, self-esteem, recognition, status

Social needs, sense of belonging, love

Safety needs, (security, protection) Post COVID

Physiological needs, (hunger, thirst)

• Where does the need for air travel fit now?

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 The key words
➢ Value: !
➢Is the relationship between what is paid and what is
received (Blythe, 2009), !
➢Is the difference between the values the customer gains
from owning and using a product and the costs of
obtaining the products (Kotler, 2006).

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 Value!
➢ How to measure it?!
➢ How to create it? !
➢Through marketing !
➢Through literature !
➢Through research !
!
➢ What you can do about value

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 Key for service marketing
➢ All is to create value

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 Value creation
• From customers’ perspective: perceived value, !
!
• From supplier’s perspective: facilitate and co-create value

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 Value for customers in a B2B context
• On a general level, as a working definition, value for
customers can be described in the following way: !
!

Value for customers means that they, after having

been assisted by the provision of resources or
interactive processes, are or feel better off than
before (Grönroos, 2008; compare also Vargo, Maglio,
& Akaka, 2008)

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 Value creation and delivery process
Choose your value
• Segments, positioning, market focus
• Unique value positioning

Create your value

• Service quality, price, customer service
• Website, channel strategy

Communicate your value

• Advertising, PR, selling
• Web service encounters

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 Some examples-what is the value?
➢ A long-term vision for British ➢ Jetstar is a network of
Airways is to be the world’s value based carriers
leading global premium airline providing all day every
day low fares in the
leisure and value based
markets

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 Key words !
➢ Requirements !
➢ An aspect of what the proposed system must do, or !
➢ A constraint on the system’s development !
➢ In either case, it must contribute in some way towards
adequately solving the customer’s problem!
➢ Objective!
➢ An objective is a subgoal. It identifies a short-term, measurable
step within a designated period of time that is moving towards
achieving a long-term goal.

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 Development of marketing practice

• All is about relationships and customer retention

1950s,
1990s, 2000s,
customer
1960s, 1970s, 1980s, online
consumer satisfaction,
industrial non-profit service global one-to-
/goods marketing,
one
marketing marketing marketing direct
marketing marketing marketing

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 Development of marketing practice
➢ Consumer (goods) marketing, 1950s !
➢ Concerned with the exchange processes taking place at the
end of the supply chain, at the point at which the goods and
services are used up and disposed of.!
➢ Industrial marketing (a/c manufacturers), 1960s!
➢ Examines the earlier stages in the supply chain. Is concerned
with exchanges between organisations (B2B) and is about
supplies of raw materials, components and finished products. !
➢ Non-profit/social marketing, 1970s !
➢ Concerned with organisations whose goals are something
other than a profit. E.g. charities, hospitals, schools, unis,
government agencies, arts organisations,

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 Development of marketing practice
➢ Service marketing (e.g. airlines/airports), 1980s!
➢Marketing of service industry (compared to physical
products industry)!
➢ International marketing, direct marketing, customer
satisfaction, 1990s !
➢Focusing on international/foreign markets, though
products or services can be made or provided locally or
assembled in that particular country!
➢Customer satisfaction is at the core!
➢ Online one-to-one marketing, 2000s

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 Services marketing
➢ What is a service !
➢Any act, performance or experience that one party can
offer to another and that is essentially intangible and
does not result in the ownership of anything. Its
production may or may not be tied up to a physical
product (Lovelock, Patterson and Wirtz, 2011).!
➢Services are processes (economic activities) that
provide time, place, form, problem solving or
experiential value to the receiver (Lovelock, Patterson
and Wirtz, 2011).

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 Some examples of services
Consumer services Business services
Airlines Accountancy
Banking and finance Architecture
Insurance Engineering
Medical Legal services
Telecommunications Management consulting
Hotel Printing
Restaurant Insurance
Opera/theatre Telecommunications
Sports events IT consulting
House cleaning Logistics consulting
Transportation Marketing research

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Characteristics of service/airline industry

Features Implications Marketing related tasks

Intangible Customers can not taste, smell or Make service tangible through emphasis on
touch, not see or hear, hard to physical clues
evaluate until personal experience Employ concrete metaphors and vivid images in
advertising and branding

Can not be inventorised be turned away or wait Smooth demand through promotions, dynamic
pricing and reservation

Difficult to visualise and Customers perceive greater risk Educate customers to make good choices, explain
evaluate in the process and uncertainty what to look for, document performance, offer
guarantees

Customers involved in Customers interact with providers’ Develop user-friendly equipment, facilities and
the co-production equipment, facilities, and system systems, train customers to perform effectively,
provide customer support

People are part of the Appearance, attitude and Recruit, train and reward employees to reinforce
product behaviour of service personnel and the planned service concept, target the right
other customers can shape the customers at the right times,
experience and affect satisfaction Shape their behaviour

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Characteristics of service/airline industry
Features Implications Marketing-related tasks

Operational inputs Harder to maintain consistency,
and outputs tend to reliability and service quality, or to
vary widely lower costs through higher productivity;
Difficult to shield customers from results
of service failures
Set quality standards based on customer
expectations,
Redesign product elements from simplicity and
failure-proofing,
Institute good service recovery procedures,
Automated customer-provider interactions:
perform work while customers are absent,

Time factor assumes Time is considered as a scarce resource Find ways to compete on speed of delivery,
more importance to be spent wisely Minimise burden of waiting,
Dislike wasting time waiting and want Offer extended service hours,
service at times that are convenient

Distribution takes Information-based services can be
place through non- delivered through e-channels, e.g.
physical channels internet, but core products involving
physical activities or products can not
be sold
Seek to create user-friendly, secure websites
and free access by phone,
Ensure all information-based service elements
can be downloaded from site,

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 Corporate strategy and marketing !
➢ Corporate strategy: !
➢ governs organisation’s overall purpose and its long-term direction
and goals,!
➢ Shapes how it will create value for customers and other
stakeholders. !
➢ Business strategy: !
➢ Is the scope of each unit and how it will compete, what markets it
will serve, and how the unit resources will be allocated and
coordinated to create customer value. !
➢ Marketing strategy: !
➢ Is used to determine how each unit will use the marketing-mix tools
of product, place, price and promotion to compete effectively and
meet unit objectives.

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 Corporate strategy and marketing
Strategy level
Corporate
(Strategic plan at corporate
level)
Business
(business plan developed at
business unit level to implement
corporate strategy)
Marketing
(marketing plan developed by
marketing managers to
implement corporate and
business strategy)
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Decision covered
• Mission and vision, Long-term goals
• Objectives
• Business portfolio strategy,
• Resource deployment
• Value creation for customers
• Business definition, Unit scope
• Objectives
• Product/market portfolio
• Competitive strategy
• Markets served
• resources allocation and management
• Strategies for product, pricing, place/channel/logistics
distribution, promotion,
 Example-Qantas

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 Qantas

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 Importance of marketing
➢ Kotler, et al (2006)!
➢ Marketing, more than any other business functions, deals with
customers!
➢ Creating excitement, customer value and satisfaction are at the
very heart of modern marketing thinking and practice. !
➢ Marketing is the delivery of customer value and satisfaction at a
profit!
➢ The goal of marketing is to attract new customers by promising
superior value, and to keep current customers by delivering
satisfaction

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 Importance of marketing
➢ Drucker (1973)!
➢Marketing is so basic that it can not be considered a
separate function!
➢It is the whole business seen from the point of view
of its final results, that it , from the customer’s point
of view!
➢Business success is not determined by the producer
but by the customer

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 Importance of marketing
➢ Kotler et al (2006)!
➢ All in all, marketing is about relationships and
customer retention

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 Summary!!
➢ Marketing !
➢Definition !
➢Who is doing marketing !
➢Development of marketing practice !
➢Service marketing !
➢Corporate strategy and marketing !
➢Importance of marketing

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