Module 1

Introduction to Airline Marketing

 Module Contents
What is Marketing?
History of Marketing
The 4Ps of Marketing
What Does Marketing do for a Business?
Marketing Concept Vs Sales Concept
The Role of Marketing
Marketing Mix
Marketing Principles
Marketing Environment
 What is Marketing?
According American Marketing Association (2017),

Marketing is the activity, set of institutions, and processes

for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners,
and society at large
 What is Marketing?
Marketing involves

 Product distribution
 Promotion
 Designing and creating materials (landing pages, social
media content, etc)
 Building customer experience
 Conducting market research
 Establishing target markets

 and much more.

 The History of Marketing 
Not too long ago, marketing mostly consisted of outbound marketing,
which meant chasing potential customers with promotions without
really knowing if that person was interested in purchasing.

Thanks to the digital transformation and the rise of new communication

channels, marketing has drastically changed over the years.
 The History of Marketing 
1450-1900: Printed Advertising 
1450, Gutenberg invents the printing press. The world of books
and mass copies is revolutionized.

1730, the magazine emerges as a means of communication.

1741, the first American magazine is published in Philadelphia.

1839, posters become so popular that it becomes prohibited to

put them in London properties.
 The History of Marketing 
1920-1949: New Media 

1922, radio advertising begins.

1933, more than half of the population in the United States

(55.2%) has a radio in their home. 

1941, television advertising begins.

1946, more than 50% of the homes in the United States already
had a telephone.
 The History of Marketing 
1950-1972: Marketing is Born and Grows

1954, for the first time revenue from television advertising

surpasses revenue from radio and magazine ads.

Telemarketing grows as a means of contacting buyers directly. 

1972, print media suffers an exhaustion of the outbound

marketing formula.
 The History of Marketing 
1973-1994: The Digital Era Flourishes

1973, Martin Cooper, a Motorola researcher, makes the first call

through a cell phone.

1981, IBM launches its first personal computer.

1984, Apple introduces the new Macintosh. 

1990-1994, major advances in 2G technology, which would lay

the foundation for the future explosion of mobile TV.

1994, the first case of commercial spam through e-commerce is

produced.
 The History of Marketing 
1995-2020: The Era of Search Engines, cookies and Social Media

1995, the Yahoo! and Altavista search engines are born.

 
1995-1997, the concept of SEO is born.

1998, Google and MSN launch new search engines.

2003-2012, the era of inbound marketing begins.

2005, the first video is posted on YouTube

2006, Twitter is born.

 The History of Marketing 
1995-2020: The Era of Search Engines and Social Media

2010, 90% of all American households have a cell phone.

Instagram is created in October 10.

2011, Snapchat is created, driving even more young users to

their phones and fueling the social media app craze.

2014, the rise of Influencer marketing begins.

2018, video marketing continues to grow, especially with

Instagram’s launch of IGTV. Video content is no longer just
limited to YouTube and Facebook. 

2019-2020, Move over millennials! Gen Z is the new focus and

they have a hot new app: Taka Tak. 
 The 4 Ps of Marketing 
The 4 Ps of Marketing are a simple formula for identifying and working
with the essential elements of marketing strategy.

A product could be Strategic merchandising

anything that a company locations can be anything
offers consumers to from an online store to a
satisfy a need.  Product Place channel of physical stores
across multiple towns or
countries.

Promotion
Promotions refer to the
entire set of activities,
which communicate the
product, brand or service
to the user.
Price
How we price our
products and services is an
extremely important part
of the marketing strategy. 
 What Does Marketing Do for a Business?

Marketing can help your business in countless ways but lets'

take a look at a few of the most impactful ones.

Raising Brand Awareness

Generating Traffic
Increasing Revenue
Building Brand Trust
Tracking performances
 Marketing Concept Vs Sales Concept
Two approaches to Marketing exists
The Sales Concept
The Marketing Concept
The Sales Concept emphasizes
on selling existing products.
The philosophy here is that if a
product is not selling, more
aggressive measures need to be
taken such as cutting prices,
advertising, etc.
The Marketing Concept in
contrast focuses on getting the
consumers what they seek,
regardless of whether this
entails coming up with entirely
new products.
 The Role of Marketing
The role of marketing has always been to satisfy the needs of the customers.

In order to fulfill this role, marketers must ensure that:

Organizations’ products Organizations’ products

and services meets the and services at the right
needs and wants of the price, at the right place
customers. and in the right time.

Marketers must also Marketers must create

anticipate changes to make consumer awareness of
sure the organization adapts the benefits of these
to future market conditions products or services

The above roles makes it clear that the role of marketers is broad and diversifies
 The Role of Marketing
According to Peter Drucker,
Marketing is so basic that it cannot be seen as a separate function. It is the whole
business seen from the point of view of its final result, that is, from the customers
point of view.

Two points emphasized here are:

1. Marketing is a business
2. Customer Focus

Keeping the above modern approach to marketing, marketers have these

additional responsibilities:

1. Being the eyes and ears of the organization in relation to their customers.
2. Decision making role related to production, sales, distribution, etc
3. Acting as a representative of the company for the customers'
 The Role of Marketing
CUSTOMER

Technological and
Regulatory Socio-economic
Environment environment

COMPANY COMPETITION

Fig – The Eternal

Marketing Triangle
 The Marketing Mix
The 4 Ps of Marketing

Product
These are highly relevant to physical products.
Price Eg. Cosmetics, Electronics, Food items, etc

Place In other words, products which can be physically

seen and felt.
Promotion
 The Marketing Mix
For Services, additional
3Ps are added to the
marketing mix due to the
unique characteristics of
Service related products
(Eg. Spa Massage, Air
Travel, Stay in a hotel,
etc).

The additional 3Ps are

People

Physical Possessions /
Physical Evidence

Process
 The Marketing Mix
Controllable Vs Uncontrollable Factors

Controllable factors Uncontrollable factors

The 7Ps of Service Marketing

Product Cultural and Social Differences

Price Political & Regulatory Environment
Place Economic Environment
Promotion Existing competitive structure
People Resources & Objectives of the company
Physical Possessions Legal Environment
Process
 The Marketing Mix
Marketing Process

Development
and
Implementation
Form
Objectives and
Strategies
Conduce a
SWOT Analysis

Segment the
Market
Review &
Gather Market
Improve
Information
 Marketing Principles

The Customer

-Primary stakeholder for any airline

-Need for customer information

-Need to be able to forecast customer needs

-Customer Retention
 Marketing Principles

The Marketing Environment

-External factors

-Beyond airlines control

-Importance of PESTLE analysis

 Marketing Principles

Strategy Formulation

-Airlines goals and objectives

-Target markets

-Marketing strategies
 Marketing Principles

Product Design and Development

-Based on market demand

-Feasibility

-Operational Cost

-Research & Development

 Marketing Principles

Pricing and Revenue Management

-Break even analysis

-Sales forecast

-Future trends

-Consumer buying behaviour

 Marketing Principles

Distribution Channel selection and control

-Carefully selected strategy

-Appropriate sales channel

-Incentives for third party sellers

-Coordinated approach
 Marketing Principles

Selling, Advertisements and Promotional Policies

-Sell value and not the product

-Targeted promotion

-Unique Selling Proposition

 Airline Marketing Environment
Airline Marketing Environment

Terrorism
Deregulations and Open skies
Political Factors
Economic growth and The aging population
trade cycle Economic Factors Changing family structure
Changing tastes and fashion in
Social Factors Holidays
Video- Conferencing Female business travellers
The Internet Technological Factors
Surface transport
Global Warming
investment
Environmental Factors Atmospheric Pollution
Tourism Saturation
End of Module