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This assignment has been designed to provide an opportunity to examine how an organization uses a range of marketing concepts and how they inform the organisation’s marketing strategies. Also, show relationships of the marketing functions to other functional areas in an organisation.
Critically analyse the case study below and examine how the overall marketing strategy enables British Airways to achieve its goals ethically.
In your report, you should refer to academic literature, provide online resources and industry examples from British Airways. You must choose British Airways airline and write a report, following the structure and guidance outlined below the case study.
In the early 1970s and mid-1980s, marketing was less important among airline industry across the globe due to strict regulation and legal compliances. In particular, airlines are protected by government ownership and regulation, they were safe from the serious competitive effects of the marketplace. For example, price competition was not made, promotional activities were non-existent, product/ service quality was inappropriate, and less efforts has been made to deal with the efficient distribution systems through "hub and spoke" networks. Airline industry worked with the motive of offering flights from one destination to another, people will take them. This approach was less meaningful for meeting the needs and demand of the potential consumers. Later, British Airways was frequently called as "Bloody Awful".
There have been several changes in the international airline's industry emerged in the last few years, which have had profound effects on the development of this very volatile sector of the economy in most countries of the world. There are demographic, socio-economic and technological changes which bring philosophical transformations of the industry mainly for those who do business nationally as well as internationally. In this process of restructuring, both national, as well as private airlines, had to change their policies, strategies and answers. Now, customer-oriented market approach has been emerged which gives prior importance to the need and demand of the consumer. The essence of the marketing concept incorporates consumer value.
Current market considers passengers as valuable person who would enable airlines to improve their brand positioning through better-targeted market segmentation, product planning, promotion, and pricing strategies. According to customers, an airline is competitive only when it offers product at reasonable prices as compared to its competitors, while the airline industry's ability to maintain healthy profits despite competition is encouraging, it is uncertain if the profits will outlast the current low fuel cycle. It's primary focus on facilitating customer service which may also include industry's cost base, with labour costs that is now being the highest cost category for most airlines.
The airline industry is highly affected by changes taking place in the business environment. The consumer-oriented marketing concept is developed by the airline industry to make changed in environmental conditions from a sellers' market to one of a buyers' market. Whether a marketing orientation is needed or not for organisational prosperity and well-being will depend fundamentally on the prevailing relationships between the airline and its macro environment. For instances: Australian domestic airline operated within a strictly statutory framework where The Two Airline Agreement enabled two airlines to share the major interstate and intra-state routes.
The airline industry is in a stage of rapid transformation. In this process, consumer satisfaction and repeat purchase are becoming of main concern to airlines. To this end, both domestic and foreign airlines are instituting many changes. It includes geared towards the improvement of both airport and in-flight service. Airlines also offer more leg room and restful cabin decor. The strategic marketing plans are developed by the airline executives to place more importance on those elements which are deemed most important by passengers. In the development of new services and aircraft, a consumer-driven form of input should be optimised. Of course, this will help to increase the likelihood of success in the dynamic business environment of the airline industry.
Sources:
Overview of airline industry, its growing importance of marketing in the industry.
Identify key marketing concepts and terminology applicable to British Airways. (such as Product Strategy, Branding, Promotional Strategy)
b) Identify the marketing strategies and programs that helped Air Canada or British Airways achieve their objectives. Were these objectives achieved in an ethical manner? c) Analyse two of the following marketing concepts and principles used in British Airways daily organisational operations e.g.: 7Ps, STP, Marketing Research.
In this poster, you must identify and discuss the cross-functional relationship of marketing and other departments in Air Canada or British Airways For example, but not limited to, Marketing’s relationship with HR, Production, Legal.
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