Global marketing is all about the design of competitive process which provides better sustainability to business while operating activities in international market. It has been spotted that global marketing has become one of the most popular methods that provide strength to business while dealing in the global era. In this report, learning will focus on the work culture of airline industry in order to have effective understanding about global marketing. It will focus on marketing mix so that global marketing factors can be understood in an effective way. It will also spotlight on benefits of digital era to airline industry during th
7P's of marketing mix
Marketing mix plays a key role in the success of every organization and it has been spotted that airline industry during the period of 1990 -2000 has focused on 7P's in order to amend the business opportunities.The classification of seven principles can be as product, price, place, promotion, physical evidence, process and people.
Airline organizations have focused on improvement in design of their aircraft’s and quality of services in order to attract more customers. Airline industry covers two kinds of services which are classified as on ground services and in-flight services. Big organizations like British Airways has improved its opportunities by focusing on cabin service, catering service, ramp service and other supportive actions of operations. Number of new features in services has also tried to introduce so that brand image can be enhanced.
Price is also one of the key marketing principles that airline industry has concerned during the period of 1990 -2000. In this respect, industry has tried to reduce the commission and extra charges so that prices can be decided as per the customer’s needs and expectations. In this respect, it can also be said that the airline industry has focused on various pricing strategies such as premium, value for money, low cost, Apex fares, etc. Companies were deciding its products and service’s prices as per the distance of travel and classes of aircraft. Sometimes, airline firms were also consider the number of halts in order to determine the pricing of products and services.
Place means the ways where customers can approach airline firm in order to attain the desired services. In this respect, the airline sector has focused on some factors which are classified as online 24 hour reservation systems, consolidation and tour operators. Airport authorities have also focused on the expansion of airports by introducing various restaurants at airports (Heding, 2009). Big organizations like Air India have introduced its services at various new destinations so that global marketing goals can be met in an effective manner. Moreover, the airline firms have also focused on various promotional activities such as advertising, publicity, sales promotion and word of mouth. In this respect, the organizations also started using digital tools that can amend the business opportunities by creating awareness among generation Y.
Other than this, companies have also focused on people to amend the business opportunities. Airline authorities have set up some standards to amend the work culture which must be followed by airline organizations. British Airways has focused on the improvement in skills of employees so that they can render a caring attitude to customers which will help in increasing the success ratio (Hollensen, 2011). Companies have also focused on some other factors such as responsiveness, problem solving ability, etc. In order to modify the customer’s experience, process mix has also considered as a critical aspect. Reservation system has been improved by the use of digital tools and proper information about the flights was provided. Number of facilities have been introduced on airport such as meal service, flight entertainment, baggage handling, etc.
At last, physical evidence has also taken place as a critical aspect in order to amend the customer’s experience. Airline firms have focused on interior and exterior of crafts, cleanliness, seating, ambiance, uniforms, baggage, etc.
Opportunities provided by digitalization to airline industry
It has been identified that during the period of 1990-2000, the world has steeped towards digitalization. It has also impacted the business of airline industry in a positive manner and enhanced the level of opportunities. During the period of 1990-2000, the airline industry has started using digital tools in order to amend the services and to improve the work culture of sector (Agarwal, 2010). Airport authorities of diverse nations have started using digital information display tools to render the correct information about flights. Before 1990, the airport authorities were using non-digital display tools which sometimes create barriers in the operations. With the use of digital display system, the authorities were able to share correct information about the flights in an effective way which has also boosted the work efficiency. It has also increased the customer convenience factor which increases the opportunities for airline sector.
Furthermore, the organization like British Airways has also focused on the use of digital tools. In this respect, the firm has started using computer systems for tickets allotment. It has also helped the management of British Airways to have effective management of all bookings as per the time and flights (Shaw, 2011). Organization has also started the use of computers to improve some other operational activities such as record system, flight management, etc. For example, British Airways has started the use of computers to have effective record of all passengers which helped management in an effective work management (Tsai, 2011). It has also boosted the productivity of organizations and provided them better business opportunities.
Other than this, airline industry has also started the use of computers in aircrafts in order to amend the productivity of crafts. Number of digital transmission systems has been installed in aircrafts that can improve the services. Also, GPS system has been introduced during the period of 1990-2000 so that flights can be tracked in order to manage the air traffic (Kim, 2009). Moreover, the number of digital communication systems has been introduced during this period which helps the air traffic control authorities to have proper communication with pilots. In order to amend the baggage checking system, authorities have started using x-ray machines so that baggage can be checked in a better way. In earlier days, the baggage was checked by executives on individual basis which takes more time and impacts the other operational activities (Worthington, 2014). With an assistance of x-ray baggage systems, the process efficiency and effectiveness was enhanced which has impacted the business opportunities of airline industry in a positive manner.
Furthermore, the digitalization has also enhanced the opportunities by providing new ways to amend the security factors at airport. In earlier days, the security executives were using traditional method of checking which also takes high time from the overall process. With an assistance of digital tools like metal detectors, the airport authorities have started checking during the period of 1990-2000. It has provided effective assurance of security aspects at the airport.
Consumer behaviour theories
There are number of consumer behaviour theories that are used by the customers of airline industry. The classification can be as generic, cultural and environmental theory of consumer behaviour. According to generic theory, customers firstly identify their needs and then select the product or services accordingly. Customers select airline products and services according to the research of market and identification of services offered by businesses (Cheng, 2008). For example, the consumer has investigated new services of British Airways with the other present services present in market and then measure the attributes, benefits and pricing. After proper evaluation of services, the ultimate decision has been made to purchase the product or service.
Other than this, as per the cultural theory, customers focus on cultural aspect by making decision about the product purchase. In this, person concerns his set of values and beliefs before selection or decision making (Jose, 2010). For example, the customers have analysed his social class before making decision about the purchase. In this, person has considered factors like occupation, income and education, etc. while taking decision in respect of product and services.
Digitalization impact on the consumer behaviour
It has been spotted that the introduction of digital era has impacted the consumer behaviour in various aspects. In the middle of generation Y, the organizations have started their services over internet. It has attracted customers more towards airline services and they had started using internet to access the products (Suttle, 2014). In order to attract more customers, the airline firms have started advertising with an assistance of television and other digital tools. Organizations have also focused on various online campaigns so that brand awareness can be enhanced (Hvass, 2012). For example, the Qatar Airways has introduced its brand new global television advertising with a tag line of “The world's 5-star airline”.
As per the above study, it can be said that global marketing plays a key role in the success of every organization while dealing in the international market. It is because; it provides various opportunities to business. It has been identified that during the period of generation Y, the airline industry has focused on seven principles of marketing mix. Other than this, the airline industry has also improved its focus on the use of digital tools which has enhanced the business opportunities. It is also necessary for the business organizations to have improved focus on consumer behaviour so that better strategies can be designed as per the needs and values of customers.
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