67 Qantas Marketing

CHAPTER 3 Marketing Overview

Role of Marketing at Qantas

  • Strategic Role

    • Integral in achieving business objectives.

  • Interdependence with other key business functions:

    • Coordination with finance for funding marketing strategies (e.g., new planes and lounges).

    • Alignment with HR for recruitment and training to support marketing goals.

    • Operations function influences marketing through scheduling and service capabilities.

Marketing Processes

  • Effective at Qantas including:

    1. Situation Analysis : Understanding market condition and consumer dynamics.

    2. Market Research : In-depth studies to gauge customer preferences and market needs.

    3. Establishing Market Objectives : Setting clear goals based on research findings.

    4. Marketing Strategies : Development of specific tactics including product, price, promotion, place, and people.

    5. Implementation and Control : Monitoring results and making necessary adjustments.

Influences on Marketing at Qantas

  • Factors Influencing Customer Choice

    • Psychological influences, sociocultural influences, economic conditions, and government regulations.

  • Consumer Law

    • Compliance with the Competition and Consumer Act.

    • Transparency in pricing and advertising.

  • Ethics

    • Responsibility in marketing practices including environmental initiatives.

The Marketing Process

Situational Analysis

  • SWOT Analysis:

    • Strengths: Strong brand, operational efficiency, diverse fleet.

    • Weaknesses: Vulnerabilities exposed during COVID-19, high operational costs.

    • Opportunities: Expanding markets, technological advancements.

    • Threats: Increasing competition, external economic pressures.

Market Research

  • Qantas employs comprehensive market research by:

    • Identifying Information Needs: Focused on customer attitudes and behaviors.

    • Data Collection: Primary data via customer surveys; secondary data through government and industry statistics.

    • Data Analysis: Crafting offerings based on research insights.

Marketing Objectives

  • Focused on building strong brands - premium (Qantas) and budget (Jetstar).

  • Goals include:

    • Increased market share,

    • Enhanced customer service,

    • Growth in the loyalty program.

Identifying Target Markets

  • Market Segmentation:

    • Dividing customers into distinct groups based on needs and behaviors.

    • Utilizes behavioral segmentation strategies focusing on trip purpose.

Developing Marketing Strategies

  • Strategies tailor-made to influence consumer choices.

Implementing, Monitoring, and Controlling the Marketing Plan

  • Involves:

    1. Financial forecasting and cost analysis.

    2. Regular assessment against performance criteria.

    3. Adjustments based on market feedback and unforeseen events.

Market Segmentation & Positioning

  • Market Segmentation: Tailors Qantas offerings for business, leisure, and varying income levels.

  • Positioning: Qantas targets high-value segments while effectively competing through Jetstar in the budget market.

The Marketing Mix

  • Product: Offering a comprehensive range of services tailored to customer needs.

  • Price: Utilizing varied strategies (cost-plus, competition-based) to ensure value.

  • Promotion: Employs a mix of traditional and modern strategies for awareness and engagement.

  • Distribution: Combination of direct sales and partnerships with travel agencies.

  • People: Emphasizing staff training to enhance customer experience.

  • Processes: Streamlined systems for efficiency and reduced wait times.

  • Physical Evidence: Includes Qantas branding, uniforms, and facilities.

E-Marketing and Global Marketing

  • Uses electronic channels to interact with consumers.

  • Strategies include global branding and market standardization across international territories.

Effectiveness of Marketing at Qantas

  • Evaluated through:

    • Sales performance and revenue analysis.

    • Market share metrics.

    • Profitability assessments based on segment performance.

Conclusion

  • Continuous adaptation of strategies to respond to market conditions and customer feedback has been essential to Qantas' marketing success.