Airtrcomman quiz

AIR TRANSPORT MARKETING REVIEWER

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### Slide 1: Introduction to Air Transport Marketing

- Marketing is a crucial activity in airlines, involving reservations, ticketing, customer service, baggage handling, and market research.

- The goal is to satisfy customer needs while achieving company objectives like profitability, return on investment, and market share.

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### Slide 2: Why is Marketing Important?

- Marketing and sales are essential for airlines to operate.

- Without marketing, airlines would not be able to sell their services.

- Encourages innovation, research, and investment to attract and retain customers.

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### Slide 3-6: Development of the Marketing Concept

#### Slide 3: Production-Oriented Period (Pre-WWII)

- Airlines focused more on mail transport than passenger services.

- Carrying mail was more profitable than transporting passengers.

- Market demand for air travel was low; people preferred trains and automobiles.

#### Slide 4: Sales-Oriented Period (Post-WWII – 1960s)

- Airlines started actively selling air transportation.

- Industry lacked marketing experience; services were based on airline capabilities rather than customer needs.

- Marketing efforts focused on convincing people to fly instead of using other transportation.

#### Slide 5: Consumer-Oriented Period (1970s – Present)

- Airlines shifted focus to shaping services based on customer needs.

- Introduced target marketing, identifying specific customer groups to appeal to.

#### Slide 6: Transition to the Marketing Mix

- Airlines moved from general promotion (**shotgun approach**) to targeted strategies.

- Developed specific marketing activities to attract and retain customers.

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### Slide 7-11: The Marketing Mix (4Ps in Airlines)

#### Slide 7: Product

- The airline product includes:

- Safety and reliability.

- Seat availability, flight frequency, airport proximity.

- Ground services (ticketing, baggage handling).

- In-flight services (meals, entertainment, seating class).

- Unique Characteristics:

- Airline services cannot be stored.

- Passenger experience varies per flight.

- Quality cannot be tested before purchase.

#### Slide 8: Price

- Ticket pricing depends on:

- Demand factors – Willingness and ability of customers to pay.

- Supply factors – Number of seats available and operating costs.

- Operating costs – Fuel, crew salaries, landing fees, maintenance.

#### Slide 9: Promotion

- Airlines use various promotional activities to increase sales, including:

- Advertising – Print, TV, digital, and social media campaigns.

- Sales promotions – Discounts, special fares, and limited-time offers.

- Frequent-flier programs – Rewards for loyal customers.

#### Slide 10: Place

- Airline tickets are sold through different distribution channels:

- Airline offices (field ticket offices, city ticket offices).

- Travel agencies and third-party vendors.

- Online booking systems and mobile apps.

#### Slide 11: Uncontrollable Marketing Factors

- External factors that impact airline marketing:

- Cultural and social differences – Varying preferences across regions.

- Political and regulatory environment – Government policies and airport regulations.

- Economic conditions – Recessions, fuel prices, and overall market trends.

- Competitive structure – Rival airlines and their pricing strategies.

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### Slide 12-14: Market Segmentation in Airlines

#### Slide 12: What is Market Segmentation?

- Process of dividing potential customers into smaller groups based on characteristics.

- Helps airlines identify target markets and develop tailored marketing strategies.

#### Slide 13: Common Market Segments

- Business travelers – Need flexible schedules and premium services.

- Leisure travelers – Price-sensitive, look for discounts.

- Military travel – Frequent official and personal travel.

- Religious and funeral travel – Special needs and travel protocols.

- Educational travel – Students and academic group tours.

#### Slide 14: Intensive Growth Strategies

- Market penetration – Filling more seats with promotional fares.

- Product development – Improving in-flight services (WiFi, better seating).

- Market development – Expanding to new customer groups and destinations.

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### Slide 15-19: Airline Marketing Strategies After Deregulation

#### Slide 15: Impact of Deregulation

- Airlines became more competitive, lowering fares and expanding routes.

- New marketing strategies included frequent-flier programs and travel agency partnerships.

#### Slide 16: Computerized Reservation Systems (CRS/GDS)

- Airlines use Amadeus, Galileo, SABRE, and WORLDSPAN for ticket sales.

- Helps travel agencies and customers book flights efficiently.

#### Slide 17: Frequent-Flier Programs

- Introduced in 1981 to build customer loyalty.

- Business travelers benefit the most from these programs.

#### Slide 18: Code Sharing & Interactive Marketing Agreements

- Code Sharing: Two airlines share flight codes, expanding their networks.

- Interactive Marketing Agreements: Airlines promote each other’s services online.

#### Slide 19: Hub-and-Spoke System

- Airlines use hub airports to efficiently connect flights.

- Allows airlines to serve more destinations at lower costs.

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### Slide 20-21: Advertising and Sales Promotion

#### Slide 20: Pre-Deregulation Advertising

- Focused on service quality and reliability.

- Pricing was controlled, so competition was based on amenities.

#### Slide 21: Modern Airline Advertising

- Focuses on a mix of price, destination, and frequency.

- Airlines compete heavily on ticket prices and promotions.

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