CHAPTER 7:RELATIONSHIP IN AIRLINE MARKETING Recite a prayer….(15 seconds)

Course Contents Content 8 chapter: Chapter 1:FUNDAMENTAL OF AM. Chapter 2:MARKET FOR AIR TRANSPORT SERVICE. Chapter 3:MARKETING ENVIRONMENT& AIRLINE BUSINESS Chapter 4:PRICING AND REVENUE MANAGEMENT Mid-term Chapter 5:DISTRIBUTING OF THE PRODUCT AND BRANDING Chapter 6:RELATIONSHIP MARKETING Chapter 7:AIRLINES SELLING,ADVERTISING&PROMOTE Chapter 8:THE FUTURE OF AM Final exam

Learning outcome… Know the relationship in airline marketing strategies

AIRLINE MARKETING

~~What is the meaning of a relationship??~~ ~~Why an airline should have a relationship?~~

RELATIONSHIP MARKETING Definition: A marketing Philosophy whereby a firm gives equal or greater emphasis to the maintenance and strengthening of its Relationships with its existing customers as it does to the necessary search for new customers. Stephen Shaw

RELATIONSHIP MARKETING Or in other words : Relationship Marketing is a marketing strategy whose objective is to establish and maintain a profitable, long-term relationship with a customer, which goes beyond the initial contact.

RELATIONSHIP MARKETING ~~WHAT IS THE IMPORTANT OF THE RM IN AIRLINE?~~ -To Gain pax loyalty and expand the business. e.g: (small to big company) - Support throughout the person’s career e.g:(enhance capability and career development) - Incremental business cost is low e.g: (easy to get subsidy, donation, loan) - Less follow up effort; persuading method e.g: easy task to find a new pax and lost cost. - Refer loyalty pax to influence new pax - Etc..

RELATIONSHIP MARKETING ~~WHAT IF AN Airline DON’T HAVE A RM?~~ - Business loss without pax loyalty e.g: Customer feel doubtful about the airline - Keep on getting different/new pax e.g: Will increase the cost of promotion to get new pax - High initial costing e.g: the cash flow of the company will slower - Difficult to change the pax mind/decision e.g: Customer prefer to buy a ticket from the famous airline QUIZ 2:QUESTION 1: What kind of company you prefer to deal and has a good relationship with ? Why?

RELATIONSHIP MARKETING THE CONCEPT of “Advocate” & “Destroyer” Advocate Relationship – pax not only buys from the airline but acts as the Airline Representative by strongly recommending others to buy from the same Airline without any reward from the firms. E.G:FAMILY,FRIENDS,COMPANY….

RELATIONSHIP MARKETING Destroyer Relationships – a potential pax who does not buy from the airline and also influence others not to do so by pointing out the airline inadequacies. E.G: competitors, unsatisfied customer, phd person, QUIZ 2:QUESTION 2 What is your strategies to avoid destroyer relationship happen among your customer?

RELATIONSHIP MARKETING ~~How to Build Advocate Relationship??~~ Straight-dealing e.g.: no overcharging, no hidden cost, will loss of the customer loyalty. Delivering promises eg., on-time, no delay, comfortable, excellent food, warmest welcomes, etc Caring– keep inform of new service & positive response to complain from customer Accessible – easy to contact by phone vs long computerized phone messages Gratitude – be recognized, reward, expression of thanks, etc. Pages 230

COMPONENTS OF RELATIONSHIP MARKETING STRATEGY The Need To Know Who Are The customers The Management of Quality Customer Relations MARKETING COMMUNICATION

RELATIONSHIP MARKETING COMPONENTS OF RELATIONSHIP MARKETING STRATEGY a)The Need To Know Who Are The customers -Demographics; get name, address, profession, etc -Activity; what, where, when, how, route, class of service, fare types customer prefer. -Feedback & comments; complaints, standards, suggestion expectation, etc Pages:231

COMPONENTS OF RELATIONSHIP MARKETING STRATEGY The Need To Know Who Are The customers The Management of Quality Customer Relations MARKETING COMMUNICATION

RELATIONSHIP MARKETING COMPONENTS OF RELATIONSHIP MARKETING STRATEGY b)The Management of Quality ~~To maintain and improve of the core values and achieve the goals of the company mission~~ -Airline promises and has to maintain it. E.g: Terms of safety,punctuality,a/c cleanliness, baggage handling. -Continuous program/never-ending task E.g: improve the airline produc t, service -Continuous adaptation to changes E.g: aware with the current issues,tax,policy, Pages :232

COMPONENTS OF RELATIONSHIP MARKETING STRATEGY The Need To Know Who Are The customers The Management of Quality Customer Relations MARKETING COMMUNICATION

RELATIONSHIP MARKETING COMPONENTS OF RELATIONSHIP MARKETING STRATEGY c)Customer Relations ~~method to build relationship with the customer~~ To set up: a)Complaint handling dept: -to report the poor quality & demotivated staff Effective policy: -easy to make their views known -prompt action -giving apology or compensation -a follow-up letter to get feedback b)Lost and Found department: Effective policy: - fast action & easy to deal - announcement if any( child lost, wrong parking and etc) c) RECEPTION: Effective policy: - any inquiry from customer(toilet, surau, ATM machine) Quiz 2:Question 3; Based on this video clip. What is the tips to comfort your customer?

QUIZ 2:QUESTION 3; Based on this video clip. What is the tips to comfort your customer?

COMPONENTS OF RELATIONSHIP MARKETING STRATEGY The Need To Know Who Are The customers The Management of Quality Customer Relations Marketing Communication

RELATIONSHIP MARKETING d)MARKETING COMMUNICATION ~~To get enclose the customer via HP, Boucher, magazine~~ Example: - Approach customer via hp, Fb, internet and etc -Using data bases for target messages e.g:(Student, professional workers,) -Avoid junk mail syndrome e.g: annoying the customer. -Make attractive offers to existing & future pax e.g: promote or discount offer to the customer -Use to express gratitude to their pax e.g: Greeting them with poskad, text messages Pages:234

Quiz 2:Question 4. 4)Describe the advocate and destroyer relationship in airline industry (6M) 5) How an airline can build advocate relationships with their customer? (10M)

RELATIONSHIP MARKETING D’END