1. AIRLINE MANAGEMENT AERO 4100 / 5100
AIRLINE PASSENGER MARKETING
Chapter 9

2. AIRLINE MARKETING
MARKETING IS THAT BROAD AREA OF BUSINESS ACTIVITY THAT DIRECTS THE FLOW OF SERVICES PROVIDED BY THE CARRIER TO THE CUSTOMERS’ NEEDS AND WANTS AND TO ACHIEVE COMPANY OBJECTIVES.

3. AIRLINE MARKETING DEVELOPMENT OF THE MARKET CONCEPT
PRODUCTION-ORIENTED PERIOD
SERVICES WERE SO SCARCE THAT CUSTOMERS ACCEPTED WHATEVER WAS AVAILABLE.
SALES-ORIENTED PERIOD
ACTIVE ROLES IN CONVINCING CONSUMERS TO PURCHASE THE NEW SERVICES OFFERED.

4. AIRLINE MARKETING CONSUMER-ORIENTED PERIOD
TARGET-MARKET APPROACH: IDENTIFYING THE SPECIFIC GROUPS OF CUSTOMERS TO WHOM THE COMPANY WISHES TO APPEAL WITH ITS SERVICES.

5. MARKETING MIX CONTROLLABLE MARKETING FACTORS PRODUCT PRICE PROMOTION
PLACE

6. MARKETING MIX UNCONTROLLABLE MARKETING FACTORS
CULTURAL AND SOCIAL DIFFERENCES
POLITICAL AND REGULATORY ENVIRONMENT
ECONOMIC ENVIRONMENT
EXISTING COMPETITIVE STRUCTURE
RESOURCES AND OBJECTIVES OF THE COMPANY

7. AIRLINE PRODUCT CHARACTERISTICS
PRODUCT (SERVICE) CANNOT BE KEPT IN INVENTORY TO MATCH FLUCTUATIONS IN DEMAND
SERVICE IS USUALLY PERSONALIZED
THERE IS NO SUCH THING AS REPLACEMENT OF A BAD PRODUCT

8. AIRLINE PRODUCT CHARACTERISTICS
IT IS DIFFICULT TO CHECK THE QUALITY OF THE SERVICE BEFORE THE FINAL SALE.
DELIVERY OF THE PRODUCT CANNOT ALWAYS BE GUARANTEED.
THE SERVICE CAN ONLY BE PRODUCED IN BATCHES.

9. AIRLINE PRODUCT CHARACTERISTICS
EXTREMELY COMPETITIVE MARKET
GREATER QUALITATIVE AND QUANTITATIVE SERVICE TO PASSENGERS
QUALITATIVE SERVICE:
COURTESY
EFFICIENCY
IN CONTACTS WITH PASSENGERS

10. AIRLINE PRODUCT CHARACTERISTICS
QUANTITATIVE SERVICE:
ON- BOARD MAGAZINES
ENTERTAINMENT
WIDER SEATS
ENHANCING THEIR IMAGE
ADVERTISING CAMPAIGNS
READY TO SERVE

11. AIRLINE PRICE DEMAND PRODUCTION AND MARKETING COSTS
DIRECT OPERATING COSTS
FUEL
CREW SALARIES
LANDING FEES
SEAT FEES

12. AIRLINE PRICE INDIRECT OPERATING COSTS
MAINTENANCE
GENERAL ADMINISTRATIVE
MARKETING EXPENSE
THESE REPRESENT THE FLOOR UNDER THE PRICE SET FOR CARRIER’S PRODUCT

13. MARKETING CONCEPT PROMOTION
COMMUNICATION BETWEEN THE CARRIER AND THE CUSTOMER
ADVERTISING
PERSONAL SELLING
GOAL OF PROMOTIONAL ACTIVITIES IS TO INCREASE REVENUES
PRINCIPAL TASK IS TO INFORM THE PUBLIC

14. MARKETING CONCEPT DEMONSTRATE SUPERIORITY OVER POTENTIAL SUBSTITUTES
ENCOURAGE CUSTOMERS TO TRY THE SERVICE

15. MARKETING CONCEPT
MAJOR GOAL OF PROMOTIONS IS TO LET CUSTOMERS IN TARGET MARKETS KNOW THAT THE SERVICES ARE AVAILABLE
RIGHT TIME
RIGHT PLACE
RIGHT PRICE

16. MARKETING CONCEPT PLACE AIR TRAFFIC CONFERENCE
FIELD TICKET OFFICES (FTOs)
CITY TICKET OFFICES (CTOs)
TRAVEL AGENCIES
JOINT MILITARY TICKET OFFICES (JAMTOs)
COMBINED AIRLINE TICKET OFFICES (CATOs)
AIR TRAFFIC CONFERENCE
INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)

17. CONSUMER - ORIENTED MARKETING
MARKET SEGMENTATION
THE PROCESS OF DIVIDING POTENTIAL CUSTOMERS FOR A PRODUCT INTO MEANINGFUL SEGMENTS.
FINDING RELEVANT CHARACTERISTICS FOR SMALLER GROUP
IDENTIFY ALL SIGNIFICANT MARKET SEGMENTS
TARGET MARKETS

18. CONSUMER - ORIENTED MARKETING
TARGET GROUPS
MERCANTILE TRAVEL
RELIGIOUS TRAVEL
FUNERAL TRAVEL
EDUCATIONAL TRAVEL
MILITARY TRAVEL
GROUP TRAVEL
SENIOR CITIZENS TRAVEL

19. CONSUMER - ORIENTED MARKETING
INTENSIVE GROWTH STRATEGIES
MARKET PENETRATION
PROMOTIONAL FARES
CLASSES OF SERVICE
PRODUCT DEVELOPMENT
IN-FLIGHT SERVICES
ON-GROUND SERVICES

20. CONSUMER - ORIENTED MARKETING
MARKET DEVELOPMENT
SELLING PRESENT PRODUCTS TO NEW TARGET MARKETS
DEMOGRAPHIC SEGMENTATION
SINGLES
SENIORS CITIZENS
ATHLETICS
WOMEN’S GROUPS
BLACK MARKETS

21. CONSUMER - ORIENTED MARKETING
INTEGRATIVE GROWTH STRATEGY MARKETING STRATEGY THAT INTEGRATES RELATED PRODUCTS
HOLDING COMPANIES
AMR CORPORATION
AMERICAN AIRLINES
HOTELS
ALLEGIS CORPORATION
UNITED AIRLINES
HERTZ RENT-A-CAR
WESTIN HOTELS