What are the 4 P’s?
Product
Place
Price
Promotion
Unique characteristics of airline products:
- The product cannot be kept in inventory to match fluctuations of demands
- The quality of service is based on personal experience
- There is no replacement for a bad product
- The product cannot be checked before the final sale
- Delivery service isn’t 100% guarantee
- Service can be produced in batches and not an individual unit
What is price determined by?
Supply and demand
What is the major competitive variable after deregulation?
Price
What are the 2 most important forms of promotion?
Advertising and selling
What does place include?
All institutions and activities that contribute to delivering the product at the time and placed the customers desire
Place of sales outlet:
- Field city and centralized reservation center
- Other sales office
- Travel agents
Concept behind consumer oriented marketing
Design the product based on the needs of consumers
Consumer oriented concept targets 2 analysis:
Market segmentation
Intensive growth strategies
Market segmentation
Process of dividing potential customers for a product into market segments
Market segmentation characterized groups
Group travel Funeral travel Educational travel Religious travel Military travel Mercantile travel
Intensive growth strategies
Promotional fares
Product development for satisfaction
Market development
Marketing strategies after deregulation
Economies of scope and economies of scale
What is economies of scope?
Function for airlines to serve as many points as possible
What is economies of scale?
Function for airlines to serves as many flights as possible
