Question

Topic: Student Questions

How Do Airlines Differentiate Themselves?

Posted by Anonymous on 25 Points
What are the tools that marketers have to enable them to differentiate themselves from the others, i.e. the established players and the newcomers

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  • Posted by wnelson on Accepted
    Before answering this question on tools, we must understand what can differentiate one airline from another – the features and benefits to cusotmers, if you will:

    • Price
    • In flight service (food, friendliness,
    comfortableness, telephone, power for
    notebook computers)
    • Convenience (number of flights, destinations,
    check-in process)
    • Reliability (on time arrivals – although for
    some reason, the government monitors on
    time departures…hmmm)
    • Safety

    There are probably several other categories as well. Marketers then use tools to understand the implication of a strategy with these parameters set at different levels, and based on the core competencies of the airline, the recommended position in the market to maximize profits. Then, marketers use tools to communicate the position to the consumers in such a way to differentiate the company from the competition.

    The tools marketers us to set the strategy involve research and analysis:
    • Surveys
    • Focus groups
    • Competitive analysis
    • Literature search

    Based on the results, the marketing resource sets the parameters listed above at the right level to maximize profit. These parameters alone can differentiate the airline from competitors. Look at Southwest where the fairs are low, there are no assigned seats, no food service, etc. This differentiates them from American, who prides themselves on the best in-flight meal.

    Once the strategy is set, then the message must be crafted to fit the demographic segments the airline is targeting. Ad agencies, consultants, and experienced advertising executives are the tools used to craft the message. In addition, these resources will conduct market tests, again with focus groups and surveys, to make sure the message is perceived correctly by the target audience.

    The tools used to communicate the message and differentiate the company from the competitors are:
    • Advertising (print, broadcast, internet)
    • Direct mail
    • Press announcements
    • Press tours
    • Slogans (Delta’s “Fly the friendly skies”)

    I hope this helps you…

    Wayde
  • Posted by wnelson on Accepted
    Well, so much for the impact of UNITED's slogan - Fly the friendly skies....I didn't even remember it was United and attributed it to Delta...sorry for the mistake!

    Wayde

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