Customer Segmentation and Marketing Planning - British Airways - Assignment Example

Marketing Table of Contents Plan Marketing Mixes for Two Different Segments in Market 4 Product 4 Price 4 Place 4 Promotion 4 People 5 Process 5 Physical Evidence 5 Customer Segmentation and Marketing Planning 5 Difference between Marketing Products and Services to Businesses Rather Than Consumers 7 International Marketing Differs From Domestic Marketing 8 Political Entities 9 Legal Systems 9 Cultural Differences 9 Different Monitory System 9 Marketing Infrastructure 10 Trade Restriction 10 Transport Cost 10 Procedures and Documentations 10 Degree of Risks 10 Stability in Business Environment 10 References 12 Plan Marketing Mixes for Two Different Segments in Customer Market Marketing mix is a framework of marketing service-oriented facilities. To develop the marketing mix related with services 7Ps in the service-oriented business are considered these are product, physical evidence, price, promotion, process, people, as well as place. These Ps help to focus towards providing superior customer experiences and increase elegance of services. From the marketing view, British Airways uses these 7Ps as, Product The company sells services and elegant flying experiences to its consumers. Thus, the company enhances its demand for services. Price It is a very crucial component for marketing management. It affects the demand of sales promotion, competitive strength in business units along with ultimate profits. Place British Airways serves the elegant destinations over six major continents. It attends to people who are traveling across 550 destinations, including six domestic countries. Promotion British Airways provides mailing of the changes within the service system with mobile devices to the customers. Along with that, they provide extensive as well as exclusive club experiences and allow the member customers to track their flight information, reservation status etc. Sometimes the company even inclines towards providing discounted reservation for the selected exclusive club members (Bowman & Gatignon, 2010). People British Airways is one of the busiest airlines over the world. It serves variety of people; mainly corporate tourists who make frequent travels and are loyal to the airways along with the business travellers the company even provides services to other travellers as well. Process All the applications are easy to use as well as allow users to access any essential information as per their needs. Other processes like, booking facilities, service processes are keenly extensive and exclusive for all the passengers. Physical Evidence British Airways retain strong physical evidences as a form of reviews that they attain from the customers and addresses the same (Bowman & Gatignon, 2010). Customer Segmentation and Marketing Planning For providing a detailed understanding towards the marketing mix the targeted consumers are segmented within two groups to which British Airways provides B2C services. These segments are group of families who are having young children (aged between 18 and 30) and other group is over 60+ (single or married). British Airways provides variety of services for different segment of customers. It provides flights across different countries and in the different regions located around the globe, with the best quality flights services. British Airways known for its valued services preferred by executive class, business class, speed, security, service facilities, along with years of experiences in providing quality services to all the customers over years. Families prefer these services as they are usually travelling with children and 60+ aged people also prefer travelling in comfort. Additionally, British Airways serves the fundamental products along with other choices of product ranges in order to satisfy all age customer needs. It has attained its standard and always tries to enhance and modify the service ranges and other facilities to make it suitable for general passengers of all ages from the economy classes to business class or first class travellers (British Airways, 2014). British Airways provides lounges to families and old people, who are travelling in first class, additionally, serves free foods and beverages to them. This service helps the provider to rate themselves at a better position than the other service providers within the similar genre and acts as an advantage for the same. Sometimes the airways also provide some entertainment for the on-board consumers by providing them with magazines, films, video games for older and younger passengers. For different earning class people British Airways provides different classes of tickets accordingly they provide the passenger’s with respective comforts. For easy transactions for old customers and busy young customers, British Airways offers online services. Customers are buying tickets as per their requirements from various alternatives (British Airways, 2014). British Airways inclined towards serving the people with a homely environment and retain the loyalty that they have with them. As a result each the customers who have once cherished the services provided by the Airways prefer to travel in the same airlines as they are fully satisfied with the provided services that they have been providing over the years. Apparently, British Airways proposed ABC branding as well as for betterment of customer service. This ABC matrix includes four alternatives, e.g. new product, flanker brand, line extension along with franchise extension. New product ensures progression of new brand ideas, with innovative notions towards betterment of service quality and for adding value. Flanker brand is like a new category of service, which introduced by an already existing brand. British Airways introduced various schemes (Blue, Silver, and Gold) for different classes of passengers. Line extension is another category that is already establish by an existing organisation. Like, British Airways already establish various classes for passengers (business class, private class, economy class and other classes). Franchise extension is a familiar brand that helps in developing an unknown product category. These categories are taken to British Airways for its customers segmentations (British Airways, 2014). Difference between Marketing Products and Services to Businesses Rather Than Consumers For a service industry, business to customers is important though business to business (B2B) is also an important part for maintaining sustainability. British Airways has established a significant B2B channel for meeting with commitment to their consumers. For sustainability with success in this global competitive world of airline industry, British Airways has to focus on the flight’s security concerns, fuel costs, staffing, environmental impacts, increasing demand, taxes, along with competitive industry. Airline companies buy crafts, instruments, planes from various manufacturing companies. The venture with Boeing aircraft manufacturing company is an exclusive example of the B2B services provided by British Airways. British Airways purchase planes and other technical instruments from Boeing. This process is cost effective for British Airways. With the help of this facility, British Airways are able to provide low-cost carriers for the customers. Additionally, British Airways offers online variety of facility towards services for its stakeholders, this process, also helps in lowering cost (Barschel, 2007). Basically, B2B and B2C are far different from each other within airline industry. B2B depends on a relationship building marketing effort. There are so many differences that are evident between B2B and B2C. B2B is focused on building relationship with stakeholders, maximise the value of these relationships as it is advantageous for value driven needs within the company. In this segmentation, B2B is mostly focused a small target market orientation, this is also beneficial for retrieving strong relationship between stakeholders. As previously mentioned, British Airways having a multi-step buying process with longer sales cycle, which actually help to provide a cost effective service to customers as well as offers a low-cost carriers to all type of customers. Furthermore, brand identity generated on the basis of personal relationship within stakeholders is likely to enhance the fame of the company within the complex social scenario. To build a concrete sustainable business, educational as well as awareness building activities are essential undertaken within the company (Barschel, 2007). Apparently, rational buying decision of British Airways is effectual for constructing as well as increasing the business value within the industry and among the customer. Though the aim of B2B marketing is to transform prospects into customers, this process is longer than B2C as well as much more result oriented. The main difference between B2B and B2C is that the B2B focused on the relationship building and communication using marketing activities that leads to a positive communication during sales cycle between two or more business entities. Whereas B2C is related to the sales process and after sales process (feedback), through which company builds relationship with customers (Barschel, 2007). International Marketing Differs From Domestic Marketing As an international airline, British Airways provides elegant destination to six major continents. It attends nearly 550 destinations, including six domestic countries in its route line. There are so many similarities as well as differences between domestic and international market of airline industry. Developing a strong customer base, goodwill along with research and development for modification of service is essential for both the market area. Contrary to the above similarities the differences are stated below. Political Entities Every country has its own diverse political entities. As a result, airline industry has to face numerous restrictions to move across the national boundary. Some duties that followed by airlines, tariffs and custom duties, exchange controls, taxes along with others. Legal Systems The existing legal system differs from country to country. This existence of diverse legal system in different countries, international airlines have to aware about those legal systems to retain business (Hawes & Glisan, 2015). Cultural Differences In the case of domestic marketing, there is only one nation, culture, and language. For international purposes airlines industry has to face the complexities imposed by multi-cultural needs. Different Monitory System Exchange rates vary widely from one country to another. For dealing international market, British Airways has to face complexities in terms of the financial transaction. Marketing Infrastructure Promotion is one of the essential parts of marketing for a business. The pattern of marketing infrastructure, promotion style, marketing facilities might have assorted from domestic market (Hawes & Glisan, 2015). Trade Restriction There are some countries which have some kind of trade restrictions due to export and import facilities, which are faced by the international airlines like, British Airways. Transport Cost It is one of the marketing expenses, which varies from domestic market area. Procedures and Documentations Recruitment, selection of staff, fuel charges, manufacturing costs, and documentation of all objectives are essential for legal purposes. This processes and documentation proceedings are different in domestic market and international market (Hawes & Glisan, 2015). Degree of Risks It is clearly stated that, there are various risk factors in international market rather than domestic market. These risks are associated with establishment in stable business transaction, documentation’s procedures, trade restrictions, marketing infrastructure, monitory exchange differentiation, along with legal as well as political differentiation from one country to another. Stability in Business Environment Domestic market has relatively stable business environment instead of international market area (Hawes & Glisan, 2015). Source: (Czinkota & Ronkainen, 2012) Thus, the British airways have to develop the different approaches for developing the complex needs and maintain the competitive advantage within the international market domain. References Barschel, H., 2007. B2B Versus B2C Marketing - Major Differences Along the Supply Chain of Fast Moving Consumer Goods (FMCG). GRIN Verlag. Bowman, D. & Gatignon, H., 2010. Market Response and Marketing Mix Models: Trends and Research Opportunities. Now Publishers Inc. British Airways, 2014. Services. Worldwide Flights & Holidays. [Online] Available at: http://www.britishairways.com [Accessed June 15, 2015]. Czinkota, M. & Ronkainen, I., 2012. International Marketing. Cengage Learning. Hawes, J. M. & Glisan, G. B., 2015. Proceedings of the 1987 Academy of Marketing Science (AMS) Annual Conference. Springer. Read More