Improving Market Position of a Service: Virgin Blue Airlines - Case Study Example

Table of contents 1.0 Excusive summary 1 2.0 Introduction 2 3.0 Review of service marketing 3 4.0 Improving market position of a service 4 4.1 Physical layout 5 4.2 Customer service 6 4.3 Processes 7 4.4 Place 8 4.5 Promotion 8 5.0 Relevance of actions on product 9 6.0 Conclusion 10 1.0 Excusive summary Marketing can be defined as an organizational function and a set of processes for communicating, creating, implementing and delivering value to customers and for managing customer-business relationships in a way that will benefit both the organization and the stakeholders involved. Such processes succeed in moving people closer to making a decision to purchase and facilitate a sale. In the long run, these processes will anticipate, identify and try to satisfy customer requirements successfully and profitably. Market segmentation is important when carrying out marketing in service industry. This is because it leads to improved image of the organization or product. When marketing is done efficiently it leads to increased sales and more profits are reaped by the organization. It gives the business competitive advantage over the other businesses. When marketing is well carried out it means customers will be more satisfied with the services offered since their changing needs will be met. Marketing helps to change the attitudes to services being offered. 2.0 Introduction Marketing can be described as a set of processes that are undertaken by an organization in order to create, communicate and add value to the services that the organization deals with. The aim of marketing is to create awareness and a relationship to the customers in a manner that will be beneficial to the organization and the stakeholders. (Avlonitis, 2005, p.52) Marketing does exist as an activity of an organization, and it is ever changing in accordance to new trends and technology in the field. Initially many business managers never used to market their services. This was thought to be a venture that only applied to product oriented organizations. (Sharp, 2002, p. 16) With time, this perception generally changed and marketing infiltrated into service oriented organizations too. This paper is dealing with literature review of service marketing management. There is also a further explanation of how the market position for the virgin blue airlines can be improved through the marketing mix. 3.0 Review of service marketing Service marketing has been described as a very challenging venture. This is especially due to the fact that services are not visible as products. It is not easy for a service to be rated as good or bad unless the customer is given the service itself. Nevertheless, marketing of services is as essential as marketing of products. (Wolak, 1998, p. 39) Very many airlines market its services through different means. One of the ways through which these companies market its products is publicity. This is a very deliberate attempt to manage the overall perception of the public in relation to a specific service. This can be done through press coverage about a service. In this case, the company uses media like television to advertise their services. Through this, any potential customer gets to know what kind of services the airlines offer. (Van Doren, 1985, p. 25) In relation to marketing of its services, many companies in the airline industry also carry out personal selling. These companies have teams of sales people that carry out personal selling. Personal selling is whereby there is communication (orally) with prospective buyers of a service. Sometimes it may start as a friendly chat or getting to interact with the person but ultimately there is ending with the attempt to sale the service. It is known to be one of the oldest forms promoting business. (Sharp, 2002, p. 16) The advantage of using it is that each customer gets personal attention from sales person. Many companies’ sales teams normally have the air tickets with them which they sale to the customers. This is one of the ways through which the companies market their services. It is highly effective because any issues or questions that the customers mind are handled on the spot. (Agarawal, 2003, p. 53) 4.0 Improving market position of a service For any company or organization to know its market position, then it has to carry out benchmarking. In this case, organizations evaluate their internal process to ensure that they are rightfully aligned to best practice code of ethics. This helps in enhancing an organization’s performance portfolio. This is normally a process that is continuous in nature where an organization’s best practices are continuously evaluated. (De Brentani, 1989, p. 230) After benchmarking is carried out, the management in Virgin Blue airlines can work on strategies to improve its market position. One of the avenues through which the company can improve its overall position in the airlines industry is to use the marketing mix. 4.1 Physical layout One way through which virgin Blue airlines can improve its market position is though its physical layout. Research shows that consumers in this twenty first century expect high level of outlook and presentation. This is more so in the airline industry. Most of the people who use aeroplanes to travel are high status people in the society. They are people with good jobs and money is not a problem to them. In order to appeal to this class of people, then the physical layout of the airline has to be up to standard. (Avlonitis, 2005, p.52) Virgin Blue airlines can improve its market position by having a team of experts who will work on the interior designs of the company. This includes the departure, waiting lounges and even the external environment. The company should employ qualified personnel to plant and trim flowers within the organization’s premises. These are normally referred to as florists. Flowers can make the general outlook of an area to be very appealing. The physical layout can also be improved through creation of recreational facilities for young children. This will automatically make many parents to choose to travel with the airline because their children will also get entertainment. (Dawes, 2004, p. 40) Interior designers will help in the arrangement of all the rooms in the airline. They will also choose colour schemes that are very appealing to the travellers. This includes the colour schemes of the textile materials like curtains and any other draperies in the airline. In this case, creativity is highly encouraged. Such that one does not just copy a design he or she saw somewhere. Originality is very important in such a venture. Virgin Blue airlines need not spend a lot of money in this activity. Rather, natural materials that are easily found in the locality can be used to enhance beauty in the company. Virgin Blue airlines should also put in place strategies to improve its websites outlook. This is because many customers in the twenty first century usually book online. When the website is appealing and easy to operate, many customers will choose to use the company’s services. This will improve the overall outlook of Virgin Blue airlines and hence enhancing its market position. (Reinartz, 2005, p. 65) 4.2 Customer service This is also part and parcel of the marketing mix for the service industry. Customer service plays a very big role in any business. It is very clear that customer loyalty is highly influenced by the kind of customer service that they get. Many organizations that are successful have realized the importance of customer service. (Gustafsson, 2005, p. 211) In order to improve its market position, Virgin Blue airlines has to improve its service provision to customers. Customer service provision can be improved through the face to face interactions. In this case, Virgin Blue airlines can carry out training of the personnel in charge of the customer care department. (Hoffman, 1995, p. 49) This has to be carried out on a constant basis. The employees in this department should be trained on the importance of face to face interactions with the customers. They have to be polite and courteous even if the customer is not. This is because in the business sector, the customer is always right. The customer service personnel have to handle customers with high esteem despite their economic status. They have to answer every telephone call in a very polite way. (Mattila, 2001, p. 583) The competency of the personnel has to be clearly ascertained before they are employed. In case the company notices any malpractice in the employees working in the customer care department, corrections have to be made immediately. This is due to the fact that one employee can actually taint the image of the entire organization. Through this, Virgin Blue airlines will be able to improve its overall position in the market. 4.3 Processes Normally any airline has got various processes in order to facilitate service delivery. In order to improve its market position, Virgin Blue airlines should also improve all the processes therein. One of the processes that needs improvement is Virgin Blue airlines is that which deals with online applications. The company has to ensure that this process is fast, effective and efficient. The other process that should be improved is that which deals with customer complaints. (Patterson, 2007; p. 35) In this industry, one finds that there are so many complaints that come in from customers. They are always looking out on how fast these complaints are handled. They include complaints on loss of property while they travel, delay on flights among other issues. Such complaints have to be carefully handled. Proper mechanisms have to be put in place such that feedback with the customer concerning the complaint is fast. In case a customer cannot make it for a booked flight, then process has to be fast in rescheduling the customer for another flight. Through this, Virgin Blue airlines will be in a position to improve its market position in the airline industry. (Hoffman, 1995, p. 49) 4.4 Place This is also another avenue through which the market position for Virgin Blue airlines can be improved. Other than the airports that this company has, it should carry out more expansion to other areas. This includes both developing and the developed nations. This will make many customers to have easy accessibility o the airline. Virgin Blue airlines should mostly venture in areas where the market has not been tapped by other airlines. This will definitely enhance its market position. (Mattila, 2001, p. 583) 4.5 Promotion There are various ways through which a business can be promoted. This includes advertisements through media, having billboards etc. Virgin Blue airlines should improve its promotion strategies through diversification. Any promotion that they use should be effective in reaching the target group of people. This will improve its market position. 5.0 Relevance of actions on product The actions that are explained above are still relevant in one way or the other to coca cola product. This is considering the fact that this product also has to be promoted in order to facilitate a sale. Coca Cola Company can also use billboards to advertise its products. It is in fact far easier to advertise a product that a service because a product is more visible. The sight can easily appeal a customer and encourage him or her to make a purchase. (Wolak, 1998, p. 39) The only difference is that the way in which the coca cola drink may be promoted could be a little bit different from the service. There is actually a very high correlation between marketing mix of a service and a product industry. (Agarawal, 2003, p. 53) The coca cola company can also enhance its market position by opening up of other companies all over the world. In as much as coca cola is a product, the company also offers services indirectly. This includes handling of customer complaints. Therefore Coca Cola Company can actually emulate Virgin Blue airlines strategies to improve its overall market position. Coca Cola Company can also emulate Virgin Blue airlines by working on its process so that the customers don’t have to queue for long and this will improve the company’s profits. 6.0 Conclusion Marketing is a very important venture that has a high impact on the success of any organization. Service marketing is all about strategies carried out in order to enhance the sale of the service. Virgin Blue airlines can carry out various strategies in relation to market mix in order to enhance its position in the market. This includes improving its processes, customer services, physical layout, promotion and place. These actions have relevance to coca cola product. This is in the sense that the strategies that can be used in Virgin Blue airlines can be incorporated in Coca Cola Company. This can be carried out so long as the strategies are clearly structured to suit the company and targeted results. When all these are effectively and efficiently carried out, then success in these companies is sure. 7.0 Recommendation It is highly recommended that Virgin Blue Airlines incorporates the strategies illustrated above in order to improve its overall position in the market. This includes improvement of physical layout, processes, customer service and promotion strategies. It also recommended that before these strategies are carried out, benchmarking of the airline should be carried out. It is highly recommended that Virgin Blue airlines works at ensuring that customers don’t queue for long as they wait to be served. More customer care representatives need to be incorporated. This will enhance customer satisfaction and also increase the company’s profits. This will enable the Virgin Blue Airline to know where it is placed in the market and the extent of improvement required. Read More