Marketing And Advertising Strategies Of Delta Airlines - Essay Example

Marketing and Advertising Strategies of Delta Airlines: All the Info Needed

The American business travel air carrier Delta Airlines is not only the largest airline in its country but also the world leader in terms of total freight and passenger traffic. Its history began in 1924 when it was created as a branch that specialized in the design of military aircraft giant Huff Daland. But after only a couple of years, the company has already changed the profile of its activities - from the designer; it has gradually transformed into a full-fledged airline. The first flight was carried out in 1929, and in the 40s, the carrier moved its headquarters to Atlanta, where it, in fact, is located to this day. Soon, namely, in the early 1950s, Delta Airlines first swallowed another travel business carrier. The first airlines acquired were Chicago and Southern Airlines, and a bit later, Delta Airlines also took over the carrier named Northeast Airlines. The 90s were the most fruitful for this organization. The airlines were able to acquire customer's flights to European destinations after the bankrupt of the Pan American business entity. As a result, Delta acquired the most significant transatlantic routes and became one of the largest carriers in terms of the number of passengers carried and the number of business customer travel flights operated. In 2000, this American company joined the SkyTeam model, and after 4 years, it began to face serious financial difficulties within the business travel airline customer management. Delta Airlines was forced to lower ticket prices, reduce staff, and close some hubs. In 2005, the business venture filed for bankruptcy, after which it began the reorganization. However, after 2 years, new shares of this carrier began to be sold to customers. Delta regained its former model logo and successfully resumed the air travel for customers.

The marketing and advertising strategies of Delta Airlines provide the reach of the balance between the current and expected portfolio of customers of the airlines. International airline marketing and advertising are systems of planning, implementing, monitoring, and analyzing measures to influence a multinational business travel market environment and adapt to its conditions in a business venture that operates in more than one country. When entering the foreign travel business model market, the company uses various types of international airline business marketing, depending on the degree of involvement of customers in the system of international economic relations:

• Traditional customer airline marketing: the usual sale of travel goods/services abroad, when the exporter is liable to the buyer only until delivery;
• Export customer airline marketing: the exporter is engaged in a systematic study of the target foreign market and adapts its production/services to the changing requirements of this market;
• International customer airline marketing: the exporter deeply explores the market and penetrates it using a wide range of marketing tools;
• Global customer airline marketing: the company mainly operates in the international market model, using the entire marketing mix.

The goals of international airline customer advertising and marketing for Delta Airlines, first of all, based on the results of the analysis of the business customer model environment and the risks associated with it. Economic airline goals of the airlines are the following: 

• Providing targeted market share;
• Providing access to new markets;
• Getting the maximum profit;
• Increasing customer sales volumes;

Psychographic airline goals (influence on purchasing behavior at Delta) are the following: raising the awareness of local people about the goods and service of the company; increasing customer satisfaction with the use of purchased travel goods/services; stimulation of decisions of customers on the purchase of travel business goods/services. Modern international marketing at the airlines is a system that provides strategic interaction between a company and the world economy in order to solve its own problems. One of the main tasks of Delta Airlines when entering the foreign market is to minimize its commercial risk and ensure economic (financial) success. The sequence of functions of Delta is as follows:

• Studying the intended customer market for their products. The use of the non-price model of competition that requires great organizational work from all of its participants and serves as an important incentive for an active and constant study of the situation on the market and the development of market development forecasts.
• At Delta Airlines, the forecast of customer market development is conducted primarily in relation to the assortment and sales volumes, competition, stability, analysis of favorable and unfavorable economic conditions.
• The evaluation of the opportunities at Delta Airlines implies the special customer attention of the company to a high scientific and technical level of the service, improvement of the range of products, improvement of maintenance of machinery and equipment.
• The development of the marketing strategy at the company includes setting the goals for the near and distant prospects, developing methods for achieving goals, scientific, technical and pricing policies, etc.
• The development of tactics at Delta involves the development of specific means to achieve the goals of the service.

The activities of Delta Airlines should be based on a comprehensive customer analysis of the incoming information and control, which serves as the basis for the advertising activities of the marketing management system.

When entering a foreign market, a company may use the following options in the frameworks of the selected model. The business is engaged in international marketing activities that must determine the degree of standardization of its plans and strategies. A standardized, or global, approach is to use a single marketing strategy for all countries in which Delta has its own interests. A non-standardized approach requires a separate marketing plan for each market, developed according to local requirements. A combined approach provides a mix of the elements of two approaches. The marketing management concepts at Delta Airlines are the starting points that characterize the active orientation of the customer market activity of an enterprise at various stages of its development. There are basic concepts on the basis of which Delta conducts its marketing activities for customers. If the production marketing concept assumes that demand exceeds supply. With the improvement of production, it becomes possible to increase the production of goods/services and reduce their cost, and hence the price for the consumer, which in turn will lead to an increase in demand. The main goal that the manager at Delta Airlines is guided by – the improvement of the model of the customer service, which contributes to an increase in the supply and almost automatically leads to an increase in sales and, consequently, to an increase in profits. The management of Delta, in this case, makes efforts to ensure the large serialization and sale of goods/services through a variety of outlets. This marketing model is in demand in conditions of the shortage of the service, which is observed with limited supply at the company. The basis of the product marketing model (product-oriented concept) at Delta Airlines is the assumption that the business customer will always be sympathetic to the service if it is of good quality and sold at a reasonable price. The emphasis at the business entity is on the development of new models of goods for customers, and the modernization of the existing ones, in order to improve the quality characteristics of products. It is assumed that the consumer is interested in such a service, knows about the availability of products - analogs and makes its choice by comparing the quality and prices of similar products from other providers. The model meets the situation when there is an approximate balance of supply and demand on the market; the consumer is guided by choice of the best offer from all existing ones. The concept of intensification of commercial customer efforts asserts that customers will not buy the service of Delta Airlines in sufficient quantities if it does not make significant efforts in the field of marketing, advertising, and customer promotion. The model of intensifying business efforts is particularly aggressive when applied to passive service, i.e., those that the buyer usually does not think about purchasing, such as flights at Delta Airlines. In these areas of activity, various methods have been developed and perfected for identifying potential business customers and “hard selling” service to them. The market (consumer) model at Delta Airlines asserts that the key to achieving the organization’s goals is to determine the needs and requirements of the target markets and ensure the desired satisfaction in more effective and more productive ways than competitors. The object of the market at Delta is the target customers of the business entity with their needs and requirements. The market concept reflects the firm’s commitment to the theory of consumer sovereignty: Delta produces what the consumer needs and makes a profit by maximally satisfying the needs of business customers. The concept of social and ethical marketing states that the task of Delta Airlines is to establish the needs and interests of the target markets for customers and provide the desired satisfaction in more effective ways while preserving or strengthening the well-being of the consumer and society as a whole. The concept of the socially-ethical marketing at Delta Airlines is generated by doubts: whether the firm, satisfying the needs of customers, always operates taking into account the long-term benefit of consumers and society as a whole. The concept of socially-ethical marketing at Delta Airlines requires the balancing of three factors: the profits of Delta, purchasing needs, and public interests. Currently, there are three more fairly new concepts:

• The concept of integrated marketing, the essence of which is that Delta Airlines itself must create a new product, new technologies, and, accordingly, the customers.
• The concept of strategic marketing, the essence of which is that it is necessary to focus on competitors, their products, product characteristics, prices, etc. This will allow customers to find the position of Delta Airlines in the market and be competitive.
• The concept of the goal settings.

The marketing at Delta has been developing since the beginning of the present century, and this activity is constantly being modified and improved. The concepts discussed above show the development of marketing at Delta Airlines, although they can exist in parallel.

The effective planning of the marketing activities of Delta Airlines at the international level forms a particular perception of planning in the enterprise and necessitates the intensive and regular monitoring and development of the plan. The principles of international planning at Delta do not differ from those used in the domestic market. And, the interaction between the main elements of the environment surrounding Delta, as well as the high level of complexity, make the implementation of planning to be difficult and expensive. The international planning at Delta Airlines can take place at three different levels:

• The global enterprise level

Planning at Delta Airlines in this field is taken in the longest-term aspect, the general goals important for Delta are determined, which are perceived as a whole.

• Strategic level

Planning is carried out at the Delta management level and gives an idea of ​​long- and medium-term development options. Strategic planning is a formalized means of forecasting the future. The need for balanced assessment and foresight is especially great when Delta Airlines carries out its operations in a large number of markets.

• Tactical level

In this case, planning focuses on determining the specific shares that should be carried out, and on resolving the issue of Delta Airlines channeling resources to achieve global goals in various markets where the enterprise operates.

A simple and clear definition of goals is an important prerequisite for successfully entering foreign markets, as well as an accurate assessment of available resources at Delta. The market can promise attractive profits in the short term but have unstable prospects in the long term. Thus, it is necessary to clearly define the goals of Delta Airlines in order to prevent the involvement of the enterprise in losing situations.

Following the objectives, Delta Airlines should give priority to comparing needs and existing resources. First of all, it is necessary that the responsible employees of the enterprise are appropriately interested in participating in the international activities of Delta Airlines. The lack of certainty or attempts to overcome the usual impromptu schemes at Delta adversely affect its activity.

The random decisions may turn out to be successful, but the only constant and purposeful application of planning at Delta Airlines allows achieving optimal return on investment, which is always distant and inevitably lagging in comparison with the forecast.

At Delta Airlines, the international planning process includes the phases of analysis and adaptation. The phase of analysis and selection of markets depending on the goals and resources of Delta. The enterprise should continuously strive to maintain a stable correspondence between the experience, services, culture, goals, and characteristics of various markets, whatever the degree of involvement in foreign economic relations. For this purpose, it is important to highlight the selection criteria, such as the minimum potential, the probable payback period of investments, a certain level of current profit at Delta Airlines, etc. These steps turn out to be effective only if, as foreign markets are developed, continuous efforts are maintained to obtain information and monitor the implementation of projects at Delta. These efforts allow Delta Airlines to have sufficient data to accurately assess the potential, risks, and opportunities, to adapt proposals and possible commercial decisions about the start of a campaign in this market. 

The adaptation phase of the proposal is to measure the degree of adaptation of various elements — services, prices, sales systems, communications — to determine the proper supply volume. One of the questions concerns the cultural environment of the proposed product at Delta Airlines: measuring the phenomenon of identification, the models of consumption, and the frequency of purchases.

We are also talking about a thorough study of the very significant differences between countries in the field of marketing, in pricing and credit policies, and in general in the field of communications, including the media, the content, and nature of communications, the costs of advertising campaigns, etc. During this phase, Delta Airlines should be able to assess the feasibility of the proposals and the costs of adapting them to specific market conditions, which will allow for a second choice of market.

The phase of developing a marketing plan at Delta. The results achieved allow us to develop a plan adapted to the intended market, specifying what needs to be done, who, how, and in what time frame will do it. The question of costs and means becomes central, as it determines the success or failure of the plan for Delta Airlines. The budget deficit or interruptions in supply will seriously affect the next steps and may even manifest in inconsistency and non-adaptation of actions at Delta.

The phase of implementation and control. The implementation of the commercial plan for Delta in the foreign economic field is not limited to simply making a positive decision. It is important to carry out monitoring and control in order to justify the ongoing efforts and to detect possible deviations from market development plans as soon as possible. And for this, it is necessary not only to have clearly defined priorities but also to maintain the achieved distance in relation to current actions to assess distortions and develop corrective decisions for Delta Airlines.

The strategic planning process for Delta Airlines is a closed system, the functioning of which is associated with the fulfillment of two conditions: observation and ensuring flexibility. Systematic observation makes it possible to measure results and detect deviations; providing flexibility allows for appropriate adjustments. Delta Airlines should strive to develop both of these qualities.

At Delta, the control in international marketing includes a preliminary definition of policies that have precisely defined goals. Next, you need to measure achievements and costs, then make changes or set goals, the implementation of which is necessary to correct deficiencies. The control of international activity poses a number of problems for Delta Airlines, a list of which were compiled by the American researcher J. Weiding. Here are some of them:

• difficulties in financial control of activities abroad;
• conflicts between directorates or branches due to clientele or territories;
• the development of foreign activities on an unforeseen path;
• double employment of staff or administrative services;
• underutilization of production or marketing opportunities abroad.

In many ways, these problems are caused by a wide variety of markets, inaccurate information, geographical and cultural distances, as well as small unpredictable events characteristic of any complex activity. First of all, a choice for Delta Airlines should be made between centralization and decentralization of the control system.

Centralization is appropriate for an extraordinary variety of situations; decentralized management is rather a guarantee of flexibility and sensitivity. After choosing one of these two principles for Delta Airlines, the enterprise can take a series of sequential measures to create a control system, as one of the researchers, has already presented.

It is important to choose the control methods, determine the norms, based on which, possible deviations of the obtained results from the intended goals should be measured effectively for Delta Airlines. Further, it is necessary to localize these goals, i.e., to establish for each area of ​​responsibility, which is a difficult task in the face of a multiplicity of levels and types of competence achievable for Delta.