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Market Mix of British Airways
Market Mix of British Airways
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1)level One: This level includes core benefits for its Customers:
Customer needs and preferences: A customer can buy a ticket as per his
requirement and budget. They have different class which includes the elite
class, the middle class, the upper middle class and the business class. The
people of these particular classes purchase their own respective comforts.
Customer gaining advantage through online services:- A stage of product
when customers enjoy the core benefit which reflects their real buying
power. They buy ticket which fits their requirements from various
alternatives.
Sources of purchase :The airlines also offer online buying services so people can conveniently
purchase the tickets through internet. It enhances communication through
giving opportunity to the customers by giving feedback and also by
implementing new technologies such as check-in-mobiles, e-tickets and so
on. The new technology helps the whole process from buying tickets to
experiencing the flight journey. It thus helps customers as well as
organizations in maintaining its standard and preserving its priority.
ordinary care should be taken at the time of making pricing decisions. Price
decisions are made keeping in mind the objectives of pricing and objectives
of pricing and objectives may vary from time to time depending upon the
market conditions. Main objectives of pricing can be stated as under: Earning of reasonable rate of return on investment.
Market penetration,
Price stability.
To maintain or improve market share.
To cope up with competition.
Market skimming.
Profit maximizing objective.
Promotional pricing:British Airways has set some prices on flights for the purpose of promoting
itself. Like it has promotional offers during Christmas which is termed as
British Airways escape tickets. The product is the best offer as it has an
affordable price flying more destinations. The domestic fares are also lower
so that more people can travel and take advantage of best price offered to
them. The club world Business class offer contains upgraded first class free
one way ticket while travelling in club world business class.
Vulnerable to competition
There is a huge level of competition and the airlines industry needs to focus
upon how it can maximize profits as well as maintain its standard. The other
low cost airlines such as easy jet and Ray air have developed their markets
by removing the unnecessary costs they just concentrate upon the basic
product that is selling the tickets without any additional benefits from one
destination to the other upholding the view to just increase the market share.
However, British Airlines and Lufthansa have also adopted the same pricing
strategy but with the different price which is value added the customers can
surely enjoy a good quality product at reasonable rates. Moreover, it also
offers the refundable offers. One can buy online tickets through internet as
well as ask for the refund if needed all this require is to just apply online and
fill the form online and the claimed amount will be refunded and also the
tickets will be booked without any ambiguous procedures.
Direct marketing
When the people are approached directly by an organization this method is
called direct marketing the best example is direct mail, also there is an
increasing use of telephone, email and messaging. This technique has gained
more popularity because it becomes easy to supervise the response gained
through communication and that too directly as the information can be
personalized to each receiver. Sometimes the direct marketing usage
encounters many problems like the personal data might be misused or there
may be an intrusion of privacy so people are now aware and register with a
single server which is centralized to stay out of direct marketing.
British Airlines is known for its esteemed services and have always respected
privacy and it has always offered the opportunity to collect the databases
about exclusive fares, special offers and other news stories from British
Airlines group. The details of the customers will flow only in the British
Airways group. The customers can sign up for direct marketing by getting
registered on its website and by joining executive club. The mobile phone
users can get an advantage of knowing special offers through the text
message alerts. The organization will make sure that the customers do not
Personal selling
Personal selling has always been a trend of selling the products until the
invention of technology and sophistications in the field of marketing occupied
the space. Personal selling takes place when a manager or representative of
the organization comes into direct contact with the customers either one-toone or on a telephone. The organizations need the sales person so that the
customers feel satisfied that they are talking to a knowledgeable person.
Personal selling is done either directly or indirectly to give a start button to
the sales and increase the sales.
Point of sale material will be a lot of helping hand to the
organization it will allow the customers to penetrate the market and
buy more products or services. There are various goods and services
which cannot be sold personally like cars, financial products, holiday
packages. In these cases the brochure of the services and goods
should be designed in a very attractive way so that the customers
come to know the features of the products or services when they
inquire about them. British Airlines being a busy airlines company
cannot personally sell their products therefore it has designed its
products in a very comprehensive way that the customers can
purchase at the point of selling
Placing:Placing means distribution of the products and services and also how
they move from the manufacturer to the customer. There is an
integration of retailers, wholesale, factory, warehouse, head office to
the end user of the product or service. Almost the goods are sold
through intermediaries so it is the duty of the marketers to identify the
type, size and location of the retailers. Market is impossible without the
distribution. The Organization should select such a channel of
distribution, place for storage and mode of transport which can be
enable the customers to get the product quickly with minimum cost.