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Faculty of Science, Engineering

and Technology (FSET)


AVA10004
Aviation Marketing

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Aviation marketing
Dr Chrystal Zhang

Week 9
Marketing mix
People, process and physical evidence
Agenda
• Extended marketing mix for services
• People
• Process
• Physical evidence
Marketing mix

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A marketing mix
Is the set of controllable tactical marketing tools (4Ps or
7Ps) that the firms blend to produce the response it wants
in the target market (Kotler and Armstrong, 2010).
4Ps
Product: tangible, physical product, as well as its values created
Price: pricing strategy
Place: is a marketing channel, a set of interdependent
organisations that help make a product or service available for
use or consumption by the consumer or business user (Kotler et
al, 2010)
Promotion: all marketing communication activities, including
personal selling, sales promotion, public relations, direct
marketing, trade fairs and exhibitions, advertising and
sponsorship

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A marketing mix
7Ps for service industry:
Process: the actual procedures, mechanisms, and the
flow of activities by which the service is delivered.
People: all human actors who play a part in service
delivery and thus influence the buyer’s perceptions. E.g.
the firm’s personnel, the customer, and other customers
in the service environment
Physical evidence: the environment in which the
service is delivered, and where the firm and customer
interact, and any tangible components that facilitate
performance or communication of the service (Zeihaml
et al. 2008)

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Differences between goods and service

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Why do firms focus on service
Service provides

• High profit margins and growth potential


• Customer satisfaction and loyalty
• Service is used as a differentiation strategy in
competitive markets

• Service also affects customer’s choice of service


provider

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What you have identified from the video
• Staff at front desk People
• Moment of interacting Process
• First in the process of hotel experience
• Environment to feel about the hotel
– Uniform
– Furniture Physical
evidence
– Voice,
– Manners

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People
Employees
Management
Culture
Customer service

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Moment of truth
• Front line staff
• People are the differentiating factor
• Automated services help but people are also
required.
• A delicate balancing act

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Developing people skills

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Developing people
• Recruitment and selection
• Aptitude test
• Training
• Identify training needs
• Professional development
• Soft skills

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Developing people
• Working environment
• Safe and comfortable
• Empowerment
• Delegate
• Accountability
• Remuneration
• Package
• Benefits

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Balancing of automation and people service
• Self-service • People service
• Cost-effective • Labour cost
• Technology • Error
• Lack of contact • Complaints

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People/staff-most valuable assets of business

Happy staff

Happy Happy
customers shareholders

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Process

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Process
• How do people consume service?
• What process they have to go through to acquire
and consume the service?
• Where do people find the availability of the
service

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Process –exercise
• Your departure
Check-in
(online or at the Security Immigration
airport)

Finding your Wait at the


Boarding
seat lounge

Seated and
Hand luggage fasten your seat
belt

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Process
• Is the procedure, mechanism and flow of the
activities by which service is consumed;
• Is also the procedure of how the product/service
will reach the end user;

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Process
• Managing process
• Service failure can happen at any point of
service
• Sometimes out of the control of organisations

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Process
• Good processes and systems can create
competitive advantages
• Processes have a huge impact on your sales,
performance and organisation

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Process –focus on:
• Make it a competitive advantage:
• Simplifying
• Simple, easy and ready to use, not
complicated
• Convenient
• Convenient from customers’ perspective, user-
friendly
• Reduce waiting time
• Managing queue

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Physical evidence

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Physical evidence
• ‘The environment in which the service is
delivered and where the firm and customer
interact, and any tangible components that
facilitate performance or communication of the
service’, (Booms and Bitner,1981).

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Physical evidence
• The ambience, mood, or physical presentation
of the environment:
• Smart/ shabby
• Trendy/classic/old fashioned
• Light/dark/bright
• Romantic/loud
• Clean/neat
• Music/smell

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Physical evidence
• When buying intangible services, customers look
for physical evidence to reassure them:
• when ordered and delivered, customers look for
• Professional packaging
• Paperwork
• Delivery vehicles
• If online, customers look for
• Web design,
• Emails.

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Physical evidence
• Including
• Furniture and furnishing
• Façade and appearance
• Brochures, paperwork, stationary
• Lighting, colour

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Physical evidence
• Including:
• Signage
• Temperature and noise
• Web pages
• Appearance of advertisements

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Physical evidence
• Make sure:
• Physical evidence must go in line with the positioning
of the service offered
• Physical evidence must make the customer perceive
the service provider offers what it is positioned and
valued

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How uniform reflects corporate culture and brand

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Summary
• Extended marketing mix for services
• People
• Process
• Physical evidence

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