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Practical Marketing Skills

Seminar for Egyptair Managers Abroad


Cairo, Egypt, September 22, 2005

Adel A . Zahran
Facilitator
1 Marketing Planner
Contents

This session will cover the following


marketing skills topics :

Introduction

Market research & Analysis

Promotional activities
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I. Introduction

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Trends Affecting The Airline Industry

Deregulation / Open Skies


Decreasing fares/unit costs
Low cost / low fare carriers rapid growth
Private Carriers/privatization
Alliances/Consolidation
Direct distribution
Security issues
Environment Issues
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Airline Marketing Evolution
2005

Globalization
2000

• Customers
• True Markets
Alliances • Relationship-driven
1996
• Protection
• Multi-laterals
Expansion • Technology
1992
• O&D
• Share-driven
• Growth of market share
Retraction • Bi-laterals
1990 • Scale
• Hub-driven
• Operational costs
• Financially-driven

5 : SH&E Consulting
Source
…Marketing Defined
Marketing is about anticipating and identifying
the wants and needs of a target market of
consumers, then satisfying those needs in
order to make a profit
Firstly, Airlines must understand their
customers’ demands. This is the ‘anticipating’
and ‘identifying’ part of the definition

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Marketing Management
in the aviation industry
Market research Status-quo analysis
Company
Competitor Customer
information and analysis phase
Forecast

( permanent monitoring and adjustment )


Strategic Marketing Planning
defining the business - philosophy, overall concept, ultimate ambition
Corporate
Mission
Target customer groups
Competitive reaction Marketing
Regional market trend monitoring
Quality standards
Strategy
Segmentation Targeting Positioning

Operational Marketing Planning Marketing mix


instruments to run mission and strategy Product Management Promotion
Target market oriented product definition Sales & Pricing
Optimization of communication and promotion activities Distribution
Definition of pricing policies Process People
Competitive marketing activities

Implementation Implementation and Monitoring


organization, management, supervision

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Source : LH Consulting
II. Market Research & Analysis

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Market Research & Analysis

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Purpose

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Secondary Research

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Primary Research

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Market Analysis

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Market Position

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Market Position
• Market Niche – small part of an existing
market
• Market Leader – maintain dominant
position in the market?
• Market Follower – Follow the lead of the
market leader – pricing, product
development etc
• Market Challenger – Seek to adopt
strategies to challenge market leader’s
position
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Market Objectives

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Market Structure

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Market Structure

Highly Competitive High Degree of Market Power

Oligopoly Duopoly Monopoly


Airlines Aircraft Airports
Banks Manufacturers Navigation

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Market Segments

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?Which Segment

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Steps in Segmentation,
Targeting, and Positioning

6. Develop Marketing
Mix for Each Target Segment Market
5. Develop Positioning Positioning
for Each Target Segment
4. Select Target
Segment(s)
Market
3. Develop Measures
of Segment Attractiveness
Targeting
2. Develop Profiles
of Resulting Segments
1. Identify Bases Market Segmentation
for Segmenting the Market

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Market Targeting
Market Coverage Strategies
Company
Marketing Market
Mix

A. Undifferentiated Marketing
Company
Marketing Mix 1 Segment 1
Company
Segment 2
Marketing Mix 2
Company
Segment 3
Marketing Mix 3
B. Differentiated Marketing

Segment 1
Company
Marketing Segment 2
Mix
Segment 3
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C. Concentrated Marketing
Developing Competitive
Differentiation
Product Service

Areas for Competitive


Differentiation

Personnel Image
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Many opportunities for
”differentiation ”subtle touches
• Cabin service
• Inflight goodwill voucher (test)
• Arrival
• Check-In • Arrival service
• Security check • Connecting flight
• Boarding • Baggage information
• Upgrade • Lost baggage
• Denied boarding

• Information
• Booking
• Sales Cabin • Complaints
• Waiting list/change booking Check-In service Baggage • General feedback
service • Complaint follow-up
• Cancellation/refund Boarding Check-
out
Sales and In Customer
Reservations Flight feedback • Information
• Direct mailings
Pre • Booking
• Magazine Post
Marketing • Upgrade
Flight Flight FFP
Communications • Material

Service Processes Service Processes


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III. Promotional activities

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The Marketing Mix

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Promotion

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Possible Objectives of Promotion
Create awareness
Stimulate demand
Encourage product trail
Identify prospects
Retain loyal customers
Facilitate reseller support
Combat competitive promotional efforts
Reduce sales fluctuations
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Promotional Activities
Promotion can include the following
activities:
Special offers
Advertising
Press releases
Brochures
Leaflets
Stands and displays
Use of technology
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Advertising

 Used to communicate the availability of


the Airline ‘product’ or service
 This aims to stimulate demand for the
service
 In detailed terms, though, advertising has
three different objectives
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Advertising Objectives

• Communicating information about the


product or service
• Persuading consumers to buy the product
or service
• Keeping the Airline in the ‘public eye’

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Press Releases
Producing written ‘copy’ (an article or
announcement) for use by newspaper,
magazine, TV and other media outlets:
‘Free’ advertising?
Direct access to target market segment
Ability to put positive ‘spin’ on news
But once released, the news item is
beyond your control
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Brochures

• Airline brochures are produced by Airlines,

Tour Operators and Travel Agents

• Airlines often pay to be included in Tour

Operators’ brochures

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Use of Technology in Promotion

• Types Of Online Advertising :


@ Banner and rich media ads
@ Search engine inclusion and placement
@ Email Applications
@ Sponsorships
@ Affiliate relationships
@ Public relations and press release
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Endorsement

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People

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People
People represent the business
The image they present can be important
First contact often human – what is the lasting
image they provide to the customer?
Extent of training and knowledge of the
product/service concerned
Mission statement – how relevant?
Do staff represent the desired culture of the
business?
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Push and Pull Channel Policies
Push Policy
Promoting a product only to the next institution
down the marketing channel
Pull Policy
Promoting a product directly to consumers to
develop stronger consumer demand that pulls
products through the marketing channel

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Comparison of Push and Pull
Promotional Strategies

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Three Main Reasons Why
Marketing Efforts Fail

Lack of commitment

Lack of a clear benefit

Poor positioning / image for the Airline

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