Module 2 - Marketing of Air Transport Services
Module 2 - Marketing of Air Transport Services
1. Will the customer (or the person under consideration) fly at all?
In Aviation marketing, the focus should be only on the traveller but also
on the people making travel decisions. These include:
Knowing the nature of customer decision making process is a major step towards
more effective marketing. Timing of marketing activities is just as important.
Who is a Customer?
Customer Vs Prospect
Problem / Need
Recognition
Information
Search
Evaluation of
Alternatives
Actual
Purchase
Post purchase
evaluation / behaviours
Theory
Complication
Who is a Customer?
Consumer Decision Making process
SEGMENTATION
Identifying
PRODUCT
meaningfully
different groups of
customers TARGETING PRICE
Selecting which
segment(s) to serve
POSITIONING
Implementing
DISTRIBUTION chosen Image &
Appeal to chosen
PROMOTION
segment(s)
Segmentation, Targeting & Positioning
Types of Marketing Segmentation?
DEMOGRAPHIC GEOGRAPHIC PSYCHOGRAPHIC
SEGMENTATION SEGMENTATION SEGMENTATION
Occasional buyers
Benefits Sought
User Status
Usage Status
Loyalty Status
Segmentation, Targeting & Positioning
Types of Marketing Segmentation?
DEMOGRAPHIC
SEGMENTATION
Age
Gender
Life cycle Stage
Religion
Occupation
Segmentation, Targeting & Positioning
Types of Marketing Segmentation?
GEOGRAPHIC
SEGMENTATION
Countries
Continents
Regions
Cities
States
Segmentation, Targeting & Positioning
Types of Marketing Segmentation?
PSYCHOGRAPHIC
SEGMENTATION
Social Class
Lifestyle
Personality
Interests
Values
Segmentation, Targeting & Positioning
Types of Marketing Segmentation?
BEHAVIOURAL
SEGMENTATION
Occasional buying
Benefits Sought
User Status
Usage Status
Loyalty Status
Segmentation, Targeting & Positioning
Developing a Marketing Segmentation Strategy
MEASURABILITY SUSTAINABILITY
ACCESSIBILITY ACTIONABILITY
Segmentation, Targeting & Positioning
Market Targeting
A company cannot concentrate on all the segments of the market. It can however
divide the market into segments and target the most suitable segment(s) as its
target market.
Market targeting is a process of selecting the target market from the entire
market.
Undifferentiated Marketing
Differentiated Marketing
Concentrated Marketing
Brands channel all of their marketing efforts towards their uniquely defined
segment of the population, with the aim of owning this particular segment over
their competitors.
Segmentation, Targeting & Positioning
Procedure of Market Targeting
Market targeting procedure consists of two steps:
1 2
Evaluating Market Segments Selecting Market Segments
A company attempts to serve all the customer groups with all the products they
need. Here, all the needs of all the segments are served.
Positioning your
Product price brand/product as
Types of
competitively priced
positionin
g strategies Associating your
Product quality brand/product with a
specific use
Types of positioning
strategies
Create a
Positioning in
positioning Competitor
advertisements
statement Analysis
Before you begin writing your positioning statement you need to ask:
Create a tagline
Create a tagline
Nike: “Just do it.”
Competitor Analysis
You’ll evaluate their strategies so you can determine their strengths and
weaknesses in comparison to your business and use it to your advantage.
Segmentation, Targeting & Positioning
Market Positioning
Competitor Analysis
Once you’ve figured the competition out you’ll need to figure out where
you currently fit in the market.
Positioning in advertisements
Identification of needs
Vs
Over Segmentation
Vs
Under Segmentation
Airline Passenger Market
Segmentation variables
Segmentation of air passenger market has traditionally
been based on the use of three variables
Journey Purpose
Identification of needs
Vs
Airport Frequency
Services & Timings
Frequent
Punctualit
Flyer
Benefits y
Seat Airport
Accessibility / Location &
Ticket Flexibility Access
Customer Requirements
Business Travel Market
Frequency & Timing of Flights
Punctuality of flights is of
obvious, crucial importance to
business travellers with No airline can hope to obtain a
delays meaning large share of the available
business travel market of it is
1. Inconvenience saddled with the handicap of
2. Loss of clients / customers poor punctuality reputation.
3. Missed appointments
Etc
Customer Requirements
Business Travel Market
Airport Location and Access
This rule may apply even if the services from a local airport is
with a “No Frills” airline.
Customer Requirements
Business Travel Market
Seat Accessibility & Ticket Flexibility
Seat Accessibility: An important need of a business traveller. It refers to
the probability of a passenger being able to book a seat on a flight shortly
before its due to depart.
1. Sudden crises
2. Emergency
3. Last minute change of plans
Customer Requirements
Business Travel Market
Frequent Flyer benefits
FFPs in
1. Check-in services
2. Baggage services
3. Priority services (Priority check-in , Security, boarding, etc)
4. Facilities available
5. Lounge services
Etc
Airport Services in
The differences between business and leisure air travel begin with
the demographics of leisure travel.
Demographic
characteristics
Gender
Age
Lifecycle stage
Disposable income
Customer Requirements
The Leisure Travel Market
Leisure customer
requirements
Best Airfare
Tax benefits
Price Competition
Vs Among airline companies
Service provision
Willingness of leisure
passengers to sacrifice some of Free F & B
the product features (comfort,
airport service and catering) Vs
Airport standards, leisure
passengers will often accept Paid F & B
longer minimum check-in times
Customer Requirements
Freight:
Air freight:
Air freight is the transportation of packages and goods by air for quick and
safe delivery.
Customer Requirements
The Air Freight Market
For Many years, air freight was seen as a side business by airline companies.
With increasing revenues in the air freight market, competition also increases.
On the passengers side, airlines are very fortunate that, on long haul routes, all
passengers who travel do so using air transport. With air freight, the situation is
totally different.
Air transport face intense competition from surface transport and water transport.
Additionally, surface and water transport cost is less compared to air transport.
Market Segmentation
Customer Requirements
The Air Freight Market
Only if markets are properly segmented, airlines can find a basis for their
product, price and promotional policies.
Emergency Markets
Emergency situations occur when goods have to be moved by the fastest possible
mode of transport with costs of achieving a fast transit is a secondary
consideration.
Emergency Situations
Emergency Markets
Frequency Availability of
Communicate Door-to-door
of flights cargo Space
accurate and collection and
real time delivery
information service
about the status
of consignments
Customer Requirements
The Air Freight Market
Air freight market segmentation
Emergency Markets
The emergency segment of demand has always been, and remains highly important
to an airline’s air freight business.
To avoid this, it has been necessary to develop arguments as to why air freights
should be the preferred option for the routine as well as the emergency shippers.
This is where the second segment comes in – Perishable & Non- Perishable markets
Customer Requirements
The Air Freight Market
Air freight market segmentation
Perishable markets