Practical Marketing SkillsSeminar for Egyptair Managers Abroad Cairo, Egypt, September 22, 2005 docx

Contents This session will cover the following marketing skills topics : Introduction Market research & Analysis Promotional activities... …Marketing Defined Marketing is about anticipa

Practical Marketing Skills

Facilitator Adel A Zahran Marketing Planner

Seminar for Egyptair Managers Abroad Cairo, Egypt, September 22, 2005

Contents

This session will cover the following

marketing skills topics :

Introduction

Market research & Analysis

Promotional activities

I Introduction

Trends Affecting The Airline Industry

Deregulation / Open SkiesDecreasing fares/unit costs Low cost / low fare carriers rapid growthPrivate Carriers/privatization

Alliances/Consolidation Direct distribution

Security issuesEnvironment Issues

…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

Marketing Management

in the aviation industry

instruments to run mission and strategy

Operational Marketing Planning

Market research

information and analysis phase

Implementation

Strategic Marketing Planning

Target market oriented product definition

Optimization of communication and promotion activities

Definition of pricing policies

Competitive marketing activities

Target customer groups

Competitive reaction

Regional market trend monitoring

Quality standards

organization, management, supervision

defining the business - philosophy, overall concept, ultimate ambition

Marketing Strategy

Implementation and Monitoring

Marketing mix

Product Management

Pricing Sales &

Competitor Customer Company

People Process

Source : LH Consulting

II Market Research & Analysis

Market Research & Analysis

Purpose

Secondary Research

Primary Research

Market Analysis

Market Position

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

Market Objectives

Market Structure

Aircraft Manufacturers

Market Segments

?Which Segment

Steps in Segmentation, Targeting, and Positioning

5 Develop Positioning for Each Target Segment

6 Develop Marketing

Positioning

Market Targeting

Market Segmentation

Market Targeting Market Coverage Strategies

Segment 1 Segment 2 Segment 3

Segment 1 Segment 2 Segment 3

Company Marketing Mix

Company Marketing Mix

Company Marketing Mix 1

Company Marketing Mix 2

Company Marketing Mix 3

Market

A Undifferentiated Marketing

B Differentiated Marketing

C Concentrated Marketing

Many opportunities for

”differentiation ”subtle touches

Pre Flight

In Flight

Post Flight

Marketing Communications

Sales and Reservations

Check-In Boarding

Cabin service Baggage

service Check- out

FFP

Customer feedback

III Promotional activities

The Marketing Mix

Promotion

Retain loyal customers

Facilitate reseller support

Combat competitive promotional efforts

Reduce sales fluctuations

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

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

Use of Technology in Promotion

• Types Of Online Advertising :

Endorsement

People

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?

Comparison of Push and Pull

Promotional Strategies

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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