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

1 Practical Marketing Skills Facilitator Adel A . Zahran Marketing Planner Seminar for Egyptair Managers Abroad Cairo, Egypt, September 22, 2005 2 Contents This session will cover the following marketing skills topics : Introduction Market research & Analysis Promotional activities 3 I. Introduction 4 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 5 Expansion Expansion Airline Marketing Evolution Retraction Retraction Alliances Alliances Globalization Globalization 2005 • Operational costs Operational costs • Financially-driven Financially-driven • Growth of market share Growth of market share • Bi-laterals Bi-laterals • Scale Scale • Hub-driven Hub-driven • Protection Protection • Multi-laterals Multi-laterals • Technology Technology • O&D O&D • Share-driven Share-driven • Customers Customers • True Markets True Markets • Relationship-driven Relationship-driven 1990 1992 1996 2000 Source : SH&E Consulting 6 …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 7 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 PricingSales & Distribution Promotion Segmentation Targeting Positioning ( permanent monitoring and adjustment ) Status-quo analysis Forecast Corporate Mission Competitor Customer Company People Process Source : LH Consulting 8 II. Market Research & Analysis 9 Market Research & Analysis 10 Purpose [...]... Undifferentiated Marketing Company Marketing Mix 1 Company Marketing Mix 2 Company Marketing Mix 3 Segment 1 Segment 2 Segment 3 B Differentiated Marketing Company Marketing Mix Segment 1 Segment 2 Segment 3 22 C Concentrated Marketing Developing Competitive Differentiation Product Service Areas for Competitive Differentiation Personnel 23 Image Many opportunities for ”differentiation ”subtle touches... Develop Marketing Mix for Each Target Segment 5 Develop Positioning for Each Target Segment 4 Select Target Segment(s) 3 Develop Measures of Segment Attractiveness 2 Develop Profiles of Resulting Segments 1 Identify Bases for Segmenting the Market 21 Market Positioning Market Targeting Market Segmentation Market Targeting Market Coverage Strategies Company Marketing Mix Market A Undifferentiated Marketing. .. • Baggage information • Lost baggage • Information • Booking • Sales • Waiting list/change booking Check-In • Cancellation/refund Boarding • Direct mailings • Magazine Sales and Reservations 24 In Flight Pre Marketing Flight Communications Service Processes Cabin service Baggage service Checkout Customer feedback Post Flight FFP • Complaints • General feedback • Complaint follow-up • Information •...  This aims to stimulate demand for the service  In detailed terms, though, advertising has three different objectives 30 Advertising Objectives • Communicating information about the product or service • Persuading consumers to buy the product or service • Keeping the Airline in the ‘public eye’ 31 Press Releases Producing written ‘copy’ (an article or announcement) for use by newspaper, magazine,... Information • Booking • Upgrade • Material Service Processes III Promotional activities 25 The Marketing Mix 26 Promotion 27 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 28 Promotional Activities Promotion can include the following . 1 Practical Marketing Skills Facilitator Adel A . Zahran Marketing Planner Seminar for Egyptair Managers Abroad Cairo, Egypt, September 22, 2005 . definition 7 Marketing Management in the aviation industry instruments to run mission and strategy Operational Marketing Planning Market research information