Principles of Marketing (Section B)
Instructor: Dr Ziad Haddad
Cyril Abi Chahla (12070409)
Case Study 1: Pegasus Airlines
Pegasus Airlines is a Turkish based low-cost airline company that adopted a customer driven marketing strategy. A customer-driven marketing strategy focuses on fulfilling the customer’s needs wants and demands in order to deliver superior customer value and satisfaction, thus producing high customer equity; an increase in customer equity ultimately leads to an increase in revenue, which is what any company would aim for. A need is basically an inner state of feeling or a basic human need. A want is a translated need, as in, the person’s need merged with his social background and life experiences giving birth to the need. The demand is the stage where the buying occurs, when buying power meets the want. In other words, Pegasus Airlines needs to know its customer’s needs and wants in order to translate them into demand and thus into profit. Pegasus airline has covered a range of needs - physiological (hunger, sleep, thirst …), safety and self-actualization- notably by providing extra services or facilities in order to make the customer’s life easier. The services provided/facilities allotted can either be included in the basic price of the fare or add up to a little extra, either way they constitute a way of increasing the product/service’s value. Pegasus Airlines keeps a relatively good standard of comfort while focusing on meeting the passenger’s expectations and priorities while maintaining an excellent pricing, making it attractive to the everyday man. The link between the customer/passenger and the airline doesn’t break at the fulfillment of the current transaction. Pegasus Airlines focuses on gaining new customers and on maintaining the current ones which comes as a given (since it’s their aim) with their current marketing strategy giving them their competitive advantage and making them as successful as they are. And they will...
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