As Planes Get Bigger, the Market-Place Gets More Competitive
CASE STUDY 3
AS PLANES GET BIGGER, THE MARKET-PLACE GETS MORE COMPETITIVE
I- INTRODUCTION
Globalisation rapidly changes marketing environment and marketplace become more competitive. It is no longer enough for company to be driven by product and technology without building customer relationship (Kotler, Adam, Denize and Armstrong 2009). Moreover, “business success is not determined by the producer but by the customer” (Drucker 1973 cited in Kotler et al. 2009, p. 4). Thus, in order to achieve organisation’s goals, marketing management needs to be flexible to adapt continuously changes of the environment.
II- DISCUSSION
Question 1: Microenvironment of air travel industry Microenvironment of travel airlines can be divided into the following categories:
1- The marketing organization: Even thought the role of marketing is to deal with customers, marketing management must work closely with other departments in the organization such as Accounting and Finance, R&D, Purchasing or Engineering to accomplish the goals of organisation (Kotler et al. 2009).
2- Supplier: The main suppliers of air travel industry are dominated by Airbus and Boeing (Kotler et al. 2009). Other suppliers of airline industry could include Commercial Supplies (in-flight amenities and equipment, catering services, cleaning services, uniforms, fuel, office supplies and equipment for organization), IT Products & Services and Engineering suppliers (aircraft parts and non-aircraft parts, services to support the aircraft maintenance and operation) (Singapore Airlines Invites Tenders 2010)
3- Marketing intermediaries: Marketing media of travel airlines could include Travel agency, Tourism board, Banks and other businesses that help to finance transaction, Insurance organisation and Marketing service agency ( media firms, marketing consulting firms, marketing research companies and other businesses that help the
AS PLANES GET BIGGER, THE MARKET-PLACE GETS MORE COMPETITIVE
I- INTRODUCTION
Globalisation rapidly changes marketing environment and marketplace become more competitive. It is no longer enough for company to be driven by product and technology without building customer relationship (Kotler, Adam, Denize and Armstrong 2009). Moreover, “business success is not determined by the producer but by the customer” (Drucker 1973 cited in Kotler et al. 2009, p. 4). Thus, in order to achieve organisation’s goals, marketing management needs to be flexible to adapt continuously changes of the environment.
II- DISCUSSION
Question 1: Microenvironment of air travel industry Microenvironment of travel airlines can be divided into the following categories:
1- The marketing organization: Even thought the role of marketing is to deal with customers, marketing management must work closely with other departments in the organization such as Accounting and Finance, R&D, Purchasing or Engineering to accomplish the goals of organisation (Kotler et al. 2009).
2- Supplier: The main suppliers of air travel industry are dominated by Airbus and Boeing (Kotler et al. 2009). Other suppliers of airline industry could include Commercial Supplies (in-flight amenities and equipment, catering services, cleaning services, uniforms, fuel, office supplies and equipment for organization), IT Products & Services and Engineering suppliers (aircraft parts and non-aircraft parts, services to support the aircraft maintenance and operation) (Singapore Airlines Invites Tenders 2010)
3- Marketing intermediaries: Marketing media of travel airlines could include Travel agency, Tourism board, Banks and other businesses that help to finance transaction, Insurance organisation and Marketing service agency ( media firms, marketing consulting firms, marketing research companies and other businesses that help the