The demand of air travelling has been increasing quickly leads to the appearance of many low cost carriers which focus on popular class. This had made huge changes in the original service and pricing strategy. Easy-jet is one of the most successful low-fare airlines in the World, which has a noticeable measure of pricing it product. In the airline industry around the world has appeared low cost carriers as major players who have created huge changes in the original service and pricing strategy. Easy-jet is one of the most successful low cost short-haul ones in England as well as European. Along with the development of airline industry and the increase of air traveling demand, low cost flights become more and more common attracting much effort to research pricing strategies in this field in order to reach improvement opportunities. There are some different methods about the way carriers hold their flights. Studying this issue can help managers understand clearly how the prices of low cost airlines in fact could be opposed with normal ones, so they can adjust their oriented goal to achieve good performance “Price” is one of the “four Ps” in marketing mix but its role is different from the other Ps: “promotion”, “product” and “place”. By studying about the comparison between a low cost carrier and a normal one, which head to different priorities, this assignment will help us to understand how the prices of low cost airlines could be opposed with normal ones, so they can orient their goal to achieve in the best way. Besides, we can see the actual level of importance of “price” in business, how it flexibly applies theory into real complex business environment. Pricing as an element of marketing mix
Marketing activities are those actions an organization can take for the purpose of facilitating commercial exchanges. There are four categories of marketing activities that are particularly important, which are traditionally known as the four elements of the marketing mix: • Product—designing, naming, and packaging goods and/or services that satisfy customer needs • Distribution—efforts to make the product available at the times and places that customers want • Promotion—communicating about the product and/or the organization that produces it • Pricing—determining what must be provided by a customer in return for the product There is an important way in which pricing differs from the other three elements of the marketing mix. Product activities concern the design and packaging of the good or service itself, distribution involves getting the product to the customer, and promotion involves communicating the product’s existence and benefits to customers and potential customers. All three of these types of marketing activities contribute to the product being of value to customers. The term value can be considered as the benefits, or the satisfactions of needs and wants, that a product provides to customers. Pricing, on the other hand, is not primarily concerned with creating value. Rather, it could be said to be the marketing activity involved with capturing, or “harvesting,” the value created by the other types of marketing activities. Role of pricing in the marketing mix
Pricing is one of the most important elements of the marketing mix, as it is the only mix, which generates a turnover for the organization. The remaining 3p’s are the variable cost for the organization. Pricing a product too high or too low could mean a loss of sales for the organization. As the result, the role of price in the marketing mix is to define the pricing strategy that will best attract those within the business’s target market. When discussing this issue, the price of the product, discounts, segmentation and financing options are included. Setting a price involves determining what the target market is prepared to pay, the costs to produce the product, and what the competitors charge.
Developing the price section of a company's...
1. Lecture : Pricing and Costing
2. easyJet Airlines: Small, Lean, and with Prices that Increase over Time (Oded Koenigsberg
Columbia Business School 0 Columbia University, New York, NY 10027- email@example.com
5. EasyJet Pricing Strategy: Should Low-Fare Airlines Offer Last-Minute Deals? (Coauthor(s): Eitan Muller, Naufel Vilcassim.)
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