An airline which is to apply the principles of Marketing successfully needs
a thorough knowledge of current and potential markets for its services.
This knowledge should encompass an understanding of the businesses in
which they participate, and of the market research techniques they must
apply in order to gain the knowledge they need about the marketplace.
They must be able to identify “Customers” and distinguish them from
“Consumers”. They must segment their markets and identify the
requirements of Customers in each of the segments. Finally, and most
importantly, they must examine their markets in a dynamic rather than a
static sense and anticipate future changes in customer needs.
2:1 What Business are we in?
To begin this work, any airline first has to answer the question as to which
market or markets are to be studied. To do so, it must answer the
fundamental question about the business or businesses in which it
participates.
In doing so, there are two possibilities. The first, and obvious way is to
define business participation in terms of what the firm does. Thus it would
be easy for an airline to say that it was a player in the aviation business.
There is a significant problem in doing so. It will result in a serious
underestimation of both the extent and the nature of the competition that
the airline faces. As a consequence, defining business participation in this
way is often characterised by the term ‘Marketing Myopia’. A far better
way is to look at the question from the point-of-view of the needs that the
firm is aiming to satisfy and the competition that it faces. A large
combination airline will be working in at least the following areas:
An airline which is to apply the principles of Marketing successfully needs
a thorough knowledge of current and potential markets for its services.
This knowledge should encompass an understanding of the businesses in
which they participate, and of the market research techniques they must
apply in order to gain the knowledge they need about the marketplace.
They must be able to identify “Customers” and distinguish them from
“Consumers”. They must segment their markets and identify the
requirements of Customers in each of the segments. Finally, and most
importantly, they must examine their markets in a dynamic rather than a
static sense and anticipate future changes in customer needs.
2:1 What Business are we in?
To begin this work, any airline first has to answer the question as to which
market or markets are to be studied. To do so, it must answer the
fundamental question about the business or businesses in which it
participates.
In doing so, there are two possibilities. The first, and obvious way is to
define business participation in terms of what the firm does. Thus it would
be easy for an airline to say that it was a player in the aviation business.
There is a significant problem in doing so. It will result in a serious
underestimation of both the extent and the nature of the competition that
the airline faces. As a consequence, defining business participation in this
way is often characterised by the term ‘Marketing Myopia’. A far better
way is to look at the question from the point-of-view of the needs that the
firm is aiming to satisfy and the competition that it faces. A large
combination airline will be working in at least the following areas:
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