Concerns of Airline

In recent years, with the growth of the economy, more and more people are willing to pay for their airline tickets to travel places far away from the departure location. But the price of air ticket is not stable and the there are various ways to buy it. The most favorable way is booking online. In order to get competitive advantages over other air companies. Many firms had set package of tickets is that twice return journey tickets. Customers always reserve ticket online before more than one or two month before the departure date so that they could get a big discount of price. The airline companies except set economy class also have business class and first class.

However, the price of air ticket setting contains many considerations. According to Clutterbuck (1994, p. 199) passengers always under the pressure to pay extra charge. The price of economy class is low but companies require many extra consumption such as adding baggage charge and if customers do not charge the baggage fee first then they will face to receive penalty for their baggage. And the extra charge almost equal to their price air ticket. In addition, Stavins (2001, p. 202) states that air ticket has price discrimination problems and airline firms refuse building standard of price. In another words, the price of first class is higher than business and economy class and the service between these three classes are obviously different, which leads price discrimination.

The following is a video of France airline to introduce the difference among classes

Furthermore, some marketers utilized quiet low price to attract consumers, which is infeasible. When customers ready to book or pay the ticket online the price will increase suddenly. So some website of air ticket is not reliable and marketers just intentionally induce passengers’ awareness.

http://www.qua.com/

From the strategy of price in marketing seems like it is fair for segmentation of different consumers. However, form the business ethical aspect the big gap of different price really exist potential negative impact on customers.

Form the view of customers airline companies actually need to be promoted. Taking Tiger, Virgin and Qantas three airline companies as the example. It is not difficult to realize that every time before boarding the airplane. The worker of Tiger takes a weighing instrument to filtrate people who over the limited weight and penalty them. For some customers who believe they pay less for their tickets. In fact, they pay more than they predict. Thus, tiger airline is weak compare with Virgin and Qantas. In some point of view, each firm has its own characteristics and different regulations. Oppositely, Virgin and Qantas provide better service and baggage is free.

 three01.PNG

From the experiences of people traveled could present another concern. According to Tellis (1988, p. 339) the elasticity of price is negative and wiser method are increasing quality and services. Consumers are sensitive to price change. Airline companies not well done with the price change strategy. During the period of festival, the price of ticket is much higher than normal period. Customers prefer traveling and ignore high ticket price.  By contract, when the demand of ticket is lower, companies reduce ticket price to maintain normal operating and stimulate sale volume.  As a consequence, airline companies should through offer better quality or services to improve ticket price rather than utilize busy period of festival to cheat money from consumers.

Suggest approaches to solve the considerations:

  • Increasing quality of service
  • Avoid using official website instead of virtual website
  • Setting ticket price relevant stable
  • Design special seat for special group of people and without extra charge

In conclusion, the price of airline mainly have three concerns are adding extra purchase, price discrimination to customers and elasticity of price is negative. Balancing ticket price and reducing the gap among classes.

 

 

Reference list:

 

Clutterbuck R, 1994, Terrorism in an Unstable World, Routledge, London and New York.

 

Stavins, J., 2001. Price discrimination in the airline market: The effect of market concentration. Review of Economics and Statistics, 83(1), pp.200-202.

 

Tellis, G.J., 1988. The price elasticity of selective demand: A meta-analysis of econometric models of sales. Journal of marketing research, pp.331-341.

by XIN FU

ID: 214382446

 

Advertisements

Brand Function and Strategies

What is brand?

According to Farquhar (1989, p. 24) brand is the bridge between value of product and the association of customers. In another words, brands is used as a tool of strategy which linked products though the name, symbol or colours (Schmitt, 1999, p. 57).  Generously brands equal to identification. Firms always obtain excellent reputation and the association of good quality of items from the brand. Brands also assist to enhance and improve competitive advantages over competitors.

Brand function

Brands benefits both firms and customers. First brands help consumers distinguish company ownership, easily make decisions and big brands serviced the status in the Society. Second brands contribute to companies establish reputation which induce the loyalty of buyer, though the extra good service and good quality allow companies add premium prices and it also cloud regards as an efficient tool developing new products. For example of luxury brand Dior. Dior is efficient achieve width of developing products. Dior targets at multiple products contains perfume, cosmetics, clothes, bags and watches.  When people heard of the name of Dior trigger the image of good quality of items and making people feel fashion and high status in society. As a consequence people are willing to pay the high price to gain high quality and good services. Which made very successful association from consumers.

 

Built and manage brand

However, built and manage brand equity is not easy.  Farquhar suggested there are three elements suggested by for Building a strong brand are as the following:

  • A positive brand evaluation. (e.g. IKEA related to cheap and convenient furniture evaluated by customers )
  • An easy way to let people generate awareness. (e.g. slogan of advertisement state is easily memory or link to product)
  • The consistency of brand. (e.g. many products always update the cover of package).

Manage brand equity first should built a brand with good quality, which enhance positive evaluation generates and related to good product image. Second making easy ways for remembering and next following step is that increasing brand equity by inducing consumers’ behavioral experiences to reach the goal of promoting sale volume. Third launching new products with exist brands, which achieve the purpose of brand extension. (Farquhar 1989, p. 32)

Here is very good video to learn how to build a strong brand.

Maintaining quality of products and continuing creating ideas of delivering brands of items could not secure brand flourishing all the time even though some big brands. In recent days the bad news of dick smith had announced went bankrupt and many big car brand had been acquired.

http://www.kotaku.com.au/2016/04/dick-smith-is-a-sad-wasteland-of-defeat-and-broken-dreams/

Strategy against recession

Business environment is changing all the time. Since the recession of global economy, some marketers had operate relevant leverages to fight recession.

Luxury brands are as the example. They divided people into three main segments are “absolute consumers”, “trigger consumers” and “bandwagon consumers”. First group of people who are real rich and buying luxury is their lifestyle. Second is the group which educated by professional and need to be respect by buying the high-end products and the last is that segment of customer who are admire the lifestyle of the rich and peruse trend of fashion. (Choi, 2009, p. 108)

Marketers utilising super high-quality and super high-end products to maintain the absolute consumers and enhance brand loyalty. At the same time, they focusing on the differentiation to service the small group of people. In addition, continuing creating accessibility to keep reputation is another essential strategy. (Choi, 2009, p. 109-110)

Thus, brand is one of key parts of both existing products and new products.

 

 

 

Reference list:

 

Schmitt, B., 1999. Experiential marketing. Journal of marketing management, 15(1-3), pp.53-67.

 

Choi, S.H., 2009. Global luxury brands’ strategies to fight recession. SERI Quarterly, 2(4), p.108.

 

Farquhar, P.H., 1989. Managing brand equity. Marketing research, 1(3).

 

Link:

https://www.youtube.com/watch?v=mnSgHLBpOpw

http://www.kotaku.com.au/2016/04/dick-smith-is-a-sad-wasteland-of-defeat-and-broken-dreams/

 

 

by XIN FU

ID: 214382446

 

What is your way for see a film?

In recent 20 years, the film industry developed rapidly. Especially the international joint venture film. People always went to cinema to relax or spend their leisure time. But what factors affect people making a decision to see a film? And what distribution strategies it utilized?

F C

There are many categories of film contain science fiction, historical, comedy, action, horror etc. There are four major distribution channels are real store cinema, CD shops, television and website. Film belongs to cultural industry. Combining the different needs of international customers, producers collect regional famous actors together to attract international demographics.

The distribution of film industry is just one vital part of marketing. Other 3ps which are product, price and promote also could not be ignored. Each industry should analysis relevant data first. That contributes to choose the appropriate methods and strategies to launch or promote products. Each new film should clearly analysis target demographic and demand for products and at the same time operators should base on the information and benefits of products to create relative communication methods to promote attractiveness and sales volume through the right media tools. Furthermore, the film ticket price setting determined the competition with competitors. (Fontelera, 2016)

Distribution concludes intensive, exclusive and selective approaches (Learnmarketing, 2016). Film industry utilized integrated marketing. Distribution channel or channels selected can impact on consumer behavior directly since it decided the way buyers obtain goods or services (Fontelera, 2016). Through observing the film industry had chosen the selective distribution channel since cinema usually located in big shopping mall and busy business center.  This established the foundation of place advantages, had the effect of ads and positioned see a film is good way for people to enjoy entertainment.

The following video will explain the some details of film distribution channels.

Before a new film played, film industry premium prepared lots of communication works to spread such as launch event and poster. Because the film manufacturer might not could sale the film to the customer directly. After analysis the products and the demand of consumers. Cinema is bridge which could provide good service for consumers. Thus, film companies cooperate with cinemas and sign agreement with them to permit them have rights to play the film. In other words, cinema is the channel of selling film.

Consumer who interested in their category film will go to the cinema to release their needs. Cinema is the main distribution channel for film manufacturer to get profits. Website and television are other ways people could use for see a film which had out of playing time in cinema.

The following is the report of Hollywood 2016

http://www.bunchecenter.ucla.edu/index.php/2016/02/new-2016-hollywood-diversity-report-business-as-usual/

From the report Hollywood company had very detailed analysis consumers’ behavior to target consumers’ demographics and could setting further marketing strategies.

There is a very effective strategy is that during festivals to launch new film matches consumers’ free time and lifestyle. Within festival time people are on holidays and it is much easier to attract awareness of consumer. For instance, marketers create New Year movie for people to celebrate New Year, which symbolizes lucky for the next year.

Moreover, the distributions also should consider its cost such as cost on advertising, artwork printing, cinema renting, digital technological etc. The price conflict is the common problem should be careful. Sometimes, the return is inversely proportional to investment on distribution. (Marketing MO, 2016)

To sum up, distribution plays a vital role and it should combine with other marketing strategies.  Product and consumer behavior analysis assist to appropriate channels setting and communication extension.

Reference:

Fontelera, J 2016, Distribution Channels and Marketing Analysis, Chron, retrieved in 15 May 2016, < http://smallbusiness.chron.com/distribution-channels-marketing-analysis-60985.html>.

Learnmarketing, 2016, Marketing Mix Place and Distribution Strategies, Learnmarketing, retrieved in 14 May 2016, <http://www.learnmarketing.net/place.htm>.

Marketing MO, 2016, Distribution Channels, marketing MO, retrieved in 14 May 2016, <http://www.marketingmo.com/strategic-planning/how-to-develop-your-distribution-channels/>.

Report link: http://www.bunchecenter.ucla.edu/index.php/2016/02/new-2016-hollywood-diversity-report-business-as-usual/

Video link: https://www.youtube.com/watch?v=1ENPR5ZMvWk

WordPress username: joycefuxin

Student ID: 214382446

Relationsip Marketing & STP

In recent years there are more and more merchants appeared no matter with traditional style or high technological multi media of sale. With the growth of merchants the competitor is stronger. As a consequence, marketers develop closed relationships with consumers since marketers need to grasp condition of market so that they cloud get competitive advantages over competitors.

In terms of making relationship with buyers. According to Copulsky and Wolf (1990, p. 16) relationship marketing is changing the way of traditional media channels to establish brand loyalty and awareness. Mass media used to target more buyers since buyers have different lifestyle and preferences.

In the case of Victoria Secret (VS) which is American company and one of the most famous brand of lingerie in global. The key success of it is that it clearly clarify its segmentation of customers, effectively target the young ladies in market and also VS utilize multi methods to position their products. In Australia, almost every shopping mall or airport built sale point, people from the far distance from the store could see the attractive pink color and smell fragrance of perfume no matter people buy their products or not, people all know the brand of VS.

 

However, although the VS got the revenue of $1.1 billion in 2015, it still threaten by other new rising brands. The VS changes emphasis point not always focusing on lingerie. And had downsize 200 employees to balance changing. (Forbes & Columnist, 2016, p. 1)

Why the VS is such popular in modern society. The key reason is VS is different with other brands and stand out.

Designers depend on giving buyer feelings of attractive, beautiful, fashionable and a little bit romantic to design products. That clear targeting at women who want to get the feelings of above. And In Australia VS store only sale underwear and perfume. Other products of VS, people have to buy it from other nations such as America or Canada. It seems like the brand is very high standard and strict qualification of supplying. For the sustainable development of VS, every year it launch one new style of lingerie, which reaches the reposition effect. Smith (1956, p. 3) states that various products provided should refers needs of buyers such as price sensitivity, colour, material, and package size.

Copulsky and Wolf suggest that (1990, p. 17) there are three key elements of relationship marketing process are as the following:

  1. Establishing a database of current and potential consumers which aims at getting a wide range of demographic, life-style, and purchase information.
  2. Delivering differentiated messages to groups of consumers depends on their characteristics and preferences.
  3. Monitor the cost of getting customer and buyer’s lifetime value.

 

In the needs of customers aspect, VS did really well since products fit all shapes of body even the very big body still could enjoy shopping in VS and very beautiful on fat segmentation of consumers.   The annual fashion show of VS become more and more popular and every year the company pick up one angel for spokesperson. Stores keep playing fashion show video. That re positioning the image of product in women’s minds once wearing the lingerie they become beautiful and promote grace.

From the case of VS, it is obvious that VS utilized many marketing strategies especially segmentation, targeting and positioning. There are no unique and eternal strategies. Searching the market in time and previous, built closed relationships with consumers. Matching the market, satisfied buyers, creative all the time might be keep sustainable.

Published by: XIN FU

Student ID: 214382446

 

Copulsky, J.R. and Wolf, M.J., 1990. Relationship marketing: positioning for the future. Journal of Business Strategy, 11(4), pp.16-20.

Smith, W.R., 1956. Product differentiation and market segmentation as alternative marketing strategies. The Journal of Marketing, pp.3-8.

Forbes T & Columnist F 2016, ‘Victoria’s Secret Goes Public with Reorganization Plans’, Marketing Daily Top of the News, 8 April, p. 1, retrieved 10 April 2016, <http://www.mediapost.com/publications/article/273068/victorias-secret-goes-public-with-reorganization.html&gt;.

 

 

 

Relationship Marketing& STP

In recent years there are more and more merchants appeared no matter with traditional style or high technological multi media of sale. With the growth of merchants, the competitor is stronger. As a consequence, marketers develop closed relationships with consumers since marketers need to grasp condition of market so that they cloud get competitive advantages over competitors.

In terms of making relationship with buyers. According to Copulsky and Wolf (1990, p. 16) relationship marketing is changing the way of traditional media channels to establish brand loyalty and awareness. Mass media used to target more buyers since buyers have different lifestyle and preferences.

In the case of Victoria Secret (VS) which is American company and one of the most famous brand of lingerie in global. The key success of it is that it clearly clarify its segmentation of customers, effectively target the young ladies in market and also VS utilise multi methods to position their products. In Australia, almost every shopping mall or airport built sale point, people from the far distance from the store could see the attractive pink colour and smell fragrance of perfume no matter people buy their products or not, people all know the brand of VS.

https://www.victoriassecret.com/?cm_mmc=Google%20-%20AU-_-Brand-_-Brand-_-victoria%20secret_Exact&gclid=CLza04quhswCFQF-vQoda1QLgQ&gclsrc=aw.ds

However, although the VS got the revenue of $1.1 billion in 2015, it still threated by other new rising brands. The VS changes emphasis point not always focusing on lingerie. And had downsize 200 employees to balance changing. (Forbes & Columnist, 2016, p. 1)

Why the VS is such popular in modern society. The key reason is VS is different with other brands and stand out.

Designers depend on giving buyer feelings of attractive, beautiful, fashionable and a little bit romantic to design products. That clear targeting at women who want to get the feelings of above. And In Australia VS store only sale underwear and perfume. Other products of VS, people have to buy it from other nations such as America or Canada. It seems like the brand is very high standard and strict qualification of supplying. For the sustainable development of VS, every year it launches one new style of lingerie, which reaches the reposition effect. Smith (1956, p. 3) states that various products provided should refers needs of buyers such as price sensitivity, colour, material, and package size.

Copulsky and Wolf suggest that (1990, p. 17) there are three key elements of relationship marketing process are as the following:

  1. Establishing a database of current and potential consumers which aims at getting a wide range of demographic, life-style, and purchase information.
  2. Delivering differentiated messages to groups of consumers depends on their characteristics and preferences.
  3. Monitor the cost of getting customer and buyer’s lifetime value.

In the needs of customers’ aspect, VS did really well since products fit all shapes of body even the very big body still could enjoy shopping in VS and very beautiful on fat segmentation of consumers.   The annual fashion show of VS become more and more popular and every year the company pick up one angel for spokesperson. Stores keep playing fashion show video. That repositioning the image of product in women’s minds once wearing the lingerie they become beautiful and promote grace.VS fat

From the case of VS, it is obvious that VS utilized many marketing strategies especially segmentation, targeting and positioning. There are no unique and eternal strategies. Searching the market in time and previous, built closed relationships with consumers. Matching the market, satisfied buyers, creative all the time might be keep sustainable.

Published by: Joyce FU

Student ID: 214382446

Copulsky, J.R. and Wolf, M.J., 1990. Relationship marketing: positioning for the future. Journal of Business Strategy, 11(4), pp.16-20.

Smith, W.R., 1956. Product differentiation and market segmentation as alternative marketing strategies. The Journal of Marketing, pp.3-8.

Forbes T & Columnist F 2016, ‘Victoria’s Secret Goes Public with Reorganization Plans’, Marketing Daily Top of the News, 8 April, p. 1, retrieved 10 April 2016, <http://www.mediapost.com/publications/article/273068/victorias-secret-goes-public-with-reorganization.html&gt;.

Video: https://www.youtube.com/watch?v=zw8BqR6HsGI

Link: https://www.victoriassecret.com/?cm_mmc=Google%20-%20AU-_-Brand-_-Brand-_-victoria%20secret_Exact&gclid=CLza04quhswCFQF-vQoda1QLgQ&gclsrc=aw.ds