Marketing Principles and Practices
Marketing is a process of creating, promoting, designing the product to attract the customers, to increase the customer base and satisfying customer need. Marketing help customers to choose between varieties of the products available in the market as marketing is done to show the features of the product and the company (Lake, 2017). Marketing is not only done for selling the product it starts before the manufacturing of the product. After sales services are the strategy of marketing which is provided after selling the product. The company should choose the correct method of marketing for promoting the product. This report will explain the principle and practice of marketing. It will also involve the case study on Emirates airlines. Emirates is one of the airlines counted in the category of best airlines in the World and have acknowledged by 12 successive awards for best on-board Entertainment at Skytrax World Airline Awards 2016 (Emirates. 2016). Emirates have opened a new facility of SkyPharma at the international airport of Dubai for safeguarding the transport of medicines. Marketing Philosophy of Emirates airline is also explained in this report and two modules will be used to support the case of Emirates airlines.
Narrow Market Focus: According to this principle company should only focus on their core products besides focusing on many things or products. The company should create different strategies and tactics for becoming the market leader.
Materials of Marketing should Educate: According to this principle, the company should create products which provide information like websites, online pages, and etc. methods of communication that allow customers to provide their feedback (Strategy Peak. 2017).
Forming Strategies: According to this principle before building activities of marketing business should form their marketing strategies. Strategies should clearly explain the way of achieving goals and should communicate the difference from the competitors (Kotler, 2008). The company should focus on their core products.
Daily Calendar: According to this principle business should plan their activities on the daily basis and should maintain a calendar for maintaining proper pace of work.
Differentiate: According to this principle business should choose proper strategies to explain to customers that how their services are different from other businesses as it will help in attracting the customers.
Lead Generation: According to this principle, effective marketing strategy works as a system of lead generation (Armstrong et al. 2014). Most of the leads are generated through referrals but business should focus on advertising and public relation as they will help in increasing sales and efforts of the company will be worthy.
Narrow Market Focus
Online Presence: According to this principle business should increase their involvement in media and search engine as people find it easy to search for the products online and business are easily accessible online.
Right price: Price is one of the important elements of the product. Target market analysis should be done by the business before deciding the price of the product. They should know the pricing strategy of their competitors and according to that, they should take the decision of pricing. Business should decide what pricing strategy should be adopted according to the volume of the product (Richards, 2017).
Effective Promotion: Business should identify their target market and according to that they should promote their product which will make the sense of promotion and will bring best results. They should identify effective promotion tools to reach the customers at right place and time.
Fulfill Customer Needs: Business should identify properly the needs of the customer and should create a product so that needs of the customers can be fulfilled and will result in the success of the business (Muzyka and Ayoub, 2003). Those business who take proper feedback from customers and ask them about their needs are the one who gets success in the market.
Place: Place is important to the success of the product. If the business will not choose the correct place for selling the products then low price strategy of the product will be worthless. Business should choose the location which is easily accessible by the customer or nearer to the target market (Lado, Lola, and Bassi, 2010). Nowadays business is using technology to reach the customers.
In 1985, Emirates was created and International airline of Pakistan provided two wet-leased aircrafts for $10 million (Success Story. 2017). On October 25th the first flight was for Karachi and delivery of their first purchased aircraft to Dubai was in 1987. In spite of the conflicts between Iraqi and Kuwait in 1990, the services and growth of Emirates did not stop. After the operation of Emirates in six years, they reached to 23 destinations and wanted to fly and grow more. In 1992 Emirates airlines became the initiators of installing screens in all the classes of aircraft for entertainment. Flight center was opened by Emirates for their staff in 1996 (Air Review. 2017). Loyalty and marketing programs were the important steps by Emirates i.e. frequent flyer program in 2000. An effective orientation was prepared by Emirates for providing the best quality of services and they had the ambition to become the best airline in the world (Howells, 2017).
Educating Through Marketing Materials
In 2001 11th September in airline industry a terrorist attack was faced by American airlines was hijacked by the terrorist and it was crashed in New York on the Twin towers. William Gaillard said that this was the highest lost faced by the airline industry. Data shows that airline industry made $ 3.7 billion profit all over the world but faced $ 12 billion of loss in the year of 2001 due to that terrorist attack. At that time Emirates had ordered many aircrafts, in spite of some much loss Sheikh Ahmed said that they will definitely take the delivery of all the ordered aircrafts to prove that in the world they are the best team of travel. Emirates took six weeks to improve the business.
Luxurious design, modern showers, spa’s, beautiful lounges on board are the facilities provided by Emirates and they are known for their services worldwide. Total aircrafts available to Emirates were 235 from whom 221 were passenger aircraft and 14 were cargo aircraft in June 2015 (Sayeh, 2014). Emirates are the largest operator of passenger aircrafts in the world.
Economy class, first class, and business class are the options that Emirates flights provide to their customer and customers can buy the ticket any of the class according to their budget and can travel around the world. Private suits are provided by Emirates for the customers who travel in first class. The seat of this cabin is very comfortable and can be converted into beds with mattress and blanket. First class is very impressive as it provides customers the choices of wines and champagnes and the passengers who want privacy they have their personal bar in their cabin (Emirates. 2017). Spa facilities are provided to the passengers in the first class cabin on Airbus 380. Business class passengers are provided a comfortable bed with mattress and blankets and side table for the work. The option of a bar is also available for those who want to enjoy the trip (Emirates. 2017). First class and business class passengers of A360 enjoy the facility of a lounge at 40,000 ft. Economy class passengers there is no private cabin with extra facilities but comfortable seats are available with Wi-Fi and entertainment facilities (Emirates. 2017). Different facilities are available for children like toys, a special meal, and the cartoon which make them happy and take away the flying fear.
At SKYTRAX World Airline Awards Emirates received its 11th repeated award of “World’s Best Airline Inflight Entertainment”. Inflight entertainment was introduced by Singapore and Emirates airlines and personal screen technology was first launched by Emirates Airlines for all the class passengers. Emirates airlines in the International airport of Dubai have exclusive terminal i.e. terminal 3. Premium class passengers can only access the check-in-area and business and first-class passengers have a different way to enter the terminal. This terminal provides different options to their customers like shopping, cafe and restaurant for providing a good experience to their customers (Dubai Airports. 2015). Passengers receive spa facilities so that they reach their destination relaxed and tension free. Passengers who do not opt for spa, Zen garden facility is provided to them for a calm environment.
Forming Effective Strategies
Passengers of Emirates no only enjoy the services in flight but they receive best services on terminal also and they do not need to worry about check-in with this they can wait for the flight in the terminal comfortably. Lounges are designed for premium class customers so that they can feel comfortable and they never forget the experience. Customers of the first class are fulfilled all their needs. Food facility is also provided to the customers who are not tired and want to enjoy with bar facility and expert advice about the wine. For tired customers, rooms with bed and blanket are provided. Before going to the next connection passengers are provided spa and shower facilities. Business class customers receive Wi-Fi connectivity. All passengers feel like home in Emirates airlines. Bar area provides the facility to meet people from all over the world. Passengers can reach the boarding place straight from the lounge it saves a lot of time. Emirates lounge is not only in Dubai airport but this facility is provided to the customers in more than 60 airports. In 70 destination for first class and business class passengers, the Chauffeur-Drive facility is provided. Passenger receives a facility of booking a car from airport to their destination in the city.
Emirates was established in 1985 and now it is leading and successful airline. Emirates group is owned by the Dubai government. 3400 flights are operated by this airline all over the world including domestic boundaries per week (Marketing Down. 2016). Due to the excellent services and growth, Emirates airlines became the leader in this industry and have a strong brand reputation. Emirates are working hard to maintain their position in the world and are competing with the competitors. Technology and services which Emirates provide make them different from other companies of airlines. Emirates earn a lot of money in providing first-class facilities to their customers.
- Most of the passengers travel from the Gulf States to a different location and that is why Emirates most of the flights are operated from here.
- Huge profit is earned by Emirates airline in the Gulf States as most of the passengers travel from these states.
- More than 50,000 of the workforce are employed by Emirates airlines, the workforce is very efficient and hard working.
- The government of Dubai is the owners of Emirates airlines and they provide their services all around the world.
- Excellent services are provided by Emirates airline in-flight as well as at the terminals of the airport.
- Multinational companies and institutions have opened their offices in the Gulf state that increased the use of airlines for traveling from one place to another for business and different activities (Brand Guide. 2017).
- Various airlines companies are giving strong competition to Emirates airlines by providing different facilities to the customers.
- To maintain the standards established by themselves (Emirates) high cost is incurred.
- Heavy traffic is operated by Emirates airline on international destination.
- On international destination, Emirates should increase the flights to earn more revenue and profit.
- In the fleet of Emirates, they should increase the number of the airplane.
- Customers will be attracted towards the services provided by Emirates.
- Emirates airline should focus on improving the services and providing quality of offers (S&P. 2017).
- The government of different countries keeps on changing the rules and regulations it can affect the operations of Emirate flights.
- The financial position of Emirates affected due to the increase in the prices of fuel.
- In the Middle East, other leading companies have started operating their flights that are a great threat to Emirates airlines.
Market orientation is a customer-centric approach used for the designing of the product. Many types of research are conducted to know the needs of the customers (Marketing Cloud. 2017). Therefore, company focus on the development of the product funds which are more in demand. Emirates airlines are focused towards providing their passengers a life-long experience and meeting their expectations. Market orientation involve different concepts such as-
The production concept guides marketers to achieve the goals of the organization. According to the production concept, the product which has low cost and is produced on the mass level is preferred by the people (Bhasi, 2017). This concept does not consider the needs of the customer and only focus on the production. This concept is beneficial when the product demand is more. Emirates do not follow this concept as it ignores the important factors like customer satisfaction and competition.
Product concept says that customer prefers good quality of products with durability, design, and features. Organizations that follow this concept are very much focused towards their product that they ignore the needs of the customer. This leads to the "Marketing Myopia" in which organization is only concentrated towards their product (Kasi. 2017). Emirates Airlines do follow this concept as they provide good and quality of experience to their customers with this they regularly do changes in their technology and offering.
According to the selling concept, the major focus is on the profit of organization by involving in the distribution and sales of the product. According to this concept customer's stay with the product till the organization is putting selling efforts. Selling concept provide profit to the organization for a small span of time ((Bass, 2017). Selling concept is not followed by Emirates as they are very famous about their offerings so they do not need to give more emphases on selling of their services.
The main agenda of the marketing concept is fulfilling the needs and wants of the customers. This concept is also focused towards retaining the customers and maintaining a long-term relationship which results in long-term profits (Learn Marketing. 2017). Many companies are using marketing concept such as Microsoft, Procter & Gamble, Dell computers, Oracle, etc. as it results in a win-win situation for customers and for the organization. Emirates Airlines also follow this concept as they want to maintain good relations with their customers for this they provide different and innovative services to their customers and this helps them in increasing their profit.
Marketing concept works for the satisfaction of the customers but it does not consider society. According to the societal marketing, concept business should provide good quality to their customers and should fulfill their demands but by considering the welfare of the society. Issues that are ignored in the marketing concept are health, population, and pollution.
Emirates airline should start operating their flights in new countries and locations and should involve in different sectors of the business. Variety of services are provided by Emirates to their customers like a car on rent, holiday packages, hotel etc. with intangible services. Emirates main focus is on providing excellent services to their customers and their aim is to become number one Airline Company in the world.
Emirates airline can dominate other companies by enhancing and retaining the market share. Restructuring of the market segment should be done by Emirates airline and increase use of the passengers. Emirates airlines are providing developed services in the international market to improve its business and to earn more and more profit from the passengers.
Differentiating Your Business
Emirates airlines are planning to operate in the country where business and economies are emerging for this they are working hard. They are increasing their number of flights to operate in these countries so that they can earn more revenue and can impress the passengers of other countries (Rodrigo. 2012).
Services offered by Emirates airlines are different and unique from other airline operators, they provide attractive packages for all the classes’ passengers. These services make emirates airlines unique and world’s top airline company.
Dubai is the place of Emirates airlines headquarter and sub-offices in different locations in the world. 3000 Flights of Emirates operates internationally. Customers receive the latest information on registration, flight availability and booking through agents or on calls for long distance journey (Marketing91. 2016).
Emirates airlines have different classes in their aircrafts and operate in different locations. Destination, class and season are the points on which the pricing strategy of Emirates airlines depend. Cheaper rates are offered by Emirates airlines for flights to Dubai. Emirates airlines offer attractive services to their passengers and business class passengers receive baggage allowance.
Emirates airline provides their services across the world for this they promote their product with different and effective advertisement and promotional campaigns. "Hello Tomorrow" campaign was launched by Emirate airlines for promoting it helped them to bring their customers close and can connect with them for a longer period, in this campaign they also appreciated their customers for choosing Emirates airline and availing their services (Marketing Mix. 2017).
Discount of baggage's as well as on fare should be given by Emirate airline in the market where they can get more passengers. There should be an improvement in the services of Emirates airlines on the ground. Emirate airlines have those flights that reach the destination on time, they can use these flights and leave an impact on the customers who want to reach their destinations at a scheduled time. Emirates is working hard to fulfill the demands of their customers and solving the problems.
Emirates airlines are providing different services and facilities to their passengers and for that, they invest a lot of amounts. Emirates is earning more income as their customers are getting excellent and satisfactory services and their confidence towards Emirates is increasing. Emirates get a return on investment with the increasing number of passengers.
As discussed the classes of Emirates Airlines. Emirates flights are consist of three class i.e. Economy class, First class, and Business class. All the classes provide comfortable seats and quality of services to their passengers. First class passengers and business class passengers receive luxurious facilities like spa, bar, lounge, etc.
Module 2 is showing the pictures of the environment and facilities provided in all the three classes of Emirates airlines. As discussed above in the Emirates airlines case study that Economy class passengers enjoy comfortable seats with various facilities like Wi-Fi etc. First class passengers are provided with a separate cabin with seats that can be converted into beds. Business class cabins are consist of a bed with a side table for work and bar facility.
Issue-based model initiate with a SWOT analysis, it is a valuation of the online and external forces that play important role in the organization. Full form of SWOT is Strengths, Weaknesses, Opportunities, and Threats of an organization. Second, the issues or goals are identified by the stakeholders on which organization needs to focus and highlight those issues and goal. Third, in the line with the goals and issues of the organization the values, vision, and mission of the organization must be revised and reorganized. If stakeholders want to switch the second and third steps than it can be switched (Abd, 2015). Fourth, an action plan is to be developed for the issues and goals that explain the necessary steps for implementing the goals. SMART goals is a process of writing an action plan, in this goals are Specific, Measurable, Attainable, Results-oriented, and time-bound. The strategic plan is formed to look the future of more than 1 year, the operation plan for a year help organization to manage the goals and keep the plan on track. Regularly, plans are formed by the organization for 3-5 years and after that, they perform annul reviews and improvisations of the long-term plans. Consistent assessment, observing and appraising of the strategic plan is serious to its efficiency and if these reviews are shown in the annual reports then it will be helpful in ensuring that the stakeholders are on track (McNamara, 2017).
Through this model, Emirates will find out their Strength, Weaknesses, Threat, and Opportunities and will help them in identifying the factors that affect their business positively and negatively. Emirate's stakeholders will identify the issues and help in solving them. According to this model, Emirates should regularly review their vision, mission, and values. Further, they should develop an action plan to provide a way to their goals and action plan should follow the SMART goals. Emirates should develop yearly plan as it will help them to stay on track. This model will help them in forming their marketing strategy.
Political, economic, social, technological, legal and environmental factors are involved in the Pestle analysis, these factors are very important for business success. This strategy is used by marketers so that business can identify current and future problems that business is facing and can face in the future. Pestle analysis is helpful in all the business including airline business. Emirates Airline is the leading business in the industry that shows it faces many problems (Haseeb. 2017).
Uneven political factors directly affect the aviation industry. Airline industry have is of sensitive nature. The economic circumstances can be included in the political situation. It is important for Emirates airlines to follow the political factors. Some agreements are there for definite routes. Services can be affected by terrorism. The political factors are faced by all the business especially it includes terrorism. It does not include terrorism only of the domestic country but of the whole world. Therefore, it is important to consider the global political factors as airline business is not limited to one country (Adamkasi, 2017).
Capital availability, demand forecast, and profit margin are affected due to Economic factors. If the economic conditions will be favorable then business will invest more, grow and will be profitable. This factor involves the use of money. In this condition, money is the essential source which is needed for the airport development. It is very important for the airline business to have modern airports with best aircrafts. The government of UAE is investing a huge amount of money for the development of two airports in Abu Dhabi and Dubai. Both the airports are preferred by almost every customer as they are up to the international standards which result in increasing their profit. Therefore, for the success economic factors are very important.
Demand and preference of the people are considered in the Social factors. Services of the company are affected due to the social changes and it will be a threat to the business. These factors are comprised of the demographic changes which include regions, age, and numbers of employees. The main issue in the social factors is the population. If the population of the world will increase then more people will travel and it will increase the profit of the airlines. The profit of airline will decrease due to the policy of limiting the size of the family.
Airlines should be effective in analyzing and recognizing the innovations in the technology. The products and services that have been designed should meet the competition. The services of Emirates is affected by the developing technology. Customers are attracted through the latest trends and will encourage passengers to use services integrated with technology. The technological factor is an advantage as well as a disadvantage for the business. Before people use to travel for their meeting but now the number of business travelers has been decreased due to technology advancement. On the other hand, the security system of the airport is good and powerful due to technology.
Environmental changes are the major issue for Airlines. The service reliability is affected by the change in weather and climate conditions (S & P. 2017). Thus airlines should create strategies for providing excellent services to their customers. Through this, the environmental factors may not affect the business of Airline. In the UAE Emirates Airlines do not face problems of the environment as the climate of UAE is warm and dry. However, weather and climate can differ from country to country.
Legal factors included county’s rules and regulations. The revenue of the company will be surely affected by the changes in the legal factors. While in the national and international dealings airline company should be very careful. The procedures will be organized in a legal environment, which will guarantee harmless and safe trip for the passengers (Business teacher. 2017). In airline case, legal factors differ from country to country. Therefore the profit of the business depends on the laws and policies of the country.
In the conclusion, it can be said that Emirates airlines are the leading company of Airline industry in the world. They provide attractive facilities and services to their passengers. Their facilities are exclusive and attractive. In 1985, when Emirates airlines were established at that time only they decided to be the number one airlines in the world. To achieve this position they have really worked hard and given their 100 percent in this airlines. One of the reasons for Emirates success is their workforce, which is very hardworking, effective, skilled and experienced. They follow different marketing strategies for attracting the customers and regularly update and innovate their services and facilities in their system.
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