BA 514 Exam 1

geodemographic segmentation

Combining a typology or categories of consumers with household location These approaches attempt to combine location (ex: zip codes) with demographic and lifestyle data to create profiles Leading system: PRIZM Aid marketers in determining target mkts, direct-mktg campaigns, site selection, media selection and analysis of sales potential

LEVEL

IAG

the 3 M's are

Measurable (size, characteristics) Meaningful (sales, growth, profit potential) Marketable (reached, both communications & distribution)

french blue

N/A

air canada rouge

air canada

airasia x

airasia

thai airasia x

airasia

objectives of route development

attract new routes with new airlines attract new routes with existing airlines grow existing routes retain existing routes influence change to existing routes

azul

azul

cebu pacific

cebu pacific

environmental forces are

cooperative competitive economic social political & legal labor environmental and technological

competitive advantages are

cost leadership or differentiation from competitor

culture is transmitted by

cultural influences (society + belief system) social class (demographics + lifestyle) reference groups (family + friends + clubs + orgs)

organizations should focus on

customer needs and wants (a market orientation)

route development process

define catchment area assess market identify underserved routes determine growth forecast for route choose possible airlines and analyze financial viability

purchase decision tries to minimize the following risks

economic physical functional psychosocial

disconfirmation paradigm

expectations vs. performance (not not overpromise)

psychographic segmentation

focuses on consumer lifestyle VALS, AIO

beijing capital

hainan airlines

market segmentation

identify group of consumers who can be served by a single item

Uncle Sam Buys an Airplane

initiator: u.s. government users: u.s. air force, u.s. navy, u.s. marines, royal air force, royal navy influencers: lobbyist from Boeing & Lockheed buyers: u.s. taxpayers deciders: u.s. military gatekeepers: u.s. pentagon

structural influences are (design of the organization and how it affects the purchasing process)

initiators influencers deciders users buyers gatekeepers

alternative search (many problems DO NOT require much search, lifetime of buying behavior in place) is based on the following sources

internal (memory, consideration set) group (other people, WOM) marketing (mrktg promotions) public (publicity, product ratings) experiental (trying out the product

jin air

korean air

why is smaller beating bigger?

less expensive to operate on per-seat basis eliminates stop-overs no big crowds at baggage claim allows airlines to offer multiple flights helps fill seats and boost profits mixed blessing for passengers: as planes get smaller and flights more frequent, long-haul travel is taking on some of the characteristics of domestic travel (inexpensive tickets, cramped seats, no free meals)

lion air

lion

eurowings

lufthansa

stages of buying decisions are

need recognition (internal/external stimuli) alt. search (lifetime of buying behavior) alt. evaluation (reviewing what we learned) purchase decision post purchase feelings

norwegian air

norwegian

Airport customer groups

passengers & airlines

Airport marketing

passengers (electronic, printed, media advertising, loyalty programs, sponsorships, fundraising events, air shows) airlines (individual meetings, written reports, networking events, route development process)

behavioral influences are

personal motivation (buyer are people: worried about personal and job issues including friendships & personal ambitions) role perception (buyer's perception of the job/commitment to the role) Research shows that buyers perceive their importance as higher than other decision makers

situational influences are

physical features (readily apparent features of situation) social features (other people present) time (units, comparisons + expectations in place) task features (intent of purchase) current conditions (antecedent states, moods that impact process)

research reports required to attract airlines

population travel propensity demographics business/tourist surface transport links

organizational buying by

producers (business buy goods to produce) intermediaries (resellers) government agencies (U.S. Fed Gov, largest customer) other institutions (non-profit: hospitals, museums, uni)

benefit segmentation (benefits people are seeking in consuming a given product)

products have attributes/features (only perceptual or truly real?); attributes provide benefits, which also can be used to market & position a product *A market oriented approach *Must track market for changes

rank target markets by

profitability sales volume organizational capabilities

jetstar

qantas

sole sourcing is

relying on only one supplier

nokscoot

singapore airlines

scoot

singapore airlines

route - what impacts demand?

smaller airport regional leisure/holiday small charter cities large airports large market mainland low cost services to overseas

organizations objectives must be

specific measurable action commitments by which mission of the org. is to be achieved

the marketing concept means

that an organization should seek to achieve its goals by serving its customers

marketing is

the process of exchanging offerings that have value for customers

culture/subculture

the society and belief system in which one lives

this form of monopsony power is most likely when

there are few other airlines actively seeking aircraft competition is keen between aircraft models marketed by different manufacturers; or manufacturers' backlogs are low

why is vendor analysis done? (rating each potential supplier on various performance measures)

to be put on "approved" list to become sole supplier for before & after comparisons

product positioning

to establish a place for product in the mind of consumers

marketing strategy is

to provide value to customer, employees and investors

"The last 747"

trend towards long-haul, point-to-point connections by both low-cost and full-service carriers fuel-efficient B787 + A350 allow longer non-stop connections decreases importance of major airport hubs and models like B747 + A380 consumer prefers non-stop service but object long-haul flights

westjet

westjet

objectives in purchasing aircraft

when the purchase will increase the carrier's profitability and therefore increase the value of the firm

effective marketing starts

with a blueprint for the entire organization

wow air

wow

factors that drive post purchase dissonance (doubts and second thoughts about choice made)?

1. the decision is an important one psychologically or financially or both 2. there are a number of forgone alternatives 3. the forgone alternatives have many favorable features