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CHAPTER 2: THE MARKET FOR AIR TRANSPORT SERVICES. What Business Are We In? TRANSPORTATION COMMUNICATION LEISURE LOGISTIC INFORMATION SELLING SERVICES. Do you think transportation is important for social need and why?. What kind of transportation we have now?.

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chapter 2 the market for air transport services
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

  • TRANSPORTATION
  • COMMUNICATION
  • LEISURE
  • LOGISTIC
  • INFORMATION
  • SELLING SERVICES
do you think transportation is important for social need and why
Do you think transportation is important for social need and why?
  • What kind of transportation we have now?
slide4

THE MARKET FOR AIR TRANSPORT SERVICES

  • What Business Are We In?
  • Transportation
  • Long haul
  • Short haul
  • Door 2 door
  • Special service
  • etc
chapter 2 the market for air transport services1
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

  • TRANSPORTATION
  • COMMUNICATION
  • LEISURE
  • LOGISTIC
  • INFORMATION
  • SELLING SERVICES
example of communication we have now
Example of communication we have now?
  • Telephone,
  • Internet,
  • Video conference
  • etc
slide7

THE MARKET FOR AIR TRANSPORT SERVICES

  • What Business Are We In?
  • b) Communication
  • - face to face meeting
  • urgent business deal
  • day trip
  • Business Competitor?
chapter 2 the market for air transport services2
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

  • TRANSPORTATION
  • COMMUNICATION
  • LEISURE
  • LOGISTIC
  • INFORMATION
  • SELLING SERVICES
slide9

THE MARKET FOR AIR TRANSPORT SERVICES

  • What Business Are We In?
  • c) Leisure & holiday
  • customers disposable income
  • disposable time
  • leisure holidays
  • Leisure activities
chapter 2 the market for air transport services3
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

  • TRANSPORTATION
  • COMMUNICATION
  • LEISURE
  • LOGISTIC
  • INFORMATION
  • SELLING SERVICES
slide11

THE MARKET FOR AIR TRANSPORT SERVICES

  • What Business Are We In?
  • d) Logistics
  • Air freight
  • - fast transportation of goods
  • - meeting dateline any ideas….
chapter 2 the market for air transport services4
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

  • TRANSPORTATION
  • COMMUNICATION
  • LEISURE
  • LOGISTIC
  • INFORMATION
  • SELLING SERVICES
slide13

THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

e) Information

- moving urgent documents

- transportation of news

Docs, items, samples, products

chapter 2 the market for air transport services5
CHAPTER 2:THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

  • TRANSPORTATION
  • COMMUNICATION
  • LEISURE
  • LOGISTIC
  • INFORMATION
  • SELLING SERVICES
slide15

THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

f) Selling services

Ground Handling

Airport Management

slide16

THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

f) Selling services

Catering

In-flight Entertainment

slide17

THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

f) Selling services

Piloting

Engineering

slide18

THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

f) Selling services

Cabin services

Reservation/ticketing

slide19

THE MARKET FOR AIR TRANSPORT SERVICES

What Business Are We In?

f) Selling services

Dubai airport

Duty Free Shops

chapter 2 the market of air transport services
Chapter 2:The Market of Air Transport Services
  • Who Are The Consumer and Customers?
  • Market Segmentation?
slide24

THE AIRLINE CUSTOMERS

The Consumers --- “ARE THOSE PEOPLE WHO ACTUALLY TRAVEL”

The Customers --- “They Are The Decision Makers”

chapter 2 understand the airline market
CHAPTER 2:UNDERSTAND THE AIRLINE MARKET
  • The general customer need
  • Industrial buying behavior
  • The customers in the “business air travel market”
  • Leisure & Holiday Travel Market
  • Customers - Air Freight Market
slide29

UNDERSTANDING THE AIRLINE MARKET

  • The General Customers Needs
chapter 2 understand the airline market1
CHAPTER 2:UNDERSTAND THE AIRLINE MARKET
  • The general customer need
  • Industrial buying behavior
  • The customers in the “business air travel market”
  • Leisure & Holiday Travel Market
  • Customers - Air Freight Market
chapter 2 understand airline marketing
CHAPTER 2:UNDERSTAND AIRLINE MARKETING

2.Industrial Buying Behavior – DMU(decision Making Unit)

  • Decider
  • Gatekeeper
  • User
  • Buyer
  • Influencer
industrial buying behavior dmu decision making unit
Industrial Buying Behavior – DMU (decision Making Unit)
  • Decider - he makes the final decision: owner, CEO, Senior Manager,
  • Gatekeeper – those people who control the flow of information into decision-unit. e.g.: PA protect their Boss from times wasting visit, unwelcome sales people.
  • User– those people who use the product or service, concern about quality , cost
  • Buyer – negotiate to get the best deal, expect reward from savings
  • Influencer– those people who don’t use a product, but who influence the final outcome-e. g: government, civil,
  • -Please read page:12-14
chapter 2 understand the airline market2
CHAPTER 2:UNDERSTAND THE AIRLINE MARKET
  • The general customer need
  • Industrial buying behavior
  • The customers in the “business air travel market”
  • Leisure & Holiday Travel Market
  • Customers - Air Freight Market
chapter 2 understand the airline marketing
CHAPTER 2:UNDERSTAND THE AIRLINE MARKETING
  • 3. The Customers in the “Business Air Travel Market”
  • Secretaries who makes bookings for their bosses – understand the bosses requirements,
  • Travel agents – 80% of bookings,
  • Corporate Travel Manager – special task
  • Customers – who provide feedback
  • Please read page 15-17
chapter 2 understand the airline market3
CHAPTER 2:UNDERSTAND THE AIRLINE MARKET
  • The general customer need
  • Industrial buying behavior
  • The customers in the “business air travel market”
  • Leisure & Holiday Travel Market
  • Customers - Air Freight Market
chapter 2 understand the airline marketing1

4. Leisure & Holiday Travel Market

A) Their Concerned

~Is there other/better mode of travel

~Service and quality

Challenges from surface & ground transport

B) Children – facilities for children & babies

~women – UK, well plan program

C) Travel agent

~ provide package, visa etc

D) Tour operators

~ organizes travel in groups

E) Consolidators

~bucket shops, block seats to sell

on discount

CHAPTER 2:UNDERSTAND THE AIRLINE MARKETING
chapter 2 understand the airline market4
CHAPTER 2:UNDERSTAND THE AIRLINE MARKET
  • The general customer need
  • Industrial buying behavior
  • The customers in the “business air travel market”
  • Leisure & Holiday Travel Market
  • Customers - Air Freight Market
chapter 2 understand the airline marketing2
CHAPTER 2:UNDERSTAND THE AIRLINE MARKETING
  • 5. Customers - Air Freight Market
  • The Freight Forwarders
  • – 90% of business
  • b) The Senior Management of
  • Freight Forwarders
  • – decides on the airlines carrier
  • The forwarder’s clerks-decides on the emergency shipment and at late night
  • The integrator-a complete-services, door to door, FedEx, ups
exercise
Exercise!!
  • What is the Low cost carrier?
  • What is characteristic?
  • What LCC do and DO not do?
chapter 2 market segmentation
CHAPTER 2:MARKET SEGMENTATION

Definition 1:

~~A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs~~

chapter 2 market segmentation1
CHAPTER 2:MARKET SEGMENTATION
  • The Air Passenger Market
  • Air Freight Market
  • Selection of Airline
chapter 2 market segmentation2
CHAPTER 2:MARKET SEGMENTATION
  • The Air Passenger Market
    • a) Journey Purpose -
  • b)Length of Journey-
  • c) Country/Culture of Origin of Traveler-
slide47

MARKET SEGMENTATION

  • 1. The Air Passenger Market
    • a) Journey Purpose
  • - Pilgrim visits: Mecca, India, Malaysia
  • - Corporate business travel; services is important
  • - Independent business travel: cost factor is important
slide48

MARKET SEGMENTATION

1. The Air Passenger Market - cont

a) Journey Purpose-cont

- Leisure holiday:

high disposable income to cover accommodation and meals

- Leisure travel visiting relatives:

lower disposable income

chapter 2 market segmentation3
CHAPTER 2:MARKET SEGMENTATION
  • The Air Passenger Market
    • a) Journey Purpose -
  • b)Length of Journey-
  • c) Country/Culture of Origin of Traveler-
slide50

MARKET SEGMENTATION

  • 1. The Air Passenger Market - cont
  • b) Length of Journey
  • - Short-haul-route:
  • flight time less than an hour,
  • airport location and service,
  • frequency and timing
  • seats accessibility/ticket flexibility
slide51

MARKET SEGMENTATION

  • 1. The Air Passenger Market - cont
  • b) Length of Journey
  • -Long-haul-route:
  • flight time more than an hour,
  • in-flight experience and service,
  • seating comfort, food,
chapter 2 market segmentation4
CHAPTER 2:MARKET SEGMENTATION
  • The Air Passenger Market
    • a) Journey Purpose -
  • b)Length of Journey-
  • c) Country/Culture of Origin of Traveler-
slide53

MARKET SEGMENTATION

  • 1. The Air Passenger Market -
  • Country/Culture of Origin of Traveler
  • - seating comfort, European vs. Eastern traveler
  • - food for Muslim and non-Muslim
chapter 2 market segmentation5
CHAPTER 2:MARKET SEGMENTATION
  • The Air Passenger Market
  • Air Freight Market
  • Selection of Airline
slide55

MARKET SEGMENTATION

  • 2. Air Freight Market
  • Emergency traffic:
  • -fast delivery of goods, door-to-door
  • - operating emergency; emergency parts for oil company or ship spare parts
  • - marketing emergency; suppliers meeting deadline, to service dissatisfied
  • customers
  • Perishability: good with short life span
  • By Type of Services
  • – 1st class/Buss Class
  • - Corporate policy
    • - Decision makers
  • - Advantages & services
chapter 2 market segmentation6
CHAPTER 2:MARKET SEGMENTATION
  • The Air Passenger Market
  • Air Freight Market
  • Selection of Airline
3 selection of airline a business traveler corporate policy b leisure traveler tour operators

MARKET SEGMENTATION

3. Selection of Airline

a) Business Traveler – corporate policy

b) Leisure traveler – tour operators

summary chapter 2
Summary chapter 2:

~~The market for air transport services.~~

~~Consumer and customer definition~~

~~ Understand the airline market~~

~~ Market segmentation~~

exercise1
EXERCISE!!!!
  • Please explain the 2 market of air transport services and give your own example.
  • Please state 3 ways how can you improve the market of air transport service?
  • An airline has implemented the type of service which 1st, economic and buss class. As the customer, which one you prefer and explain why.
  • Please explain the definition of Consumer and Customer.
  • As a customer, what are your general needs which an airline need to pay attention?
  • As the airline industry operator, you must know the air passenger Market. Please explain 3 kind of the air passenger market.