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AIRLINE MARKETING. Aviation Management College. Chapter 9 Relationship Marketing. AIRLINE MARKETING. Aviation Management College. RELATIONSHIP MARKETING. Definition: RM, A marketing Philosophy whereby a firm gives equal or greater emphasis to the maintenance and strengthening of its

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slide1

AIRLINE MARKETING

Aviation Management College

Chapter 9

Relationship Marketing

slide2

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

Definition:

RM, A marketing Philosophy whereby a firm gives equal or greater emphasis to the maintenance and strengthening of its

Relationships with its existing customers as it does to the necessary search for new customers. Stephen Shaw 2004

slide3

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

DEFINITION:

RM, Marketing activities executed by a firm to maintain and strengthen Relationships with its existing customers and in their search for new customers. Ashari Abu Hasan, Feb 2010

slide4

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

  • BACKGROUND of RM
  • Air travel market consists of small number of people who frequently fly
  • Average number of trip is more than 10 per person
  • They are partly from the Business Travel market
  • Mostly in mid thirties; job requires travelling
  • Does extensive traveling for about 20 yrs
slide5

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

  • IMPORTANCE OF RM
  • - Gain pax loyalty
  • Support throughout the person’s career
  • Incremental business cost is low
  • Less follow up effort; persuading method
  • Refer loyalty pax to influence new pax
slide6

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

  • DISADVANTAGES
  • Business loss without pax loyalty
  • Keep on getting different/new pax
  • High initial costing
  • Difficult to change the pax mind/decision
slide7

AIRLINE MARKETING

RELATIONSHIP MARKETING

Aviation Management College

THE CONCEPT of “Advocate” & “Destroyer”

Advocate Relationship – pax not only buys from the airline but acts as the Airline Representative by strongly recommending others to buy from the same Airline

Destroyer Relationships – a potential pax who does not buy from the airline and also influence others not to do so by pointing out the airline inadequacies/shortcomings.

slide8

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

Building Advocate Relationship

Delivering promises eg., on-time, comfortable, excellent food, warmest welcomes, etc

Caring– keep inform of new service & positive response to complain

Accessible – easy to contact by phone vs long computerized phone messages

Gratitude – be recognized, reward, expression of thanks, etc.

slide9

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

  • COMPONENTS OF RELATIONSHIP MARKETING STRATEGY
  • The Need To Know Who Are The customers
  • Demographics; name, address, profession, etc
  • Activity; what, where, when, how, etc, travel
  • Feedback & comments; complaints, standards,
  • expectation, etc
slide10

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

  • COMPONENTS OF RELATIONSHIP MARKETING STRATEGY
  • The Management of Quality
  • Top down strategy
  • Continuous program/never-ending task
  • Continuous adaptation to changes
  • -
slide11

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

COMPONENTS OF RELATIONSHIP MARKETING STRATEGY

Customer Relations

Complaint handling dept: destroyer & advocate

Effective policy:

- easy to make their views known

- prompt action

- giving apology or compensation

- a follow-up letter to get feedback

slide12

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

  • MARKETING COMMUNICATION
  • Using data bases for target messages
  • Avoid junk mail syndrome
  • Make attractive offers to existing & future pax
  • Use to express gratitude to their pax
slide13

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

  • FREQUENT FLYER PROGRAM
  • American Airlines 1981
  • Today’s Airline Marketing Strategy
  • Challenge to be/stay competitive
slide14

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

  • FREQUENT FLYER PROGRAM
    • Members Expectation
  • - reward structure
  • - extensive partnership agreement
  • - validity period
  • - other benefits
slide15

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

  • THE FUTURE OF FFP
  • Difficult to change customer with collected points
  • Corporate prefers good discounts
  • Difficult for new entrants airlines
  • Difficult to cement loyalty due to interchangeable
  • Individual FFP vs. global FFP
slide16

AIRLINE MARKETING

Aviation Management College

RELATIONSHIP MARKETING

D’END