CHAPTER 7:RELATIONSHIP IN AIRLINE MARKETING

CHAPTER 7:RELATIONSHIP IN AIRLINE MARKETING

Recite a prayer….(15 seconds)

Course ContentsContent 8 chapter:

Chapter 1:FUNDAMENTAL OF AM.Chapter 2:MARKET FOR AIR TRANSPORT SERVICE.Chapter 3:MARKETING ENVIRONMENT& AIRLINE BUSINESSChapter 4:PRICING AND REVENUE MANAGEMENT--------------------------------Mid-term------------------------------------------Chapter 5:DISTRIBUTING OF THE PRODUCT AND BRANDINGChapter 6:RELATIONSHIP MARKETINGChapter 7:AIRLINES SELLING,ADVERTISING&PROMOTEChapter 8:THE FUTURE OF AM----------------------------------Final exam--------------------------------------

Learning outcome…Know the relationship in airline

marketing strategies

AIRLINE MARKETING

Chapter 6Relationship Marketing

~~What is the meaning of a relationship??~~

~~Why an airline should have a relationship?~~

RELATIONSHIP MARKETINGDefinition:

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

RELATIONSHIP MARKETINGOr in other words :

Relationship Marketing is a marketing strategy whose objective is to

establish and maintain a profitable, long-term relationship with a

customer, which goes beyond the initial contact.

RELATIONSHIP MARKETING~~WHAT IS THE IMPORTANT OF THE RM IN

AIRLINE?~~

-To Gain pax loyalty and expand the business. e.g: (small to big company)- Support throughout the person’s career e.g:(enhance capability and career development)- Incremental business cost is low e.g: (easy to get subsidy, donation , loan)- Less follow up effort; persuading method e.g: easy task to find a new pax and lost cost.- Refer loyalty pax to influence new pax- Etc..

RELATIONSHIP MARKETING~~WHAT IF AN Airline DON’T HAVE A RM?~~

- Business loss without pax loyalty e.g: Customer feel doubtful about the airline - Keep on getting different/new pax e.g: Will increase the cost of promotion to get new pax- High initial costing e.g: the cash flow of the company will slower- Difficult to change the pax mind/decision e.g: Customer prefer to buy a ticket from the famous airline

QUIZ 2:QUESTION 1:What kind of company you prefer to deal and has a good relationship with ? Why?

RELATIONSHIP MARKETINGTHE 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 without any reward from the firms.

E.G:FAMILY,FRIENDS,COMPANY….

RELATIONSHIP MARKETINGDestroyer 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.

E.G: competitors, unsatisfied customer , phd person,

QUIZ 2:QUESTION 2What is your strategies to avoid destroyer

relationship happen among your customer?

RELATIONSHIP MARKETING~~How to Build Advocate Relationship??~~

Straight-dealing e.g.: no overcharging, no hidden cost, will loss of the customer loyalty.Delivering promises eg., on-time, no delay, comfortable, excellent food, warmest welcomes, etcCaring– keep inform of new service & positive response to complain from customerAccessible – easy to contact by phone vs long computerized phone messagesGratitude – be recognized, reward, expression of thanks, etc. Pages 230

COMPONENTS OF RELATIONSHIP MARKETING STRATEGY

The Need To Know Who Are The customers

The Management of QualityCustomer RelationsMARKETING COMMUNICATION

RELATIONSHIP MARKETING


a) The Need To Know Who Are The customers

- Demographics; get name, address, profession, etc- Activity; what, where, when, how, route, class of service, fare types customer prefer.- Feedback & comments; complaints, standards, suggestion

expectation, etcPages:231

RELATIONSHIP MARKETINGCOMPONENTS OF RELATIONSHIP MARKETING STRATEGY

b) The Management of Quality

~~To maintain and improve of the core values and achieve the goals of the company mission~~

-Airline promises and has to maintain it.E.g: Terms of safety,punctuality,a/c cleanliness,baggage handling.- Continuous program/never-ending taskE.g: improve the airline produc t, service- Continuous adaptation to changesE.g: aware with the current issues,tax,policy,

Pages :232

RELATIONSHIP MARKETINGCOMPONENTS OF RELATIONSHIP MARKETING STRATEGY

c) Customer Relations~~method to build relationship with the customer~~To set up:a)Complaint handling dept: -to report the poor quality & demotivated staffEffective policy:

- easy to make their views known- prompt action- giving apology or compensation - a follow-up letter to get feedback

b)Lost and Found department:Effective policy: - fast action & easy to deal - announcement if any( child lost, wrong parking and etc)c) RECEPTION: Effective policy: - any inquiry from customer(toilet , surau, ATM machine)

Quiz 2:Question 3;Based on this video clip. What is the tips to comfort

your customer?

QUIZ 2:QUESTION 3; Based on this video clip. What is

the tips to comfort your customer?



The Management of QualityCustomer RelationsMarketing Communication

RELATIONSHIP MARKETINGd) MARKETING COMMUNICATION~~To get enclose the customer via HP, Boucher,

magazine~~Example:- Approach customer via hp , Fb , internet and

etc- Using data bases for target messages e.g:(Student , professional workers,)- Avoid junk mail syndrome e.g: annoying the customer.- Make attractive offers to existing & future pax e.g: promote or discount offer to the customer- Use to express gratitude to their pax e.g: Greeting them with poskad , text

messagesPages:234

Quiz 2:Question 4.4)Describe the advocate and

destroyer relationship in airline industry (6M)

5) How an airline can build advocate relationships with their customer? (10M)

RELATIONSHIP MARKETING

D’END

CHAPTER 7:RELATIONSHIP IN AIRLINE MARKETING

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