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Marketing In British Airways

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Introduction

Part 1 Question 1 The organisations marketing environment (ME), using course concepts/frameworks from B203 Block 3, I wish to analyse is British Airways. British Airways (BA) is a global market leader in the airline industry. It operates chartered and scheduled air services carrying passengers, freight and mail, flying to over 300 destinations domestically and internationally, as well as supplying ancillary services. Its Chief Executive Willie Walsh recognises that to maintain its position as a market leader BA needs to successfully compete, have the drive to move forward and achieve profitability by operating within its margins and ultimately satisfy the customer's needs. A starting point for analysis is information gathering. Monitoring ME factors through environmental scanning, developing a strategic marketing planning process which understands, responds and adapts to these factors (developments, opportunities, windows) which impact on it's day to day business, these factors are split into two areas;- Macro environmental factors - political, legal, regulatory, societal/green, technological, economic/competitive. These are external to the organisation. Micro environmental factors - the business, suppliers, market intermediaries, buyers, competitors, publics. These are more organisation specific. From BA's point of view, the Macro environment has had a significant impact on its operations. Politically since the start of the millennium and in the wake of the terrorist attacks in 2001 and 2005, the wars in Iraq and Afghanistan and a period of crisis and instability Governments have imposed new security measures to restore customer traveling confidence. ...read more.

Middle

Markets In the airline industry the last 10 years has seen significant changes. BA according to the Standard Industrial Classification System (SIC) [9] is primarily in the category for Transportation (7) however it also has interests in communication, leisure and logistics yet it has seen a downturn in profits and passenger numbers falling due to the recession, industrial action and rising fuel prices. Competitors The markets in which BA operate are highly competitive. Direct competition from other airlines on BA routes, as well as from indirect flights, charter services and from other modes of transport. The cost structures of other airlines are lower than BA's or have other competitive advantages such as support by government intervention. Fare discounting has had a negative effect on BA profitability by a response to competitors' fares to maintain passenger levels. BA has a strong global market positioning, network and alliances along with a diverse customer base to address the risks. Customers BA needs to recognise and respond to customer behaviours. A customer's decision to fly with a particular brand is dependent on their age, income, geographic location, lifestyle and expectations. Taking these factors into account the customer will vote with their feet if BA doesn't factor these into the customer experience and cater for these needs. ...read more.

Conclusion

I can see offering services and products unique to the marketplace will give Nortel a distinct advantage. Though they are quick to recognise that raising their standards will come at a price "Customers' demands are increasing; yet raising service level standards from 80% to 85% can mean an exponential increase in Nortel's costs."[14] Developing after sales service as a brand and positioning it as an all in one yet bespoke service will set Nortel apart from the main competitors. Using the comments within the TGF regarding Nortel I understand the importance of a clear market strategy and the marketers responding positively to changes within the marketing environment. They are in a very precarious state presently. Scaling back of overseas operations and offloading of certain products I particularly related to the comments made that possibly Nortel didn't respond quickly enough with innovative areas and now are suffering at the hands of their competitors, strengthening their brand equity and constant adaptation of the 4'P's (product, promotion, price, place/distribution) marketing mix maybe a way out of the situation. (293 words) Reference [1] http://en.wikipedia.org/wiki/EU%E2%80%93U.S._Open_Skies_Agreement (accessed 23/01/2011) [2] http://en.wikipedia.org/wiki/Porter_five_forces_analysis (accessed 23/01/2011) [3][4][5][6][7] http://www.britishairways.com/travel/about-british-airways/public/en_gb (accessed 23/01/2011) [8] http://en.wikipedia.org/wiki/Flybe (accessed 23/01/2011) [9] Pg156, Marketing Essentials, Dibb and Simkin, 2008 [10] http://www.superbrands.uk.com/consumerresults (accessed 24/01/2011) [11] http://www.britishairways.com/cms/global/microsites/ba_reports0910/our_business/risks.html (accessed 25/01/2011) [12] http://www.brandingstrategyinsider.com/2008/04/brand-crisis-an.html (accessed 25/01/2011) [13] http://www.nortel.com/corporate/investor/reports/collateral/q310_NNC_Shareholder_Report.pdf (accessed 26/01/2011) [14] http://learn.open.ac.uk/mod/resourcepage/view.php?id=370291&direct=1 (accessed 26/01/2011) ?? ?? ?? ?? Helen P Hart (Y080625X) B203 TMA02 B203 Page 1 of 5 ...read more.

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