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Airline Marketing, Communication and Management Report

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Updated: Jul 5th, 2020

Sales and Marketing

Sales Management

Making sales is one of the primary objectives of businesses that are established to make profits. Selling and sales management are the efforts applied by organizations in order to achieve their sales objectives (Burrow, 2009). Sales management is important for purposes of meeting customer needs in the following ways:

  • It helps in making pricing decisions so that the customers are neither overcharged nor undercharged. Hence, the customers get value for their money.
  • It helps in product and service development so that the services produced match the needs of the customers.

Marketing communication

Marketing communication is aimed at providing information to potential customers about a product or service. It takes different forms of communication such as advertising, publicity, sales promotion, and public relations (Shaw, 2011). An analysis of the marketing communication mix is necessary when forming an optimum promotional package to reach out to all the customers targeted by the airline. For instance, Fly Emirates airline has different types of customers, e.g. the business travelers and students. For the business travelers, using the Open Skies Magazine can prove to be effective in conveying the promotional messages to them. For the student segment, social media advertising can be very effective to convey the messages.

Sales Methods

The intensity of promotional activities carried out by airlines depends on the sales budget. The percentage of sales method is applied to determine the promotional sales budget. In addition, the task based method is also commonly applied. The differences between the two techniques are illustrated in the table below:

Percentage of sales method Task based method
  1. The previous year’s promotional costs are considered when determining the current year’s budget
  1. The current year’s budget is based on the estimated costs of the tasks involved
  1. No regard is given to the marketing objectives of the current year
  1. The marketing objectives of the current year are taken into consideration when budgeting
  1. The method is fairly simple as only the percentage of sales ratio and the previous year’s actual promotional expenditure are needed
  1. This method is complicated as it involves forecasting the costs of every task required to accomplish marketing objectives

Marketing communication techniques of airlines

There are numerous marketing communication techniques strategically applied by airlines. Sponsorships are applied when airlines pay to have a presence at major events (Shaw, 2011). For instance, Qatar Airways is the sponsor of the Manchester City Football Team. Database marketing is the use of direct communication with potential customers after accessing their profiles in information databases. For instance, Qantas Airways’ frequent flyer program is used by the airline to track guest preferences and direct tailor-made marketing communications to them (Qantas, 2015).

Media relations involves collaborative engagements with the media, which are aimed at informing the public about the operations of the airlines. For instance, during the presentation of financial reports, major airlines invite the media to cover the proceedings and report to the public. Field sales teams are responsible for seeking customers and negotiating deals with them (Shaw, 2011). For example, an airline’s sales representative might decide to negotiate fares with bank executives.

Discussion: Sponsorships

In recent years, sponsorships have become important forms of marketing communication in the airline industry. For instance, Fly Emirates of Dubai has sponsored Arsenal Football Club in the English Premier League. Similarly, Etihad Airways are the sponsors of Manchester City Football Club. Qantas Airways sponsors the national rugby team of Australia. Sponsorships give the airlines the opportunity to interact with potential customers.

They also assist in target marketing where airlines target specific customer segments. Event sponsorship also leads to media exposure, hence attaining the goal of awareness creation. In addition, brand awareness and recognition are achieved as a result of the use of the airlines’ logos in events. Overall, the revenue of the airlines may increase as a result of increased customer traffic, especially if named the official carriers during the event (Shaw, 2011).

References

Burrow, J. (2009). Marketing. Mason: South-Western Cengage Learning.

Qantas. (2015). Frequent Flyer. Web.

Shaw, S. (2011). Airline Marketing and Management. Burlington: Ashgate Publishing Ltd.

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