Introduction
The marketing mix strategy is a set of tactics and actions corporations apply to help promote their operations or products in the market or industry. The framework comprises four elements: product, place, price, and promotion. A product is a service or good intended for sale. This marketing mix component is associated with the design, branding, and features offered to the intended customer segment.
Price is associated with the amount the customer is willing to spend on the product or service offered. Promotion concerns personal selling, advertising, direct marketing, and public relations linked with the product or service being sold to the customers. Place refers to the distribution channels or locations used to deliver customer services. This marketing approach is an effective strategy American Airlines uses to boost profitability and attract different customer bases.
How American Airlines Implements the Marketing Mix Strategy
American Airlines has effectively implemented the marketing mix to promote its services. The company offers a wide range of products based on seat selling in first class, premium economy, and business classes or categories. The company offers connecting and direct flights, which helps ensure that its passengers are not inconvenienced or left at a disadvantage.
Moreover, American Airlines offers flagship suites to its first-class international customers. Furthermore, American Airlines provides lounges at airports such as Flagship and Admirals Club, which are meant to make its customers comfortable as they wait for services (Lounges, 2023). The Admirals Lounge is mainly used by loyal customers, politicians, and celebrities. This helps attract a wide customer range and boost revenue.
Regarding price, American Airlines offers services based on choice, budget, and customer needs. The passengers are given plans to select from, including Choice Plus, Choice, and Choice Essential. These plans depend on the customers’ budget and what service category they want to buy. For instance, the Choice essential category enables passengers to swap flights at no charge, carry one checked-in bag, and receive group 1 boarding (AAdvantage program,2023). Conversely, Choice is an economy ticket containing charges for extra baggage and features. Additionally, the company offers refundable and non-refundable options.
American Airlines’ promotional approach involves providing loyalty programs. The loyalty program earns passengers more points for every mile traveled. The company also uses the miles traveled to upgrade customers to first class. Furthermore, American Airlines offers Gold and Platinum status, which enables flyers to access bonus miles, airport privileges, and upgrades (AAdvantage program,2023). Additionally, the company uses advertising options such as Billboards, social media, Onboard magazines, and airport and in-flight entertainment to be able to attract a new customer base and retain the old one.
Finally, the company has a wide distribution network, including direct and indirect channels. American Airlines has five major bases of operations in Chicago, Miami, New York, Los Angeles (LA), and Dallas. Moreover, the company has five business hubs that run on a smaller scale in Phoenix, Charlotte, and Washington, D.C. Besides its domestic network, the company has an international base that provides flight services to more than 50 countries globally, including Germany, the United Kingdom, and the Netherlands (American Airlines, 2023). This network helps bring services closer to its target market and expand its customer base, which then helps improve profitability and brand growth.
Conclusion
The marketing mix plan is a practical approach used to help maximize profits and reach a wide range of customer segments. American Airlines has utilized the strategy to establish tactics in targeting market audiences and boosting revenue. Along with Flagship suites and lounges, it offers various services in first class, premium economy, and business classes.
Choice and Choice Essential plans determine the pricing strategy based on the customer’s requirements and financial constraints. Additionally, the business expands its market of operations through loyalty programs, Gold and Platinum status, and advertising choices like billboards, social media, and onboard publications. Lastly, American Airlines’ vast distribution network brings services closer to customers.
References
AAdvantage program. American Airlines. (2023). Web.
Business travel services. American Airlines. (2023). Web.
International travel. American Airlines. (2023). Web.
Lounges. American Airlines. (2023). Web.