Marketing Management Essay Example

inform the department of consumer desires for a new product or a different use for an existing product. In response, the R department would be instructed to create a prototype of the desired product or service. The production department would then manufacture the product while the marketing department focuses on promotion, distribution, pricing, and other aspects.

Additionally, the finance department is consulted to secure funding for development, production, and promotion. However, conflicts between departments may arise when following a marketing orientation. For instance, the production department may oppose the implementation of new capital stock necessary for manufacturing a new product. Similarly, the finance department may oppose capital expenditure that could harm the organization's cash flow.

In British Airways, the marketing operation is sophisticated and creative in its approach.

The range of marketing roles at British Airways includes research, planning, strategy, commerce, and design. Our brands, such as First, Club, Club Europe, World Traveler, and World Traveler Plus, are some of the strongest and most recognizable in the industry. The Brands teams ensure that these brands meet the needs of our diverse customers. Communications support our revenue growth and build brand equity through innovative design and integrated communications. Marketing and Commercial Development collect and analyze customer feedback, leading to improvements in our services. In the UK and Ireland, we have ongoing campaigns and promotions.

Ireland Marketing teams are responsible for creating and overseeing these initiatives, often in collaboration with third parties such as the Daily Mail. Segmentation, a concept introduced by Smith (1956) and defined by Dib et al.(2006), involves dividing larger markets into smaller sub-markets in order for organizations to target and position themselves based on customer needs

and wants. Segmentation, which is the process of dividing a market into distinct segments with unique marketing strategies, is crucial for effective marketing. According to IAC, people in the same area generally have similar needs and lifestyles. Market, as described by Dib et al.(2006), refers to a collection of products that are based on people's needs and their ability, willingness, and authority to acquire those products. The marketing mix, consisting of product (customer benefits), price (cost to the customer), place (convenience), and promotion (communications), is based on this understanding. A market segment should be measurable, accessible through communication and distribution channels, different in its response to marketing strategies, durable, and significant enough to be profitable. Various forms can be used to segment a market. In this context, consumer and industrial markets are discussed. Consumer market segmentation can be divided into four segments: geographic (based on region, climate, population density, and growth rate).Full market coverage. Single segment concentration involves focusing all marketing efforts on a single specific segment of the market. Selective specialization involves targeting a few segments that have high potential for profitability. Product specialization involves offering a specialized product or service to multiple market segments. Market specialization involves focusing on meeting the needs of a specific market demographic. Full market coverage involves targeting the entire market with a broad marketing approach.The concept of positioning in marketing involves creating an image or identity in the minds of the target market for a product, brand, or organization (Full market coverage). The idea was first introduced by Jack Trout and later popularized by AY Rises and Jack Trout in their book "Positioning - The Battle for Your

Mind." According to Rises and Trout, positioning is a vital element of communication that determines the company's offering and image, aiming to occupy a meaningful, outstanding, and competitive position in people's minds (Positioning The process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.). Another insight from Michael Treaty and Fred Wireman is that successful firms typically fall into one of three categories: operationally excellent firms, customer intimate firms, and product leadership firms ("The Discipline of Market Leaders"). Operationally excellent firms maintain a competitive advantage through exceptional efficiency and lower costs, while customer intimate firms excel in serving specific customer needs. Efficiency may be sacrificed by customer intimate firms to provide precisely what the customer wants (Michael Treaty and Fred Wireman).

Technologically advanced firms that consistently innovate and produce the latest products employ effective positioning strategies. These strategies include re-positioning, which involves changing the perception of a product compared to competing products, and de-positioning, which aims to alter the perception of competing products in relation to one's own product.

The product positioning process typically involves defining the market, identifying the product space, gathering customer information, determining market share and current product position, identifying preferred attributes, examining product positions, and ultimately establishing brand position in the market.

There are three main types of positioning concepts: functional positions, which focus on problem-solving, customer benefits, and investor perception; symbolic positions, which enhance self-image, support ego identification, foster belongingness and social meaningfulness, and provide affective fulfillment; and experiential positions, which offer sensory and cognitive stimulation.

One example of applying segmentation is seen in British Airways.

The

impact of no frills carriers on the European scheduled airline market, as stated in Billfold's source, was known by British Airways. British Airways acknowledged that its business passengers sometimes utilized their service while on holiday. However, they recognized that these customers desired a different type of service during leisure trips. Despite this knowledge, British Airways did not know how to deliver this specialized service. At that point, Asset intervened and valued British Airways for their strengths. Interestingly, Asset did not compete with British Airways based on price. Instead, they identified a specific customer segment that desired quick and simple international travel without the costly extras. Asset then targeted this segment effectively. In the past, airline travel was perceived as a luxury. This perception stemmed from the early days of British Airways and other national carriers when the industry emerged. Attempts to change this perception were unsuccessful until Asset entered the market. Asset succeeded by adapting to the changing contexts and lifestyles of consumers through effective segmentation strategies. Ideally, British Airways should have responded by capitalizing on its strength, offering exemplary service at a higher price point, and effectively targeting the customer segment that valued this particular offering. A sensible approach would have been to ignore Asset altogether. However, British Airways attempted to compete with Asset by establishing GO, which ended up being a loss-making venture. Eventually, GO was sold off to Asset after much time and effort were spent pouring additional funds into it.Today, BAA focuses on its strengths – comfort, luxury, and high brand values – to cater to an audience that values dependable flights to city center airports and is willing to pay

for these benefits. The success of both BAA and Chafferer relies on proper market segmentation. It is crucial to prioritize the context and ensure that the offering is tailored to the target audience. By effectively targeting segments, marketers can skillfully position their brands to attract customers.

As defined by the American Marketing Association, a brand encompasses the customer's overall experience, including various images and ideas. This experience is often represented by a symbol such as a name, logo, slogan, or design scheme. Brand recognition and other reactions are formed through accumulated experiences with a specific product or service, influenced by factors such as advertising, design, and media commentary. The brand pyramid introduced by Chafferer provides a framework for analyzing a brand's identity.

In the book Principles of Marketing by Philip Kettle and Gary Armstrong, a brand is defined as a name, term, sign symbol, or combination thereof that identifies the manufacturer or seller of a product. P. Tailor of www.Laryngitis's.Net views branding as a marketing tool that enables consumers to identify the manufacturer of a product.In general, the goal of branding is to establish an identity for a product or service in the marketplace. Asker (1991) defines brand equity as a collection of assets and liabilities associated with a brand, which can increase or decrease based on the value of the products offered. He also identifies four key components of brand equity: brand awareness, brand identity, perceived quality, and brand loyalty. Davidson (1997) discusses the visibility of both visible and invisible elements of a brand to customers. Visible elements include symbols, brand name, packaging, advertising, and price. Invisible elements encompass quality, production efficiency and operational costs,

service delivery systems, sales service, and supply chain strategy. Companies have various strategies at their disposal to enhance their brand value. These include line extension, where small changes are made to existing products; brand extension, wherein a successful brand name is expanded into new or existing areas; multithreading, involving the addition of new brands to an already existing brand; and the introduction of entirely new brands marketed as innovative alternatives to established players in the market.There are approximately six branding strategies used by organizations worldwide based on brand name. These strategies include the following:

1. Corporate brand: This approach involves using a specific corporate brand name for all products. Example: Virgin.

2. Multiplicand: Each product is given a separate brand name to establish distinct brand identities.

3. Company and individual brand: Products are endorsed with corporate brand names, providing them with credibility and some level of independence.

4. Range branding: Different brand names are used for different product ranges, commonly observed in the automobile industry.

5. Private branding: This strategy involves supplying private brands to retail brands, where the retail brands have control over the product's market position.

6. Generic branding: This category includes products that do not have a specific brand name. The packaging of the product displays its contents.

The development of a branding policy should consider factors such as the nature of the product or service, the behavior of consumers in the specific market, and the company's competitive position.

In marketing communications, the combination of 7 Up's is utilized, which includes price, place, promotion, product, people, processes, and physical evidence. A marketing communicator serves as a bridge between sellers and customers.The marketing communications mix includes personal selling, sales promotion, public

relations/publicity, direct marketing, trade fairs and exhibitions, advertising, sponsorship, merchandising, and e-marketing/internet promotions. Brands and branding are strategies used by marketers to differentiate products, build economic value, and influence consumer purchase decisions. There are various interpretations of the term brand, ranging from a simple logo to a legal instrument or a company itself. In the consumer's mind, a brand that is seen as beneficial serves as a shortcut to understanding and processing large amounts of information.When searching for a product or service in unfamiliar surroundings, conducting an information search becomes necessary. A recognized brand can make the decision-making process more convenient. The brand acts as a risk reducer, providing reassurance in unfamiliar territories. It also positions itself in the consumer's mind in relation to other brands, being perceived as better, worse, quicker, slower, etc. A brand goes beyond function and embodies a personality, such as Apple's iPod versus any other MP3 player. It represents a cluster of values, as seen in Google's reliability, ethics, invaluable nature, innovation, and more. Managers aspire to envision a brand with a cluster of values, similar to goals or mission statements. A brand also provides added value to the consumer compared to its competition, like choosing Audi over Volkswagen or Volkswagen over Soda despite similarities. It encompasses various components that make up its identity; for example, Body Shop International embodies ethics, environmentalism, and political beliefs. A brand is also seen as an image that reflects a particular reality to the consumer, such as Stella Artois' reassuring expensive perception. Lastly, a brand establishes a relationship where the consumer reflects on themselves through the experience of consuming a product or service.Methods of

valuing brands have originated from two areas: marketing measurement of brand equity and the financial treatment of brands. This research was popularized by Keller (1993) and further examined by laws et al (1995) on brand strength measurement, Park and Croissant (1994) on brand extension evaluation, Kumara and Russell (1993) on estimating brand equity using scanner panel data, and Asker (1996) and Ointment and Sharking (1998) on valuing brand equity across local and global markets. The financial treatment of brands has traditionally been based on recognizing them on the balance sheet, which poses challenges for the accounting profession due to the uncertainty regarding future benefits associated with brands. Tolling (1989) has discussed the difference between goodwill and intangible brand assets. Additional studies have explored the impact of customer perceptions of perceived quality on stock prices (Asker and Jacobson, 1994), as well as the connection between shareholder value and the financial value of a company's brands (Kerri and Stentorian, 1998).

Simon and Sullivan (1993) developed a technique for measuring brand equity, utilizing financial market estimates. Cauldron et al (1997) and Cravens and Gilding(1999) have recognized the value of joint assessments in brand valuation. Asker (1991), Seafarer (1997), Keller (1998), and Asker & Schematically (2000) propose alternative perspectives to the traditional marketing viewpoints. The ongoing debate on valuation methods persists in both literature and the business world (Peppier, 1997).

Interbrain, a UK-based firm, Financial World magazine, and Brand Finance Limited, a British consulting organization, are leading the commercial brand valuation efforts. These organizations employ formulae approaches and emphasize the significance of brand valuation in the business environment. The key factors in determining brand value are market type, market

share, global presence, durability, extendibility, and protection - as acknowledged by accountants.

Marketers consider several factors when judging potential brand value. These factors include superior products or services, country of origin, and market domination. There are four main options for organizations to structure their operations and gain access to brand values. These options are the manufacturer's brand system, the retailer's brand system, the franchise brand system, and the manufacturer's private label brand system. Through these options, an organization can identify its brand value. One example of a company with a strong brand value is our global premium airline.

Our principal place of business is in London, where we have a significant presence at Heathers, Catwalk, and London City airports. These airports are located near the City of London, the world's largest premium travel market, with approximately 20 million people living within commuting distance. In addition to our passenger services, we also operate a worldwide air cargo business. We have one of the most extensive international scheduled airline route networks and fly to over 300 destinations worldwide in partnership with our dashers and franchise partners.

During the 2009/10 financial year, we carried nearly 32 million passengers. We contribute to the UK economy by facilitating trade and investment, meeting the demand for both business travel and leisure travel for holidays and family reunions. In that financial year, our revenue amounted to E billion, which was a decrease of 11 per cent from the previous year.

At the end of March 2010, we had 238 aircraft in service, carrying 760,000 tones of cargo to various destinations globally. Passenger traffic contributed to 87% of our revenue, with

cargo accounting for 7%, and the remaining 6% coming from other activities.