Channels of distribution is one of the important ingredients of the marketing mix.The role of the marketing manager is to ensure that Channels of distribution complement the other marketing mix to execute the vision of the marketing manager in achieving his or her set goals.’’Channels of distribution is therefore the system by which customers have access to the company’s product or service’’(Dhar,Winer,2011,pp.341).Distribution channels act as intermediary between the manufacturer and the final consumer. In ensuring that the objectives of the marketing manager is achieved, the role of the marketing manager is entrusted to design avenues that would find its product with the target customers. It must be noted that a brand with a great value …show more content…
In the past 8 years Egyptair has stepped up its promotional activities in Palermo and that city has witnessed a huge number of passengers that have boarded Egyptair from that city. ‘’African emigrants to Italy include Italian citizens and residents originally from Africa. Immigrants from Africa officially residing in Italy in 2015 numbered about 1,000,000 residents.’’(Wikipedia).These influx of Africans have become the target market for most of these competitors in the airline industry which in turn has driven Egyptair to beef up its channel distribution areas in Palermo
Finally the change in landscape of the distribution channel of the airline industry would be incomplete without touching on the internet evolution. The internet has been very popular to the extent that it has been substituting the traditional airline agencies.Egyptair sells flight tickets directly from its website and also through E-dreams and other sites on the internet.This has made it possible for customers to bypass the traditional selling
A direct marketing channel utilizes telemarketing, mail order sales, catalog sales, and forms of online shopping to route products directly to consumers (Lamb, Hair, McDaniel, Pg. 246). In order to use other marketing channels the need for higher production quantities would be presented, for example if you make 100 knives and sell them direct to clients when you are out of stock that is it; contrary when completing transactions through retailers the manufacturing of larger amounts of product must happen first in order to get them distributed to store locations. There is a good chance that the high quality standards that work under the direct channel may suffer in the efforts to mass produce goods. The forever guarantee that is offered by Cutco is top of the line.
For worldwide airline industry, opportunities can emerge from new client expectations, items, business sector structures or regulatory
In today world of intense competitive marketing decisions often become vital distinguishing factors between industry leaders and other market players. The strategic marketing decision is taken based on their marketing mix i.e. 4 P'S of marketing. Controlling these parameters, companies may consider various internal and external marketing challenges. The marketing mix of the firm in a large part is the product of evolution that comes from day to day marketing, the mix represents the program that a management evolved in the ever challenging market (Bordern, 1994). This paper will study the world -known and reputable airline company, Delta Airlines to approach the context of marketing of the U.S Airline Industry.
Channels of distribution is also part of the marketing controllable of the company. When analyzing Apple Inc. distribution channel of products we have to include the entire chain of businesses or intermediaries through which each product passes until it reaches the end consumer. As of 2015 Apple Inc. has 453 retail stores in 16 countries also they operate online stores which is available in 39 countries.
Largely, the entry of the company into the distribution channels has limited the threat of major or powerful suppliers. The company has created its own retail stores and online web marketing. This approach aims at capturing the consumers that would want to order the product directly from the manufacturer. In fact, the online marketing model does not only enable the firm to sell directly to the respective consumer, but also enables the firm to identify the unique needs of the consumers. The direct link between the consumers and the company is critical to continuous growth of the company.
9. Environments Like any other Industry, the airline industry is also affected by changes in its external environment. King III (2009) highlights that leaders are not supposed to compromise the natural environment and the livelihood of future generations. Environmental Factors can also have a significant role to play in an airline industry; like in the case of Prof. McPherson we observe the bad weather reducing his time by 1 hour and thirty minutes. In light of the environmental factors that affect the airline industry this Study will focus on the traditional Political, Economic, Social, Technological, Environmental, and Legal Analysis, often referred to as the PESTEL Analysis.
Social Growing competition and capacity amongst airlines, lower air fares and more relaxed travel restrictions in many regions have made international travel a viable option for an increasing number of people coming to
• Threat of substitute goods: Threat of substitute good is high in this industry. If a private company or government introduces any fast road transportation services in the United States, then traveling through airline can reduce. Air travel is somehow costlier than road transport. If the same kind of leisure will be provided in public transport with greater speed, then the share of airline industry can decline. This threat can be reduced if their products offer more value than other substitute
United Airlines is the second largest air career in the world. It was established in 1927 from the merger of 4 companies. In this essay, Q1 will discuss marketing environment of UAL and how changes in the environment can impact it; Q2 will define segmentation, market segment, targeting and positioning and how UAL uses to segment its market in order to grow then in Q3 SWOT and its components will be defined and applied on UAL. Q (1.a): Marketing environment refers to “The actors and forces outside the marketing department that affect marketing management’s ability to build and maintain successful relationships with target customers” (Kotler, 2011). And it consists of Micro environment and Macro environment.
3.1 Explain how products are developed to sustain competitive advantage There are three levels of coca cola’s products. They are core product, actual product and augmented product. Core product Coca cola’s products are high quality standards for the customer.
H. Physical Distribution This is the movement of a finished product / service to customers. In the physical distribution, the customer is the ultimate goal for a marketing channel and the availability of the product / service is an important part of the marketing efforts of the individual channels participants. I. Out sourcing / Partnerships
• Many successful brands to pursue. • Advertise its less popular products. • Buy out competition. • More Brand recognition Advantages of coca –cola Market Leadership: Coca-Cola FEMSA is one of the biggest franchise bottler of Coca-Cola trademark beverages in the world, with operations in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Argentina, Brazil and the Philippines. Business partnerships: Coca-Cola FEMSA is cooperating with The Coca-Cola Company to grow more propelled joint plans of action to keep investigating and taking part in new lines of refreshments, expanding existing product offerings and successfully publicizing and advertising our items.
This information is necessary to understand the size of the market, the level of competition and customer’s needs. The main aim of this process is to gain competitive advantage. The company should collect information relating to the size of the potential markets, the demographic factors of the customers from various markets so as to ascertain whether they can meet their needs. In addition, the airline should also collect information on the level of competitiveness of the various markets to ensure they employ the best entry strategies to get recognition as well as to remain relevant in the markets. FlyDubai undertakes its market research by inviting route proposals from airports that are within their areas of operations through its Route Exchange platform.
Intercontinental Hotels is using the market differentiation strategy in segmenting its market into appropriate market divisions based on characteristics of the varying needs and characteristics of the target markets. The company has more than 3500 hotels in over 100 countries with around 535000 guest rooms. It has established a substantial customer base with over 120million customers whose preferences vary based on price and quality expectations. The Intercontinental group is made up of many brands such as the Intercontinental Hotels and Resorts, Holiday Inn Garden Court, Crown Plaza Hotels & Resorts, SunSpree, Holiday Inn, Staybridge Suites, Holiday Inn Family Suites Resort, Holiday Inn Express, Holiday Inn Select, Holiday Inn, and Candlewood
Pizza Hut was established by Dan and Frank Carney in Wichita, Kansas, USA in the year 1958. Pizza Hut Inc. is one of the prevalent pizza companies worldwide. It was a subsidiary of Pepsi Co Inc. from the year 1977 – 1997. It is a wholly owned subsidiary of YUM! Brands since 1997 to present.