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Module 6 ATEM
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Module 6 ATEM
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What is the Selling Concept?
The belief that companies need to aggressively sell their products, even if it doesn't align with customer needs.
What is the Marketing Concept?
The idea that a company's success comes from providing superior value to customers in terms of product, distribution, and communication compared to competitors.
What characterized the pre-World War II era in airline marketing?
Emphasis on carrying mail over passengers due to higher profitability and limited market demand for air travel.
Why did airline marketing face challenges after World War II?
Lack of experience in marketing the relatively new product of air transportation.
How did the airline industry transition from a sales-oriented to a consumer-oriented approach?
The shift occurred as market demand outstripped available capacity, leading to a focus on shaping services to meet consumer needs.
When did marketing principles in the airline industry start to formalize?
In the 1960s, marking the beginning of a more systematic and advanced approach to marketing.
What challenges did airlines face in the 1970s with the introduction of wide-bodied planes?
Excess capacity, leading many carriers to adopt the marketing concept to shape services according to consumer needs.
What marked the emergence of low-cost, no-frills airlines in 1971?
The demand for reasonably priced air transport, challenging traditional carriers with high fare structures.
Why did some low-cost airlines struggle initially?
Lack of amenities compared to traditional carriers, but Southwest Airlines succeeded by focusing on price and efficiency.
How has the modernization of airline marketing impacted distribution?
It shifted from physical ticketing agents to electronic systems, making distribution faster, more convenient, efficient, and accurate.
Define Marketing Mix.
The set of actions or tactics a company uses to promote its brand or product, consisting of Price, Product, Promotion, and Place (4Ps).
What does "Price" refer to in the Marketing Mix?
The value assigned to a product, influenced by production costs, market ability to pay, and other factors.
In the Marketing Mix, what does "Product" refer to?
The item being sold, which must deliver a minimum level of performance.
In the Marketing Mix, what does 'Product' refer to?
The item being sold, which must deliver a minimum level of performance.
What does 'Place' refer to in the Marketing Mix?
The point of sale or distribution, emphasizing catching the consumer's eye and making it easy to purchase.
What does 'Promotion' encompass in the Marketing Mix?
All activities undertaken to make a product or service known to users and trade, including advertising, incentives, and direct marketing.
Why is the Marketing Mix important?
It influences a company's business strategy and, when managed well, leads to success; mismanagement may take years to recover from.
What uncontrollable variables must marketers contend with?
Cultural and social differences, political and regulatory changes, economic conditions, competitive structures, and company resources and objectives.
How does the marketing team respond to uncontrollable variables?
By altering its marketing strategy, recognizing and adapting to changes in cultural, political, economic, and competitive environments.
What is the term used to describe the process by which the marketing mix is changed?
Marketing strategy.
Who controls resources and objectives in a company, affecting the marketing team's actions?
Top management, whose decisions shape the marketing team's strategy and goals.
What is the Selling Concept?
Selling concept claims that companies need aggressive selling to move products, even if it doesn't align with customer needs.
Define Marketing Concept.
Marketing concept emphasizes delivering superior consumer value to the target market compared to competitors.
What characterized the production-oriented period in airline marketing history?
Focus on carrying mail, scarcity of services, and customer acceptance of whatever was available.
What challenge did airline executives face post-World War II regarding marketing air transportation?
Lack of experience in marketing a relatively new product—air transportation.
When did marketing concepts in the modern sense begin according to Hardy (2016)?
The concepts of marketing began during the late 18th century into the 19th century, driven by inventions.
What does the term "widebodies" refer to in the context of airline marketing?
Widebodies are large-capacity aircraft developed to address market demand surpassing available capacity in the late 1960s.
What marked the consumer-oriented period in the airline business?
Transition from a shotgun approach to target market approach, identifying specific customer groups and tailoring services to their needs.
When did low-cost, no-frills airlines emerge?
The first generation of low-cost, no-frills airlines emerged in 1971, starting with Southwest Airlines.
Define Marketing Mix.
Marketing mix refers to the set of actions or tactics a company uses to promote its brand or product, encompassing the 4Ps: Price, Product, Promotion, and Place.
