Practical Marketing SkillsSeminar for Egyptair Managers Abroad Cairo, Egypt, September 22, 2005 docx

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Practical Marketing Skills
Facilitator
Adel A . Zahran
Marketing Planner
Seminar for Egyptair Managers Abroad
Cairo, Egypt, September 22, 2005
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Contents
This session will cover the following
marketing skills topics :
Introduction
Market research & Analysis
Promotional activities
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I. Introduction
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Trends Affecting The Airline Industry
Deregulation / Open Skies
Decreasing fares/unit costs
Low cost / low fare carriers rapid growth
Private Carriers/privatization
Alliances/Consolidation
Direct distribution
Security issues
Environment Issues
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Expansion
Expansion
Airline Marketing Evolution
Retraction

Retraction
Alliances
Alliances
Globalization
Globalization
2005
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Operational costs
Operational costs
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Financially-driven
Financially-driven
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Growth of market share
Growth of market share
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Bi-laterals
Bi-laterals
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Scale
Scale
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Hub-driven
Hub-driven
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Protection
Protection
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Multi-laterals
Multi-laterals

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Technology
Technology
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O&D
O&D
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Share-driven
Share-driven
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Customers
Customers
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True Markets
True Markets
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Relationship-driven
Relationship-driven
1990
1992
1996
2000
Source : SH&E Consulting
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…Marketing Defined
Marketing is about anticipating and identifying
the wants and needs of a target market of
consumers, then satisfying those needs in
order to make a profit
Firstly, Airlines must understand their

customers’ demands. This is the ‘anticipating’
and ‘identifying’ part of the definition
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Marketing Management
in the aviation industry
instruments to run mission and strategy
Operational Marketing Planning
Market research
information and analysis phase
Implementation
Strategic Marketing Planning
Target market oriented product definition
Optimization of communication and promotion activities
Definition of pricing policies
Competitive marketing activities
Target customer groups
Competitive reaction
Regional market trend monitoring
Quality standards
organization, management, supervision
defining the business - philosophy, overall concept, ultimate ambition
Marketing
Strategy
Implementation and Monitoring
Marketing mix
Product Management
PricingSales &
Distribution
Promotion
Segmentation Targeting Positioning

( permanent monitoring and adjustment )
Status-quo analysis
Forecast
Corporate
Mission
Competitor
Customer
Company
People
Process
Source : LH Consulting
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II. Market Research & Analysis
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Market Research & Analysis
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Purpose
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Secondary Research
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Primary Research
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Market Analysis
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Market Position
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Market Position
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Market Niche – small part of an existing
market

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Market Leader – maintain dominant
position in the market?
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Market Follower – Follow the lead of the
market leader – pricing, product
development etc
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Market Challenger – Seek to adopt
strategies to challenge market leader’s
position
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Market Objectives
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Market Structure
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Market Structure
Highly Competitive
High Degree of Market Power
Oligopoly
Airlines
Banks
Monopoly
Airports
Navigation
Duopoly
Aircraft
Manufacturers
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Market Segments

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?Which Segment
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Steps in Segmentation,
Targeting, and Positioning
1. Identify Bases
for Segmenting the Market
2. Develop Profiles
of Resulting Segments
3. Develop Measures
of Segment Attractiveness
4. Select Target
Segment(s)
5. Develop Positioning
for Each Target Segment
6. Develop Marketing
Mix for Each Target Segment
Market
Positioning
Market
Targeting
Market Segmentation
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Market Targeting
Market Coverage Strategies
Segment 1
Segment 2
Segment 3
Segment 1
Segment 2

Segment 3
Company
Marketing
Mix
Company
Marketing
Mix
Company
Marketing Mix 1
Company
Marketing Mix 2
Company
Marketing Mix 3
Market
A. Undifferentiated Marketing
B. Differentiated Marketing
C. Concentrated Marketing
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Developing Competitive
Differentiation
Product
Service
Personnel Image
Areas for Competitive
Differentiation
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Many opportunities for
”differentiation ”subtle touches
Pre
Flight

In
Flight
Post
Flight
Marketing
Communications
Sales and
Reservations
Check-In
Boarding
Cabin
service
Baggage
service
Check-
out
FFP
Customer
feedback
Service Processes
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Direct mailings
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Magazine
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Information
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Booking
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Sales

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Waiting list/change booking
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Cancellation/refund
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Arrival
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Check-In
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Security check
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Boarding
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Upgrade
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Denied boarding
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Cabin service
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Inflight goodwill voucher (test)
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Arrival service
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Connecting flight
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Baggage information
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Lost baggage
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Complaints

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General feedback
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Complaint follow-up
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Information
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Booking
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Upgrade
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Material
Service Processes
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III. Promotional activities