Deregulation and Marketing Strategy

Marketing Strategies Changed Since Deregulation The objective of this study is to describe how marketing strategies have changed since deregulation.

It is reported that over the past 25-year that the transportation system in the United States has undergone dramatic changes in both "size and form as it carried ever-increasing numbers of passengers and volumes of freight, both domestically and internationally." ( ) The demand for transportation services has been due to a population that had increased staidly in addition to the increase in the numbers of "passengers and volumes of freight, both domestically and internationally." ( p.

1) There are reported to be other forces that have impacted the growth of the transportation system and this includes deregulation of the "aviation, rail, motor carrier and maritime shipping industries over the past 25 years." (, p. 1) Marketing Strategies Urban Wallace Associates reports that deregulation has resulted in changes in the manner in which money is made in an industry and that "Success, which used to be a function of pleasing regulators, becomes dependent on pleasing customers.

It is no wonder that deregulation causes most companies to start talking about "getting closer to their customers." (2014, p. 1) Deregulation is reported to make marketing extremely important and it is stated that "rate payers are no longer captive customers." (Urban Wallace Associates, 2014, p. 1) The fundamental marketing question is reported to be one that asks "How does one attract and keep customers?" (Urban Wallace Associates, 2014, p. 1) II. Changing Expectations Deregulation has resulted in the introduction of choice for customers where previously there was very little choice or none at all.

The result is that there are radical changes in customer expectations. It is reported that the new expectations are such that serve to "define the benefits that customers seek and directly affect levels of customer satisfaction. Thus, the measurement and monitoring of changing customer expectations is critical to the success of any marketing program designed for a deregulated industry." (Urban Wallace Associates, 2014, p.1) Deregulation has additionally resulted in price differences where there were previously not such differences in prices.

The result is that behavior is changed in competitors and customers and ultimately price differences serve as "a trigger that starts customers searching for better value." (Urban Wallace Associates, 2014, p. 1) It is reported that the most important thing that managers must consider is that in industries that are deregulated, price "is a marketplace reality, not a marketing tool. Discounts will not build sustainable market share." (Urban Wallace Associates, 2014, p. 1) III. Brand Image Deregulation has changed the importance of brand image and brand image.