Services Marketing Strategy Report the Airline Business Essay

Excerpt from Essay :

Services Marketing Strategy Report

The airline business is among the most competitive sectors in the economy. The business requires the investors to invest huge amounts of capital to sustain the operations of the business. The difference in the capital available has resulted into emergence of superior airline companies that have dominated the global market. The airline companies are mainly a service delivery oriented offering transport for passengers and language.

The airline company under evaluation is Singapore Airlines. The company was incorporated in 1947 originally as Malayan Airways Limited. With the help from British Commonwealth airlines, the company increased its fleet size to become among the major players in the airline industry. The company has a strong presence in Asia, which is the major market. The company operates trans-Pacific flights, which increase revenue. The company also diversifies its operations to provide services like as aircraft managing and engineering services (Lee & Institute of Southeast Asian Studies. 2008).

Globalisation of the economy is considered as the way forward for most businesses. With expansion of markets, Singapore Airlines benefits from expansion of trade routes, increased customers and subsequently increased revenue. The company also faces challenges that need addressing to ensure that the organization maintains market dominance in its Asian market. Competition from other airlines, government policies and fluctuating fuel cost are some of the challenges affecting the Singapore Airlines. These challenges have forced Singapore Airlines to invest in marketing as a strategy to maintain its client base and attract new customers. Understanding the strategies used by the company will provide information regarding benefits of investing in marketing in the industry (Ireland, Hoskisson, & Hitt, 2007).

Service offering

The target market for the airline is shifting with the increased competition forcing players to venture into the low-fare services. Singapore Airlines has been a major player in the market with the brand credited with quality service delivery at competitive prices. Singapore Airlines has been able to achieve a competitive advantage over other players due to the quality of its services. The company uses its trained staff, diverse products that cater for a large demographic, a strong public presence and organization mechanisms to provide quality products for the market (Peng, 2009).

Singapore Airlines has a strong position in the competitive market. The strong brand positioning enables the organization to compete effectively in the region. The company is associated with reliability as it is among the oldest airlines in the business. Singapore Airlines is a market leader in terms of penetration into the market with the carrier offering long distance nonstop flights. The company's venture into low fare flights will increase the volume of customers and market the organization. Investing in large capacity planes will enable the organization to reduce its operation cost and maximize on revenue (Chary, 2009).

Singapore Airlines uses the technology to improve its operations. The company should invest more on the use of technology to facilitate communication with the customers. This strategy is convenient for the organization and the customers. Improving interconnectivity between the stakeholders in the organization will ensure that the quality of services improves. The use of the internet will enable the customers to interact with the airline at their own convenience. Customers will be able to air their views directly to the management, which facilitates fast improvement of the organization.

The changes in technology require organizations to take advantage of the facilities available to improve operations. Singapore Airlines should invest in the changing technology to provide customers with quality services. Using the latest technology in the market ensures that the customers associate the company with quality. Including technology in some of the products, improve on the quality of the product, which justifies the pricing of the products. The changes will come at an initial cost to the company recoverable with time.

Current level of customer service

The company has a strong reputation of delivering quality services to its customers. Singapore Airlines strives to deliver the Singapore Airlines experience to its customers, which is its main theme. The Company has invested heavily in training its staff to ensure that the quality of services delivered is quality. From its customer care department to its cabin crew, Singapore Airlines ensures that its staff is qualified to promote the organizations culture (Iatrou & Oretti, 2007).

The company provides a variety of online services that improve the customer's experience. Its website provides many useful tools to cater for local and foreign passengers. The cabin crew is the focal point of the company's image. The company selects elegant women to serve as flight attendants and dresses them in unique attire that associates the company with quality. The airhostesses undergo training to smile constantly providing a good environment for the customers. Training also enables the staff to interact professionally with the clients. Professional interaction enables the organization to maintain a strong relationship with customers. Professional interaction results to the high rate of loyal customers to Singapore Airlines (Kotler & Pfo-rtsch, 2006).

Relationship marketing at Singapore airlines entails promoting personal relationship with the clients. The company provides quality services at relatively low prices. The company has a niche over its competitors by providing quality services. The company provides its first class clients with comfort favorability and attractive services. The Airline ensures that its interactions with customers are notable by ensuring that all the promises made to the customer are achieved (Holloway, 2008). The company should ensure that the brand promoting is used effectively. The company should focus on its merits in promotion of the brand name. The company also maintains a strong customer service ethics that governs the interaction between the customers and workers. This is justified as the airlines ranks tenth position concerning the number of international passengers carried (Beiske, 2007).

Servicescape

The physical environment at Singapore Airlines influences the behaviour of the workers and the customers. The organization is able to attain internal and external goals by ensuring that the physical environment is good. The physical environment at Singapore Airlines helps to keep workers motivated. The workers work harder due to maintain the reputation of the organization. The physical environment also facilitates maintaining a qualified staff in the company. The workers enjoy the prestige associated with the company. Most of the workers have been working in the airline for a long time (Saxena, 2009).

The physical environment allows the organization to attract and retain customers. It ensures that the interactions between the customers and workers are positive. Positive interactions enhance customer experience and improve the relationship between workers at Singapore Airlines. Singapore Airlines should increase customer control over the services offered. This will ensure that the customer experience tailored to suit their needs. Increased personal control enables the customers to return to the airline. The company can also increase their fee to cater for the needs of the customers. Increased personal control should ensure that the workers are compensated for their effort (Lindstrom, 2005).

Service experience delivery

Service experience delivery occurs when the workers ensure that the customers are satisfied with the product offered. Singapore Airlines ensures that its customer receive attractive and quality services. One of the products that customer enjoy when onboard the airline is quality service delivery by the cabin crew. First Class customers receive complementary services that promote customer experience. Once a passenger enters the plane, he is directed to his seat. He receives a drink awaiting departure of the plane. The quality of the finishing is good with the space and interior of the plane providing the client with the required comfort (Capon & Hulbert, 2007).

The Affect theory will enable the company to attract and retain customers. The theory attempts to organize affects to connect it with a response. A feeling of dissatisfaction can be identified in a customer and the hostel can attend to his needs. Improvements noted can be implemented in the future to improve service delivery. A customer smiling back at the airhostess is a sign of joy and this means that the company has delivered. Other than facial reactions, Singapore Airlines should provide voluntary questionnaires to its clients to facilitate service delivery. This would be an easier and accurate way to ensure that quality services delivery to the customers (Kapur, & National University of Singapore. 1986).

Marketing Communications Mix

Singapore Airlines uses a mix of advertising, public relations, direct marketing, sales promotion and personal selling to attain marketing objectives. Direct marketing is achieved by targeting frequent travelers attracted to the company by its low fares. The company maintains a strong public image ensuring that its interactions with customers and the community are professional. The company also provides short-term incentives that attract customers. The company conducts personal selling through its outlets located in the major destinations traveled. Singapore Airlines also undertakes advertisements in the media to promote its brand (Nankervis, 2005).

The workers communicate with the customers to ensure service delivery. Communication with the customer ensures that the customer gets personalized services. Communication enables the organization to collect information that will improve service delivery in the future.…

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