This report examines the application of the services marketing theories to the airline industry. Part 1 defines the elements of the marketing mix and the historical development of the same and provides criticisms and limitations to the marketing mix. Part 2 highlights the factor of inseparability or simultaneous production and consumption of the services in the airline industry and explores how the airline industry in general differentiates themselves from one another. The homogenisation of services in the airline industry is covered in part 3 of this report. It also covers the exploration of the Five - Classification Scheme and provides discussion on the homogenisation of services.
Importance of Marketing 1. Satisfies Human Wants: Marketing plays an important role in the satisfaction of human wants by maintaining regular supply of goods to consumers. It provides better life and welfare to people by satisfying their wants and also by providing useful goods and services which can make their life happy and enjoyable. Provides profit and goodwill to marketing enterprises: Marketing is important to marketing firms as they earn profit by conducting marketing activities. Marketing enables a firm to expand business activities for market reputation and goodwill. The firm can achieve its objectives through successful conduct of marketing activities. Even new product can be introduced for consumer satisfaction and sales promotion.
Service marketing is all about relationships, even more so than other types of marketing. Effective service marketing is important because, without it, service providers would not attract and retain customers. Service marketing falls into two categories: business to business B2B and business to consumer B2C. When marketing a service, providers must account for perishability, the intangible nature of a service that makes it impossible to store or resell.
Modern business tends to build a relationship with customer whereas traditional business deals with customer to interact once. It emphasizes in a way of having business not to serve customers once, whereas serve as to serve afterwards. Indeed this revolution in business lead to a new term customer relationship management CRM , which has been referred to as the new "mantra" of marketing. The versatility of Information technology, specifically World Wide Web www spikes the opportunity to every business to deal with customer in this new formation.