Friday, April 29, 2011

Marketing Reengineering (without Fandango) [1 of 2]

Abstract


This document is something of a casual conversation considering what reengineering is as regards marketing, using an intermediary service provider as an example.



Introduction

The first service this writer should provide his readers is to define terms. The meaning of reengineering here, in the larger conversation of marketing, is operational, and has to do with channels. Channels, being what they are, often considered as aspects of getting an idea, product and/or service into the hands of the consumer (a distribution consideration). However, as one deconstructs all the ramifications, iterations, methods etc. of this process we find trace elements of other concerns. For example, choosing to include a wholesale and retail expression versus simply a retail expression legitimately may prove better or worse financially, depending on the company. It is also true this goes beyond simple finances.

Regarding the marketing consideration (reengineering), the consumer almost never wants to consider any of the rationales or justifications for why they had something less than a superior experience. Today's consumer simply wants to have a superior experience, and move on. Nevertheless, with so many strategic alliances, subcontracting associations and the like, the consumer may find themselves with a less than superior experience, walking away from the wrong company.

Therefore, in the larger scheme of things, marketing reengineering looks at the larger moving pieces of the entire business experience preceding the consumer's experience, and how that culminates as the consumer's experience.



How could an organization reengineer its marketing operation?

Last Christmas this writer's daughter received a movie gift card from her uncle. Prior to this gift card, this family's experience with gift cards had always been one of having it present at the time a purchase occurred. Taking the child to a movie and having the card turned out not to be enough. The communication was that the gift card was only redeemable online (so, already at the cinema, dad was out of pocket).

The next time, sensing understanding of the dynamic, offered was a movie as a reward for a good grade, good behavior or some such. Self-assured, this consumer went online only to find that the gift card was now unredeemable because the movie was 3D. However, the communication made, dad was out of pocket once again.

Scouring the website of this intermediary there was no telephone number whatsoever (for support, complaint, anything).

Dear reader, so as not to leave you hanging, the third time was the charm. However, the point is this intermediary works in association, like a parasite, with particular movie theaters. They seek to subcontract a value add that the theaters may (or may not) have offered in the past themselves (alleviating payroll and paperwork, and no doubt promising their own intention to drive business). At no point did the movie theater itself offer us a less than pleasant experience (except that management, beyond that theaters location, had allowed itself allied with such a mediocre service provider).

If the movie management determined that, even in the face of certain shortfalls, the addition of this intermediary would drive enough volume to eclipse its own lack of communication and customer service, then so be it. However, ultimately management needs to police its own and reassess whether to take the service back in house or reevaluate this intermediary's service from inside and put them on notice. How and when an organization should reengineer its operations usually finds its definition in the fiscal responsibilities of ever adding stakeholder wealth. This cannot however compromise or otherwise diminish the overall point of that which is being provided.

Thursday, April 28, 2011

Circumventing Setback, Boeing no April Fool [2 of 2]

The role of organizational and marketing leadership in the setback

General consumer sentiment rightly focused on Southwest Airlines, who handled its own mea culpa and projected its own sense of responsibility swiftly and effectively (for which, by now, there is a successful template).

But to the degree to which there was any looking over at Boeing, there not only seemed little or no poor PR, but rather the reverse (in the immediate aftermath their stock price had gone up!). Aside from not being directly culpable, they become inextricably associated nonetheless. Boeing has developed its own template, and it includes immediately responding with resources, support of checks, etc. This seems wise from every angle.

Kotler & Keller delineate a broad brushstroke model for such B2B in figure 13.2, under Industrial Marketing Channels, and couched in terms of the various types of intermediaries (here, manufacturer) are Merchants, Agent/brokers and Facilitators. Clearly, even if we are speaking of an agent or broker, this role is one of Facilitator.



Conclusion

What could they have done differently?

This writers sense is not only was Boeing not in a position to do anything much differently, yet they also did everything correctly. Such pro-activity and responsibility taking on their part assuredly goes a long way in maintaining (and even building) trust.

Should the day ever come when the industry can open its margins, Boeing would then be in a stronger position to hold accountable its own consumers and could then reengineer its marketing operations to insist on certain standards being upheld. This might also include buying back old planes and recycling them (keeping dying garbage out of the hands of those who would milk profit over people numbers).

Surely Boeing is working on it through alternative fueling, nanotech in its architecture, etc. But until that day arrives (and) Boeing seems to be stuck with the best response one presumes is possible.



References

AirSafe.com, LLC. (2011). Fatal Boeing 737 Plane Crashes (reference). Retrieved from AirSafe.com: http://www.airsafe.com/events/models/b737.htm

Boeing. (2011). 737 Family, About Our Market & Suppliers (corporate website). Retrieved from Boeing (various internal web page resources): http://www.boeing.com/commercial/737family/; http://www.boeing.com/commercial/industry_info.html and http://www.boeingsuppliers.com/

Freeman, S. (2009, July 15). NTSB Studies Jetliner, Records After Rupture. The Washington Post Company. Retrieved from http://www.washingtonpost.com/wp-dyn/content/article/2009/07/14/AR2009071400856.html

Hoang, L., Thompson, D., Weintraub, A., Koenig, D., Lowy, J., Evans, M., & Seavey, B. (2011, April 3). Southwest Grounds Dozens Of Jets After Mishap. The Associated Press / NPR. Retrieved from http://www.npr.org/2011/04/03/135084784/southwest-grounds-dozens-of-planes-after-mishap

Kotler , P., & Keller, K. L. (2009). A Framework for Marketing Management, Managing Marketing in a Global Economy (4th ed.). Upper Saddle River, NJ: Prentice Hall .

Staff (2009, July 14). Southwest checks fleet after hole forces landing, Hole in fuselage causes pressure-loss scare on Boeing 737. Associated Press. Retrieved from http://www.msnbc.msn.com/id/31902513/ns/travel-news/

Staff (2011, April 02). Southwest to ground 81 planes after hole prompts emergency landing. Cable News Network. Retrieved from http://articles.cnn.com/2011-04-02/us/arizona.flight.diverted_1_emergency-landing-southwest-flight-regional-sales-manager?_s=PM:US

Yahoo Finance; Boeing (2011). Retrieved from http://finance.yahoo.com/echarts?s=BA+Interactive#chart1:symbol=ba;range=5d;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Wednesday, April 27, 2011

Circumventing Setback, Boeing no April Fool [1 of 2]

Abstract


This document considers what, if anything can be done to circumvent setbacks from a marketing perspective, given reengineering opportunities in the channel structures of Boeing.



Background

On Friday afternoon, April 1, 2011, a Southwest Airline Boeing 737-300 (Flight 812, Phoenix to Sacramento) found itself with an approximately 5-foot section of its upper skin removed, just as it had reached cruising altitude. The pilots immediately moved the planes position from an elevation in the 30,000s to the 10,000s within a period of approximately 4 minutes. Soon after, the plane safely landed at a military airfield in Yuma Arizona. There were no casualties.

The Arizona plane is 15-year-old, had undergone all inspections required ("ordinary", as well as "heavy") all relatively recently. Preliminary feedback asserts “we're dealing with a skin issue … a similar incident (two years earlier) ... (revealed) the hole was caused by metal fatigue.” Further, it is reported that the manufacturer, Boeing, is devising additional inspections. (Hoang et al., 2011).

The reason for the focus on Boeing, as opposed to Southwest, is for no other reason except that the durable-good which recently had an issue was originally the product of Boeing. It is easily arguable that Southwest had a much greater responsibility in the events that unfolded. However, Southwest does not produce durable goods.



The reasons for the setback

When an individual is financially challenged and yet they are still lucky enough to have a car, if the car begins to require maintenance yet still drives that given individual is faced with a weighted decision as to how bad things have to get (as well as what portion of what little jealously guarded funds there may be) before allocating movement in the maintenance direction.

A variety of airlines, Southwest included, have replaced portions of skins of planes along the way (it is unknown by this writer how drastic such a repair is considered). The thinness of the margins in this industry is well-known and well documented. Among all the maintenance protocols it seems safe to imagine that there must be very specific tolerance metrics already in place as regards wear and tear for every square inch of such skin. In this age of space shuttles it seems irresponsible to think otherwise.

Despite depreciating the cost of the plan itself, older planes are often sold "down industry" (two airlines operating out of countries of lesser economies); which is why we see more airline fatalities overseas.

Again, of itself this is not being laid at the feet of Boeing. Risk assessments for the insurance aspect of this industry regularly update the cost of "replacing" human life; such are the costs and payoffs weighed by airlines.

Tuesday, April 26, 2011

Marketing Changes [1 and 2 of 2]

[two days worth - sorry about yesterday]
~~~

Abstract

This document seeks to point out several patterns and movements over the art of the last five years of advertisement for American Airlines.



American Airline’s media mix

For a legacy airline in the first decade of the 20 hundreds American Airlines had already drifted with the rest of its industry through all the other larger movements in advertising across the preceding decades.

After 9/11 (2001) the industry found itself having to spend considerable time and resources reassuring the general public in the midst of having to integrate a complicated and evolving set of security relationships. By 2006, enough dust had settled that it could get back to the business at hand of communicating its brand (American Airlines Post 9-11 Ad Campaign (Part 1), 2010)(American Airlines Post 9-11 Ad Campaign (Part 2), 2010).

However, while it had never taken its eye off the ball of needing to become ever more tech-savvy (Orbitz was born in 2001), relationship sales (a new plateau in the evolution of sales technology in general) had meanwhile merged with technology. It was no longer enough to collaborate with the other consequential airlines and put up a muscular website where the consumer could feel empowered making their own purchasing decisions. Forums and blogs were having a growing impact. Social media sites were having their own impact. MySpace outdid Friendster, eventually out done by Facebook. Soon others would want a piece of the online voice, and hybrids were born (four square, delicious, LinkedIn), and we would soon “tweet”. Social media now commanded everyone's attention.

Among the initial questions (in relationship to social media) would necessarily include where to have a presence, how to have a presence... what worked and what did not. GRPs (gross reach points) and TRPs (targeted reach points) became bandied about. Consulting organizations, such as Search Engine Marketing Association (SEM), International Association of Business Communicators (IABC) and Keynote Systems (NASDAQ:KEYN; a global leader in Internet and mobile cloud monitoring) were all weighed. In short order American Airlines had several Facebook fan pages (the main page, and a pair of specialty pages), a Twitter account, its own channel on YouTube and a series of its own apps for the open mobile platform Android (American Airlines, 2011)(Plummer, Rappaport, Hall, & Barocci , 2007).

Meanwhile, part of the fallout of all this intimacy is that whatever had been one enormous market was now unpacked. In its own corporate website (and elsewhere), among its advertising and media self reference pages, we find that it now has advertising specific for the “General Market, African American, Asian, Hispanic, Lesbian, Gay, Bisexual and Transgender Advertising and Promotional Requests (AA/Komen Partnership, Disabilities, etc.)” (American Airlines, 2011)(Lazare, 2010)(WebMediaBrands Inc., 2009).

It appears American Airlines is rather thorough in finding and speaking to these niche markets. After all, if you speak to all of the niche markets it is “just another way” of speaking to everyone (as they once did). In one of its more recent ad campaigns American Airlines targets and/or celebrates America's men and women in uniform. This author confesses literally being moved to tears by the sheer dignity of these two ads (American Airlines commercial ’Putting Them First’, 2010)(American Airlines commercial ’Thank You’ , 2010).


Impact of Changes in Media

Categories continue to include print, outdoor, interactive and TV, yet dollars shifted from television and put into online media. Perhaps the most unfortunate constant throughout this new decade for this industry has been the nagging, consistently thin margins. In a recent paper, Price Satisfaction is Most Important Aspect of Overall Customer Experience for Online Air Travel Sites - Latest Research from Keynote Systems Reveals, the consumers literal bottom line is pounded home once again.








Concluding thoughts

American Airlines has a corporate DNA that indeed leaks into its branding and other advertising communications. The magnificent 9/11 pieces, with the Enya-like music, seems so noble. The mini documentary acknowledging its efforts in the wake of the Haiti earthquake (January 12, 2010) maintain humility by being straightforward. In addition, this author has already told on himself as regards the recent elegant armed service related ads. All this continues to speak well for a company constantly running after the business-class demographic.

Yet it has other seats to fill, and the cheap seats usually connect with a different message. About the same time as the recent military associated ads, the other twin campaign came out. It spins the creepy tagline “We know why you fly” to an omniscience. Unfortunately, we are talking white bread here (American Airlines commercials ’Win-Win’ & ’Late Nate’, 2010). The point is, when you're as large as American Airlines in may be hard to be nimble, and credit where it's due they've certainly demonstrated keeping up (some of their targeted print media demonstrates magnificence both in the elite and the pedestrian) (Legname, Polignano, Sanchez, & Salvarredy , n/a)(Livi et al., 2007)(Santander, 2007). One supposes that if, in these days of decoupled markets, their Achilles heel is the general masses, and then they have accomplished quite a bit.



References

2010 Haiti Earthquake Relief Effort & American Airlines. (2010, ). 2010 Haiti Earthquake Relief Effort & American Airlines [Video file]. Retrieved from http://www.youtube.com/watch?v=jVkI9wRnh_U

American Airlines Post 9-11 Ad Campaign (Part 1). (2010, ). American Airlines Post 9-11 Ad Campaign (Part 1) [Video file]. Retrieved from http://www.youtube.com/watch?v=V64IMaou8lU

American Airlines Post 9-11 Ad Campaign (Part 2). (2010, ). American Airlines Post 9-11 Ad Campaign (Part 2) [Video file]. Retrieved from http://www.youtube.com/watch?v=jzDOa6HEGYI&feature=related

American Airlines commercial ’Putting Them First’. (2010, ). ’Putting Them First’ [Video file]. Retrieved from http://www.youtube.com/watch?v=x6iAMiJUu5g

American Airlines commercial ’Thank You’ . (2010, ). ’Thank You’ [Video file]. Retrieved from http://www.youtube.com/watch?v=-peCyr5ALJU

American Airlines commercials ’Win-Win’ & ’Late Nate’. (2010, ). American Airlines commercial ’Win-Win’ & ’Late Nate’ [Video file]. Retrieved from http://www.youtube.com/watch?v=M5ARsRUUnUU&feature=autoplay&list=PLA67E3FBC26F6480D&index=54&playnext=2; and http://www.youtube.com/watch?v=HIinwOGQwN0

American Airlines. (2011). (Social Media sites) (leveraged relationship marketing). Retrieved from Facebook, Twitter, YouTube & Android Market: http://www.facebook.com/aa; http://twitter.com/americanair; http://www.youtube.com/americanairlines; http://market.android.com/

American Airlines. (2011). Welcome to AA.com’s online press guide, your American Airlines and AA.com resource for marketing information (Press Guide ). Retrieved from Press Guide & Ad Campaign’s: http://www.aa.com/i18nForward.do?p=/aboutUs/pressGuide/pressGuide.jsp&v_locale=en_US&v_mobileUAFlag=AA; http://www.whyyoufly.com/whyyoufly.jsp; and http://www.aa.com/i18n/amrcorp/newsroom/advertising.jsp

Best Ads on TV. (2011). American Airlines (reference). Retrieved from : http://www.bestadsontv.com/search.php?q=American+Airlines&category=&adtype=&client=&agency=&prodco=&country=&year=&month=&next=1

Business Wire. (2011, March 22). Price Satisfaction is Most Important Aspect of Overall Customer Experience for Online Air Travel Sites - Latest Research from Keynote Systems Reveals (academic). Retrieved from Proquest: http://search.proquest.com.wf2dnvr14.webfeat.org/docview/857994227/fulltext?source=fedsrch&accountid=34899

Davis, F. (2011). [personal writings] [Online exclusive].

Lazare, L.. (2010, November 2). American Airlines launches new Hispanic ad campaign [Web log message]. Retrieved from http://blogs.suntimes.com/media/2010/11/american_airlines_launches_new.html

Legname, M., Polignano, R., Sanchez, H., & Salvarredy , J. (n/a). You book your ticket in Spanish, you buy your ticket in Spanish, you do the check-in in Spanish. The cab driver is your problem. (Chinese version) (print media ad). Retrieved from WebMediaBrands Inc.; Ads of the World: http://adsoftheworld.com/media/print/american_airlines_chinese

Livi, J., Macias, L., Astolpho, F., Degen, P., Vasconcelos, C., Mascaro, C., & Setboun, M. (2007, February). (2) Novo Mundo Tourism: Moscow & Machu Picchu (print media ads). Retrieved from WebMediaBrands Inc.; Ads of the World: http://adsoftheworld.com/media/print/novo_mundo_tourism_moscow; and http://adsoftheworld.com/media/print/novo_mundo_tourism_machu_picchu

PR Newswire . (2011, March 24). Social Media Professionals Host Dallas4Japan Fundraiser (academic). Retrieved from proquest: http://search.proquest.com.wf2dnvr14.webfeat.org/docview/858381636/fulltext?source=fedsrch&accountid=34899

Planning Studies; American Airlines, Kraft and Subaru. (2003, March). DoubleClick/Nielsen//NetRatings/IMS Cross-Media Reach and Frequency. Retrieved from www.doubleclick.net; http://www.google.com/url?sa=t&source=web&cd=4&sqi=2&ved=0CCkQFjAD&url=http%3A%2F%2Fwww.grabers.com%2Flibrary%2Fimc%2Farchives%2Fsupport%2FonlineReach.pdf&ei=g6uRTZbhGtCgtwev9Yhh&usg=AFQjCNEq3hZ3azVemh4J6IqPgG-EcLFVzg&sig2=RLcVyjsmUaw7Fki5AUHKAg

Plummer, J., Rappaport, S., Hall, T., & Barocci , R. (2007). The online advertising playbook: proven strategies and tested tactics from the Advertising Research Foundation. In The online advertising playbook: proven strategies and tested tactics from the Advertising Research Foundation. Retrieved from http://books.google.com/books?id=x8zjTq2vWesC&pg=PA43&lpg=PA43&dq=American+Airlines+media+mix&source=bl&ots=_J0_o7ELKo&sig=8vpqukVzSzlJomIMKcP556lyFjM&hl=en&ei=g6uRTZbhGtCgtwev9Yhh&sa=X&oi=book_result&ct=result&resnum=3&sqi=2&ved=0CCQQ6AEwAg#v=onepage&q&f=false


Santander, T. (2007, June). American Airlines Apple (print media ad). Retrieved from WebMediaBrands Inc.; Ads of the World: http://adsoftheworld.com/media/print/american_airlines_apple

Thorpe, A. (2010). We tried this, and it works... (pdf archived article ISSN: 00253650 ). Retrieved from Proquest:

Vintage Ad Browser. (2011). Airlines and Aircraft Ads of the 2000s (reference). Retrieved from Vintage Ad Browser: http://www.vintageadbrowser.com/airlines-and-aircraft-ads-2000s

WebMediaBrands Inc.. (2009, August 7). American Airlines, AADP Launch Advertising Award for Positive Portrayals of People with Disabilities (blog post). Retrieved from Ads of the World: http://adsoftheworld.com/blog/american_airlines_aadp_launch_advertising_award_for_positive_portrayals_of_people_with_disabili

Friday, April 22, 2011

Marketing Communication, a presentation about marketing communications to junior marketing managers [3 of 3]

   One item that did not make the table was the logos; which can be revealing as to how the brand is being communicated. We share them now.

AirTran: Wondering how soon this brand will fade (now that SW bought them)


American Air: Creepy tagline! Arial font consistent with conservatism.

Continental: Vaguely veiled tagline aimed at business class.

Delta: recently altered (slightly) its logo … more straightforward now. Needs to climb fast on the cheap, and is making a great effort in social media. (Is "keep climbing" an internal tagline?)

Hawaiian: Gorgeous graphic (logo), essentially the original yet improved over the years. Leverages Hawaii itself successfully. (It was good fortune to be away from the mainland!)


JetBlue: Should use that blue plaid "tail" of the plane graphic, and improve it.

United: (see ya!) Contental acquisition nearing completion.

US Airways: Conservative, conservative … a grey flag, a clever if sophomoric tagline. Interesting positioning. ..digging in?

   There is no security in this industry. Go back to the first table and review how niche everyone is. If they’re not a seaplane hugging a Canadian coast or running taxi to the Caribbean they’re charter and/or subcontracting the “big boys”.

   These large legacy carriers have it even harder. Less wiggle room and no niche. It seems Delta’s hard lesson was wisely internalized – go for the relationships … personally. It should prove interesting to review this in 2016.



References

All the various airline websites, and…


AirTran Airways. (2009). AirTran Airways Nets Partnership with Kari Lehtonen (Press Release). Retrieved from AirTran Airways: http://pressroom.airtran.com/phoenix.zhtml?c=201565&p=irol-newsArticle&ID=946129&highlight=

Bonné , J. (2011). How to cure airlines’ ills Cost cutting alone won’tcut it for most major carriers . Aviation on msnbc.com. Retrieved from http://www.msnbc.msn.com/id/3073562/ns/business-us_business/

LowCostAirlines.org. (na, ). (reference ). Retrieved from LowCostAirlines.org: http://www.discountairfares.com/lcostusa.htm

TextArt.ru. (na). Database of slogans; Advertising slogans of airlines (reference). Retrieved from www.TextArt.ru: http://www.textart.ru/database/english-advertising-slogans/airline-advertising-slogans.html

Yahoo! Inc.. (2011). Yahoo directory Airlines (reference). Retrieved from Yahoo directory Airlines: http://dir.yahoo.com/business_and_economy/shopping_and_services/travel_and_transportation/airlines/

company-statements-slogans.info. (2008). US Airways Group (reference). Retrieved from company-statements-slogans.info: http://www.company-statements-slogans.info/list-of-companies-u/us-airways-group.htm

Thursday, April 21, 2011

Marketing Communication, a presentation about marketing communications to junior marketing managers [2 of 3]

Marketing Communication by Brand

So let’s move on to the “major” American carriers and see what we can determine.
To do that, we revisit our database, altering it in a way that may aid us…

Drivers of and their Changes

With margins so tight, fuel through the roof, then add our recent recession and you quickly understand that the contextual macro economy these air carriers operate within find them scrambling.

Delta had just emerged from bankruptcy in 2007, one pair of our carriers has already merged and another is in the process.

Wednesday, April 20, 2011

Marketing Communication, a presentation about marketing communications to junior marketing managers [1 of 3]

Marketing Communication by Brand

   Given that the overarching project, at least before this writer, has to do with the airline industry, the seeming first task was to step back and get a holistic view. Narrowing to just the US, while this may have proven to not be enough narrowing, it was useful to thoroughly explore starting here, nonetheless. These represent all the American carriers I found:


   This pursuit exposed sub markets (charters, domestic only, seaplanes, etc.), and yielded no obvious patterns as regards headquarter locations, or any other metric chosen to track. Notes, hyperlinks and even the errata of the securities markets were maintained as we narrowed down.
Similarities and Differences


   What was discovered in this preliminary research (which, by its very nature might be overlooked as a pattern) was how complicated and “all over the ‘map’” this industry was.
   When we narrow down to just the larger carriers, this pattern continues. The superficial similarities and differences have to do with their customer base markets and the challenges of the industry itself. Everyone is aware of the spiking fuel prices over the last decade; increasing four and five fold. Unless your employ or lifestyle find you flying regularly, most folks simply know “their” airlines (so carriers naturally market to their region … but what if their region is, say harder recession hit, see?).

Reasons

   But some of what most folks are not aware of is that Operations drives more than that which was just noted. This is an industry of extremely thin margins. An example:

“…Bob Crandall, the firebrand former chief of American Airlines. And so, let us revive the olive story. Most notorious among Crandall’s legendary cost-cutting was his idea to remove an olive from each salad served to passengers. A tiny garnish would never be missed, the reasoning went, and savings amounted to at least $40,000 a year. ”

Tuesday, April 19, 2011

Sales vs. Marketing [3 of 3]

A Letter


Gentlefolk,

Within this organization, we regularly speak of the value of each individual. As you may be aware, clearly defined are our sales force and our marketing departments. This memo is going out to everyone affected by a targeted change we seek to implement. Our organization will seek to go beyond merely aligning to fully integrating both departments.

While change often meets with something less than an embrace, I can assure you this can be cause for celebration. To varying degrees, depending on your position, the company will institute support through any of the following: trainings, workshops, seminars and the like. Our enterprise will be investing in you that you not only understand your position, the positions your position effects, yet that protocols and procedural opportunities to reach out and interact interdepartmentally also have definition.

On average, this should not affect any workload or responsibility sets (some may decrease; some may increase slightly, on average this should remain the same). I want to assure again that this internal cultural shift is one of educational fun and growth, both at the individual level as well as the corporate. Moreover, the only way this affects pay is that, over time, most everyone should see an increase (those on commission would likely experience this first).

In the days and weeks to come, your department heads, team leads and immediate supervisors will begin to move into place the necessary pieces. These “pieces” refer to a perceptual shift as we slowly reshape our corporate culture. Again, such “pieces” will usually be comprised of a retraining and a heightened, improved way of interacting with each other and doing business, generally.

This memo is a bright turning point for you and our enterprise for it truly represents a win-win situation for us all.



With great excitement,



[CEO signature and name]

DavisF_M4_A1; Sales vs. Marketing

References

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker Jr, C. H., & Williams, M. R. (2006). Professional Selling. In (Ed.), (3rd ed.,. Mason, OH: Thompson Higher Education.

Kotler , P., & Keller, K. L. (2009). A Framework for Marketing Management, Managing Marketing in a Global Economy (4th ed.). Upper Saddle River, NJ: Prentice Hall .

Kotler, P., Rackham, N., & Krishnaswamy, S. (2006). Ending the war between sales and marketing. Harvard Business Review, 84(7/8), 68–78. Retrieved from http://web.ebscohost.com.wf2dnvr14.webfeat.org/ehost/detail?hid=7&sid=9466c0aa-56a7-4392-8747-ac4497539270%40sessionmgr10&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=21124747

Vanto Group. (2011). Vanto Group (Corporate website). Retrieved from Vanto Group, a Landmark Education Company: http://www.vantogroup.com/

Monday, April 18, 2011

Sales vs. Marketing [2 of 3]

Minimizing (or Preventing) Negative Relationships

Kotler et.al, in the 2006 article, “Ending the war between sales and marketing” brilliantly and graphically lays out the distinctions, as they currently exist, between sales and marketing, and the most sensible approaches to resolutions (Kotler, Rackham, & Krishnaswamy, 2006). The functional integration this writer spoke of a moment ago is obviously easier to shepherd into shape as the company grows versus having to re-sculpt a corporate culture. Nonetheless, the evolution of this aspect of business is in the beginnings of a new plateau. The challenge is not so much for marketing and sales as it is for management, to be informed good stewards of these extraordinary functions.

Let us assume for a moment highly capable management growing a startup, armed with these insights. As the saying goes, “it's easy to (fill in the blank, as an example we will say ‘be courageous’) when it's easy to be courageous, damn difficult to be courageous when it's damned difficult ”. Of course, the point of the saying is that the “rubber meets the road” during trying times, not during times of ease. Our highly capable management, armed with these insights, growing a startup, likely do not have to face the challenge of our topic, for they would have transcended it as a matter of course.

With that in mind, the writer offers a letter to team leaders (or department heads, etc.) with the current climate being “difficult to be courageous”.

However, before that, as a way of underscoring this re-inculcating shift, there is a sense that it would be useful to also point out a host of "transcendent technologies" that have been developed over recent decades that may also be supportive to such a reframing effort. One example, used by the likes of NASA, JP MorganChase and Apple Computer is Vanto Group, a consulting group specializing in tailoring transformative experiences for corporate empowerments (Vanto Group, 2011). Depending on the degree of entrenched calcification, a company may need to employ such a group to "soften things up first".

Friday, April 15, 2011

Sales vs. Marketing [1 of 3]

Abstract


This document serves as a meditation on the established illusion between marketing and sales.



Introduction

In the great scheme of business considerations, and against a need to order and organize, expressions of business necessarily become compartmentalized. For modules such as finance, that may include accounting, economics and securities, with the core of their expressions being abstract numbers, delineation of everything from resources to responsibilities seems easier to make concrete, and with that, interact (while staying compartmentalized). When adding to the moving pieces of the larger business organic those aspects that interface with human behavior and psychology, especially the interactions beyond the confines of the organization proper, best practices may appear to be all over the place.

In large measure, a proper definition of the business itself, exactly what it provides and to whom, becomes the starting point for marketing and sales. Business considerations that would work for a multinational will not necessarily work for small mom-and-pop. What applies in a legacy institution will likely not be a business template for a startup. Services and products are different, that which is temporal versus long lasting and any number of other considerations along these lines have a direct effect on how to design a particular posture as regards marketing and sales.

The 20 hundreds have ushered in, at least regarding academic writings (and presumably the more enlightened businesses), a movement in sales toward an approach with more authenticity and integrity (Ingram, LaForge, Avila, Schwepker Jr, & Williams, 2006). The writings gush with insights that should have been obvious all along, on topics such as trust, communication skills, the value of relationships, etc.

This development in sales "technologies" is more than simply welcome in the larger evolution for business and marketing, it is foundationally necessary. We are moving closer to a holistic approach where modules such as finance may serve as skeletal, while considerations such as marketing and sales finally have a chance to be the muscle, tissue and blood of the business organism; thoroughly woven together and throughout.



Negative Relationship Reasons

In the old (and in many/most) established business paradigms, marketing and sales stand on (somewhat) equal and separate footings, much as would process management, human resources or supply chain. As long as everyone knows their place and continues to be a “good cog” in the machine the assumption is that "the machine" can move forward indefinitely. Naturally, this is ridiculous.

As alluded to a moment ago, business is not so much a machine but an organic being, however abstractly, in its own right .

Until marketing and sales have a functional and integrated relationship, (for they do have distinct characteristics; we are not presuming them to be the same), the likelihood is for continued turf wars (along with shifted expressions of responsibility toward burden, fault, praise, blame, credit, shame, and/or guilt). The implications of this have sunk careers, families, business units and entire enterprises, as arguments over funding and process has justified the antithesis of the big picture.

Thursday, April 14, 2011

of Airlines, Technology & Marketing [3 of 3]

References


American Airlines. (2009). AMR Global Corporate Responsibility Statement. Retrieved March 4, 2011, from https://www.aa.com/i18n/aboutUs/corporateResponsibility/ourApproach/2009-highlights.jsp

American Airlines. (n.d.). (home page). Retrieved March 4, 2011, from http://www.aa.com/homePage.do

Anderson, C. (Speaker). (2006). The Long Tail. Why the future of business is selling more of less. [CD]. Hyperion Audiobooks: .

Antidze, I. (2005). American Airlines Marketing Analysis (Corporate Marketing Analysis). Retrieved from scribd: http://www.scribd.com/doc/23988526/American-Airlines-Marketing-Analysis

Chapin, A. (2011, March 14). THE FUTURE IS A VIDEOGAME. Canadian Business. Retrieved from http://search.proquest.com.wf2dnvr15.webfeat.org/docview/856128290/fulltext?source=fedsrch&accountid=34899

Environmental Leader LLC. (2007, July 18). American Airlines Plans Green Marketing Campaign (e-zine). Retrieved from Environmental Leader.com: http://www.environmentalleader.com/2007/07/18/american-airlines-plans-green-marketing-campaign/

Hoover’s Company Records. (2011, March 15). AMR Corporation (reference / fact sheets). Retrieved from Hoover’s: http://search.proquest.com.wf2dnvr2.webfeat.org/docview/230551768/fulltext?source=fedsrch&accountid=34899; and http://wf2dnvr2.webfeat.org/Iev1Q11896/url=http://cobrands.hoovers.com/global/cobrands/proquest/factsheet.xhtml?ID=10021

Inside a Major Brand’s Marketing Strategy. (2007, January 3). FOLIO (Red 7 Media, LLC), (), . doi: Retrieved from http://www.foliomag.com/2007/inside-major-brands-marketing-strategy

Kotler, P., Rackham, N., & Krishnaswamy, S. (2006). Ending the war between sales and marketing. Harvard Business Review, 84(7/8), 68–78. Retrieved from http://web.ebscohost.com.wf2dnvr14.webfeat.org/ehost/detail?hid=7&sid=9466c0aa-56a7-4392-8747-ac4497539270%40sessionmgr10&vid=1&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=21124747

Kumar, V., Sarang, S., & Ramaseshan, B. (2011, March, 19). Analyzing the Diffusion of Global Customer Relationship Management: A Cross-Regional Modeling Framework. (academic journal article Journal of International Marketing - ISSN: 1069031X; English AN : 58009554). Retrieved from Argosy University Online Library: http://wfxsearch.webfeat.org.wf2dnvr15.webfeat.org/cgi-bin/WebFeat.dll?Command=Search&Databases=wf_ebscoxml_bsh&wf_action=fulltext&wf_url=http%3A%2F%2Feit.ebscohost.com%2FServices%2FSearchService.asmx%2FSearch%3Fprof%3D%26pwd%3D%26authType%3Dip%26ipprof%3Deitws%26query%3DAN%2B58009554%26startrec%3D1%26numrec%3D20%26db%3Dbsh%26format%3Dfull%26sort%3DDate&ispdf=1

MarketingProfs LLC. (2010, January 27). Disconnects Plague Loyalty Programs (White Paper ). Retrieved from MarketingProfs.com: http://www.marketingprofs.com/charts/2010/3359/disconnects-plague-loyalty-programs : .

PR Newswire. (2011, March 21). Reportlinker Adds Global Holography for Industrial Applications Industry (Industrial Report). Retrieved from WTHR.com: http://www.wthr.com/story/14291302/reportlinker-adds-global-holography-for-industrial-applications-industry

Staff (2011, March 20). What’s the best airline loyalty program?. The Economist. (Online), (The Economist Newspaper Ltd). Retrieved from http://www.economist.com/blogs/gulliver/2011/03/frequent_flyer_programs; and http://search.proquest.com.wf2dnvr2.webfeat.org/docview/857940743/fulltext?source=fedsrch&accountid=34899

Temkin, B. (2011, January 21). I Am The Customer Experience… Not! [Web log message]. Retrieved from http://experiencematters.wordpress.com/category/employee-engagement/

Weitz, B. A., & Wensley, R. (2002). Handbook of Marketing. Thousand Oaks, CA 91320: Sage Publications Ltd.

Wednesday, April 13, 2011

of Airlines, Technology & Marketing [2 of 3]

Is AMR protecting customers’ information?


Without the ability to hack the inner sanctum, and given that American Airlines does not make its database usage readily available, one has to assume this is the goose's golden egg. As established as this multinational is, it would be highly imprudent to compromise this intellectual property.

Attacking this question in reverse, this writer has found no evidence of lawsuits calling into question any such compromise of personal information; so one has to assume that its actions have been effective thus far.



How is the airline using technology for consumer communications/interactions?

Direct mail and e-mail are the most frequently used channels for active interactions. Subcategories of this activity would include frequent flyer miles and branded credit cards.

So-called static channels include branded airport lounges, the website itself and all of its customer service representatives … simply there awaiting the opportunity to serve.

New generation technology includes social networking and PDA apps. Second tier to this includes blogs and forums (some of which include forums for employees, complaints and the general public: http://www.google.com/url?sa=t&source=web&cd=6&sqi=2&ved=0CEwQFjAF&url=http%3A%2F%2Fwww.airlinepilotforums.com%2Fmajor%2F54655-american-airlines-pilots-revolt-against-tsa.html&ei=GfyITePQCKKD0QHw04mEDg&usg=AFQjCNHDwxqE48SJA69_W5rdUEsTCauwOA&sig2=f_fkN_9Wu31__4xp9ZjeVw;

http://www.google.com/url?sa=t&source=web&cd=4&sqi=2&ved=0CDkQFjAD&url=http%3A%2F%2Fwww.indeed.com%2Fforum%2Fjob%2Fflight-attendant%2FNorth-American-Airlines%2Ft42063&ei=GfyITePQCKKD0QHw04mEDg&usg=AFQjCNEOog0NkI99yqtRogShc_2EN4QEkw&sig2=l06sdn5i27TdxzcjmONHdw;

http://www.google.com/url?sa=t&source=web&cd=3&sqi=2&ved=0CC4QFjAC&url=http%3A%2F%2Fwww.airlinecomplaints.org%2Fforumdisplay.php%3Ff%3D2&ei=GfyITePQCKKD0QHw04mEDg&usg=AFQjCNES3iUokUdYFT1BAWlME78cJr5_6g&sig2=dReTV07qJXv7C-vX9IUE0g;

http://www.google.com/url?sa=t&source=web&cd=2&sqi=2&ved=0CCIQFjAB&url=http%3A%2F%2Fairlineforums.com%2Fforum%2F30-american-airlines%2F&ei=GfyITePQCKKD0QHw04mEDg&usg=AFQjCNGkTQ9YrQdrdCDWQuwEBWo6J9KlMg&sig2=Se9FztsEzIiIJzN7A2DtTA;

http://www.google.com/url?sa=t&source=web&cd=1&sqi=2&ved=0CBgQFjAA&url=http%3A%2F%2Fwww.flyertalk.com%2Fforum%2Famerican-aadvantage-445%2F&ei=GfyITePQCKKD0QHw04mEDg&usg=AFQjCNEzPHTJPznD3B_7pBNGDSNeegT4nw&sig2=bjOhdBn4MUuRt-c0jd7ssg ).



Concluding thoughts

As this document’s intention is as a report to management (with an eye toward marketing and technology), this author cheerleads the base philosophy of protecting one's market share and remaining conservative. Especially pleasing is the current renaissance to embrace all consumers. This writer waits anxiously to see how the amplified communication of being global occurs, particularly as the expression manifests across a variety of locations elsewhere on the planet. Of particular interest will be any multicultural differences across what would essentially be one branding message.

Tuesday, April 12, 2011

of Airlines, Technology & Marketing [1 of 3]

Abstract


In this report to management considerations of technology and marketing are blended together and reviewed vis-à-vis American Airlines (AMR Corporation).



Introduction

As a legacy carrier, and the largest airline in the United States, American Airlines has a tendency to market within a range of expression characterized as conservative. It has been many decades since any need to establish itself, and it certainly does not need to "play games" (attempting to pursue its own "long tail" (Anderson, 2006)). American Airlines "plays" at the core of its industry.

Indeed, in recent decades American Airlines has consciously pursued its higher end consumer (business class). This was so much the case that until recently it began to gain myopic strength (as expressed through what little print media it took on; Smithsonian magazine, the Atlantic, etc.) (“Inside (AA’s) Market Strategy“, 2007). However, being the hyper vigilant stalwart that it is, American Airlines has caught its drift before any real acknowledgment in the culture and shifted to a holistic consumer centric marketing perspective (Antidze, 2005).



American Airline’s identifying and targeting market segments

American Airlines has a wealth of opportunity to identify exactly who its consumers are. Ticketing information yields a wealth of specific demographic-based data. Data associated with baggage and passports paired against ticketing information to yield further information, as well as flag any anomalies. Any purchases made by credit card anywhere along the way provide yet another database of information. Every interaction online provides yet another database of personal consumer information. And there are other opportunities to expand communication interactions by developing yet even more databases or database information; surveys, memberships in executive / preferred flyer clubs, in frequent flyer clubs and the like.

As previously stated, American Airlines had for some time had an emphasis on its frequent fliers and its business-class. While no harm had come from this, and was arguably the right thing to do at the time, the airlines has since broadened its vision back to include everyone it services. This is a notable evolution.

Another potentially notable evolution has yet to play out. There is now talk of American Airlines to pursue the acknowledgment that this is, indeed, a global carrier (trans- and international flights accounting for approximately 40% of all its business) (“Inside (AA’s) Market Strategy“, 2007). It will be interesting to see if and how they massage their brand identity expression, given an assured unwillingness to drift too far from center.

If one were to ask, “How well is it using technology to woo new customers and increase market share?” given the colossal size of this multinational corporation the answer would surely be positive. One must assume many dozens, if not hundreds of reports and other expressions of metrics across the VP of Marketing’s desk weekly, therefore remains to be seen the degree to which the technology is actually leveraged. Again, it is likely a safe assumption that movements remain conservative. As it stands, American Airlines hovers somewhere in the balance of tactical (online advertising, direct campaigns to established repeat customers) and branding is its focus.

The reader needs only to look at the current state of airline travel to notice there is a relative enormity of technology that could be and is not integrated. One might argue cost. However, in the great scheme of things one could argue equally that certain enhancements would pay for themselves (and further establish the airline as among those on the cutting edge). Of course, it depends on what the technology is. At this writing 3-D is having a renaissance with moviegoers. However, this writer sees 3-D as a transitional technology, waiting the lowering of cost and the increase in stability and muscularity of holograms. Should this theory bear out, what would be the use of retrofitting a significant number of planes to accommodate 3-D movies? When it comes to what is shown on the monitors as regards flight paths, “where you are now” locators and similar video documentation of the passengers flight experience (as an alternative example) it makes sense to not have that be the entire passenger experience on the monitors. However, if the passenger has a net book or tablet with Wi-Fi, why could they not pick up a constant feed if they so wished? This writer is confident that this would be a low-cost value add. Therefore, there may be technology that is being “left on the table”.

Monday, April 11, 2011

Surveys on Planes [3 of 3]

Concluding thoughts


At the end of the flight the iPads are collected, and based on the logistics the given airline felt most efficient and effective, the survey information downloads for later study. The nature of this survey may be repeated "X” number of times before the iPads and their surveys are then issued to a different route. This acknowledgment is simply to be forthright; no airline is going to buy an iPad for every seat of every plane.

All of the technologies expressed in this document are already available, relatively inexpensive to make available and simply are not available, as they can be.

As a basic recap, the 10 questions were as follows:

Context

First Questions

• seat assignment

Content

Second Questions

Flight Related

• flight pattern mapping

• flight statistics

• cockpit Webcam (where not a security issue)

• 1 of 7 or more exterior Webcams

Destination Related

• visual smorgasbord

• destination encyclopedia

• multiculturalism

Context

Last Questions

• ranked against each other

• ranked against themselves

The information gathered has decision-making use with an eye toward prioritizing how much digital information can be made available and how quickly. The only ethical issues would have to do with editing, matters of general audience appropriateness, while cultural sensitivities need to be honored and the like.



References

Answers Corporation (Ed.). (2011). How fast do airplanes fly?. Retrieved from http://wiki.answers.com/Q/How_fast_do_airplanes_fly

Survey Monkey. (2010). Retrieved from http://www.surveymonkey.com/s/JQH2XV7; http://www.surveymonkey.com/s/DSG7QRN; http://www.surveymonkey.com/s/DSG2PG8

Friday, April 8, 2011

Surveys on Planes [2 of 3]

Content


Second Questions

Given the wealth of visual information now digitally available to us, complete with satisfying resolution, and the restricted confines of needing to stay seated in a capsule rocketing your body through space at about 500 mph, it seems a well placed emphasis that passenger comfort could be built up more around the mental experience (Answers Corporation , 2011). At this writing, the most common ways to address this (from the airline) include the following: dog-eared magazines, whatever was left to greet you in the pouch of the seat back facing you, whatever the airline has chosen to screen on the mini monitors and looking out the window (particularly if you have one).

The iPad “survey” is now in a position to ask (preview, really) how you as a flight consumer feel about the following (and these are this writers suggestions, by no means exhaustive):



Flight Related

This writers expertise is not in IT, so there will not be a presumption as to whether or not access can be made through a plug-in or Wi-Fi; although the latter is preferred, one way or another this can be accomplished now (at low expense). We understand that some of this information is available some of the time, yet making all of it available all of the time would be of interest to some. Moreover, for the well traveled, the ability to select what they want to see when they want to see it may be of interest. This may be particularly true if certain triggers could be set up at the beginning of the flight (for example alerting and/or recording the consumer web choices; e.g., about to fly over a particular landmark). The consumer should also have the ability to not only view, but to capture as well (download as streaming video, video clips or captured as still images – consumers choice) any of the following documentation of their experience.

Among visual information sought for ranking would include constant feeds (versus the current intermittent) of

• flight pattern mapping

o satellite

o traffic

o terrain (as is … see exterior bottom web cam bullet)

• flight statistics

• cockpit Webcam (where not a security issue)

• 1 of 7 or more exterior Webcams (fixed top, bottom, port, starboard, front and back … and at least one that scans for “the visually notable”; e.g., flying over a mountain, a city, a monument, etc.)

There is hope these visuals be arrayed as one wished; sized and resized, stacked, full screened, minimized and in any other way emulate a browser experience.



Destination Related

Whether the flight is to a new land and a new experience (prompting an opportunity for a multicultural learning opportunity) or is a brief jaunt home from business in another city, there seem innumerable opportunities for experiential support. Again, this should all be "capture-able".

• visual smorgasbord

o postcards of the destination

o notable landmarks

o expressions of culture

o “area basket” (links to Google street, the local papers, etc.)

• destination encyclopedia (the ability to look up anything through classic internet search means, or…)

o grouped search

 tourism (accommodation, transportation, sites, etc.)

 business (ATM’s, institutions, etc.)

 family (schools, markets, etc.)

 entertainment (cinema & theater, galleries & museums, etc.)

 etc.

• multiculturalism (whether domestically regional or transnational, insight to appropriate behavior and what to expect)

o business

o social

o among friends

Thursday, April 7, 2011

Surveys on Planes [1 of 3]

Abstract


This document is a consideration of a survey for an airline. The survey is limited to 10 questions and occurs across two categories. The nature of the question sets is to discover how to make the experience of the flight "more" (more productive, entertaining, relaxing, empowering, etc.).



Introduction

The operational idea would be to make available, once the flight is underway, iPads programmed with the survey up front that once accomplished would make the iPad available for the rest of the flight. Given the voluntary nature of the operational idea, a comprehensive statistical arbitrage of the averages of the demographics taking the survey against statistical averages of those who chose not to take the survey will take place on the back end. An underlying architecture is also likely already available for this (Survey Monkey, etc.) (Survey Monkey, n.d.).

Our first question may or may not have sub questions (depending on circumstance).

It is hoped that the survey could be made available to nearly, literally, everyone (it is suggested that such iPads would be made available to guests as young as seven years of age).

Services are to be available through seat hub or Wi-Fi.



Context

First Questions

The first layer of questions necessarily needs to provide statistical demographic information. If a proper disclaimer is well worded this might likely be accomplished by simply having someone enter their seat assignment. Presuming the time and flight number is available for capture without the consumer, much of the rest of the information may be retrievable from a database (this is especially true in flights involving passports). On short domestic flights (where such a database of information is not available), other basic demographics may need to be asked.

Assurance of privacy is not only useful but also comforting to the consumer; such as none of the individual’s information would have an existence beyond this survey, under any circumstance.

In sum, the "first question" is "please enter your seat assignment”. In flight instances where this is not enough the primary question would have sub questions; such as choosing on the touchpad between icons of male or female, an age range, an income range, an education range and an opportunity to self-acknowledge in any other way the consumer wishes.



Last Questions

This author apologizes in advance, if it seems that there is a "cheating", and the final two questions (as per this design) would actually fall within the purview of context, as well.

After a “forced” previewing of the services that are about to follow, this next to last question would have the next seven services represented by icon, and ask for a ranking as to how interesting/valuable each of these experiences were. The last question would be a Likert ranking of each of these services. This last question would also include a field inviting quick comment on anything whatsoever.

Once this hopefully entertaining survey is complete, as promised, the iPad stays with the traveler for the balance of the flight. However, a sub tracking may now take place to determine if the consumer goes back to any of what was previewed or pursues an altogether different direction.

Wednesday, April 6, 2011

a cursory assessment of online travel positioning [2 of 2]

Conclusions


The speed with which the Internet has refocused marketing concerns has been breathtaking in comparison to previous models and their relationship to marketing.

Among the notables not yet acknowledged is that Air India is a wholly owned airline in its own right. Consistent with that, the website look and feel seems no different than the website for Continental or Delta airlines.

4lowfare and india-travel.com/ may be indigenously Indian in their design (for they do not immediately remind of any US domestic site of similar caliber). This insight connects to this writers highest metric choices being a tie for the sites most familiar in feel and appearance.

One understands that such sites have many moving parts, a tremendous amount of information to organize, make available and make it extremely easy to navigate. This may seem harsh criticism and I have yet to find the site that accomplishes so much with seemingly so little, whilst still communicating elegance and sophistication (as is this writers estimation of that which is called for).



References

4lowfare. (2009, ). (e-commerce site) (e-commerce ). Retrieved from 4lowfare: http://www.4lowfare.com/

AirIndia . (2011). (e-commerce site) (e-commerce). Retrieved from AirIndia : http://home.airindia.in/SBCMS/WebPages/Home.aspx

Kotler , P., & Keller, K. L. (2009). A Framework for Marketing Management, Managing Marketing in a Global Economy (4th ed.). Upper Saddle River, NJ: Prentice Hall .

MakeMyTrip.com. (2011). (e-commerce site) (e-commerce). Retrieved from MakeMyTrip.com: http://www.makemytrip.com/

Services International. (2011). (e-commerce site) (e-commerce). Retrieved from india-travel.com/: http://www.india-travel.com/

Weitz, B. A., & Wensley, R. (2002). Handbook of Marketing. Thousand Oaks, CA 91320: Sage Publications Ltd.

Tuesday, April 5, 2011

a cursory assessment of online travel positioning [1 of 2]

Abstract


This document seeks to focus some basic marketing considerations with regards to online commerce, with the common thread of airline sites being used among this writer and his colleagues. This author has chosen to focus on four air travel sites associated with another country (India) as an added twist.



Kotler, Keller

Many of the acronyms associated with this industry (e-tailing air travel) came out of the Kotler, Keller text. Small- and medium-sized business’ (SMBs, which some are), marketing information systems (MIS) and Customer relationship management (CRM, which applies to many industries), Frequency programs (FPs, initiated in this industry by American Airlines), direct to the consumer (DTC, the very nature of what we are speaking of) and temporary price reductions (TPRs, and the occasional reality usually instigated by one airline).

From their characteristics of business markets, an illustrated table revealed one applicable item: direct purchasing. This characteristic is fundamental to the charm of e-tailing air travel purchases. Kotler, Keller also speak of a straight rebuy (bulk reorders), which has occasional application at the level of corporate accounts.

The Kotler, Keller text also spoke briefly as regards marketing across cultures. This certainly has application, highlighted by this author's choices of e-tailer's (though nonetheless). And the text also brought up the notion of buying alliances (which is clearly in evidence across most of this writer's site choices).





Weitz, Wensley

The text reveals a somewhat dated incite, that business to consumer (B2C) markets had been over exuberant. This writing took place shortly after the dotcom bubble, in 2006. Nevertheless, despite an undeniable e-commerce shake out the online airline ticket commodity is now very established.

One of the bullet points early on has to do with allowing seamless communication over any distance, local or global. The global consideration is clearly applicable here, and is indeed often seamless.

In the Service Quality Fulfillment and Site Design section brings up the idea of e-fulfillment. With airline tickets there seem choices, including printing them oneself.

Back in 1998/9 there was consideration given the page download aspect of the web experience, which today seems antiquarian. There is, nonetheless, a related issue of wait time insofar as drilling down to where the pertinent information is. If the site is not self-communicative, frustration ensues.

A 2000 reference highlights process, experience and results. This is the core of the online experience, and while worth acknowledging, is generic to most all.

An acknowledgment of the frictionless market characteristic of fierce price competition has implication for the airline industry online. Price wars are now immediate and in real time. There’s little to nothing anyone can get away with to this end.

The text offers extra parameters that went un-weighed in the table. The “internet impacts market strategy, channel management, pricing, marketing communications, customer service, decision support systems, database marketing, global marketing and B2B marketing.”

1998/9 research found marketers becoming agents of the buyer (as opposed to the seller). That clearly has been a shift as evidenced in the airline ticket purchasing process.

24/7 ubiquity, clearly the case with IST (India Standard Time) being 10 hours different from EST (Eastern Standard Time).

Monday, April 4, 2011

American Air’s resource allocation consideration

Weitz & Wensley

Statements such as the following, abstract as it may be, is something this author can digest (“It follows … that each firm’s market share in equilibrium is a half, the same as it would have been if they had spent nothing on advertising”) (Weitz & Wensley, 2002, p. 413).

However, there is a blizzard of mathematical formula and a significant alphabet soup of acronyms that disserve communicating strong foundational considerations as regards solid market research.

Nonetheless, the chapter Allocating Marketing Resources seems to beg two ideas: [1] that to the degree to which it can be done, software can be written (at least for base considerations), and [2] no software will ever be able to be absolute (for there are too many moving parts).


American Airlines marketing mix, 2005

Regardless which wealthy wells of traceable information it chose to plumb, with regards to demand interdependencies we are probably only talking about the general public, whether you are in economy or coach, business class or first class. Those decisions are usually made for the consumer based on circumstance.


And yet this is what an untitled 10 page document finds its focus on, as American Airlines goes about overhauling its marketing mix (in this case, multiproduct allocation with demand interdependencies) (Antidze, I. 2005).

The document is essentially testimony that they had lost sight of all their customers.

American Airlines even took liberties as they took on the behavior that they were in (already in) partnership with their customers, affording reduced rates (in one example) by making available on domestic flights (that heretofore had a served meal) bins of bag lunches the consumer picked up on their way in (likely cutting payroll by a full steward).


In 2007, American Airlines shifted its “romance” (now established) to a more intimate detail of its relationship with its customers; offering a marketing conversation as to how “green” American Airlines had become (Environmental Leader LLC. 2007).


Concluding thoughts

It is acknowledged “…the world’s biggest operator with 80,000 employees and a turnover of over 17 billion,… has weathered the storms of high oil prices, SARS, 9/11 and the Iraq conflict over the past few years much better than most…” and the author would submit that, in large measure, such relative survival is likely due to being the world’s biggest operator (Fojt, M. 2006).


Given that payroll bone cutting can hardly go any further and fuel prices continuing their growing burden one can only hope that American Air continues and expands on all its customers relationships.

The challenges of the industry are very unforgiving and the breadth of the industry’s reach will nearly insist on such strong relationships.

  References



Antidze, I. (2005). American Airlines Marketing Analysis (Corporate Marketing Analysis). Retrieved from scribd: http://www.scribd.com/doc/23988526/American-Airlines-Marketing-Analysis

Environmental Leader LLC. (2007, July 18). American Airlines Plans Green Marketing Campaign (e-zine). Retrieved from Environmental Leader.com: http://www.environmentalleader.com/2007/07/18/american-airlines-plans-green-marketing-campaign/


Fojt, M. (2006). The airline industry [electronic resource]. Strategic planning, 22(6), 53. Retrieved from http://library.argosy.edu:8191/cgi-bin/Pwebrecon.cgi?v1=2&ti=1,2&Search%5FArg=American%20Airline&Search%5FCode=FT%2A&SL=None&CNT=25&PID=OcwZFIj9_Wpf3qelvYyBDTgSqSb&SEQ=20110315203941&SID=3


MarketingProfs LLC. (2010, January 27). Disconnects Plague Loyalty Programs (White Paper ). Retrieved from MarketingProfs.com: http://www.marketingprofs.com/charts/2010/3359/disconnects-plague-loyalty-programs: .


Temkin, B. (2011, January 21). I Am The Customer Experience… Not! [Web log message]. Retrieved from http://experiencematters.wordpress.com/category/employee-engagement/

Weitz, B. A., & Wensley, R. (2002). Handbook of Marketing. Thousand Oaks, CA 91320: Sage Publications Ltd.

Saturday, April 2, 2011

20 years of Apple Marketing [2 of 2]

Aye-aye Captain; pods, phones and pads

In whatever manner one cares to characterize the explosion of creativity behind the wide variety of marketing approaches used for the Macintosh, it seems undeniable that there were lessons learned. We later see these lessons again, in the form of seeking buzz, pre-release marketing, leveraging consumer input and not being shy about asking for top dollar, to name a few.

Among the most beautiful fallouts has been the consistency of elegance, not just in its product design or its stores (which are clearly aspects of its marketing), but in its marketing efforts themselves. Bold, graphic, enchanting, abundant and comfortable are just a few of the adjectives that would be synonymous with Apple campaigns. If one can imagine contemporary skyscrapers as monstrously oversized brooches (or other jewelry), then one may be able to imagine Apple's products similarly; as candy or a beautiful object for its own sake (like a worry stone). People relate and are fascinated (as crows and children are with shiny things). If it is at all within affordability range and it can be that cool (and functional), “everyone” wants one.



Concluding thoughts

Recommendations to ensure future growth

Over the years Apple’s strategy has not so much changed as matured. Biding one's time would likely never sell as a marketing strategy, it is not sexy and it is not fast enough. Still, that is precisely what will give Apple its future opportunities; i.e., relentlessly pursue creating what the customer is hoping and that they have been authentic in their competition against their larger players (biding their time). As Microsoft and IBM continue to rest on their laurels, Apple continues to reinvent itself, even giving itself its own music service and its own operating system (if that is what it takes).

In addition, when it does come to whatever it takes, it turns out that iTunes is the biggest moneymaking music enterprise online, while the Apple OS appears to be killing the mobile device market.

What is especially nice about the latter, is, as app creation is the most fluid employment opportunity in this horribly down economy, it appears the future of marketing itself is there (Gutierrez, 2010).

Although one imagines that Apple likely is exploring the development of holographic expressions, in case they are not, that would be this author's recommendation (to pursue holography). There is nothing especially new about 3-D movies, and while the technology may have advanced, clarity aside it remains essentially the same experience. There is a sense that this is simply transitional, whetting our palate as we await actual projections.

PS: at 4:18PM, March 11, an e-mail is received that the iPad2 is now out (and son-of-a-gun, it comes in a spectrum of colors).



References

Chiat Day. (2011). TBWA Chiat Day agency website (). Retrieved from : https://www.tbwachiat.com/

Computer Museum (symposium) . (2006, ). The Macintosh Marketing Story: Fact and Fiction, 20 Years Later [Video file]. Retrieved from http://video.google.com/videoplay?docid=7611997084394058640#

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