Thursday, June 25, 2015

Marketing process and its elements

Q. Plan marketing mixes for two different segments in consumer markets

Marketing Strategy for other segments
The analysis of the trajectories and performance of airlines in the Twentieth century has updated two essential conditions for profitability. The first is the relevance of "profit strategy" to the "growth mode" countries in which the firm operates. The second is the construction of a "compromise of corporate governance" between key actors to implement means consistent with the profit strategy, in other words, to invent or adopt a "productive model" (Boyer et al, 2010).
For marketing for other segments, AirAsia will follow the innovation and flexibility strategy while targeting the middle and lower income people for whom the cost is most important (Anderson & Narus, 2010).
Q. Show how and why international marketing differs from domestic marketing

Local versus Foreign Markets
In this changing context, AirAsia is engaged in two possible internationalization scenarios, i.e. globalization at one hand and the regionalization on the other. However, the implementation of internationalization strategies reveals more complex configurations. The scenario of globalization involves homogenization of the global market, which tend to unite through the gradual convergence of services offered in different countries.
The success of a policy of internationalization depends primarily on the relevance of the strategy to profit of the firm with respect to growth patterns of new countries invested.  While entering into the new international market, AirAsia closely consider the cultural dimension of the market.
In order to remain active and progressive in the market AirAsia has to identify new routes and markets (Davies & Lam, 2001). Being a low-fare airlines, AirAsia has to identify such potential new routes and markets which have the following characteristics:
·         The area of the potential new market is large enough to introduce new profitable routes;
·         The demand of a low-fare airline is high among the local population;
·         The region is economically viable and new industries are emerging;
·         The region must have a large population;
·         Maintenance facilities are available
·         Cross cultural business is growing etc.

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