The Term Marketing Mix

Published Date: 23 Mar 2015 Last Modified: 18 Apr 2017

The term marketing mix became more popular after Neil H. Borden introduced his 1964 article titled, The model of the Marketing Mix. After that time, this term has become common information in the business world and has done a key role in determining most companies' business models.

However, most people thought this frame was mostly useful in the early time of the marketing idea when substantial products represented a larger segment of the economy. Today, with marketing more incorporated into organizations and with a large diversity of products or services and markets, is so astonishing and unexpected this concept is currently very suitable and valid.

In this article, I will discuss and investigate Air Asia Airline inside the background of this marketing idea described above. Identifying the target market and importance some of the marketing mix employed create a center of attention to the selected market.

Finally, here will be discussed the fear to the long-term achievement of the airline with situation to the current.

1. Purpose of the report

The main aim is to know how Air Asia delivers value to their customers. Here can see that they are giving proper services to the customers. The price is fit for their target customers. Is the customer getting their facilities near their hands and also is customer knowing their facilities or offers. In this report the customers will get all the things about Air Asia marketing plan.

2. Choice of Product:

Now a day's people need to go from one country to another country for their activities so they use airlines to their destination. As it is expensive so most of the people look who is giving more opportunity to travel one place to another place. I think Air Asia is giving that opportunity that their target customer will like. As their target customer is middle-class, for that reason I have selected this company. Personally I like to use these airlines to visit anywhere.

Marketing is defined as the process of determining the requirements and needs of consumers and being capable to distribute products that convince those needs and wants. Marketing includes all of the activities required to supply a product from the manufacturer to the consumer. Think of marketing as a connection from the producer to the consumer.

Marketing starts with market study, a learning process in which marketers get to know everything they can about the requirements and wants of consumers, and it ends when somebody buys something. Many companies feel that services provided to customers after buying also are an important part of marketing. All of these enterprises: production, advertising, transportation, processing, packaging, and selling, are included in the marketing process.

The value idea is one of marketing theory's vital elements. Selecting and creating customer value to recognize as value for customers is regarded as a necessary prerequisite for future company success. The study of customer value is becoming much more important, both in study and in apply. For example, the American Marketing Association recently revised its definition of "marketing" to include the notion of customer value, and there have been important discussions in the text about the leading logic in the field and over the middle role customer value plays. Identifying and creating customer value is regarded as an essential requirement for long-term company continued existence and achievement. Understanding the way customer's judge and value a service or product is vital to achieving a competitive benefit. Scientists and practitioners have familiar the power of the CV concept in identifying value for customers and managing customer behavior. The goal of customer value study is to explain, investigate, and make empirically quantifiable the value that companies create for their customers and to link these insights to further marketing constructs. Recently, the research has also begun to link customer value with concepts such as customer lifetime value or customer justice in order to evaluate the return on marketing actions and the financial impact of customer value on the company.

Company Background

Air Asia is the second national airlines in Malaysia. Air Asia was started first low cost and ticket-less airlines in the Southeast Asian region. First time it introduced Malaysia government on 18 November 1996. On December 2, 2001 it was purchased by Tune Air Shd Bhd company officially. The owner of this is Tony Fernandes. After that time Air Asia didn't see the behind because they started to look new roods. Now a day's Air Asia is servicing almost 100 point to point home and global from its own hubs in Kuala Lumpur International Airport and Johor Bahru, Senia Airport in Malaysia. Also they also have in Soekarno-Hatta International Airport in Jakarta, Indonesia and Thailand.

Marketing Mix is the most vital concepts in marketing management. For pulling towards you consumers and for sales promotion, each of the producers has to concentrate on four basic fundamentals. These are: product, pricing, and sales promotion techniques. A fair mixture of these marketing fundamentals is called Marketing Mix. It is the combination of four inputs which form the central part of marketing method. This marketing mix is the marketing manager's tools for achieving marketing targets. Manager has to apply the four fundamentals of marketing mix in a normal manner to get his marketing target in terms of amount of sales and consumer support.

Product or services:

The product will be tangible, physical as well as services. Here customer will get about the characteristics of the products or services. To see that customer can be interested to use the products.

Air Asia always thinks how to make traveling more easily, comfortable and affordable for its customers. They want to make sure that how easily their customer can make booking through a combination of ways. In August 2003, air Asia first introduced SMS booking in the world. So here customer can do their all kinds of activities by mobile phones to sent SMS, such as can book their seats, can check schedules and also can get latest updates about the promotions of Air Asia. Air Asia introduced GO Holiday packages recently, the Air Asia's online programmer where customers can book holiday packages in real time.

Air Asia always ensures their customer satisfaction in every time because they want to get more customers by giving more facility. So Air Asia has started frequency service for customers. Air Asia normally practices a quick rotate of 25 minutes, which is the faster in the region, resulting in high aircraft use, lower costs and better airline and staff output.

Air Asia has started nationwide call centre in April 2002. There have almost 180 telephone lines in call centre. Air Asia is receiving almost 6000 calls every day to know about flight schedule or flight information. So customer cans easily booking their sets through telephone. In this way customers will be more comfortable to book their sets.

Air Asia introduced ticketless service on 18 April 2002. Customers can easily book their sets through telephone and internet so customers can reduce their cost to book the tickets. The customer needs not to face any kinds of problems to collect the tickets.

Price refers to the value or plus point of a product that feels attraction to the buyer to replace money or something of value for it.

Air Asia's fares are considerably lower than those of other competitors. This service amis the customers who will do without the accompaniments of meals, frequent booklet miles or airport lounges in replace for fares up to 80% lower than those presently offered with equal expediency. No flattering drinks or meals are obtainable. As an alternative, Air Asia recently set up 'Snack Attack', a range of delicious food and drink and drinks available on plank at very logical prices and set totally for Air Asia's guests. Guests now have the option of purchasing food and drinks on floorboard.

7.2 Low cost per average seat kilometer

Air Asia is listening carefully on ensuring a competitive cost formation as its major business policy. It has attained a cost per average seat kilometer of almost 2.5 cents, partially that of Malaysia Airlines and Ryan air and a third that of Easy Jet. Air Asia can lease the B737-300s aircraft at a very viable market charge due to the spiteful global market conditions for the next-hand aircrafts because of the September 11th event in 2001. On the other hand, the in repair cost of the company is also dropped fundamentally.

Air Asia focuses on Internet bookings and ticketless travel allowable it to lower the allocation cost.

With the normal charge being 40-60 % lower than its full-service challenger, Air Asia has been able to achieve strong market inspiration in the home Malaysian air market. For example, the charge for the journey from Kuala Lumpur to Penang on Air Asia starts from 39 ringgit. Comparing to drive by bus charge 40 ringgit and 80 ringgit by car. The result of gorgeous low fare is more customers switching from bus to air, related case as Ryan air in Europe.

8. PLACE

Allocation is about receiving the goods to the customer, looking at site and where a service is delivered - or whether they need to bring together it or will you deliver it yourself now, Air Asia flies to 12 destinations in Malaysia, using a navy of seven Boeing 737-300s. By the end of the next financial year, it will have added four or five new house places, and increased the regularity of flights to existing ones. More amusingly, it will have started flying to less important airports near Bangkok, Manila, Jakarta, and Hong Kong. Ultimately, the goal is to increase the navy to 18 by June 2004, the same to the release of one aircraft a month starting in September. Already, Air Asia is looking to formulate Kota Kinabalu airport its found for flights to the Philippines and Hong Kong, and Senai airport in Johor Bahru for flights to Thailand and Indonesia.

8.1 Internet sale

The bulk of sales are done via the airline's online, whereby the charges are paid using a credit card. This is the most cost successful allocation channel. One decisive factor for an well-organized low-cost airline is straight booking via the internet - this does gone with commissions and credits to travel agents and the cost of dispensation tickets. whereas Raja Azmi claims well more than half of Air Asia bookings are done via the internet .The rest are through sales offices, "The internet, as a booking device for international travel, leftovers an foreign inquisitiveness for a difficult few. As Asia's first online airline, Air Asia offers a new convenience in buying seats by classification on to its website http:www.airasia.com. No more phone calls, no more queuing. Started on 10 May 2002, http:www.airasia.com is now accessible in 7 languages - English, Bahasa Malaysia, Mandarin, Tamil, Bahasa Indonesia, Thai and Tagalog.

8.2 Travel agents

Agents make instant payment via a near Air Asia credit card, developing throughout one of its strategic partners.

8.3 Sales office

Air Asia only has a few sales offices and only establishes a call centre if they are confident the sales resulting from the centre will be worth it.

8.4 Call centers

Ticket sales can be done via telephone; that system is a sample and cost successful method.

In the circumstance of the marketing mix, promotion represents the different aspects of marketing statement, that is, the statement of information about the creation with the goal of generating a positive customer reaction. Marketing contacting decisions more recently, Air Asia struck an advertising deal with Time, which will have the local mobile phone operator's logo tinted on one of Air Asia's planes. Moreover, there will be more of these, as well as

advertisements on pull-down trays.

Air Asia's Air Space Advertising generates additional revenue by giving our advertisers the opportunity to converse to captive viewers on board our aircraft. Our extensive list of recognized brands as advertisers is proof of movement e¬€ectiveness when it comes to attainment a varied target audience. Digi, Mastercard, Citibank, Celcom and TH Properties are just some examples. Airspace Advertising will continue to contribute considerably to our auxiliary income.

With over 90 million impersonation and 600,000 unique visitors every month, airasia.com is by far the biggest e-commerce trade in ASEAN. airasia.com is supreme in terms of complete information, content and its ability to cater to six languages covering 11 countries. With a wide reach of recurrent guests as well as possible new ones, the website is a influential one-stop included travel portal. AirAsia's Internet sales have grown-up from a mere 15% from on its ¬rst day of operations to an remarkable 70% today. As we start more new products and services online, our web tra¬ƒc will continue to rise. With E-Gift Vouchers, Web check-in, Xpress Boarding and Go-Insure Travel Insurance, we now o¬€er guests an included online knowledge at airasia.com.

9.3 Maximizing Media Coverage

Source: www.malaysianwings.net

Being a leader between budget airlines in Southeast Asia, Air Asia received expected coverage from media outlets. Air Asia managed to promote brand consciousness without incurring high sales and marketing operating cost: in all of his media appearances, Frenandes always appeared trying a red Air Asia baseball cap and his statements reinforcing Air Asia's positioning to offer low prices; generating media notice for the airline. Air Asia's major sponsorship for Manchester United, involved global sponsorship and advertising, and promoted the brand further than the region.

10. Assessment of overall delivered:

It has been a great pride in the history of AirAsia that in spite of the challenges that they have faced, Air Asia continues to challenge the probability. Since December 8, 2001, when the company was taken over by the new Air Asia management, AirAsia has grown to become the biggest low-cost carrier in Asia. Today the airlines are operating in Malaysia, Thailand and Indonesia. With more than 6,000 talented, dependable and dedicated employees and a market capitalization in excess of RM2billion, Air Asia has earned a reputation as a reliable player no matter what the external environment. They have seen a future in which their success is not forced by resources or opportunity.

11. Conclusion:

There are 4 marketing mix for Air Asia such as product, price, place and promotion. Air Asia should get better their service to satisfy their customer. Air Asia is Malaysia and Asia's first low cost transporter has made its name identical with low fare air travel in the region. Now a domestic name throughout Asia, Airasia offers lower fares by eliminating most conventional passenger services in order to make air travel reasonable and reachable for everyone. Airasia provides a totally different type of service in line with the nation's aspirations to advantage all citizens and worldwide travelers. Revolutionizing air travel by offering fares that are significantly lower than that of traditional full-service airlines, Air Asia has put Malaysia's airline industry on the world map by making its attendance felt and bringing people in the region closer together. Such service takes the form of a no frills -low airfares flight offering, 40%-60% lower than what is currently offered in this part of Asia.