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Assignment 4 - Service Marketing

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by

Ren Hao Hao

on 30 July 2013

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Transcript of Assignment 4 - Service Marketing

Pricing Strategy
Service Marketing Assignment 4
Airline
Introduction
Large Competition in the aviation industries.
Different demands and needs for different groups.
We have to focus down to a
Specific group.
Specific route.
Business Class.
Flight to Hong Kong
Why?
Who are our competitors?
Singapore Airlines
SilkAir Airlines
Cathy Pacific Airway
Qatar Airway
JetStar Airlines
Slogan : A great way to fly!
Strengths :
Able to provide a high level of services and wide range of facilities for passengers to feel comfortable during flight.
Weaknesses :
Services not used may result in the consumer feeling that money are wasted.
Flying Office
Will be fully focused on Small Medium Enterprise (SME) Companies.
Slogan : Low Fares, Good Times
Strength :
Able to provide a simple and cheap service.
Weaknesses :
Services provided may be limited. The atmosphere may not be comfortable for the passenger to do their work if they wan to.
Using the strength and weaknesses
Time saving
They can get something done during the flight hours.
Efficient
Our Positioning.
Cost
Variety of Facilities
We are focusing on providing this service to SME, Therefore, it cannot be too unaffordable
To allow the consumer to be efficient, we need to create a wider range of services & facilities to serve their needs.
Singapore Airlines
SilkAir
Cathy Pacific
Qatars Airway
JetStar
Us
Characteristic of a Businessmen
Rational
More and more SMEs will start to network out of their country to source for equipments or products.
Cheaper
Globalization is allowing many interactions out of their own countries
There will be opportunities to travel overseas to know more about the product or equipment.
What?
Who?
An airline service which allow work to be done comfortably on the plane if needed.
Topic -
Positioning
Target Market
7Ps
Products
Core
Information
Consultation
Order taking
Payment
Hospitality
Exception
Billing
Safekeeping
Our information given will focus on the
Cost of air fare
Departure date
Worst case scenario timing
Kinds of facilities we provide in the plane
Membership privileges
During consultation, we could
Discuss with customers what facilities they could use for their needs and wants.
During OrderTaking, which means booking of air ticket, we must ensure
Accurate booking
During billing,
Bills and statements must be clear to both customers and staff.
All service or facilities the consumer chosen must be double checked before payment.
Payments modes,
Cash
Cheque
Credit card
Customer's luggage must be taken care of.
Take everything as fragile goods
Staff on the plane are to treat the customers as guest
Lead them to their seats
Going through with them the facilities they have purchased
Ensure that they know how to use it
In case of any fault, amendments can be made.
Conveyor belt

Mechanic

Check plane

Metal detector

Load bags on plane

Conveyor belt

Registration on system

Remove bags

Send-off passengers

Serve passengers

Check passengers

Online/Website

Alight Plane

Leave airport

Security check

Wait at gate

Fly

Greet passengers

Greet & take bags

Pilot

Check and authorize purchase

Board plane

Check in

Arrive at airport

Make reservation

Line of internal interaction

Line of visibility

Line of interaction

Backstage actions

Support processes

Onstage actions

Customer Actions

Collect Luggage

Dietary preference
Handicap
Pricing
Peoples
Processes
Promotions
Physical Evidence
Sales Promotions
Personal Selling

Competition-based Pricing
Value-based Pricing
Air-Ticket Office
Interior of aeroplane
--> Divider between each passengers
--> Laptop renting service provided
--> Wifi Chargeable services provided
--> More spacious seats provided
--> Air-freshener
--> Classical music



-->Frequent Staff training
(e.g. Once every month)

--> Bosses updated on service
quality on each staffs through
feedback forms and flight
supervisors.
Homogeneity in service
Why we used Cost-Based Pricing?
We focused on the type of facilities and service they require, and so we will price it based on that.
A higher quality of facilities comes with a high price.
Objective :
To inform the consumers that we are
Safe to fly with
Providing services that would benefit them during flight
There will be a lot of contact point with the consumer
Fill them in about what our airline has to offer compared to the other airline
Our location
It will be easy for the consumer to approach us if they want to.
For us to approach their office
Reason
Revenue management
Reason
Giving discounts or offers to grab their attention about our service content.
By means of brochures passed around the SME offices or through the internet.
This service is new and knowing our service content will change their mindset of us compared to others
Explain our service and help them decide what service to choose
Suggest specific service to fulfill their needs
--> Staffs dressed in office dress coat
--> Porsche Furnitures
--> Black and Blue theme
Number of SMEs may increase
Provide service and facilities to allow customers to do their work comfortably if they want to.
By putting options for consumer to choose what they need or want.
Internet
Provide service information
Price that is updated daily
Reason
Very convenient for consumers to know all the information they require to plan for a business trip overseas.
Cost-Based Pricing
Place
Office
Where?
It will be placed where all the SME companies are populated at
It is easier to communicate with the SME
Gives a good head start into promoting our services to the SMEs

Singapore is a safe country
Encouraged local & foreign entrepreneur to start up business in Singapore
Internet & Phones
When?
Our working hours for the office
8am to 8pm.
Reason behind it is because of the working hours of majority of the people working in Singapore ends at around 5pm
Putting us ending at 8pm, it allows them to approach us after busy office hours
Perishable inventory
Fixed Capacity + Variable Demand
Plane
During peak periods, there would be increase in demand (Variable demand) for overseas traveling. With limited seats (Fixed Capacity), we can increase air-tickets price to meet the increase in demand.
How?
A platform for easy information gathering
We will mention about our key difference compared to the other airlines and facilities that we have on the plane
How?
When there are too few people, seats would be wasted.
There would then be a profit loss.
There will face a place constraint
Provide a service to transport them from their house to the airport
Booked cabs
Full transcript