Airline Marketing 11:Selling and Advertising

Dr Narudh Cheramakara

Bangkok University

1/2017

1 Anatomy of Sale: AIDA MODELAIDA model proposes that advertising messages need to accomplish a number of tasks in order to move the consumer through a series of sequential steps from brand awareness through to action (purchase and consumption).

•Attention -

•the consumer becomes aware of a category, product or brand (usually through advertising)

↓

•Interest -

•The consumer becomes interested by learning about brand benefits & how the brand fits with lifestyle

↓

•Desire -

• The consumer develops a favorable disposition towards the brand

↓

•Action -

• The consumer forms a purchase intention, shops around, engages in trial or makes a purchase

2. Sale Planning: Sale Budget

1. Percentage of sale method – (Fundamentally incorrect)- Simple and Fast - Return on investment concept!!

- Downside• If the market is buoyant, revenue will rise naturally and

promotional spending with it. If market conditions deteriorate, there is arisk that revenues will fall and that promotional spending will therefore follow. in turn cause a further loss of revenue.

• DD Example: 2% of revenue

2. Sale Planning: Sale Budget

• The promotional budget should actually follow exactly the opposite

• pattern to the one which will result from the Percentage of Revenue concept. When the market is growing strongly, an airline operating in that market will be able to increase its own revenue in line with the market for only a small promotional spend.

2. Sale Planning: Sale Budget

• Same budget as last year + inflation

- Again easy and avoid corporate politics

- Still flawed

2. Sale Planning: Sale Budget

3. Task-based Method

• the budget is set by first asking and then answering a series of questions about the money which will be needed if the target revenue and profit for the year Whilst there can be no precise answer to these questions,

• It will also be necessary to take account of the spending of the airline’s competitors.

• Whilst in principle it may not be necessary to exactly match the budget of a high-spending rival.

3. Marketing Communication Techniques

1. Sponsorship

- Must ensure that what you are sponsoring goes well with your branding

3. Marketing Communication Techniques2. Media Relations: PRระทก! รถบสรบ-สงผ โดยสาร ชนเครองบนนกแอร กลางสนามบนดอนเมองสายการบนนกแอรแจงวา เมอวานน เวลา 22.55 น. ขณะทเครองบนของสายการบนนกแอร จอดอยทหลมจอด 35 ทาอากาศยานดอนเมอง ไดมรถบสรบ-สงผโดยสารของสายการบนหนง พงเขาชนสวนหนาดานซายของเครองบนไดรบความเสยหาย ไมมผบาดเจบ เจาหนาทก าลงตรวจสอบสาเหต และความเสยหายทเกดขน เพอซอมบ ารงตอไป อาจท าใหตองเปลยนแปลงตารางบน หรอเกดการลาชาบางเทยวบน- Online Drama

- United Case

3. Marketing Communication Techniques3. Field Sale Team

- Visiting Agents

- Backbone of B2B market

- Sometimes working along PR team

4. Advertising

1. Setting the brief

- What do you want this campaign to achieve?

- What message to deliver? Price? Branding? New products? Destination?

2. Agency Selection

- Inhouse? – DD does it themselves

- Outsource?

3 Media Buying

- Cost v Impact (Eyeballs?/ROI?)

4. Advertising

4. Creativity

- Must take into account of different cultural taste

- Standardise/Localise?

5. Campaign Monitoring

- Through ROI

- Web Activity during the campaign

- Lesson Learned?

TV Advert Examples

Air France – Michel Gondryhttps://www.youtube.com/watch?v=VmNztYfInOAAir France – France in the Airhttps://www.youtube.com/watch?v=v-ahlbWNZPk

Air France – Inflight Meal Adverthttps://www.youtube.com/watch?v=1N1d1CE6ThQ

Air France – Flying Dancehttps://www.youtube.com/watch?v=2fRoEOcf6jo

• KLM Swan

• https://www.youtube.com/watch?v=j73RJiJSwXE

British Airways

• Don’t Fly – Support Team GB

https://www.youtube.com/watch?v=JMU1eIhQ68w

Club Class

https://www.youtube.com/watch?v=_vSFye_RgN0

Old Pricing Ad

https://www.youtube.com/watch?v=uQ9SlOUBvqQ

Pam Ann – Training

https://www.youtube.com/watch?v=QF6YjSE1dsY

Qantas

I still call Australia Home

https://www.youtube.com/watch?v=hbGuqmaDgLA

การบนไทย• ขบเคลอนเศรษฐกจชาต• https://www.youtube.com/watch?v=DfDc68k2z98

• เสนทางบน• https://www.youtube.com/watch?v=1kZmVI00CcM

• Sas Japan• https://www.youtube.com/watch?v=tp6IWAEdaRc• SAS Cultural Festival sponsor• https://www.youtube.com/watch?v=Hu6Lf1tb5Pw