estolano, mikko. assignment 2. tell and show chapter 15
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6 Marketing Concepts as applied in Philippine Airlines
Mikko M. EstolanoAteneo Graduate School of Business
09 May 2013
Prof. Bong De Ungria
www.mikkoestolano.blogspot.com
1.Marketing Channels2.Pull Strategy3.Push Strategy4.Buyer’s Expectation5.Types of Shoppers6.Channel Integration and System
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6 Marketing Concepts
What are Marketing Channels?
-also called trade channels or distribution channels
-interdependent organizations involved in the process of making a product or service available for use or consumption
- set of pathways a product or service follows after production
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Concept 1
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Example 1
Where can you reach Philippine Airlines?
1. PAL Website
1. PAL Ticket Offices/ Petron Payment Centers
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Example of Concept 1
Where can you reach Philippine Airlines?
3. Travel Agencies
4. Interline Partners
Strategy: Push or Pull?
•Push Strategy
uses the manufacturer’s sales force, trade promotion money, and other means to induce intermediaries to carry, promote, and sell the product to end users
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Concept 2
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Example 2
PHILIPPINE AIRLINES STRATEGYCorporate Sales/ Passenger Sales Workforce
Additional incentives/ commissions for the Travel Agents
Strategy: Push or Pull?
•Pull Strategy
advertising, promotion, and other forms of communication to persuade consumers to demand the product or service from intermediaries
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Concept 3
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Example 3
PHILIPPINE AIRLINES STRATEGYAdvertising and Promotion
Buyer Expectations
Ability to order a product online and pick it up at a convenient retail location
Ability to return an online-ordered product to a nearby store
Right to receive discounts based on total online and offline purchases
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Concept 4
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Example 4
•Online Booking service: www.philippineairlines.com accepts ticket purchases and credit card payments
Giving what is expected…
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Example 4
• 9 in Metro Manila
• 47 in Domestic points
• 34 Abroad
Avenue for addressing customer concerns
Giving what is expected…
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Example 4
Giving what is expected…
Discounted Rates!!!
Types of Shoppers
•Service/quality customersdon’t mind paying a few extra dollars for extra service and better quality
•Price/value customersprimary concern is the cost of goods
•Affinity customerstight bond a customer has with a company and its brand (long-term relationship)
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Concept 5
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Example 5
PAL adjusts to different types of customers
Channel Integration and System
1. Vertical Marketing System
producers, wholesalers, and retailers acting as a unifiedsystem that seek to maximizeprofits for the whole channel
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Concept 6
Channel Integration and System
2. Horizontal Marketing System
channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity
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Concept 6
Channel Integration and System
3. Multichannel Systems
company uses several marketing channels (e.g. direct mail - telemarketing, retailers, distributors, dealers, own sales force) to sell its products to different customer segments.
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Concept 6
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Example 6
Multichannel Marketing System of Philippine Airlines
Ticket Office Pal Website Travel Agents Interline Partners Social Media
1.Marketing Channels2.Pull Strategy3.Push Strategy4.Buyer’s Expectation5.Types of Shoppers6.Channel Integration and System
www.mikkoestolano.blogspot.com
6 Marketing Concepts
6 Marketing Concepts as applied
in Philippine Airlines
Mikko M. EstolanoAteneo Graduate School of Business
09 May 2013
www.mikkoestolano.blogspot.com
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