The regulatory framework affects airlines’ marketing. As liberalisation proceeds marketing activity can be more widely based than under previous regimens, and now includes more possibilities in the product mix and price differentials. Cost issues and competitive pricing practices still prompt regulatory concern where monopolistic features arise. Such is the case with slot restrictions and the formation of alliances that may ultimately restrict consumer choice. Specialisation by sector and segment allows market entry for emergent airlines with lower costs, of which labour predominates. Pressure for cost reduction raises the possibility of the virtual airline but customer orientation suggests an overriding concern for safety and the integrity of the airline brand. The article complements another on developments in airline marketing.
Discusses how marketing practice is competitively evolving as airlines, in a code‐sharing environment, seek to be more effective, efficient and profitable. It complements changes to airline structures in routeing, staffing levels and technology, and by establishing strong brand presence is a means for customer attraction, retention and network expansion. Distribution channels are changing as travel agencies are affected by airlines’ direct sales and Internet‐based interactive communication. Traditional segmentation tactics directed to business travellers, through frequent flyer programmes and premium services, are threatened by businesses economising, staff reductions and the increasing importance of the leisure traveller. An overview of international practice is taken and points illustrated, where appropriate, by examples of specific airlines.
Various explanations are possible for the observation of similar outcomes from repeated choices, for example, both cognitive psychologists and behaviourists find support for their viewpoints in such patterns. Pattern recognition and interpretation are necessarily model‐bound activities as, indeed, are attempts to analyse such data in terms of probabilities. In the face of many alternative procedures with their associated rationales relative simplicity of screening is important in assessing new data in terms of their structure and conformity to a model. This article outlines in a non‐technical way one such procedure which is appropriate to analyse data, particularly brand choice observations, expressed in dichotomous fashion. The recognition of such patterns and a formalisation of an underlying rationale are necessary steps in the improvement of both data‐handling technique and the furtherance of our understanding of consumer behaviour.
Opinions differ about the application of scientific method to advertising research. The nature of scientific inquiry is also frequently disputed. Against this background, basic views of science are discussed in connection with advertising research. Apparently the advertising community largely disregards the results of such research and adheres to beliefs which are plausible but unsubstantiated. This is demonstrated in the two cases of cognitive models of consumer response and advertisers' quest for the optimal budget. In this paper, these contra-indications of science are set in the context of advertising management.
Marketing practice in the EEC is subject to the Articles of the Treaty of Rome relating to free movement of goods and competition. Judgments concerning these Articles and accumulating case law have implications for the planning of marketing strategy and the determination of many marketing mix decisions. Examples to demonstrate the scope and basis of these judgments are considered and some implications discussed. Greater cognisance by marketers of the legal dimension is suggested for fundamental reassessment of competitive behaviour.