Marketing Theories and Principles Management

Question: Discuss about the Marketing Theories and Principles Management. Answer: Introduction Andersen (2001) defines marketing as the collective processes which enhance interaction between an organization and its customers with the main aim of improving the awareness about their products and services among the clients. Market is therefore pivotal in helping the clients to understand the trends in prices, product positions as well as changes in schedules just to mention but few. Most successful organization especially in the dynamic corporate world today are those who have remained consistent and effective with their marketing strategies. In this paper, we analyze the concept of marketing by reviewing the marketing theories and principles (Anjos, 2005). With reference to the Airbus Company, the paper shall examine how organizations can apply these theories and principles to enhance a stable market for their product and services. Brief Overview of Airbus Company Airbus is a large multinational company with its headquarters in France. It is a constituent of the larger Airbus Group SE. The company which manufactures and distributes civil aircrafts has got its facilities spread in most regions over the world including Germany, Spain, China and the United Kingdom just to mention but few. The wide market base and the continued dominance of Airbus is one aspect which informed its choice for this analysis and report. Over the past years, various companies whose operations run alongside those of airbus have been established (Beane, 2007). Despite the rising stiff competition, the company has remained one of the leading manufacturers of digital passenger airliners. Some of the common products include the digital fly by wire airliner, the Airbus A320 as well as the A380 which is one of the worlds largest passenger airliners. The huge following and a stable base of customers is a clear indication the Airbus is actually a marketing success story. The company largely depends of networking as one of the aggregation and adaptation strategies. Due to the fact that Airbus has its wings spread over major parts of Europe and other developed regions, there is an inevitable need for adequate networking to enhance the stability of affiliate groups in these countries. For instance, Airbus works closely with Singapore Airlines, a major transport herb in Singapore and its environs. In 2015, the company delivered the A350 passenger aircraft to Singapore Airlines. This strategy in addition to continued interaction with various other subsidiaries has played a crucial role in expanding the market base of the company (Bernhard, 2008). This is because in addition to delivering finished products to these countries, the Airbus management ensures that these deliveries are accompanied by various other promotional strategies whic h may include discounting prices, incentives to loyal customers and variations in product designs in order to fit the customer needs. The company continues to grow as days go by (Bettman, 2007). This can be explained by the various subsidiaries established in over sixteen countries with the central assembly points based in Germany, Spain, France, China and the United States. The company is no doubt a successful as far as its marketing strategies are concerned. Factors that led to the marketing success of Airbus As hinted in the introductory parts of this paper, one of the most important factors to consider in a bid to enhance the market of a product or service is an in depth understanding of the business environment as well as the changing trends in the marketing environment. In a bid to adequately stay updated with the changing trends in the marketing environment, the Airbus management team has put in place various strategies. The company has various subsidiaries spread over extensive regions not only in Europe but also in other parts of the world. In addition to being the central points of attachment between the companys headquarters and the international market, the affiliate organizations comprise effective organizational structures with various functional groups. Among these groups include the marketing and promotion department (Binggeli and Pompeo, 2002). Through the marketing departments in the various subsidiaries, the Airbus Company is able to analyze and establish the changing tre nds in the market environments in each of these regions. It is a fact worth noting that the marketing environment tends to vary as one moves from one region to another. This could be attributed to the varying customer needs, social and economic attitudes as well as changes in tastes and preferences. By establishing the specific consumer needs, the company is able to manufacture and distribute products which would adequately address the identified needs (Hakansson, 2002). According to the principle of product usability, organizations ought to avail to the consumers products that adequately address the needs of the consumers. As such, the product ought to do what the customers want it for. Airbus has made tremendous steps over the past years in ensuring that the management is always updated on the new demand, current uprisings in customer needs as well as the variations in test and preferences. For instance, the customers in Singapore may be accustomed to a particular design for the airline. Such elements may include space, capacity and speed of the passenger aircraft (Currie, 2009). By reviewing the client feedbacks on past experiences with the previous Airliner designs, Airbus came up with adjusted designs which included A320, A350 and A380. Each of these designs were such that they fitted what the consumers wanted them for. With reference to the components of the market mix strategies, one of the crucial considerations is the extent of convenience e xperienced by the customers on interacting with the product. It is therefore notable that one of the factors that has contributed in marketing success as registered by Airbus is the companys concentration on the quality, usability and effectiveness of the products delivered to the customers. Despite the fact that the Airbus A350 was only delivered to Singapore airlines recently, research reports indicate that the airline has made numerous trips in the process transporting over 12 billion passengers (Daft and Armstrong, 2009). The high turn up of clients demanding the companys service and use of its products is a clear indication that the marketing strategies established to enhance the awareness of these products and services have proved effective. Airbus Company has continuously relied on the benefits of segmentation in order to enhance more reception for the products and services. The corporate world comprises several other organizations. One of the challenges brought about by the emerging organizations is that they offer services at relatively lower rates hence tend to capture a good portion of the economy class market (Dimofte, 2009). In order to enhance product and service promotion, the company identified specific regions in Europe and Asia as well as in other parts of the world where there is good customer reception to the companys products and services. The organization has therefore set such stable regions as the specific target areas for its promotional strategies. Some of the companys known strong zones include countries such as France, Germany, Spain, the United States and China. To enhance the continuity and stability of these market segments, the company has not only established manufacturing subsidiaries in these areas but also set the designated regions as the very points where the final assembly of the products takes place (Halstead, 2009). This strategy operates in conformity with the place principle of marketing which emphasizes that products and services ought to be availed in specific areas where the target customers can easily access and use them. In order to enhance this, the Airbus Company has incorporated the use of technology in ensuring proper business-customer relations especially through e-Commerce. Such platforms have provided convenient avenues where the clients are briefed on the upcoming designs, new specifications and the associated product prices. Through these platforms, for instance, the companys website, more promotional strategies are conducted and the customer feedbacks deduced. The company then incorporates these feedbacks in the product design in a bid to ensure that the products and additional services perfectly fit the customer needs and preferences. The other important factor worth consideration for successful marketing is the aspect of pricing. While there is always the vital need to ensure that the sales of products return the value in terms of money, it is always important to regulate prices appropriately (Doganis, 2006). This may not mean charging very high r very low prices but maintaining the price between a range that is likely to embrace a good portion of the target customers. The Airbus Company has maintained a stable pricing policy since its inception. The company also deals in a wide range of currencies which ensures that the companys marketing strategies adequately capture the international market as well (Heracles, 2009). Lastly, the company embraces the aspect of promotion as one of its core market mix strategies. To enhance the products and services market, Airbus uses advertising through various media which include radio, newspapers and television. The recent emergence of information technology and the related de vices has also provided the social media as the other platform which the company can use effectively (Erdem, 2008). Through the promotional strategies, Airbus carefully conveys its message to the intended audience in manner that is not only informative but also appealing. A careful consideration and hence implementation of each of the factors highlighted above explains the reason behind the marketing success of airbus (Kilbourne, 2010). Possible Future Challenges and Recommendations The dynamic nature of the global market and the continued rise in technology may aid the establishment of various rival companies. Such companies are always meant to capture clients who fall within the lower economy class (Nelson, 2007). In case numerous competitors arise offering the same products and services at relatively affordable rates, a portion of the companys market may be swayed away from their loyalty. Consequently, it would be vital for the company to come up with extensive strategies in a bid to contain the challenges associated with competition. The company can therefore assemble and manufacture airlines which can serve individuals from across all economic divide. This way, products offered at lower rates would not dissuade the clients from remaining loyal to the company. This happens especially when the same services are offered by the company. The other challenge associated with the emergence of technology is the introduction of drones in the airspace. Although they are computer manipulated, drones use the same airspace used by other aircraft. The passengers and pilots are at risk due to eminent collisions that may be caused by poor communication or uncoordinated use of space. The company can therefore manufacture airlines which are able to fly at higher altitudes to minimize possibilities of collisions The other challenge may involve the varying trends in consumer preferences. With the ever changing market environment, it may be practically impossible to project what the market situation would be in the coming years. However, the company can make use of the current trends to forecast on the possible future changes and hence put in place the appropriate counter strategies. In order to counter the future challenges, Airbus could invest more on human resource empowerment to equip the current staff with marketing skills that would enable them deal competitively with the changes in the marketing trends. In addition, the company could consider improving the infrastructure and networking methodologies. This increases the customers access to the products and services which in turn improves marketing. Lastly, the company could harness the benefits of technology and come up with sophisticated marketing approaches through the online platforms and social media. Due to the high number of users, this strategy is likely to reach a good audience which is core strength in marketing. Conclusion The success of any business organization is always based on the extent to which the organization has invested on effective strategies. Each of these of these strategies is always aimed at enhancing the achievement of key organizational goals and objectives. Depending on the nature of the organization as well as the dynamics of its market base, business organizations employ various approaches. While some depend on effective empowerment of the human resource fraternity, other makes use of advancements in technology to come up with efficient promotional strategies for their products and services. This is marketing. When the right principles and theories are applied in marketing, the process is likely to stay effective in enhancing the achievement of the companys specific goals and objectives. Good marketing therefore rewards an organization through sales, stable market and consequently, an attractive return on investment. References Andersen T.J. (2001) Information technology, strategic decision making approaches and Organizational performance in different industrial settings. The Journal of Strategic Information Systems, 10(1), pp. 101-119. Anjos, M. (2005) Optimal pricing policies for perishable products, European Journal of Operational Research 16(1), pp.24654. Beane, T. (2007) Market segmentation: a review, European Journal of Marketing 21(5) 1987, pp.2042. Bernhard, H. (2008) Six lessons for the corporate classroom. Harvard Business Review, 66(5), pp. 12-56. Bettman, J. (2007) Perceived risk and its components: a model and empirical test, Journal of Marketing Research 10(2), pp.18490. Binggeli, U. and Pompeo, L. (2002) Hyped hopes for Europes low-cost airlines. McKinsey Quarterly 4(1), pp. 8697. Currie, C. (2009) Optimal pricing ladders for the sale of airline tickets, Journal of Revenue and Pricing Management 8(1), pp.96106. Daft, R. and Armstrong, G. (2009) Organization Theory and Design. Toronto: Nelson. Dimofte, C.V. Implicit measures of consumer cognition: a review, Psychology and Marketing 27(10) 2010, pp.92137. Doganis, R. (2006) The Airline Business. Abingdon: Routledge. Erdem, T. (2008) The impact of advertising on consumer price sensitivity in experience goods markets, Quantitative Marketing and Economics, 6(1), pp.13976. Hakansson, H. (2002) How should companies interact in business networks?, Journal of Business Research 55(1), pp.13339. Halstead, D. (2009) Product warranties and post-purchase service, Journal of Services Marketing 7(1), pp.3340. Heracles, L. (2009) Flying High in a Competitive Industry: Cost-effective Service Excellence at Singapore Airlines. Singapore: McGraw Hill Kilbourne, W. (2010) Materialism and its relationship to individual values, Psychology and Marketing 27(8), pp.78098. Nelson, P. (2007) Advertising as information, Journal of Political Economy 83 1974, pp.72954.