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Airline Business 4. marketing environment

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Chapter 4

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Airline Business 4. marketing environment

  1. 1. Airline Marketing 4: The Marketing Environment Dr Narudh Cheramakara 1/2017 Bangkok University
  2. 2. 1. PESTE Analysis • We will not covered Legal Aspect • Airlines are affected by externalfactors • What are external Factors in the aviation industry?
  3. 3. P = Political • current legislation home market • future legislation • international legislation • regulatory bodies and processes • government policies • government term and change • trading policies • funding, grants and initiatives • home market lobbying/pressure groups • international pressure groups • wars and conflicts
  4. 4. E = Economic • home economy situation • home economy trends • overseas economies and trends • general taxation issues • taxation specific to product/services • seasonality/weather issues • market and trade cycles • specific industry factors • market routes and distribution trends • interest and exchange rates • Oil Price • international trade/monetary issues
  5. 5. S = Social • social • lifestyle trends • demographics • consumer attitudes and opinions • media views • law changes affecting social factors • brand, company, technology image • consumer buying patterns • fashion and role models • major events and influences • buying access and trends • ethnic/religious factors • advertising and publicity • ethical issues
  6. 6. T = Technological • competing technology development • research funding • associated/dependent technologies • replacement technology/solutions • maturity of technology • manufacturing maturity and capacity • information and communications • consumer buying mechanisms/technology • technology legislation • innovation potential • technology access, licencing, patents • intellectual property issues • global communications
  7. 7. E = Environmental • Weather • Climate change • Laws regulating environment pollution • Air and water pollution • Recycling • Waste management • Attitudes toward “green” or ecological products • Endangered species • Attitudes toward and support for renewable energy
  8. 8. 2. Airline Business PESTE: Political • Terrorism
  9. 9. 2. Airline Business PESTE: Political • Terrorism - Airlines/Airport are the prime target as it produce publicity (BRU/IST/GLA) - Strict security requirements V passenger convenience
  10. 10. 2. Airline Business PESTE: Political • Political Stability - Negative impact on tourist demand - Thailand suffered series of political unrests in the past - Heavily affecting particularly Chinese tourists whose government sometimes issued a ban on tour groups
  11. 11. 2. Airline Business PESTE: Political • International Conflict - Qatar Case - El Al - Avoiding Warzones (Fuel cost, detour)
  12. 12. 2. Airline Business PESTE: Political • Deregulation / Openskies Policy - ASEAN Openskies Policy - Thailand Domestic Openskies Policy – 2001 - What are the impacts on Airlines?
  13. 13. 2. Airline Business PESTE: Political • ICAO ‘Red flag issue’ - Thai airlines cannot expand into international markets (aiming mostly to Japan/Korea) - Only a few ASEAN and China welcomes Thai Airlines at the moment as we still have safety issues
  14. 14. 2. Airline Business PESTE: Political • Privatisation • State Aid - Illegal under EU Law - Public Service Obligations • Airport Slot Allocation - E.g.HKT is full - Omanair paid 75m$ for LHR Slot - Most of Emerging Nations Are suffering from this issue
  15. 15. 2. Airline Business PESTE: Economic • Economic Growth and Trade Cycle - Emerging Markets: Lots of Savings, middle class income - BRIC Nations: Particularly China - The rise of Indonesia as the soon-to-be the 4th Largest player in the aviation industry
  16. 16. 2. Airline Business PESTE: Economic • Exchange Rate = EU-Brexit Case, • Fuel Cost = Delta Case - Airline Costs are heavily dependent on these two factors
  17. 17. 2. Airline Business PESTE: Technological • Internet Revolution: Everything has changed - E-commerce: Distribution, Advertising, Sale, Payment - Internet as a substitute to air travel • Alternative transport: High Speed Rail, Better roads connection
  18. 18. 2. Airline Business PESTE: Environmental • Climate Change: Affecting travel destinations • Environmental impacts from aviation: Noise/Carbon Emissions • EU-ETS Carbon Emission Trading Scheme • UK ADP Tax (Air Passenger Duty)
  19. 19. 3. SWOT Analysis
  20. 20. SWOT Sample

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