Mod 1 Revies

1. Choose an airlines, foreign or domestic and then list the seven stages in the application of the marketing principles found in Chapter 1 of the Shaw textbook to this airline company.

Southwest Airlines

Customer – lower to middle class smaller businesses (anybody that is looking for the cheapest rate) that are traveling to domestic or close international destinations.

Marketing environment – Political – fuel prices, slot agreements, terrorism, regulations

Economical - macroeconomics (market size, supply and demand)

Social - age, family dynamics, sex of target consumer

Technology - internet, video conferencing, entertainment

Environment - global warming, fuel economy, emissions

Strategy formulation – goals and objectives (to provide low cost, comfortable, on time air travel)

Product Design and Development – online booking, early bird check in, pets, wifi, business services (Southwest Airlines.com 2014)

Pricing and Revenue management – depends on destination

Distribution and channel selection and control – 41 selected states and some close by international destinations (SouthwestAirlines.com)

2. What is marketing myopia, and how can it be avoided?

Marketing myopia is when sellers make the mistake of paying more attention to the specific products they offer than to the benefits and experiences produced by these products. (Kotler and Armstrong pg. 29) Marketing myopia can be avoided by becoming more customer oriented instead of product oriented, focusing on solving the customers problem.

3. What is customer-perceived value, and what role does it play in customer satisfaction?

“Customer perceived value is the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.” (Kotler and Armstrong pg. 35) If the customer perceived value is high and satisfaction is low, the customer will be dissatisfied. If the customer’s...