Virgin blue ( marketing concept )

So here is my situation i have an exam due tomorrow. Basically i have to learn two essays off by heart because jane is going to pick one of the essay questions out of a hat and which ever one it is we have to do it. soooo basically we have to memorise two essays. My first essay is on an earlier post. The problem with this one is i don’t really know how to finish this one. hmmm well have a read.

promise i will get onto the recording this weekend, i have been a little slack in the past week on it.  still keeping it real though,

x

Extended Response - Virgin blue

(Marketing Concept)

“Marketing is all about consistently satisfying needs and wants of customers and providing superior customer value, more efficiently and effectively than your competitors”

This statement clearly states all the components of a philosophical strategy used by business’s. It is called the marketing concept. The marketing concept main strive is  satisfying the needs and wants of the customer. The three aims of the marketing planning process are: 

  • Understand the needs and wants of the customers
  • Create customer value through satisfaction and value
  • Operate more effectively and efficiently than any other competitors

 This process makes the business into a very customer orientated business. This can be a very good thing as the customer feels appreciated and therefore the business gets more business off “word of mouth” but it also can be a bad thing for business’s if they start trying to please the customer too much, as in the business doesn’t make a profit. This wouldn’t be a problem if the business was a non-for profit organization. example: a charity foundation.

Customer satisfaction is closely related  topic as the actual quality of the product which is obviously of high importance to the customer. Many business’s embrace the Total Quality management philosophy which “……focuses on continual improvement in all aspects of the business in order to deliver customer value and satisfaction”

Another element of this customer orientated business philosophy is “Relationship Marketing” There are two types of customers: Old and New. Loyalty is the big word when it comes to relationship marketing. All business’s want customers to come back again and for the customer to keep buying their goods/services.  The main “relationship marketing” strategy is basically to get customers to become loyal and they do this this in many ways but usually by “Promising and consistently delivering high-quality products, good services and fair prices” 

Customer satisfaction is the consumers overall rating of the experience with a business and its products. As the marketing concept makes the customers the main focus of all business activities, marketers need to build long term relationships with their important customers as well as trying to win new ones. 

As seventy per cent of all sales come from repeat purchases it is very important that businesses try to create and maintain a strong relationship with their customers to develop customer loyalty. Loyal customers continue to return to the business and purchase more goods and services, as well as tell others about the business. It is widely believed that it costs five times as much money to attract new customers as it does to keep current customers satisfied.

The key to keeping customers satisfied is superior customer value and satisfaction. Businesses have realised that losing a customer could mean losing more than just one sale. It could mean losing all the future sales of that one customer. For example, a company like Ford or Toyota’s long term value of a customer could be hundreds of thousands of dollars if a strong relationship is built and the customer continues to come back and buy more cars over the years.

“Virgin blue” obviously applies the marketing concept to their business. The business is constantly bringing in new services for their old/loyal customers like destination special deals, carbon offset omission tickets, inflight entertainment, numerous amounts of check-in options, extra legroom benefit and the blue room which is obviously directed to their most loyal categorized customer, working businessmen/women. The “blue room” practically a heaven for the business people who have to wait in airports for hours for a flight. The “blue room” provides:

  • Complementary wireless internet access
  • Private workstations
  • Desktop computers with Microsoft Office software
  • Printing, faxing and photocopying facilities
  • Meeting room hire at competitive rates
  • Informal communal tables with data/power outlets, great for networking.

It is clear that “Virgin blue” also embrace the Total Quality Management philosophy as they improve in all aspects of the business in order to deliver customer value and satisfaction. This is one of the main reasons i believe why “Virgin Blue” is such a successful company. This business looks at all their internal and external influences and adjusts to the changes occurring around it. This is transparent to increase customers satisfaction. An example of this is there service of “off-set carbon tickets which are obviously directed at eco friendly people. 

I DONT KNOW HOW TO FINISH IT!

2 years ago | Tags: Business studies