netrashetty
Netra Shetty
Southwest Airlines Co. (NYSE: LUV) is an American airline based in Dallas, Texas. Southwest is the largest airline in the United States, based on domestic passengers carried, as of June 30, 2010.[2] Southwest operates more than 3,400 flights a day, as of March 2011, utilizing a fleet of 547 Boeing 737 aircraft.[3]
Southwest is known throughout the aviation industry as a "low-cost carrier" because of its unique business model. The model includes flying one aircraft type, the Boeing 737, on high-density routes throughout the United States. Southwest's "low-cost" business model is further defined by the airline not offering many services, which are a standard offering on most traditional American carriers, such as a First Class cabin, airport lounges, reserved seat assignments, and video/audio programing. By not offering these services, Southwest claims that it can offer lower fares and produce a higher return on invested capital than other airline companies.[3]
On September 27, 2010, Southwest Airlines announced it would acquire AirTran Airways.[4]
he decision process and act of people that entails buying and using of products is called consumer buying behavior. Therefore, we need to understand why consumers make the purchases, what factors that influence them and the changing factors in our society (Consumer Buying Behavior). The following questions should be asked: What do customers want? Can we develop it while they still want it? How can we keep our customers satisfied? The marketing concept that the firm must adapt should be focused on the customer’s needs before developing the product; aligning all functions of the company to focus on those needs; realizing a profit by successfully satisfying customer needs over the long-term. In this a comprehensive marketing strategic plan is needed (The Marketing Concept).
Six Stages of the Consumer Buying Process
There are six stages of the consumer buying process. The actual purchasing of product is only one of the stages. However, all consumer decisions do not always include the six stages. First stage is problem recognition, which means the awareness of needs. It is the difference between the desired state and the actual condition of the consumer. This awareness of needs can be stimulated through product information. Next is the information search classified into two, the internal search (memory) and the external search that is if more information is needed (can be channeled through the “word of mouth”). Successful information drive will give a buyer possible alternatives. There is the need to establish criteria for evaluation, featuring what the buyer wants or does not want, the evaluation of alternatives. What the marketer’s can do is to influence by “framing” alternatives. The fourth process is the purchase decision wherein the buyer chooses buying alternative that includes product, package, store, method of purchase. The fifth one is the process of purchasing. It may differ from decision, time lapse between four and five and the product availability. The last stage of the buying process is the post-purchase evaluation, which is the outcome. This is where satisfaction or dissatisfaction is determined, whether the buyer has made the right decision (Consumer Buying Behavior). The firm should have an alternative approach to this by giving product warranties, after sales communication, etc. Cognitive dissonance can be reduced when the firm provides communication with the consumer after the purchase.
Product/Service Target Market and Competition
While it is very important that the target audience and competition should be clearly defined, it is also essential to identify the distinctive attributes and advantages of the firm’s offer to the marketplace. Every individual has the capacity to learn and this acquired learning can change a person’s behavior caused by information and experience. Therefore new information on the product should be established in order to change the consumer’s behavior product. This is where the application mix is applied like promotion, press release, advertising, etc. It is a fact that organization do exist to satisfy customer needs, for that reason everyone must be concerned with customer satisfaction. For example when introducing a new line of product in the market, like an orange juice, the target market audience should be the young ones, children aging from 3 -12 years old and the young adults from 13-21. The first goal is to create an impact to the minds of these young people about the quality and unique packaging of the product. Communication can be directly catered through advertising and promotion. Competition should also be identified in order to know the influences, at the same time knowing the prospects. If the competition does create the same product line, a strategy that will create unique packaging, dynamic promotion and advertising, and an additional offer of warranties as a way of reducing cognitive dissonance can be established.
Southwest is known throughout the aviation industry as a "low-cost carrier" because of its unique business model. The model includes flying one aircraft type, the Boeing 737, on high-density routes throughout the United States. Southwest's "low-cost" business model is further defined by the airline not offering many services, which are a standard offering on most traditional American carriers, such as a First Class cabin, airport lounges, reserved seat assignments, and video/audio programing. By not offering these services, Southwest claims that it can offer lower fares and produce a higher return on invested capital than other airline companies.[3]
On September 27, 2010, Southwest Airlines announced it would acquire AirTran Airways.[4]
he decision process and act of people that entails buying and using of products is called consumer buying behavior. Therefore, we need to understand why consumers make the purchases, what factors that influence them and the changing factors in our society (Consumer Buying Behavior). The following questions should be asked: What do customers want? Can we develop it while they still want it? How can we keep our customers satisfied? The marketing concept that the firm must adapt should be focused on the customer’s needs before developing the product; aligning all functions of the company to focus on those needs; realizing a profit by successfully satisfying customer needs over the long-term. In this a comprehensive marketing strategic plan is needed (The Marketing Concept).
Six Stages of the Consumer Buying Process
There are six stages of the consumer buying process. The actual purchasing of product is only one of the stages. However, all consumer decisions do not always include the six stages. First stage is problem recognition, which means the awareness of needs. It is the difference between the desired state and the actual condition of the consumer. This awareness of needs can be stimulated through product information. Next is the information search classified into two, the internal search (memory) and the external search that is if more information is needed (can be channeled through the “word of mouth”). Successful information drive will give a buyer possible alternatives. There is the need to establish criteria for evaluation, featuring what the buyer wants or does not want, the evaluation of alternatives. What the marketer’s can do is to influence by “framing” alternatives. The fourth process is the purchase decision wherein the buyer chooses buying alternative that includes product, package, store, method of purchase. The fifth one is the process of purchasing. It may differ from decision, time lapse between four and five and the product availability. The last stage of the buying process is the post-purchase evaluation, which is the outcome. This is where satisfaction or dissatisfaction is determined, whether the buyer has made the right decision (Consumer Buying Behavior). The firm should have an alternative approach to this by giving product warranties, after sales communication, etc. Cognitive dissonance can be reduced when the firm provides communication with the consumer after the purchase.
Product/Service Target Market and Competition
While it is very important that the target audience and competition should be clearly defined, it is also essential to identify the distinctive attributes and advantages of the firm’s offer to the marketplace. Every individual has the capacity to learn and this acquired learning can change a person’s behavior caused by information and experience. Therefore new information on the product should be established in order to change the consumer’s behavior product. This is where the application mix is applied like promotion, press release, advertising, etc. It is a fact that organization do exist to satisfy customer needs, for that reason everyone must be concerned with customer satisfaction. For example when introducing a new line of product in the market, like an orange juice, the target market audience should be the young ones, children aging from 3 -12 years old and the young adults from 13-21. The first goal is to create an impact to the minds of these young people about the quality and unique packaging of the product. Communication can be directly catered through advertising and promotion. Competition should also be identified in order to know the influences, at the same time knowing the prospects. If the competition does create the same product line, a strategy that will create unique packaging, dynamic promotion and advertising, and an additional offer of warranties as a way of reducing cognitive dissonance can be established.