Marketing Management

Marketing Management

Executive Summary

The Virgin Atlantic Airways is a UK-based individual owned international career that
launched its operations in 1984 and flies close to 35 destinations in North America, Africa, and
Asia. The company is owned by the Virgin Group that owns 51% of the shares and Singapore
Airlines. Virgin Atlantic has close to 37 fleets and competes with other brand airline companies

MARKETING MANAGEMENT 2
such as the British Airways that is the biggest and leading airline in the UK (Virgin Atlantic
Airways Limited. 2015).  According to sources, Virgin Atlantic carried approximately 5.87
million passengers, a factor that saw the company make a profits margin of 68.5 million on its
turnover of £2,650 million. This information clearly indicates the firm’s bright future in the
aviation industry.
Virgin Atlantic also expanded its interests to include some international megastores
software publishing, film and video editing facilities, music retailing, clubs and financial advice
organizations, trains, within close to fifteen countries with an approximate of over one hundred
companies (Virgin Atlantic Airways Limited. 2015). Virgin Atlantic has therefore been
successful in its business initiatives, a factor that makes it our model of study in this paper.

Introduction

Many organizations in this contemporary society have been challenged in prospering
financially to survive even in this turbulent unforgiving economic environment. However,
Marketing plays a central role in mitigating these challenges. It is essential to note that the
accounting, finance, and other business functions cannot hold up without sufficient demand for
products and services that would enable a firm to make profits (Balmer, 2012). In other words,
the financial successes of a company wholly depend on its marketing ability. These factors,
therefore, point out to the need for a customer-centric and competitive marketing management
plans that are essential for the prosperity of businesses.
The marketing department remains a fundamental element within an organization. The
unit remains the central component within an organization that sets, implements and evaluates
appropriate marketing approaches that are essential in meeting the demands and needs of the

MARKETING MANAGEMENT 3
clients in a market. It also ensures that the customers are retained in order to build and sustain the
functions of the organization (Balmer, 2012). The success of a marketing approach is centrally
built on a thorough understanding of the market and the development of appropriate marketing
synergies. In this modern times, there is need to develop and evaluate the performances of a
marketing approach in order to boost the shareholders value and to achieve the marketing
objectives of an organization.
This, therefore, calls for a complete understanding of the marketing management plans of
a business in order to develop a framework that quantifies the marketing approach desired by a
company. This paper, therefore, seeks to determine an appropriate marketing management plan
for Virgin Atlantic Airways. Addressed in this paper will be the five stage consumer decision-
making process and how these proponents can be related to Virgin Atlantic. An analysis of how
the market in which Virgin Atlantic Airlines operates in and how it can be segmented will also
be observed including the manner in which this company’s services and products are positioned
in their customer’s minds. The paper will also address the factors that may impact Virgin
Atlantic in the next five years through a (pest) analysis. Lastly, an outline of the marketing mix
appropriate for this company will also be reviewed.

The Five Stage Consumer Decision-Making Process

Ignoring the truth that the consumers remain the master of the market, and ignoring the
analysis of their demands, motives and behavior has the capacity to lead an organization into
making wrong decisions which may result in the collapse of an organization. Modern marketing
takes the consumers as the beginning and ending of its activities (Blackwell, Miniard, & Engle,

MARKETING MANAGEMENT 4
2005). In line with this approach, it is, therefore, essential that an organization plans, organizes,
directs, and controls its activities and resources with the aim of satisfying the targeted
consumer’s needs. This factor can only achieve through the provision f goods and services with
the qualities and specification of the customers at the appropriate price, place, time and terms
that are suitable to the consumers.
Consumer behavior, therefore, represents a set of activities that affect the buying power
of consumers. This activities impact customers and determine when they are making purchases,
whether or not they will purchase goods or services and in case they are, the factors that
influence their final decisions on the particular product or service they intend to buy (Blackwell,
Miniard, & Engle, 2005). Consumer behavior, therefore, reflects the behaviors that involve the
complicated mental processes as well as activities that make a customer arrive at the decision to
purchase a product. The behaviors of the consumers have can be impacted through a five stage
decision-making process that involves;
Need recognition
This stage takes preeminence when consumers establish that they are in dire need for a
product or service. There are several factors just to mention a few that have the capacity to
prompt the needs of the customer for instance through advertisements and recommendations
including promotions.
Information Search
It is imperative to note that once consumers are determined and have made the decision
to purchase a service or product, they enter a process of searching for information about the
product or service through various approaches such as the Internet, advertisements, print media

MARKETING MANAGEMENT 5
and even personal recommendations (Blackwell, Miniard, & Engle, 2005). At times, the
organization that sells the product or service may also serve as a source of information to the
customer. It is, therefore, essential that consistency in the provision of information to customers
is maintained in order to increase their likelihood of conversation.
Evaluation of Alternatives
Once customers have the desired information, they take approaches aimed at evaluating
the alternatives based on their personal interpretation. Sources reveal that customers are likely to
a personal perception and view to the factors that they have gathered during the search of
information such as the brands value, speed of service, perceived value, price and even the
possible location (Blackwell, Miniard, & Engle, 2005). It is, therefore, essential that organization
understand their clients in order to evaluate the alternatives by actually emphasizing the benefits
and features of a product.
Purchase Decision
In this stage, the consumers decide what they want to purchase, and in a case where they
have received a product or service that they are satisfied and happy with, then they are likely to
repeat purchases in the future, a factor that clearly indicates they will not go through the other
stages to arrive at this point.
Purchase Evaluation
This remains the final stage after the purchase of an item. In this, the customer takes a
retrospective review of their purchasing decision against their assessment to determine the extent
to which the service or product has met their needs, or if it has exceeded or failed to meet their

MARKETING MANAGEMENT 6
demands. A positive evaluation is likely to lead a customer into repeating a purchase with the
same company, and in turn will also give the customers to give word of mouth recommendations
to other clients (Blackwell, Miniard, & Engle, 2005). It is, therefore, essential to note that
branding remains an integral element at this stage since customers are likely to develop a high
affinity for the product or service, a factor that will father influence their decisions.

Relating this Model to Virgin Atlantic Airways

Through the analysis of the consumers decision making approaches, Virgin Atlantic is
therefore enlightened on the subtly influences that persuade its customers on using particular
products and services of their choices. The model of the five stage consumer decision-making
process is one that can be applied in various entities. It is important to note that Virgin Atlantic
remains one of the leading airline carriers with an identifiable brand name, a factor that may
influence the decisions of several customers into using its services and products (Gilligan, &
Wilson, 2009). Customers may recognize that they have a need to travel for a holiday or to
attend to business matters and in this; they may feel they want to use the services of an
appropriate airline carrier that will suit their demands. Their needs may vary in terms of pricing,
timing, availability, locations and so on.
An interested prospect that intends to use the services of this airline will therefore
undertake a search for information to determine the various airline carriers that offer the same
services. This information is therefore sources either from the Internet, friends who have used
other airline carriers or even through the company itself (Gilligan, & Wilson, 2009). Virgin
Atlantic has a developed social network platform that allows customers to interact with its

MARKETING MANAGEMENT 7
employees in finding the right information that they need and making arrangements for the
customers online.
Once the customers gather the information required, they evaluate the available
alternatives. In this stage, the customers review the different variables such as the airlines prices,
the times of the flights including other services that the company offers during their flights such
as food, drinks, and other give always (Mitchell, Hutchinson, & Quinn, 2013). The clients then
make their decision on purchasing their air tickets after carrying an evaluation that fulfills their
demands. It is crucial to note that if the consumer has previously travelled with Virgin Atlantic
Airlines, they are more likely to have an easier time in making their decisions.
In this last stage, the consumer then makes a post-purchase evaluation after their trip to
determine if their needs were meet appropriately (Mitchell, et.al). Due to Virgins branding
image, the customers are bound to develop an emotive personal connection that will influence
their decisions in the future by using the services of the company. Virgin has therefore invested
in creating a positive brand message that is drawn from its services image, a factor that has
immensely scaled up its profits.

Virgin Atlantics Market Segmentation and Target

It is essential to determine that market segmentation is one of the fundamental concepts
of any marketing plan. The segmentation process of a market involves the precise adjustments
that are made on products and the marketing efforts designed for the consumers (Quinton, 2013).

MARKETING MANAGEMENT 8
The process of segmentation therefore entails the sub-division of the market into small segments
in terms of selected criteria and specificity.
Virgin Atlantic has become one of the leading brand name because of the segmentation
strategy with its sales increasing immensely since its inception (Quinton, 2013). It is, therefore,
vital to remark that the process of segmentation trades off customers requirements and needs
against the production economics that occur among different airline companies. A Virgin
Atlantic airline uses three primary variables in segmenting its markets. These variables include;

Purpose of Journey

Virgin Atlantic operates not only the usual journeys to New York to London, or from
Delhi to London but have also designed some flight routes to other particular regions a factor
that influences several customers who take their holidays in those locations (Quinton, 2013). The
purpose of the journey, therefore, remains a fundamental element in its marketing segmentation,
a factor that requires its marketing team to update regularly their promotions and deals in
accordance with the marketing conditions and economic situation.

Length of Journey

Virgin also incorporates the length of a journey into its segmentation process. The
company operates several flights within short distances and long haul distances (Quinton, 2013).
Customers, therefore, have the capacity to choose their routes depending on these variables on
the basis of competitor flight miles since distance also determines the rates of airfares.

Country or Culture of Origin

MARKETING MANAGEMENT 9
In its objective of becoming the best global brand, Virgin Atlantic is attempting to
operate its flights throughout the globe. The company’s marketing team therefore develops, and
design marketing plans based on the location and country they intend to venture. It is critical to
mention that at some point, Virgin Atlantic sold its 40%stake to Singapore airlines in order to
gain entry into the Asian market. These factors clearly depict the fact that marketing activities
differ from one region to another.

Virgin Atlantic has therefore chosen more than one market segment as its target objective
and considers every customer as its potential asset (Quinton, 2013). Virgins target market is
therefore based on its market size, the company’s growth potential within a segmented market,
competition, the company’s objectives and its feasibility of success in the market. The company,
therefore, targets the upper-class customers who are typically business passengers and who travel
on the transatlantic route.

Product/Service positioning in the Consumer’s Mind

There are several elements that pressure Virgin Atlantic to develop brand values that can
communicate the need information to the company’s prospective consumers. This not only
revolves around the individual personalities of the company but the characteristics and elements
that help the company to distinguish it from its rivals (Quinton, 2013). In line with this, Virgin
Atlantic considered a young international airline has over time developed a set of brand values
that have immensely improved and positioned its products in the company’s customer’s minds.
These values have provided the airline company with a unique image and personality that
appeals to different clients, a factor has distinctively given the company a competitive advantage
over its competitors.

MARKETING MANAGEMENT 10
Virgin has, therefore, set the standard of excellence in the provision of customer care.
Through this, the company has also produced a number of innovative and unique products in its
business functions that have not only become its hallmarks of service value but to the whole
airline industry (Ryan, & Jones, 2009). The company has developed just two flight classes, the
Economy and Upper Class thus abandoning the other three categories’ structure. This factor has
pleased many of its clients and positioned its products and services positively in the minds of its
customers.

Political, Economic and Social Technological Factors and their Impact
It is essential that Virgin Atlantic as an organization considers the environmental factors
that may affect its operations in the next five years (Ryan, & Jones, 2009). The fact that an
environmental analysis should be consistent and continuous since it feeds the developmental
aspects of the organization, it is essential that it is carried out from time to time. The following
PEST analysis provides the factors that may impact Virgin Atlantics operations over the term;

Political Environment

The political analysis of the environment remains a crucial element since it denotes the
government’s interventions and legislations that direct the nature of business operations in
different regions. These factors include the taxation policies, the merits of the services provided
and the new interest’s rates (Ryan, & Jones, 2009). The government’s policies on marketing
ethics and the policies of the economy may affect the company. It is also necessary to note that
the changing laws on taxation in different regions that the airline company operates may also
affect its functions if there are no strategies put in place in advance.

MARKETING MANAGEMENT 11
Economical Factors

There are also some economic factors that are also likely to affect the functions of Virgin
Atlantic over the next five years; these factors may include the increments in fuel prices,
congestion of airport terminals, recession including other environmental restrictions that may
accrue such as insurance costs, security, inflation and employment levels per capita. Virgin
Atlantic, therefore, considers trading economically over the long and short-term basis.

Social Technological

This element focuses on the different societal and cultural aspects that seasons and trends
offer including the career attitudes. The social, technological influences, therefore, vary from
place to place, a factor that forces Virgin Atlantic to focus on its customer’s attitudes and
behaviors in different regions (Ryan, & Jones, 2009). The technological element is also an
important component since it ensures that the airline company has put in place technological
advancements that are apt such as the use of internet on its business functions, web development
and IT solutions, e-marketing and social media advertisements.

Adjustment of the Marketing Mix

To culminate the challenges that Virgin may encounter in the next five years, the
company has to develop strategies geared towards preparing it for this challenges. This,

MARKETING MANAGEMENT 12
therefore, requires that a marketing mix is developed that incorporates the long term effects that
may impact the company. The marketing components of this airline company, therefore, include;

Product;

Virgin Atlantics products are designed to suit two classes; Economy and the Upper Class.
The upper-class suit is different and out of this world since this product has been developed to
provide comfort to the customers (Uggla, 2015). This product has won the prestigious company
awards in the airline industry and remains an important element in ensuring that the customers
are served well with technological inventions. On the other hand, the economy class serves a
segmented class and is designed for the conditions of the market and depending on the new
technologies.

Prices;

Virgin’s charges and fares are priced by the different routes and the class that a customer
may require (Uggla, 2015). To mitigate the chances of facing economic losses over the five-year
period, the airline company has decisively cut costs with the client especially during peak
seasons. However, during off-peak periods, the carrier introduces cheap deals and discounts to
encourage customers.

Place;

The company is also developing more routes to enter and attract customers who are
flying to different regions of the world (Uggla, 2015). The place will, therefore, play a

MARKETING MANAGEMENT 13
significant role in Virgin Atlantics marketing approaches since the airline will be in a position to
reach different areas.

Promotion;

The airline company will reward its customers who enter the miles program with the aim
of providing better services to its clients. The company also seeks to provide the latest offers to
its members.

Conclusion

The Virgin Atlantic Airways is a UK-based individual owned international career that
launched its operations in 1984 and flies close to 35 destinations in North America, Africa, and
Asia. The company is owned by the Virgin Group that owns 51% of the shares and Singapore
Airlines (Urašević, 2015). Many organizations in this contemporary society have been
challenged in prospering financially to survive even in this turbulent unforgiving economic
environment. However, Marketing plays a central role in mitigating these challenges.
The success of a Virgin Atlantics marketing approach is centrally built on the thorough
understanding of the market and the development of appropriate marketing synergies. In this
modern times, there is need to develop and evaluate the performances of a marketing approach in
order to boost the shareholders value and to achieve the marketing objectives of an organization.
The airline company therefore needs to determine the behaviors and consumers-decision making
processes in determining the best approaches that need to be incorporated in designing and
selling their products and services to consumers.

MARKETING MANAGEMENT 14

References

MARKETING MANAGEMENT 15
Balmer, J. T. (2012). Corporate Brand Management Imperatives: CUSTODIANSHIP,
CREDIBILITY, AND CALIBRATION. California Management Review, 54(3), 6-33.
Blackwell, R.D., Miniard, P.W. and Engle, J.F. (2005) Consumer behavior, Orlando, Florida:
Dryden
Gilligan, C., & Wilson, R. S. (2009). Strategic Marketing Planning. Amsterdam: Routledge.
Mitchell, R., Hutchinson, K., & Quinn, B. (2013). Brand management in small and medium-
sized (SME) retailers: A future research agenda. Journal of Marketing Management,
29(11/12), 1367-1393.
Quinton, S. (2013). The community brand paradigm: A response to brand management’s
dilemma in the digital era. Journal Of Marketing Management, 29(7/8), 912-932.
Ryan, D., & Jones, C. (2009). Understanding Digital Marketing: Marketing Strategies for
Engaging the Digital Generation. London: Kogan Page.
Uggla, H. (2015). Positioning in the Mind Versus Brand Extension: The Revision of Ries and
Trout. IUP Journal Of Brand Management, 12(1), 35-44.
Urašević, S. (2015). Tourism in Montenegro: A destination management perspective. Tourism
(13327461), 63(1), 81-96.
Virgin Atlantic Airways Limited. (2015). Virgin Atlantic Airways Limited Marketline Company
Profile, 1-25.