Aviation Industry Is Facing Many Environmental Pushes Marketing Essay

Strategic marketing planning is the procedure involves choosing marketing strategies and expanding and preserving a tactical fit between the organization's thing and skills in the light of changing marketing opportunities. (Kotler & Armstrong, 2009).

The process concludes planning, implantation and controlling, through measurement, strategies can be changed to meet up with the market must circulate the procedure concordantly. The look step concludes environmental scanning which is procedure for collecting information about the marketing environment as well as monitoring, forecasting, evaluating the information gathered though scanning.

Besides, it is undeniable that environmental scanning is essential in the marketing planning process. First of all, it provides a base of objective qualitative information about the surroundings that strategists can utilize (Allan, 2007); secondly, it sensitizes the business to the active needs and choice of its customers; thirdly, it helps the business capitalize on early opportunities and an early indication of impending problems; forthly, it can also make the business monitor its opponents and act in response quickly to some uncontrollable incidents.

Taking marketing placement under consideration, Singapore Airlines is a complete service air travel and focus on adding value for high-end travelers. Therefore, the company scans the marketing environment to seek for benefit for his or her focus on consumers. Realizing Airbus A380 is the world's innovative, spacious and useful aircraft, and it offers large spaces and extra services for customers, which is completely match with the company's goals, so Singapore Airlines makes package with Airbus through sufficient marketing scanning.

Nevertheless, environmental scanning cannot continually be perfect as its limitation still is available. Even today's aviation is a genuine competition market; information that can be selected by the general public is inadequate and may well not that reliable, specifically for those stated companies, most of their financing assertions are attractive in support of provide the positive aspect that will mistake the outer categories. Moreover, the extra information may be not well-timed as the first hand information is too costly.

Question 2

Microenvironment consists of factors and elements within an organization immediate area of operations that impact its performance and decision making freedom. (Kotler & Armstrong, 2009) You will find six components of microenvironment: firstly, the company's interior environment, which comprises company communities, such as management personnel, funding, research and development, purchasing, procedures, marketing and accounting; second of all, the company' suppliers, which form a crucial link in the company's overall customer value string and. They offer the resources needed by the business to create its goods and services. Thirdly, the marketing intermediaries, which is undoubtedly all the individuals, organizations who help in the promotion, offering, and circulation of products, they includes resellers, physical distributions businesses, marketing services firms and financial intermediaries. Fourthly, the client factor, comprising the five types of market segments (consumer, business, reseller, federal government, and international marketplaces), so that products the business markets must be specialised and customized carefully. (Freedam, J & Godwin, M 1994) Fifthly, competitor, the marketing concept states a company must provide increased customer value and satisfaction that its opponents and do more to satisfy target consumers to become successful; the previous factor is various publics which can be any group that has an actual or potential interest on or effect on an organization's potential to attain its goals.


Referring to the situation, it is evidently that the company of aviation industry is planes manufacturers which are Airbus and Poeing. It is well known that Airbus and Poeing have dominated the forex market for a long period and they take up large market stocks. They produce different varieties of planes to meet their different customers' needs. For example, more advanced and spacious airplanes (Airbus A380 and Poeing 747) are produced for those full service airlines such as Singapore Air travel, Emirates and Qantas. While all together, relatively economic airplanes (Poeing 737 and Airbus A320) are comparatively fit for budget flights companies such as Air Asia and Virgin Blue. Besides, they also commit themselves to innovated and creative area to devise and fabricate new airplanes to adjust the new marketing environment. For example, producing form current world condition, Airbus evolves A380 to become more environmental friendly, less fuel consumption and of higher performance and lower working cost. What's more, an important and serious subject for supplier is well-timed delivery while delayed delivery happens to A380 that cost a lot to Airbus. Furthermore, Poeing and Airbus are absolutely adversaries.


Turning to the rival factor, which takes on essential role in the microenvironment, has momentous performance in aviation industry. Two types of competitors are listed:direct competitors, and indirect opponents. Experts define immediate rivals as organizations offering similar kind of products or services to satisfy similar type of customers. According to this case, Singpore Flight, Qanta and Emirates are competition referring to the entire service airlines. They need to spare no work to provide enough space, some homelike services, and other augmented services before boarding in the planes and after going out of the airport terminal. However, in the region of budget airlines, your competition is keen with is produced by Air Asia, Tiger Airways, Virgin Blue and Jetstar. These companies are concentrated on minimizing the price and providing convenient service. For instance, Air Asia Airline only files two types of airplane, the Airbus 320 and Boeing 737 to reduce personnel training as well as procedures and maintenance costs. ( )

Additionally, indirect competition are organizations offering similar products but portion customers with different characteristics, needs. Full service air travel and budget air travel attract customers in different ways but contend with each other considerably. The aviation industry has been reigned by full service airlines for many years as they hold some advantages. They provide meals, refreshments and other additional services in the airplane. Moreover, they provide large personal space, adaptable leather headrest, demonstrating they are circumspect and customer oriented. Astonishingly, some companies such as Etihad Airway will take further offering of a chauffeured limousine service because of its first and business class passenger showing the clients are exalted and of high social position. All benefits full service airlines offers targeted at forming obvious impressions and reputations on customers. Nevertheless, budget flight focuses on low price and low cost. As globalization process produces, many people have to take airplane frequently as the cost is bound. Thus, budget airlines shows up and booming fast. To conclude, full service airlines demand that the how much value the client will obtain is significantly exceeding how much customer has paid whereas budget airlines express to make everyone affordable to travel.

Question 3

With related to microenvironment is macro environment. Macroenvironment is defined as universe of sociological elements (major external and uncontrollable factors) that affect a company's ability to provide its customers or sell its goods and services. (Kotler & Armstrong, 2009) It is made up of six forces: demographic, financial, natural, technological, political and cultural pushes.

Demographic Environment

Demography is the analysis of population in terms of size, density, location, age group, gender, race, occupation and other reports. (Kotler & Armstrong, 2009) The demographic environment is worth concern for marketers because it involves people and folks make up markets. In recent years, the aviation industry in Asia is booming, caused by the tremendous probable of aviation industry (large inhabitants, high density and ability to move).

Natural Environment

The environment includes the natural resources that are needed as input by marketers or that are afflicted by marketing activities (Leong, S. M, 2009). Nowadays, because of energy shortages and environmental pollution, the world commences to increase environmental concerns, and the aviation industry is not a exception. (Pappas C. 2005) For instance, the A380 is designed based on the concept of environmental security as the center, to create as "green aircraft" and its average power generated by each of the skin tightening and is low.

Cultural Environment

The cultural environment is made up of corporations and other pushes that have an impact on a society's basic prices, perceptions, tastes, and behaviors. Actually, influenced by ethnical environment, some passengers may like Airbus to Boeing.

Other important factors:

The development prospect of the aviation industry is huge. Throughout the aviation industry in the macro environment, some factors are likely to have the best effect on future growth of this industry: economic, technical and political environment.

Economic Environment

The economic environment involves factors that impact consumer purchasing electric power and spending patterns (Kotler & Armstrong, 2009). OnceAirbus and Boeing are monopolizing the marketplace for a long time. Nowadays, great changes took place. Many airlines add two types of services: full service flight and budget air travel. Singapore Airlines, Tiger Airways are concentrating on full service on the market, then some airlines launch budget service flight in accordance with the needs of the marketplace. (Hakim C 2007)

When talking about the future expansion of the industry, financial environment includes currency income, living cost, interest rate, keeping and these economical variables effect macro-environment greatly. Market is the foundation of all aviation industry activities. Interest levels, inflation, exchange rate, GDP growth, may influence the introduction of the aviation industry. For example, the current financial crisis is sweeping the globe and causes a great damage to the global aviation industry.

Technological Environment

Technology is the principal productive force. The scientific environment is perhaps the most dramatic push shaping our destinies, which are forces that create new systems, creating new product and market opportunities.

In aviation industry, the advancement and upgrading of technology is innovative. For the intended purpose of fighting with Boeing, Airbus works hard to research and develop new plane, and ultimately develop the A380. The "Big bird" is finished the almost 37 calendar year reign of Boeing 747 as the World's most spacious passenger plane. Run with four Rolls-Royce Trent 900 engines, the A380 is the greatest aeroplanes, as well to be performed to be "cleaner, greener, quieter and smarter".

Creative changes in the development of new technologies can determine the continuing future of the airlines. Together with the speedy upgrading in technology, when there is no advanced technology added in the plane, it can be easily fall season to disuse. In addition, the more technology is added, a lot more profit the maker can get.

Political Environment

The politics environment includes all laws, government companies, and lobbying groups that influence or restrict individuals or organizations in the contemporary society. (Kotler & Armstrong, 2009) In aviation industry, Government authorities plays vital tasks. On 25 Oct 2007, A380 made a journey from Singapore to Sydney, which marked a major milestone in the annals of aviation. Since it has been dubbed by the Australian air traffic control-landed in Sydney. Because of this, Singapore Airline gained early on mover edge in the publicity stakes in Australia that built a knockout and attractive reputation.

Business operations are at the mercy of political and legal causes. In the process of development of the aviation industry, some countries may use air traffic control or limit other countries' airlines by law into its countries, to support and protect the nationwide aviation industry. These factors will probably have great impact on future development of the aviation industry.

In conclusion, economical, technological and politics environment are likely to have the best impact on future growth of this industry.

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