estolano, mikko. assignment 2. tell and show chapter 15

6 Marketing Concepts as applied in Philippine Airlines

Mikko M. EstolanoAteneo Graduate School of Business

09 May 2013

Prof. Bong De Ungria

www.mikkoestolano.blogspot.com

1.Marketing Channels2.Pull Strategy3.Push Strategy4.Buyer’s Expectation5.Types of Shoppers6.Channel Integration and System


6 Marketing Concepts

What are Marketing Channels?

-also called trade channels or distribution channels

-interdependent organizations involved in the process of making a product or service available for use or consumption

- set of pathways a product or service follows after production


Concept 1


Example 1

Where can you reach Philippine Airlines?

1. PAL Website

1. PAL Ticket Offices/ Petron Payment Centers

http://www.google.com.ph/url?sa=i&rct=j&q=Philippine+airlines+petron+payment+center&source=images&cd=&cad=rja&docid=aYzjXP2RbQobSM&tbnid=BeNuBkKVEk46PM:&ved=0CAUQjRw&url=http://www.sanmiguel.com.ph/businesses/new/fuel-oil/&ei=md-JUZbMA4e3iQe4l4D4DQ&bvm=bv.46226182,d.aGc&psig=AFQjCNHMzM1gkZOCknT0XQjppLmJfTx0Qw&ust=1368076526010250


Example of Concept 1

Where can you reach Philippine Airlines?

3. Travel Agencies

4. Interline Partners

Strategy: Push or Pull?

•Push Strategy

uses the manufacturer’s sales force, trade promotion money, and other means to induce intermediaries to carry, promote, and sell the product to end users


Concept 2


Example 2

PHILIPPINE AIRLINES STRATEGYCorporate Sales/ Passenger Sales Workforce

Additional incentives/ commissions for the Travel Agents

Strategy: Push or Pull?

•Pull Strategy

advertising, promotion, and other forms of communication to persuade consumers to demand the product or service from intermediaries


Concept 3


Example 3

PHILIPPINE AIRLINES STRATEGYAdvertising and Promotion

Buyer Expectations

Ability to order a product online and pick it up at a convenient retail location

Ability to return an online-ordered product to a nearby store

Right to receive discounts based on total online and offline purchases


Concept 4


Example 4

•Online Booking service: www.philippineairlines.com accepts ticket purchases and credit card payments

Giving what is expected…

http://www.philippineairlines.com/


Example 4

• 9 in Metro Manila

• 47 in Domestic points

• 34 Abroad

Avenue for addressing customer concerns



Example 4


Discounted Rates!!!

Types of Shoppers

•Service/quality customersdon’t mind paying a few extra dollars for extra service and better quality

•Price/value customersprimary concern is the cost of goods

•Affinity customerstight bond a customer has with a company and its brand (long-term relationship)


Concept 5


Example 5

PAL adjusts to different types of customers

Channel Integration and System

1. Vertical Marketing System

producers, wholesalers, and retailers acting as a unifiedsystem that seek to maximizeprofits for the whole channel


Concept 6


2. Horizontal Marketing System

channel arrangement in which two or more companies at one level join together to follow a new marketing opportunity


Concept 6


3. Multichannel Systems

company uses several marketing channels (e.g. direct mail - telemarketing, retailers, distributors, dealers, own sales force) to sell its products to different customer segments.


Concept 6


Example 6

Multichannel Marketing System of Philippine Airlines

Ticket Office Pal Website Travel Agents Interline Partners Social Media

1.Marketing Channels2.Pull Strategy3.Push Strategy4.Buyer’s Expectation5.Types of Shoppers6.Channel Integration and System


6 Marketing Concepts

6 Marketing Concepts as applied

in Philippine Airlines

Mikko M. EstolanoAteneo Graduate School of Business

09 May 2013


estolano, mikko. assignment 2. tell and show chapter 15

Business

marketing channels2

com6 marketing concepts

channel integration

push strategy4

online booking service

service fromintermediarieswww

service available

types of shoppers6