Theoretical Review of Marketing of British Airways - Case Study Example

THEORETICAL REVIEW OF MARKETING Selected Company: British Airways ID: INTRODUCTION Nowadays there is an excess of rivalry in every stroll of life, advertisers need to be purchaser embowered in every conceivable way. This point will help the associations to accomplish a focused edge over their rivals and to guarantee a supportable development. With a specific end goal to do that it is essential to manufacture and win the trust of the planned clients. Online networking is useful in achieving these destinations. Social media is characterized as the cooperation of individuals, independently or in team. It involves successive imparting of thoughts, collecting information and correspondence on virtual plat structures through distinctive systems and groups. As indicated by Kaplan and Haenlein (2010), online networking is characterized as a gathering of the applications which are taking into account web and framed on the establishments of mechanical and ideological stages that allows the creation, change and trade of the substance produced by the client of those stages. THEORETICAL REVIEW OF MARKETING Social media has gained a critical position in everyday business (Aral, Dellarocas, & Godes, 2013). Today’s business does not have choice between deciding, if to use or not to use social media, instead the choice with the business lies in the level of effectiveness of using social media (Qualman, 2010). Another important feature of social media is that it produces a chain impact. When one person is addressed by the company he shares views with his/her friend and a cycle is formed and message is conveyed far and wide in no time. The picture below depicts the statistics of this phenomenon: (Bennett, 2014) Some theories related to social interactions via social media are presented below (Fatkin, n.d.): The Social Exchange Theory: Key ideas of social trade hypothesis incorporate correspondence, reasonableness and arranged principles, with data, support, appreciation, force, gathering addition and individual fulfilment among the prizes in victorious exchanges (Cook et al., 2013). The Social Penetration Theory: It recommends that connections get to be closer when individual information is uncovered. As seen in Twitter connections, much companionship has been framed from tweet-ups or a request for friendship on Facebook. The formal communication starts in the beginning which may end up in close friendship (Olson, 2013). Strong and Weak Ties Theory: This theory proposes that you can have differing relationship levels taking into account the time, passionate force, closeness and corresponding administration. The strongest connections will keep a man joined with the individuals they are most associated with may be their nuclear family. The weaker associations still fill an imperative need in light of the fact that despite the fact that you dont have any acquaintance with them frequently (Borgatti & Halgin, 2011). IMPACT OF MICRO MACRO ISSUES The airline industry is much focused and regulations are intensely executed (Hazlett & Skorup, 2014). PESTLE analysis below will elaborate the micro and macro issues Political: Two ways impact is produced, for example, social media is used for campaigning the political activities as graphically depicted below. This in turn produces the increased role of social media in politics. (Rainie and Smith, 2012) Economic Taxation and other factors are also impacting the social media (Bucheli et al., 2013). The overall global recession also has tremendous impact on social media (Wu, 2013). Enhanced correspondence and joint effort through social advances could raise the gainfulness of connected employee by 20 to 25 percent (Chui et al., 2012). The same is depicted in the image below: (Chui et al., 2012) Social: Expanding social media literacy rate is profitable (Potter, 2013). In many countries destinations like Facebook have gotten to be exceptionally prominent among the more youthful individuals (Robards, 2012). Technology: Technological implications are basically two ways. Technology increases the reach of people on social sites. However, the alternatives introduced by technology are posing threat to social media. Legal: Social media companies remain under high pressure of legal actions as a result of security of confidential, copyrighted work and securities (N&M, 2010). Environment: The environmental conditions are very important for new organizations. Social media does not have any direct impact on environment. However, it is used as a major platform by environmental agencies for promoting cause and generates attention from masses. KEY CHALLENGES POSED BY SOCIAL MEDIA Notwithstanding the way that social networking assumes the basic parts, for example, correspondence, coordinated effort, training etc. It represents few noteworthy difficulties as well (Patrut, Patrut, & Cmeciu, 2013). The accompanying are the most noticeable difficulties postured by the social networking: Privacy: The essential test postured by the social networking is the privacy. Numerous individuals control themselves from tuning in a dialog with trepidation of losing their security. Double dealing: The character of the person who joins the interpersonal interaction destinations might either unique or fake. The veracity of person’s personality is not known to the client. Online networking turns to be a simple method for deluding individuals utilizing the innovation. Security Concerns: Social media locales represent an equivalent danger to the security of individual data and other concerned information. Hacking of the sites is the most widely recognized highlight; with hacking there is an inescapable risk to the group of onlookers of social networking. This turns to be an alternate key test postured by the social networking. Deception: The personality of the person who joins the long range interpersonal communication destinations might either unique or fake. Social networking turns to be a simple method for deluding individuals utilizing the innovation. IMPORTANCE OF SEGMENTING, TARGETING AND POSITIONING IN SOCIAL MEDIA Segmentation Segmentation divides purchasers into gatherings with comparative needs and needs to best use an associations limited assets through purchaser based promoting (Donovan & Henley, 2003). Segmentation is an urgent control to ace in todays business atmosphere. Current Segmentation is intensely saturated with the regularly changing universe of social networking. Utilizing social-controlled devices found in stages, for example, Google+, Facebook and LinkedIn permits you to meet your clients and prospects where they invest their time on the web. Online networking likewise permits you to comprehend where and how shifting portions gather on the web, and precisely what they discuss. Figure below reflects how social media assists in segmentation. (Cisnero, 2014) Targeting: Targeting is a very important factor in promoting business on internet. Geo-focusing is a powerful approach to send your message out to a particular crowd or demographic in view of their area. Informal social organizations like Facebook and Twitter have instruments that permit you to impart the right sort of substance to your crowd. For instance, one can focus on customer by segmenting on the basis of area, dialec, age, sex, relationship status, and training on Facebook, and on Twitter. Figure below reflects the idea: (Cisnero, 2014) Business Positioning: Each client has his own particular discernment about brand. Social networking gives a prime gathering to attract customers easily. Online networking is about narrating not offering. In this way, all that company post,, tweet, answer, and so forth on online networking ought to be deliberate and in arrangement with image situating. IMPACT OF SOCIAL MEDIA ON MARKETING MIX The social media is utilized by organizations as a part of appeal to pull in and look after clients. Customarily the showcasing blend comprised of the four P’s includes product, price, place, and Promotions. In the emerging economy, Social media is playing a visible role for Airlines in this regard (Shaw, 2011). British Airways has very intelligently used the social media and it has consecutively supported in achieving a good blend of marketing mix (Elkhani et al., 2014). Some prominent impacts are listed below: Product Enhance quality of website Brand image Presentation Augment Features Validity Support for e-ticketing accuracy Online check of inefficiency Price Discount coupons Credit facilities Free value added services Diverse online payment modes Place Internet Social networking destinations Forums Online travel-agencies Promotion Social networking advertising (e.g. Twitter, Facebook) Email promotions Keyword optimization Blogging Feedback and testimonial of customers BRITISH AIRWAYS ON SOCIAL MEDIA Along with being very active in traditional marketing British Airways is also active in social media marketing. It has social media presence on Facebook, Twitter, Google+ and LinkedIn. Some applications of social media by British Airways are discussed below: NATURE OF MESSAGING British Airways has a formal manner of communication on Twitter and Facebook. It communicates with customer very formally and tries to solve their issues. This can be seen in snap shot of communication between British Airways and a customer on twitter1 , Facebook2 and LinkedIn3. Twitter: Facebook: LinkedIn: Feedback period British Airways has a reaction time of around 60-65 minutes on their Facebook page. Sadly the page has a generally low engagement rate of just around 1.61%. Engagement rate of around 7% is thought to be acceptable (Olczak & Sobczyk, 2013). British Airways has reasonable vicinity on online networking and most of the negative questions were from the administrations end that is client care and air transport administrations. This would be seen clearly in snap shot below taken from twitter: COMPLAINT FOLLOW-UP Yet a sample of terrible client administration got the attention of numerous a week ago. Twitter client Hasan Syed, who uses twitter @HVSVN, paid $1,000 to advance a tweet in New York City and the United Kingdom pummeling British Airways. The tweet, which was seen by about 77,000 individuals, as per a screen shot Syed posted, read: "Dont fly @BritishAirways. Their client administration is awful” (Buchdahl, 2013). Syed was baffled over British Airways inaction in the wake of losing his dads baggage. At the point when British Airways at long last did answer to Syeds tweets, it apologized for the postponement and educated him that the organizations "Twitter channel is open 0900-1700 GMT." Syeds answer: "How does a billion dollar corp just have 9-5 online networking backing for a business that works day in and day out?" (Mana, 2013) RECOMMENDATION Three business strategies have been discussed below, that should be used by British Airways to enhance customer base by using Social Media. This will allow dealing with online customers successfully. Respond To Complaints Spontaneously Nowadays information is travelling so quick like a glimmer of lightning on online networking stages, for example, Twitter and Facebook. Hence the organizations need to set time aside to deal with their vicinity on the web. British Airways reacted to Mr Hasan around 7 hours after the tweet was conveyed, precisely at 9am London time. That is bad enough considering the extent of the organization (Burnham, 2013). Convert annoyed customers into brand sponsor Annoyed clients, for example, Hasan Syed as discussed previously can likewise be changed over to brand advocates if the issue is appropriately overseen by the British Airways. Organizations ought to understand that a furious client is not simply annoyed for entertainment; there must be something about the organization that makes them furious. Accordingly, a furious and surprise client whose issue was comprehended is more than liable to turn into a brand advocate. Make a digital service of customer Its vital for the customer service office to work with the social networking group to make a computerized client administration arrangement. Clients who are uttering their disappointments online are a typical event. Hence it is suggested to create a methodology for taking care of such cases. Mr Hasans tweet shelled British Airways with awful public relation. Then the British Airways started to react and guaranteed to investigate the case. Consequently, organizations ought to understand that we are in advanced age and that how the business is seen in people’s eye as managing issues online. This can either upgrade or break their standing. CONCLUSION The advent of the Internet has brought innovations from online shopping to booking hotels and Airline tickets on e-commerce websites. Businesses are also benefited from the benefits of having an online presence in market. The Internet has also revolutionized the way companies intermingle with their consumers. This makes it important for brands to properly manage their online reputation. On the off chance that a man whose fathers pack British Airways lost can burn through cash to purchase an advanced tweet against British Airways on social networking and target New York City and UK markets, then there are more despondent clients out there that can likewise do likewise. The economy and Social Media both impact each other in both positive and negative ways. Now it is upon company to use it wise. British Airways has taken advantages of online Social Media in many ways. List of References Aral, S., Dellarocas, C., & Godes, D. (2013). 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