Marketing process and its elements (Part 5)

It is necessary that the advertising media should reach but not overreach the present or desired market. From among the many media available, AirAsia chooses those that will provide the greatest return for the advertising dollar. Selection of the right combination of advertising media depends upon the type of business and its governing circumstances. In this particular case Television, Internet, magazines, billboards and newspapers are the most appropriate mediums for advertising.

Q. Propose segmentation criteria to be used for products in different markets

Segmentation Criteria

The question of purchasing power is a key issue for companies. It particularly impacts on the sensitivity of consumer prices and hence the intensity of the competition by the suppliers offering the lowest cost. In a situation where the purchasing power is declining, especially develops a request for an offer, the least expensive possible. Positioning a company as "low cost" literally cost low, then seems to be the key winning strategies, responding to concerns of consumers who are concerned about the "cost of living", combining profitability and social responsibility of the company.

While simply being better than all its competitors, and excelling in marketing. The main reason of the financial success of AirAsia is the strong marketing and selling strategies. It has an eye on the ongoing situation in the contemporary business and the airline quickly adopts the culture and business strategies suitably to make money (Kotler & Armstrong, 2001).

Air Asia is one of the most profitable airlines in the world: 25% of net profitability, as well as Nintendo, Google, the luxury industry or the oil industry. Just fill it to 50% its aircraft to be profitable. Its employees are three times more productive than its competitors (Meghan, 2002). Seat / km costing 2-3 cents in Air Asia, 3-5 against its competitors in low-cost and 10 cents for traditional companies. Air Asia sells tickets below cost price of any of its competitors, to 4 cents per passenger kilometer, when its competitors have to charge at least 7 or 8 cents to be profitable.

Despite its concrete price (40 Euros for Chiang-Mai/Bangkok or € 250 a go / single Paris / Kuala Lumpur) Air Asia is continuously hiring hosts and hostesses to look young, beautiful, smiling and attentive to clients. Air Asia is known for its amazing punctuality as well as it is also the best low-cost airline in the world in 2009, 2010, 2011 and 2012. Enough to reassure customers.