Marketing process and its elements (Part 8)

Q. Explain how distribution is arranged to provide customer convenience

Distribution Strategy

For AirAsia, major investment in marketing is carried out and the distribution is done in a selective manner. AirAsia positioned itself exclusively in highly selective and demanding circuits and has dedicated specific ranges. Distribution networks thus seem well diversified geographically and adaptation is desired and achieved (Fitzgerald, 2008).

The distribution strategy can be improved by increasing the intensive distribution strategy, which increases the selling point through different outlets. The distribution can also be extended by co-branding and aligning of brands with different channels, which is also very good in globally standardizing brands.

Q. Explain how prices are set to reflect an organization’s objectives and market conditions

Pricing Strategy

AirAsia airline is introduced at much lower cost to attract persons of middle and lower income groups. The price would cover all marginal or incremental costs- that is, those costs specifically incurred to get the added business. In the long run, however, all overhead costs must be covered as well (Haynes, 1962). Customers typically choose products and services that give them the greatest value. Thus, AirAsia also wants to position itself on the key benefits that it offers relative to competing models. AirAsia, though, emphasizes on lower cost but also offers good quality, design and style.

Q. Illustrate how promotional activity is integrated to achieve marketing objectives

Promotional Strategy

In contemporary corporate mainstream some of the novel media that have emerged to play pivotal role in the field of advertising is the social media and networking. With the help of these venues and frontiers a business can also easily track the traffic that is arriving at the website and the place which is attracting massive attention the company can take subsequent steps in formulating their very own corporate strategy and hence can target their vehicles at the correct niche market and as per their requirements (Paul, 1997).

Q. Analyze the additional elements of the extended marketing mix

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. It is necessary to plan the budget for adverting very wisely.