Qantas Airlines B2B and B2C Marketing Strategies

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Background of the Study

In general, it is seen that marketing activities, be they aimed at consumers or other companies; contains the same primary motivation for selling goods and services.  There are also many differences in the way customer marketing and business marketing practices are conducted. While the ultimate objective is to sell, both marketing practices vary profoundly in terms of the way in which consumers are approached and the presentation of the products and services. Upon deeper analysis of the subject matter, it can be understood that B2B marketing is based more on logic while consumer purchases are seen to be based on emotions. Both marketing approaches are considered to be a part of the customer relationship management framework. A company’s working partnership with outside customers, be it general consumers or other companies, is a critical feature and involves careful strategic planning. Consequently, B2B marketing and B2C marketing have developed into significant marketing areas of research. The present paper attempts to explain the differences that exist between the two marketing models. The research has been carried out in respect of the B2B and B2C marketing strategies existing in the airline industry in reference with Qantas airlines (Basole and Rouse, 2008).

Difference Between B2B and B2C Marketing in Airlines Industry

When selling goods to other companies, the product logic is given priority. Time and cost saving are the most important features which are highlighted. B2B marketing involves careful strategic analysis of the different organizational processes. The need for seeking an in-depth knowledge regarding a firm’s operations, supply chain, value chain and overall resource management process is higher in the B2B marketing process (Vargo and Lusch, 2008). Even in such a marketing strategy partnerships with suppliers are seen as having an significant role. In contrast to such marketing strategies, B2C marketing strategies center upon attracting consumers by highlighting the benefits and the uses of the product. Consumers are seen to remain more focused on the features and uses of a product (Vargo and Lusch, 2008). Price and quality are also essential considerations that should be taken into account when selling goods to the customers. There are also fundamental differences in the manner in which the products and services are presented in B2B and B2C marketing. In B2B marketing, products are presented using consultative sales techniques. In the consultative approach, business executives exchange information in respect of benefits, uses and the manner in which the products have been manufactured. The process is elaborate and highly formal. On the contrary, in the B2C marketing approach, products are presented using convincing techniques such as advertising and promotions. The technique tries to understand the psyche of the consumers, their needs and preferences and accordingly develop marketing strategies so that consumers are lured towards buying the product. B2C marketing approaches require to be more wide spread and cost intensive than the B2B marketing strategies (Jarach, 2001).

Qantas Airlines B2B and B2C Marketing Strategies

In B2B airline marketing, reaching out to suppliers and business clients by reducing costs is given prior importance. Airline firms such as Qantas, try to reduce their costs of procurement and operations so that other business can In general, marketing campaigns, irrespective of whether they are targeted at consumers or other companies, include the same primary motivation for selling goods and services.  There are also many differences in the way customer marketing and business marketing practices are conducted. While the ultimate objective is to sell, both marketing practices vary profoundly in terms of the way in which consumers are approached and the presentation of the products and services. Upon deeper analysis of the subject matter, it can be understood that B2B marketing is based more on logic while consumer purchases are seen to be based on emotions. Both marketing approaches are considered to be a part of the customer relationship management framework. A company’s working partnership with outside customers, be it general consumers or other companies, is a critical feature and involves careful strategic planning. Consequently, B2B marketing and B2C marketing have developed into significant marketing areas of research. The present paper attempts to explain the gaps that exist between the two marketing models. The research has been carried out in respect of the B2B and B2C marketing strategies existing in the airline industry in reference with Qantas airlines (Basole and Rouse, 2008).

When selling the goods to other firms, the product’s rationale is given priority. Time and cost saving are the most important features which are highlighted. B2B marketing involves careful strategic analysis of the different organizational processes. The need for seeking an in-depth knowledge regarding a firm’s operations, supply chain, value chain and overall resource management process is higher in the B2B marketing process (Vargo and Lusch, 2008). Often in such a marketing strategy partnerships with suppliers are seen as having an significant role. In contrast to such marketing strategies, B2C marketing strategies center upon attracting consumers by highlighting the benefits and the uses of the product. Consumers are seen to remain more focused on the features and uses of a product (Vargo and Lusch, 2008). Price and quality are also essential considerations that should be taken into account when selling goods to the consumers. There are also fundamental differences in the manner in which the products and services are presented in B2B and B2C marketing. In B2B marketing, products are presented using consultative sales techniques. In the consultative approach, business executives exchange information in respect of benefits, uses and the manner in which the products have been manufactured. The process is elaborate and highly formal. On the contrary, in the B2C marketing approach, products are presented using convincing techniques such as advertising and promotions. The technique tries to understand the psyche of the consumers, their needs and preferences and accordingly develop marketing strategies so that consumers are lured towards buying the product. B2C marketing approaches require to be more wide spread and cost intensive than the B2B marketing strategies (Jarach, 2001).

Can be attracted for developing strategic tie ups. The airlines industry is seen to become extremely competitive due to the emergence of low cost aircraft carriers (Devaraj, Fan and Kohli, 2002). Airline firms are required to develop strategic tie ups with online travel websites and different food and beverage firms amongst many others. In B2B marketing arena, e-marketplaces have evolved as an important tool. Qantas airlines for instance have developed strategic tie ups with a number of online travel websites so as to provide reservation facilities to the consumers. However, a prime challenge for Qantas is to maintain such strategic business partnerships. Online travel websites generally are seen to develop partnerships and promote those airlines which have a strong presence in the market. B2B marketing for Qantas also involves managing and attracting financiers and advertisement companies (Sharma and Sheth, 2004). Qantas relies upon innovation and investments heavily for achieving success. This requires developing good relations and long term partnerships with financiers. To achieve this motive, Qantas is required to develop effective supply chain practices that ensure optimized utilization of resources. In order to maintain the strategic tie ups which Qantas has with its suppliers and business partners, it is essential to focus upon relationship building programs. Rational and logical buying processes are required to be developed in the B2B marketing approach. Qantas ensures to present a brand image and quality services while executing B2B marketing (Wind, 2006).

In the B2C marketing approaches, Qantas is seen to focus on understanding the needs of consumers. Cost effectiveness and high quality services is what consumers desire the most while traveling by air. In B2C marketing, Qantas undertakes intensive advertising strategies. E-marketing tools such as online marketing and interacting with consumers on the social media are effective strategies by which firms tries to influence consumers. Qantas focus upon developing an all in one marketing strategy which presents its services to customers attractively and aims to engage in personalized approaches so that the number of frequent fliers with the airlines increases. Apart from online marketing approaches, the firm conducts more than 250 campaigns and provides approximately 50,000 newsletters to regular clients on a monthly basis. Additionally, the company has also developed tie ups with a number of corporate firms for enhancing frequent business travel passengers. Seasonal sales and promotions are also important marketing tactics the organization has implemented for B2C (Pfoertsch, 2006).

Also Study: Qantas Airlines Strengths and Weaknesses

By comparing the marketing strategies of B2B and B2C pursued by Qantas, it can be understood that the business marketing is a more complex, detailed and long process than the customer marketing process. Brand identity and recognition are built by attractive advertisements and the use of social media in the consumer marketing systems. In the case of the B2B marketing strategy, brand identity is established through the creation and consultation of relationships. The lifetime value of clients in the B2B marketing approach is much higher than that of the B2C marketing approach (Lovelock and Gummesson, 2004). Developing long term relation with suppliers is essential for maintaining continuity of organizational operations. Long term relationship with clients signifies efficient management policies and creates better impressions upon new suppliers. In case of B2C marketing, the time period for which customers are associated with the business is low. Since frequency of traveling by air is less, the probability of repeated purchases are also fewer. In B2B marketing, the purchase decisions are essentially made through rational budget preparation. In B2C marketing, it is seen that the purchase decision by consumers are basically triggered by their emotion and needs. Hence, advertising strategies in case of consumer marketing are done in such a manner so that their emotions and thoughts can be influenced (Kumar and Shah, 2009).

In B2B marketing, sales durations are long and it generally takes months for closing a particular contact of sale between Qantas and another business firm. However in case of the B2C marketing, sale of services are quick. Qantas realizes that in B2C marketing, consumers are keener on knowing the benefits from the services. They are also curious about how the services are different from those provided by other airline firms. Qantas undertakes frequent consumer surveys so as to understand the tastes and preferences of consumers and modify their services accordingly (Braun, 2002).

Conclusion

Marketing executives at Qantas believe that involving clients, business partners and suppliers plays an effective role in B2B marketing. Clients are required to be made felt that their contribution towards the business is essential. A large amount of investments are required to enhance the method in B2B marketing, making customers realize the importance of economic demand. Since B2B involves bulk order of resources which are essential for the business, it is crucial for the business to communicate with suppliers clearly. Specifying all types of information’s and encouraging customers to provide suggestions are considered to be valuable strategies in the B2B marketing approach. In order to maintain a long term suitable portfolio of clients, Qantas tries to provide benefits which are different from existing clients in the market. It is also understood from the B2B and the B2C marketing strategies that consumer preference plays a vital role in formulating communication mechanisms. Since the preferences of customers in both the markets are differential, marketing approaches also differ. It is also required to be understood by the marketing executives of Qantas that business products are more complex than the consumer products. B2C marketing is seen to provide greater scope of innovation and creativity and develop differential ways in which consumers can be attracted and emotionally influenced into buying products. Although B2C marketing has short term implications, it is more expensive than the business marketing.

References;
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