The purpose of the thesis is to compare and explain processes related to aircraft sales in aircraft manufacturers´ marketing departments of large and small aircraft producers in practice and on examples. Due to complexity of marketing processes which are performed by large manufacturers it was decided to dedicate to this processes the practical part of the thesis, and because of that the case study is focused on these processes. The reason for this research is the fact that there are no other theses, literature or materials for students that comprehensively describe and compare processes inside marketing departments. It was decided to study processes used by small and large aircraft manufacturers´ marketing departments. Detailed search of the literature available did not yield desired results in terms of needed information and before it was decided to contact professionals from the aircraft manufacturer marketing field and use personal experience of the author in the subject under study. To be able handle the subject properly and sufficiently it was necessary to use different kinds of information resources and cooperate with senior analysts from the industry. After data gathering and comparison it had been found that there are extraordinary differences between large and small aircraft manufacturers´ marketing departments. The results of this thesis, and comparisons, should serve as an overall overview of the studied subject and as an information source not only for students of aviation subjects. The conclusions arrived at here can serve as a basis for further research of this wide topic.
Table of Contents
1 MARKETING MIX IN AIRCRAFT MANUFACTURERS MARKETING
1.1 METHODOLOGY OF WORK
1.2 THE DEFINITION OF MARKETING
1.3 MARKETING MIX
1.4 4 PS IN AIRCRAFT MANUFACTURER´S MARKETING
1.4.1 Product
1.4.2 Price
1.4.3 Promotion
1.4.4 Place
1.5 COMMUNICATION INSIDE OF THE MARKETING DEPARTMENT
1.6 EXAMPLES OF INFORMATION GATHERING, SHARING AND USE
1.6.1 EXAMPLE 1: Performance vs. technical marketing office
1.6.2 EXAMPLE 2: Different format of data sheet
1.6.3 Reasons of communication difficulties
1.6.4 Solution of communication in large and small companies
1.7 ADMINISTRATION TOOLS IN COMMUNICATION
1.7.1 Staff meetings and information sessions
1.8 INFORMATION GATHERING AND USE
1.8.1 Industrial espionage
1.8.2 Data and information analysing
1.9 EXAMPLE OF DATA AND INFORMATION ANALYSING
1.9.1 Example 1 – IFE, in-flight entertainment system retrofit:
1.9.2 Example 2 – yield per one seat based on its size and space used
1.10 READY FOR EXPO
2 MARKETING PROCESS – LARGE AIRCRAFT MANUFACTURER
2.1 MARKETING AS A PART OF AIRCRAFT SALES PROCESS
2.2 AIRCRAFT SALES PROCESS
2.3 PHASES OF AIRCRAFT SALES PROCESS:
2.3.1 Analysis of customer and market situation
2.3.2 Product offering and marketing argumentation
2.3.3 Request for proposal
2.3.4 Sales proposal
2.3.5 Memorandum of understanding
2.3.6 Purchase agreement and final negotiations
2.3.7 Customization of the aircraft
2.3.8 Delivery
2.4 LARGE AIRCRAFT MANUFACTURERS MARKETING DEPARTMENT
2.4.1 Indirectly influencing or not influencing unit
2.4.2 Directly influencing unit
2.4.3 The aircraft interior marketing
2.4.4 The aircraft performance marketing
2.4.5 The aircraft maintenance marketing
2.4.6 The aircraft technical marketing
2.4.7 The aircraft revenues marketing
3 MARKETING PROCESS – SMALL AIRCRAFT MANUFACTURER
3.1 4PS IN MARKETING PROCESS OF SMALL MANUFACTURER
3.1.1 Product
3.1.2 Price
3.1.3 Promotion
3.1.4 Place
3.2 MARKETING PROCESS OF SMALL AIRCRAFT MANUFACTURER
3.2.1 The company departments in relation to sales and marketing process
4 COMPARISON OF MARKETING PROCESSES
4.1 COMPARISON OF LARGE AND SMALL MANUFACTURER´S MARKETING PROCESS
4.2 COMPARISON OF LARGE AND SMALL MANUFACTURER´S MARKETING PROCESS IN RELATION TO SALES PROCESS
5 CASE STUDY – A3XX VS. B7XX
5.1 CASE STUDY – A3XX VS. B7XX – PRACTICAL PART
5.2 CASE STUDY - SIMPLIFIED EXAMPLE
5.2.1 South Africa Airways characteristics
5.2.2 The route characteristics
5.2.3 The Johannesburg International airport characteristics
5.2.4 Possibly available airplanes
5.2.5 Analysis of customer and market situation
5.2.6 Desired route and aircraft
5.2.7 Product offering and marketing argumentation
5.2.8 Request for proposal
5.2.9 Sales proposal
5.2.10 Memorandum of understanding
5.2.11 Purchase agreement and final negotiations
5.2.12 Customization of the aircraft
5.2.13 Delivery
6 THE CONCLUSION
7 LIST OF REFERENCES
Objectives and Topics
The primary objective of this thesis is to provide a comprehensive comparison and explanation of the marketing processes employed by large and small aircraft manufacturers. It explores how these manufacturers navigate sales processes, manage internal information, and utilize marketing strategies to distinguish themselves in the competitive aviation market, with a specific focus on the complex operational structures of major industry players versus the more streamlined approaches of smaller producers.
- The differentiation between large-scale and small-scale aircraft manufacturing marketing operations.
- Detailed analysis of the sales process phases within the aircraft industry.
- Examination of internal communication hurdles and management of information in large marketing departments.
- Evaluation of marketing mix elements (Product, Price, Promotion, Place) in the aviation sector.
- Case study application comparing marketing arguments for long-haul aircraft.
Excerpt from the Book
1.4 4 Ps in aircraft manufacturer´s marketing
The airplane, or the aircraft, is generally recognized as the main airline marketing product. But this term includes many other objects starting with seat comfort, going thru catering possibilities, flight performance, weights and a whole list of other more or less important subjects, which are defining the right product for the right market with desired characteristics.
This complex product known as an aircraft is the subject of studies for airline marketing. To find and compile the right product for a customer there is a need to revise, optimize and harmonize customer’s demand with actual passenger or customer demand and forecasted future of air transportation.
The task is indeed as difficult as it sounds. Optimizing and harmonizing of the product is the result of many days which flow in to weeks and months spent on each side; the side of the airlines and the side of producers trying to find the best proposals which could comply with the most of conditions required by customer. Defining the product’s final status and characteristics is long process with many iterations. It includes a lot of researching, gathering data and processing, analysing information, comparing and negotiating with customers.
Even if product outer characteristics appear to be nearly the same, for example the aircraft type is the same, let’s say Airbus A330 or Boeing B777, there could be a lot of differences inside of the product itself, which are price making and distinguishing products for different customers and markets. It means aircraft producers have a hard time with defining the right product for a certain market or customer, because demands are always different and the whole process of customizing needs to be started over and over again for each case study.
Summary of Chapters
1 MARKETING MIX IN AIRCRAFT MANUFACTURERS MARKETING: Provides an overview of fundamental marketing definitions, the marketing mix, and the methodology used for the research, while highlighting the importance of data management.
2 MARKETING PROCESS – LARGE AIRCRAFT MANUFACTURER: Details the complex, multi-layered marketing and sales processes of large manufacturers, including phases like product offering and customization.
3 MARKETING PROCESS – SMALL AIRCRAFT MANUFACTURER: Discusses the streamlined marketing approach of smaller companies, where responsibilities are often shared or outsourced rather than held by specialized departments.
4 COMPARISON OF MARKETING PROCESSES: Contrasts the organizational structures, department sizes, and strategic activities of large versus small manufacturers.
5 CASE STUDY – A3XX VS. B7XX: Applies the theoretical findings to a practical, simplified example of a sales campaign involving two competing long-haul aircraft types.
6 THE CONCLUSION: Summarizes the key findings, confirming that marketing complexities in the aircraft industry are directly proportional to the scale and operational requirements of the manufacturer.
Keywords
Marketing, aircraft manufacturer marketing, aircraft sales process, comparison of marketing processes, aircraft marketing, sales strategies, aviation management, product configuration, marketing mix, business models, industrial espionage, market analysis, aircraft performance, aircraft revenue, cabin interior marketing.
Frequently Asked Questions
What is the core focus of this thesis?
This thesis focuses on the marketing processes within aircraft manufacturing, providing an in-depth understanding of how different companies handle sales and promotion strategies.
What are the primary thematic areas of the research?
The work covers the "four Ps" of marketing, internal department communication, the distinct differences between large and small manufacturers, and the complex phases of the aircraft sales process.
What is the main objective of this academic work?
The goal is to provide a comprehensive overview and comparison of marketing departments and their specific operational processes, which were previously undocumented for academic use.
What scientific methods were employed?
The author utilized a mix of literature review, expert interviews (face-to-face and conference calls), industry questionnaires, and comparative analysis of existing industry practices.
What does the main body of the work cover?
The main body examines the structural complexities of large versus small manufacturer marketing, the role of performance and technical marketing offices, and the stages from initial contact to delivery.
Which keywords best characterize this work?
Key terms include aircraft marketing, sales process, marketing mix, and comparative manufacturer analysis.
How does the size of a manufacturer affect its marketing department?
Large manufacturers have specialized teams for interiors, performance, and maintenance, whereas small manufacturers typically rely on a centralized, limited team often managed directly by company leadership.
What specific practical example is used to illustrate the theory?
The thesis utilizes a case study comparing the marketing strategies for the Airbus A340-600 and the Boeing B777-300ER in the context of a hypothetical sales campaign for South African Airways.
What is the conclusion regarding industrial espionage in this field?
The work identifies that while illegal, industrial espionage is a recognized concern for large manufacturers due to the high stakes and competitive necessity of understanding competitor developments.
How does the "four Ps" framework apply to aircraft sales?
It acts as a strategic guide for manufacturers to balance product configuration, pricing, promotion, and distribution channels, tailored according to the specific needs of different airline customers.
- Citar trabajo
- Ing. Karol Götz (Autor), 2012, Comparison of aircraft manufacturers marketing processes, Múnich, GRIN Verlag, https://www.grin.com/document/212075
