Aerospace Marketing Management

1 Marketing in the Aeronautics and Space Industry.- 1. The aeronautics and space sector environment.- 1.1 Characteristics of the aeronautics and space sector.- 1.2 Market deregulation.- 1.3 The role of regulatory organizations: FAA, DGAC, CAA, IATA.- The organizations which control air transport.- 2. The marketing approach.- 2.1 The rise of marketing.- 2.2 The two facets of marketing.- 2.3 An essential part of companies and organizations.- 2.4 A set of methods with wide-ranging applications.- 3. The role of marketing in the aeronautics and space industry.- 3.1 The growing importance of marketing in the aeronautics and space sector.- 3.2 Different types of marketing.- 3.3 Marketing in the aeronautics and space supply chain.- 3.4 Recent marketing trends in aeronautics.- 2 The Individual and Organizational Purchase.- 1. The individual purchase.- 1.1 Factors influencing the buying behavior.- The child as influencer.- Senior marketing.- 1.2 The buying process.- 2. The organizational purchase.- 2.1 The buying center.- 2.2 Buying phases.- “Make or Buy ?”, the example of the Super Transporter: from Super Guppy to A300-600ST.- 2.3 Different situations.- 2.4 The behavior of professional buyers.- 2.5 Bidding.- 2.6 E-procurement and the development of the marketplaces.- 3. Case study: the aircraft constructor’s approach to the airline’s buying center.- 3.1 First action level (1): the customer airline.- 3.2 Second action level (2): air traffic regulatory bodies.- 3.3 Third action level (3): airports.- 3.4 Fourth action level (4): passengers and citizen groups.- 4. Case study: Airing’s approach to the buying center of the Sultan of M.- 5. Purchase marketing.- 5.1 The different conceptions of purchase marketing.- 5.2 Purchase marketing objectives.- 5.3 Means of action.- Purchase marketing at EADS.- 3 Business Marketing Intelligence.- 1. The information system.- Dassault Aviation: Increasing Falcon customer satisfaction by using an efficient information system.- 2. Market surveillance: active listening.- 2.1 The different types of surveillance.- 2.2 Setting up surveillance.- Docland: Aerospatiale-Matra’s information and documentation center (EADS).- 3. Information sources.- 3.1 Main information sources.- 3.2 Information protection.- Market studies made by Boeing and Airbus.- 4. The main types of studies.- 4.1 Qualitative studies.- 4.2 Quantitative studies.- The international tourism study: a key analysis for airline destination strategy.- 4.3 Permanent and ad hoc studies.- 4.4 The other objectives for studies.- From the Airbus A3XXproject to the A380: the primordial role of studies.- 4 Market Segmentation and Positioning.- 1. Segmenting a market.- 1.1 The objectives of segmentation.- The segmentation fo the satellige market.- 1.2 The main segmentation methods.- An example of “top-down” segmentation applied to catering.- “Bottom-up” segmentation: the example of the business jet market.- 1.3 Other segmentation methods used in B to B.- 2. Positioning.- 2.1 Positioning objectives.- Examples of positioning: AeroMexico and Thai Airways.- Four examples of positioning: Singapore Airlines, Air France, Swissair, American Airlines.- Two further examples: Virgin Atlantic and easy Jet.- 2.2 Setting up positioning.- Lufthansa Technik: positioning based on customer success.- 5 Marketing and Sales Action Plan.- 1. The marketing plan.- 1.1 Part one: the analysis.- 1.2 The objectives.- 1.3 The means or action plan.- 2. The sales action plan.- 2.1 The objectives of the sales action plan.- 2.2 How the sales action plan is carried out.- 2.3 An example of the contents of a sales action plan.- 6 Innovation and Product Management.- 1. The learning curve.- 2. The product life cycle.- 2.1 Phases of the life cycle.- 2.2 Applying the life cycle concept.- 2.3 The characteristics of each life cycle phase.- 3. Managing the product portfolio.- 3.1 The BCG model.- An analysis of the Airbus and Boeing product portfolios.- 3.2 The McKinsey model.- 3.3 The Little model.- 3.4 Marketing and management of the product portfolios.- The Bombardier niche strategy.- 4. Managing the product range.- 4.1 The characteristics of the range.- The CFM International engine range.- 5. Managing innovation.- Latécoère’s innovation: on-board video systems.- The different generations of a product: military aircraft.- 5.1 In-house innovations: the “push” strategy.- Weber Aircraft: innovation at the heart of the offer.- 5.2 Innovations from outside: the “pull” strategy.- The evolving range of Rolls-Royce Trent engines.- 5.3 Product development phases.- 5.4 The conditions for successful development.- Innovation at Spot Image: Spot Thema.- 6. Innovation, the key to development of the A380 wide-body jet.- 6.1 Analysis of the market and the range.- 6.2 Taking into account customer’s expectations.- 6.3 Producing a solution.- 6.4 Innovation in the cockpit.- 6.5 Production innovation to reduce costs.- 6.6 The involvement of industrial partners.- 6.7 Cabin fittings.- 6.8 Future versions of the A380.- 7 Marketing of Services.- 1. The characteristics of services.- 1.1 Intangibility.- On-line information: a service to increase maintenance efficiency.- 1.2 “Perishability” and stock-impossibility.- 1.3 Inseparability.- 1.4 Variability.- Spot Image: a service with multiple applications.- 2. Different categories of services.- 3. Professional services.- 3.1 Services which are required by law and regulations.- 3.2 More general services linked to management and strategy.- 3.3 The aeronautical “marketplaces”: a new type of service from MyAircraft to AirNewco.- 3.4 Services Hnked to the production process.- 3.5 Sales related services.- 3.6 Technical and commercial, global services.- Servair: a global service fulfilling the expectations of airlines and their passengers.- 4. Consumer services: transport and tourism.- Qualiflyer, airlines serving customers.- Taking care of unaccompanied minors.- An example of a health service: MEDjet International.- The exemplary service quality of Thai Airways.- 5. Focus on the freight market.- 5.1 The evolution of the freight market: expansion of the “integrated” carriers.- 5.2 The reaction of the cargo airline companies.- 8 Pricing Policy.- 1. Factors involved in pricing.- 1.1 External constraints.- 1.2 Internal constraints.- The business plan or forecasting financial profitability.- 2. Pricing approaches.- 2.1 Cost-based pricing.- Example of a modulated pricing policy for domestic Air France flights.- 2.2 Value-based pricing.- Helicopter engine manufacturers: taking into consideration the market and after sales in the pricing policy.- 2.3 Bidding.- 3. Pricing strategies.- 3.1 The skimming strategy.- 3.2 The penetration strategy.- Charter on-line business aircraft.- 3.3 Flexibility strategies.- 3.4 Yield management.- Bold easy Jet: Internet, yield management and non-conformism.- 3.5 The development of the “gray market”.- 4. Price-adjustment policy.- 4.1 Adjusting the conditions of sale.- 4.2 The leasing.- 4.3 The development of fractional ownership on the business aircraft market.- The NetJets (from Executive Jet) fractional ownership program.- 9 Selecting Distribution Channels and Sales Team Management.- 1. Logistics.- 2. Choosing a distribution system.- 2.1 Choosing an external solution.- 2.2 Choosing multi-brand or exclusive distributors.- Breitling’s selective distribution.- 2.3 Selecting partners and managing the network.- The development of e-ticketing.- 3. Managing the sales point: adjusting supply to demand.- 3.1 The basis of the merchandising approach.- Travel agency merchandising.- 3.2 Merchandising objectives.- A special application of merchandising: managing spare parts.- 4. Direct channel: the role of the sales representative.- 4.1 Communication.- 4.2 Pre-sales: prospecting.- 4.3 Sales presentation and negotiation.- 4.4 After-sales: the follow-up.- The recent evolution of sales representatives.- 4.5 Information feedback.- The sale of aircraft.- 5. Managing the sales team.- 5.1 Defining objectives.- 5.2 Choosing the structure.- 5.3 The size of the sales team.- 5.4 Recruiting sales representatives.- 5.5 Supervising the team.- 5.6 Remunerating sales representatives.- 5.7 Sales representatives: motivation, training and career management.- 10 Project Marketing.- 1. The specific nature of project marketing.- 1.1 High financial stakes.- The Beijing Capital International Airport.- 1.2 A “one-off” project.- 1.3 Generally predefined buying procedures.- 1.4 A generally discontinuous supplier-customer relationship.- 2. Building demand.- 2.1 Identifying the customer’s latent demand.- 2.2 Helping to formulate dissatisfaction.- 2.3 Developing a solution.- An example of constructing demand: building industry and airports.- 2.4 Drafting a solution.- 3. Customer intimacy.- 3.1 The depth of the interaction.- 3.2 The extent of the interaction.- 4. Influencing specifications.- 4.1 Intervening upstream of the deal.- Industrial partnerships to win bids: the tender concerning missiles for the British Eurofighter.- 4.2 Intervening in the deal.- Services at the very heart of the creative bid strategy: application to the military market.- 11 Communication Policy.- 1. Different types of communication.- 1.1 The objectives of communication.- 1.2 The four main types of communication.- 2. The communication plan.- 2.1 Determination of targets and budgets.- 2.2 Setting up the communication plan.- 12 Selecting Media.- 1. Trade shows.- 1.1 The specific nature of trade shows.- 1.2 Exhibiting at a show.- The Paris Air Show - Le Bourget: the leading international aeronautics and space show.- 1.3 The different stages of participating in a show.- 2. The trade press.- Aviation Week & Space Technology.- 2.2 Resources and tools.- 3. The Internet.- Boeing and the Internet.- 4. Direct marketing.- 4.1 The objectives of direct marketing.- 4.2 The different tools.- 5. Television, billboards and radio.- 5.1 Television.- An original operation: Airbus Beluga “Delacroix”.- 5.2 Radio.- 5.3 Billboards.- 6. Lobbying.- Lobbying the regulatory organizations.- Lobbying for the Airbus Military Company A400Mproject.- 7. Public relations and sponsoring.- 7.1 Public relations.- 7.2 Sponsoring.- 8. Sales promotion.- Frequent Flyer Programs (FFP).- The example of Spot Image’s promotion for the launch of SpotView.- 13 Brand Management.- 1. Brand foundation.- 1.1 Brand mechanisms.- 1.2 Brand functions for the company.- 1.3 Brand functions for the customer.- Aeronautics and space brands and performance facilitation.- 2. Special characteristics of the industrial brand.- 2.1“Purchaseability” levels of the industrial brand.- 2.2 The visibility strategy.- 2.3 Airbus: “Setting the Standards”.- 3. Industrial brands classification.- 3.1 According to the use of goods.- 3.2 According to international brand policy.- 3.3 According to brand origins.- 4. Visual identity code, logos and slogans.- 4.1 Logos.- 4.2 Slogans.- 4.3 Jingles.- 4.4 Visual identity code.- 5. Latécoère: technical partnership and its own products.- 5.1 The rise of Latécoère.- 5.2 Latécoère, technical performance facilitator brand.- 5.3 Sales performance facilitation.- 6. Zodiac: managing a brand portfolio by sector.- 6.1 History.- 6.2 Zodiac today.- 6.3 Brand policy.- 14 Building loyalty: Maintenance, Customer Training and Offsets.- 1. Maintenance.- A Key to aircraft safety.- 1.1 The different forms of maintenance.- 1.2 Maintenance: a tool for the marketing-mix.- 1.3 Maintenance: a tool for the marketing information system.- Airbus’ after-sales marketing function: 4 main objectives.- 2. Customer training.- Pilot training: a major and essential expense.- 2.1 Different training objectives.- 2.2 The contents of training.- Training, an essential part in the Airbus strategy.- 2.3 The main types of training.- GDTA: cutting-edge training.- 3. Offset, a business tool.- 3.1 Offset: a means of payment.- 3.2 A business argument.- 15 Alliance Strategies.- 1. Traditional forms of company development.- 2. Specific objectives of alliances.- 2.1 Financial objectives.- 2.2 Marketing and sales objectives.- 2.3 The international political stakes.- 3. Different forms of alliances.- 3.1 Tactical alliances.- 3.2 Strategic alliances while maintaining the company’s initial identity.- Star Alliance: a worldwide air network.- SkyTeam: a new worldwide air network.- 3.3 Strategic alliances with creation of a specific structure.- The CFM International alliance.- Starsem: an alliance for a reliable and competitive space transport system.- Sea Launch: from the sea into space.- 3.4 From alliance to merger.- From GIE Airbus Industrie to the integrated company EADS.- Eurocopter: once a joint-venture, today a subsidiary.