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 on Jun 12, 2006

Marketing and employment relations are equally important aspects to the successful
operation of all businesses, through correct marketing businesses can expect to grow and
expand, both in size and profitability; Qantas has employed a range of strategies to
accomplish its aims and become a more competitive player within the aviation industry. With
the development of new domestic airline JetStar by Qantas, individual strategies will need to
be used to help the business succeed. Coca-Cola Amatil (CCA) is an Australian non-alcoholic
beverage producer, successful employment relations has seen the company become a leader
within the hospitality and production industry.

Role of Marketing
The role of marketing is to connect the business with its target market. Marketing is the major
link between the business and its customers. As the market changes and becomes more
competitive, the business needs to know and understand its target market so it can provide
better service to its customers. Successful marketing will identify customer needs, and then,
plan price, promote and distribute the products and services that will satisfy these needs. This
way the business goals of increased profit and a greater share of the market can be achieved.
But continually researching customers and monitoring the business environment, marketing
provides the information the business needs in order to change direction on adjust its tactics
by providing new product or changing existing products. The objectives and strategies of the
marketing plan are used to determine the plans of the other functions such as operations,
employment relations, and accounting and finance. CEO Geoff Dixon has recognised the role
of marketing in business success and so continually researches its market and modifies its
marketing strategies to meet customer needs and wants.

Marketing planning process

Planning is essential for successful marketing. In order to carry out the marketing program, a
business needs a plan that will help it to achieve its objectives. For each business the
marketing plan is going to different depending on the size and nature of the business. The
marketing plan involves 5 stages these include:

Situational analysis
the situational analysis looks at the market n terms of size and growth, needs of the target
market and trends in buyer behaviour. The performance of the products or service in terms of
sales, profit margins and stage in the product lifecycle are examined. Major competitors are
identified and analysed in terms of marketing strategies. A major part of the situation analysis
is the prediction of market opportunities. Strengths and weaknesses are defined by measures
such as market share, loyal customers, level of customer satisfaction and product quality.

Many businesses use their general marketing department to gather the information and
produce a report. QantasÎs only real competitor on its domestic services is Virgin Blue.
Currently Virgin Blue employs about 3000 staff, claims about 30% of the domestic market
share. Qantas is expecting to report $150 million net profit for the year ending March 28,
2004, compared to $108 million to the previous year. QantasÎs domestic services are
currently in the maturity stage of the business cycle after a period of growth following the
collapse of Ansett. Internationally both Qantas and its subsidiary Australian Airlines are in
the renewal stage recovering from September 11 and SARÎs. JetStar is its domestic, low cost
carrier is in the establishment phase of the business cycle.

Establishing marketing objectives

The next step in the marketing planning process it to establish the marketing objectives. The
objectives established in the business plan will be the guide for the marketing objectives.
QantasÎs main marketing objective is to make a profit, both in the current and long terms
.The overall goal is to provide a satisfactory return to shareholders and to generate enough
profit in reserve to fund growth and the acquisition of new aircraft. QantasÎs main objective
is to sell its capacity at prices that will ensure enough demand to sustain its profit objectives.

Other marketing objectives include:

Î Increase sales
Î Maintain 70% market share
Î Increased internet sales
Î Increased customer service
Î Decrease operating costs
Î Grow and develop non-flying businesses

Marketing Strategies
A business can use a number of different strategies to reach the same objective, and a
combination of different strategies can be used. Whichever strategies are used, they should
meet a number of basic points.
Strategies should:
Î satisfy the needs of the target markets
Î meet the objectives of the business and marketing plans
Î work together in achieving overall marketing objectives
Qantas uses market segmentation to better meet the needs of all its customers, to compete
more effectively, and to attain financial goals more readily. Qantas is launching a new low
cost domestic airline called JetStar in May 2004 which will initially target travelers on
yielding leisure routes. Positioning is the image that Qantas projects in relation to its
competitors. Qantas brings attention to its service by using a variety of positioning strategies.

Formulating the marketing mix

As the airline industry has become more competitive, airlines like Qantas have focused on
product planning. Qantas designs products to be attractive and hold customers from a
particular market segment and to do so profitably. This means using its detailed
understanding of the needs and requirements of its different market segments. Such
understanding is acquired through market research.

On the passenger side the product is enhanced by:

Î scheduling basic features
Î comfort based features
Î Qantas Frequent Flyer Scheme (FFS)

Price is a crucial element in any marketing plan. Promotional strategies employed by Qantas
include:
Î advertising
Î sales promotion
Î personal selling
Î image of Qantas

Implementing the Marketing Plan

Implementation is the process of turning QantasÎs marketing plan into action. The marketing
department of Qantas continually monitors, controls and adjusts its marketing activities using
the following tools
Î Developing a financial forecast of revenue using statistical models, past sales data,
executive judgment and surveys of consumer trends. It then estimates costs such as market
research costs, promotion costs, product development costs and distribution costs.
Î Comparing actual and planned results using a number of tools e.g. sales analysis, market
share analysis, market profitability analysis.
Î Revising market strategies and taking corrective action where appropriate, for example in
2000 Qantas was forced to change meals launched in July 1999

Analysis and Evaluation of Marketing Plan

QantasÎs marketing plan and strategies are effective because of the following:
Î comprehensive marketing plan and strategies
Î identify and satisfy customer needs
Î encourage new product development
Î emphasis market segmentation
Î create more distribution outlets
Î focuses on market research

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direct

effect on profitabilitysales Larger businesses will dedicate specific staff and
departments for the purpose of marketing.

It is important to realise that marketing cannot be carried out in isolation from the rest of the
business. For example:

The marketing section of a business needs to work closely with operations, research and
development, finance and human resources to check their plans are possible.

Operations will need to use sales forecasts produced by the marketing department to plan
their production schedules.

Sales forecasts will also be an important part of the budgets produced by the finance
department, as well as the deployment of labour for the human resources department.

A research and development department will need to work very closely with the marketing
department to understand the needs of the customers and to test outputs of the R&D section.

 
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Marketing is an essential part of business, whether big or small. It plays a significant role in
promoting the well-being of all businesses. The concept of markets brings us full circle to the
idea of marketing. Marketing is perhaps the most complicated and thought-provoking
function carried out by every business house.
Marketing has a direct impact on business sales as well as profitability. Marketing starts well
before production commences and ends only after rendering sale services to the consumers. It
is the ability of picking out and satisfying customer desires in such a way that a dosage of
money put in brings around highest return.

The American Marketing Association has defined marketing as the execution of business
actions, which direct the flow of good and services from manufacturer to final user.

Marketing offers up high employment potential; about 25 to 30% of the total labor force in
the United States of America is directly or indirectly engaged in marketing. Marketing finds
out and transforms customer requirements and wants into good and service specifications and
generates demand for these goods and services.

The importance of marketing can be further highlighted from its different benefits listed
below:

- Marketing expands the market place.

- It offers up lucrative employment opportunities.
- It lifts up the living standard.
- It offers maximum satisfaction of human requirements.
- It stabilizes the financial conditions.
- It facilitates exchange in the ownership and possession of goods and services.
- It helps in best possible utilization of resources.