Southwest Airlines Marketing Practices

Published: 2021-06-29 06:55:28
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        [pic 1][pic 2] Southwest Airlines marketing practices – market segmentationÜzleti Angol 1. -BGE-KKK-Marketing MesterszakPatakfalvi Hegedűs DorottyaVCKU7M2016.05.Southwest Airlines marketing practices – market segmentationAir Southwest was founded in 1967 and in the beginning it incorporated to cater three Texas cities but few years later in 1971 it change its name to Southwest Airlines. Today, Southwest Airlines is "the largest low cost carriers and the sixth largest airlines" (Reuters, 2007) in the U.S. airlines industry. Moreover, Southwest Airlines is also known as a discount airline because of the low fares, non-frills flight services since 1973 which is a source for Southwest Airlines to have a rapid growth and popularity amongst the American people.Southwest's further plan was to expand into major airport hubs such as Boston, Washington D.C., Atlanta, New York City) as to increase their travelling routes to new areasSouthwest Airlines is a low cost carrier for mainly business and vacation travellers by providing different types fare and services. The 4 P's of marketing mix that influence SWA are the following: Product: The main core product of Southwest's is offering air transport services, and in which they are using only Boeing 737 as to transport their customers, and besides that Southwest's is a low cost carrier which does not require upmarket, luxuries services.Place: The type of distribution channel used by Southwest's is a direct distribution channel where they sell their product directly through their website. SWA is cooperating closely with other service providers (hotels, car rental agencies) so in their website, customer is able to purchase flight ticket, hotel room and car rental services at the same time. Besides that, this distribution strategy is to reduce cost to their end user so Southwest can ensure competitiveness and to ensure their product remain low cost.Pricing: Southwest Airlines is using 'price discrimination' to target their customer. This concept used to ensure customers have the power to choose the type of fares they preferred as to suit their income level and expectations in term of services. Besides this general strategy, the airline offers package deals with bundled pricing, and penetration pricing when entering a new area.Promotion: The promotion strategies use by Southwest Airlines is 'Below the Line' promotional activities which are using various types of promotions besides advertising itself to promote their promotion packages, air fares and their services; to ensure their promotion reach a broad target market. Since southwest is a low cost carrier which does not require having expensive advertising because it will incur additional cost where Southwest will unable to keep their cost lower.

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