Marketing Modelling Issues - Essay Example

Thus, the current business environment necessitates the development of new products that meet the changing requirements of the customers. The market strategy of the business must respond to the system as a whole rather than to one single variable, the product. The emerging new definition of market promotes relationship building with customers and other business partners. British Airways is a prime example of relationship marketing. To maintain a competitive advantage, BA has consistently been coming up with different packages for its different customers and has forged alliances with various other business units to improve and improvise its services. It has been evolving new customized services for its different segments and attracting new customers with varying packages that may suit their status, needs and pricing. Thus, while it has special super-class cabins for its rich clients, the common man can also avail of the services in economy class.

The publics are major constituents that significantly impact BA’s business strategies. The six market models become important consisting of customers, suppliers, business partners, intermediaries and media. They can be broadly classified under six major publics with which BA closely interacts which are as follows:

Commercial. Customers, suppliers and competitors are its commercial publics whose interests need to be considered within the wider goals of its market strategy.

General. Community, people at large and pressure groups come under general publics that are important because while they are part of their customers, at the same time they constantly ensure that BA follows sustainable business practices, especially regarding the environment, human rights, affirmative actions etc.

Financial. The various investors, shareholders and banks are major financial publics which influence its financial decisions.

Authority. The government, trade associations and various associated regulatory bodies of Aviation are important publics that ensure that BA conforms to the constitutional guidelines and good CSR practices.

Internal. Employees and trade unions are major internal publics that are important parts of its smooth operation and human resource practices.

Media. BA uses various media like TV, radio, internet etc to enhance its public image and create awareness about its various activities and services that cater to the welfare of people.

Customer lifetime value is extremely important to its future because the contemporary business environment is highly competitive. Maintaining good customer relationships has become an intrinsic part of good market strategy. A satisfied customer is not only retained but their word-to-mouth publicity also brings in new customers. A loyal customer is neither influenced by competitors’ brands nor bothered by price fluctuation. These are highly important issues within the current environment of recessive trends and economic downturns.