Service Marketing Approaches by Etihad Airways
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Introduction
Service industry is one of the major world industries with billions of dollars in turnover
every year. A service is an act of doing something for someone or a client in return for monetary
gains and that is what many organizations around the world have been involved in. It is largely
intangible in nature unlike the sale of goods which are concrete in nature. The success of any
business whether in goods or service industry is dependent on the kind of marketing that is done.
Service marketing refers to the act of promoting certain economic activities that are undertaken
by a specific company with the aim of building a client base. This is done through certain steps
and procedures that have to be initiated by the management. Different approaches are used by
service companies when it comes to marketing of their services. The main purpose of this paper
is to critically evaluate how Etihad Airways utilizes three different approaches when it comes to
marketing their services to potential clients in the aviation industry.
Objectives
1. To critically evaluate how Etihad Airways utilizes process management, human
aspects and managing resource capacity when it comes to service marketing in the
aviation industry.
Background to Etihad Airways
Etihad Airways is the second largest flag carrier of the United Arab Emirates with its
headquarters in Khalifa City, Abu Dhabi. The airline commenced its operations in the year 2003
and has continued to grow over the years owing to better management and availability of
resources. Statistics indicate that the airline operates over 1000 flights per week to different
destinations around the world. In addition, the company has a fleet of 122 Boeing and Airbus and
reported to have carried 22.1 million passengers in the year 2016 alone. The management of the
company has been involved in processes that are aimed at expanding it and making sure that
every single activity that it indulges in has direct benefits to both passengers and those using
their services.
Services offered by Etihad Airways
Etihad Airways offers a wide range of services that are geared towards making sure that it meets
demands of the ever growing client base. Its services include:
a. Passenger transportation
Etihad Airways has a number of flights that are scheduled each week to different
destinations in Asia, USA, Africa and Europe. Data available also shows that the the
company has been in the process of increasing its passenger destinations around the
world to top up the current 122 on its schedule every week. The success of its passenger
services can be attributed to the kind of strategic management that its executive has
adopted over the years and at the same time the manner in which systems have been
designed to make sure that it serves its clients in the best way possible.
b. Cargo transport
Etihad Airways has a number of cargo planes that are designed to transport perishable
goods for its customers around the world and this is a business that has been booming for
years. The management of the company has also been in the process of acquiring new
cargo planes that are able to deliver perishable goods to different destinations and on
time. The success of the company in this area is also pegged on the idea that many
airlines operating in this region have little technology in cargo handling.
c. Etihad Holidays
Etihad Airways also comes with specific service packages that are meant for tourists
seeking to visit different tourist destinations around the world. The service comes with
hotel bookings through partnerships with different providers around the world. The
manner in which operations of the company are structured indicates that the company has
been effective in reaching out to potential customers through the kind of service
marketing approaches that it has adopted over the years.
Service Marketing & Competitive edge
Customer service marketing is an indication of the manner in which Etihad Airways has shifted
the approach when it comes to understanding and meeting customer needs while at the same time
attracting even more. The change in consumer behavior that has been noted over the years is a
clear indication of the need to shift how service marketing is done. Etihad Airways strategic plan
also includes the need to make sure that service marketing is done in the most appropriate
manner and at the same time there is a way through which this leads to a competitive advantage.
Over the years, the company has been utilizing different customer services approaches that are
aimed at helping it win new customers over time and at the same time retaining them through
application of different strategies. Services that the company offers are competitive in nature and
this is because of its positioning in the market as well as other providers within the same
industry. The kind of approach that is adopted by the company in the process of marketing its
products therefore determines the nature of competitive edge that the company gains. Over the
years, researchers have been involved in the process of making sure that they develop better
approaches to service marketing and the same has been utilized by Etihad Airways.
Approaches to Service Marketing
Service marketing is a specialized branch of marketing that has emerged over the years out of the
need to make sure that customer attraction, satisfaction and retention has been guaranteed
through the kind of strategies adopted. The unique characteristic of services requires that the
management of any given company adopts mechanisms through which more customers are
attracted and at the same time there is a way in which the level of consistency is maintained.
a. Process Management
Process management is defined as the activity of planning and monitoring all activities that a
business is involved in. It is termed as an activity of aligning all activities within the business to
make sure that everything is done in the right manner and there is no laxity within the system.
This is only done through strategic management that is aimed at achieving specific goals and at
the same time ensuring that the business is effective in the process of serving its customers.
Process management has been utilized by Etihad Airways in a number of ways as it seeks to
achieve its service marketing goals and at the same time gain an advantage in the industry.
In the Etihad business process, there are a number of activities that are involved from the
time a new client comes on board to the time they get served. There is a set of activities that are
performed by the company and its employees in order to ensure a smooth transition from one
step to the other in its service delivery model. This is a large scale business and therefore
concentrates on marketing itself in terms of efficiency of its process, how booking is easier and
the kind of services customers enjoy while on board its planes.
In many of its advertisement and information sharing to the public, the company has been
involved in a campaign that seeks to deliver a message to potential clients in terms of how its
business model is structured and the kind of benefits that come with its business process.
Processes by this company are ones that are valued by the business and at the same time ones
that generate a feeling of satisfaction according to the marketing strategy that is adopted by the
company from time to time. This is a service marketing approach that is solely based on the
process that the business and as well as the manner in which systems within the organization are
structured.
b. Human Aspects
c. Managing Resource Capacity
Conclusion