RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

Embed Size (px)

Citation preview

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    1/22

    MARKET PLANNING 1

    Marketing Planning

    Author

    Institution

    Instructor

    Date

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    2/22

    MARKET PLANNING 2

    Introduction

    The Virgin group is London based and chaired by Richard Branson (Aviation Week

    2005). Under the Virgin banner; various businesses have been ventured into. They include;

    wedding gowns, condoms, financial services and airlines.

    Virgin started as a mail order record business in 1970, in London. In 1983, Virgin vision

    was created followed by Virgin cargo and Virgin Atlantic airways in 1984; and in 1985 Virgin

    holidays was created. Virgin group got floated in 1986, on the London stock exchange.

    Nevertheless, Virgin Atlantic airways remained as a privately owned company by the Voyager

    Group. Richard Branson bought back all the outstanding shares in 1988. (Rifkin 1998)

    Virgin Atlantic had their first inaugural flight launched on 22nd June 1984. A major

    kickback was that the airline was denied permission to fly out of Britains largest airport,

    Heathrow. However, in 1991 the airline had a breakthrough, and it was granted the permission.

    There are three core products offered by Virgin Atlantic Airline namely; upper class, premium

    economy and economy. The benefit associated by the products is what differentiates the classes.

    The airlines mission statement is; To grow a profitable airline that people love to fly and where

    people love to work(Rifkin 1998).

    Task 1-Marketing Audits

    a) Changing Perspectives in Market Planning of Virgin Atlantic.

    Marketing tactics

    This involves differentiation, market mix and selling. The art of realizing market strategy in

    regard to all interrelated factors that differentiate a company from others is called differentiation

    (Keegan & Green 2000). This could be in terms of customer satisfaction, product differences or

    customization of services or products to go well with market segments. Virgin Atlantic practices

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    3/22

    MARKET PLANNING 3

    differentiation by taking their customers expectations to a notch higher through communication

    with their customers. Provision of in-flight ice cream is a good example of differentiation since

    other airlines do not offer this.

    Market mix, incorporates a combination of product, price, place and promotion that goes in-

    line with market strategies (Keegan & Green 2000). Virgin Atlantic offers innovative and fun

    products with quality services. These products are flights offered worldwide in upper class,

    premium economy class and economy class with prices:$9,000.00, $3,000.00 and $500.00

    dollars respectively to London. In relation to place, Virgin Atlantic does not engage in a lot of

    routes as their competitors. Non-stop services are offered to selected routes in the united State

    and international flights.

    Transfer options like limo services from the airport are offered to upper class passengers

    who, in addition enjoy exclusive clubhouses. Barber services, facials, salon massages, full-

    service bar, restaurant style dinning, and business facilities are offered to passengers.

    Virgin Atlantic continuously promotes itself through different media. We shall look at the

    different media in the Integrated Market Communication part.

    Under selling, Virgin Atlantic aims at particular customers by communicating the quality and

    comfort provided by the company. The company sells tickets via the internet, direct

    communication with customers and travel agents.

    Marketing value

    We shall look at brand values, service (The Branson Factor) and process. The Virgin brand

    has the ability to exploit its competitors weaknesses on customer service skills and the ability to

    self-promote the company. Virgin Atlantic has a brand recognized by Interbrand being among

    fifty global brands. Across the world, people increasingly prefer the Virgin brand name. Quality

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    4/22

    MARKET PLANNING 4

    and experience have been introduced into the airline because of the award winning reputation

    that Virgin brand has.

    Virgin Atlantic has a principle for increasing quality of their services to customers. Mr.,

    Branson shows fearless reputation for antics through his entrepreneurial attitude. Management at

    Virgin Atlantic has played an important role in global success of the Virgin brand.

    Process at Virgin Atlantic relates to external communication through strategic alliances and

    internal communication through employees. Management structure at virgin Atlantic enables all

    head officers to report to Mr. Branson directly (Rifkin 1998). The chairman himself actively

    communicates with his employees. External communication at the company is shown by

    engaging in strategic alliances and code sharing with various airlines.

    Integrated marketing communication

    This is defined as a concept in market communication planning that evaluates a variety of

    communication disciplines. This involves general advertising, sales promotion, public relation

    and direct response. Virgin Atlantic advertising activities include; TV, magazines, direct mail,

    press, taxi sides and outdoor posters. All these feature their distinctive logo; the flying lady. The

    company also operates the Flying Club, which is a flyer program that encourages customer

    loyalty. Flying club members are offered support services like clubhouse access and rewards like

    exchange. They have a website that allows full electronic booking of tickets plus information on

    various destinations. There is a design team for Virgin Atlantic that develops Virgins identity

    through newsletters, posters, literature and other creative media. Communications with the press,

    radio and television, are handled directly by the Virgin Atlantic Press Office. Lastly, Virgin

    Atlantic involves itself in sponsorship programs, and it has an events team that organizes various

    activities aimed at promoting the company (Rifkin 1998).

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    5/22

    MARKET PLANNING 5

    Competitive strategy

    It includes market segmentation, targeting and positioning (McDonald & Wilson 2011).

    Market segmentation is whereby a market is divided into groups, whereby, the most appropriate

    group or groups are selected for the organization to serve. Males between the age of 35-45

    dominate the upper class passengers and the earn $50k and above annually. In the Premium

    Economy, passengers are evenly split either traveling for leisure or business. In the Economy

    pack, passengers travel mostly for leisure. They are of a much broader group and their age

    ranges.

    Targeting is a process where an organization chooses one or more market segment as a

    specific target market. Customers are considered to be important by the Virgin Atlantic and thus

    individualized services are offered to them. Virgin Atlantic targets on upper class customers who

    travel on transatlantic route on business purposes.

    Virgin Atlantic positions itself in all British airways routes as a direct competitor. This can be

    shown by its aggressiveness in getting slots at Heathrow International Airport: attacking

    American Airways and British Airways proposed partnership. Lastly, the company has

    endeavored to compete on all routes in and out of London, with British Airways. Spacious

    setting arrangements are experienced by passengers on the aircraft. In addition to this, passengers

    enjoy an in-flight entertaining system and quality customer services. Furthermore, at business

    class prices Virgin Atlantic Company offers a unique upper class services; the company is also

    installing internet capabilities and implementation of a high technology inventory management

    system, Galileos Inside Availability(R) (Rifkin 1998).

    b) Virgin Atlantics Capability for Planning its Future Marketing Activities

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    6/22

    MARKET PLANNING 6

    First and foremost its management team has an understanding of institutionalized markets.

    The team ascertains complacency in the market. The company ploughs through due to this

    expertise and experience. Secondly the strong Virgin brand name overcomes barriers to new

    entrance in the Airline business and this minimizes competition as well as their profits are

    increasing. In addition, the company limits its risks in joint ventures with other companies.

    Lastly, management structure allows a sense of ownership in the company since they are not

    restricted; this in return promotes responsibility and innovation. Innovation keeps the company at

    per with advancement in technology and provision of quality services.

    c) Techniques for Organizational Auditing and for Analyzing External Factors Affecting

    Market Planning and Analysis of Virgin Atlantic.

    We shall look at PEST and SWOT techniques; PEST analyzes external factors and

    SWOT analyzes internal factors that affect an organization. PEST analysis is based on political,

    economic, social, and technological factors affecting an organization. A SWOT analysis is an

    assessment of strengths, weaknesses, opportunities, and threats of an organization. This involves

    the firms internal strengths and weaknesses and the firms external opportunities and threats. It

    offers information needed to formulate corporate, financial and business strategies of a firm. The

    analysis helps in utilizing the organizations strength, get the most out of opportunities,

    counteract threats and ease internal weaknesses.

    PEST analysis for Virgin Atlantic

    Political issues

    Effects of deregulation are an example of how politics affects the airline industry. The

    government tries to control or regulate prices offered to consumers, and this has shifted

    competition to prices from services (Rhoades et all, 1998). The department of Transport is also

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    7/22

    MARKET PLANNING 7

    watching and following keenly airline activities. The department checks on environmental

    issues, creates and amends several laws governing airline industries. Key International bodies

    such as, the European Union, European Civil Aviation Conference and International Civil

    Aviation Organization affect the Airline industry by setting standards to be adhered to by the

    industry within Europe( DfT, 2003). Lastly, a political issue affecting airline companies is the

    emergence on alliances between or among airlines.

    Economic issues

    Deregulation has a major effect economically on airline industry; this is due to the

    regulated prices. This keeps airline fares low in comparison to other countries. Another

    economic issue is the contribution to the worlds economy by the airline through employment

    and GDP.

    Social issues

    Attention must be given to consumer expectation issues. This includes the reason for

    traveling and the class the consumer prefers to travel on. Service quality demanded by

    consumers is another social issue that affects the airline Industry. Lastly, attacks by terrorist are a

    bugging issue concern to the airline industry.

    Technological issues

    Technological concerns include competition in technological innovation, faults and

    services assurance solutions, electronic flight bag solutions and online solutions which are

    alternatives to dial-up. All these are affecting the airline industries as they try to provide efficient

    and quality services to their customers.

    SWOT analysis for Virgin Atlantic

    Strengths

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    8/22

    MARKET PLANNING 8

    The companys brand name is recognized by 98% of British public. Introduction of innovative technology; Galileos Inside Availability(R) Quality trained workers recruited from other airlines. Quality services offered to customers travelling in any class. Innovative entrepreneurial management offered by the chairman Richard Branson. Being a private company, other virgin brands can easily be formed and more control. High returns and greater value due to a better load factor than competition. By winning every quality awards, Virgin Atlantic has a positive publicity.Weaknesses

    The company has limited flight route. Flight delays experienced once in a while. Due to September 11 tragedy, routes to Toronto, Chicago, and cape were cut. A one man managed company by Richard Branson, who is the director and owner of the

    multiple companies.

    Getting late on the internet for web page, web site, and e-commerce.Opportunities

    Strategic marketing above others by being more innovative, caring, maintaining value,fun, and producing quality.

    A need to improve on the websites. Investing on recession as an unexpected opportunity. Generation of additional routes. A warehouse facilityHeathrow London.

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    9/22

    MARKET PLANNING 9

    Flying into outer space-Virgin Galactic. Technological adds improvement.

    Threats

    Recession, airline industry has and will be affected by September 11th resulting into riskaversion for flying customers and order cancellations.

    Competition from other routes. Fluctuation of fuel prices, where fuel expenses accounts for 15% of all the airline

    expenses.

    The expanding brand image may result to a brand dilution; which may be too global.

    Task 2-Barriers to Market Planning

    a) Virgin Atlantics main Barriers to Market Planning

    Deregulation is a barrier that has increased competition in the airline industries and in a way

    lowers profits made by the company.

    Another barrier is the many businesses under the Virgin Group; where Virgin Atlantic airline

    has suffered a case of bad publicity once in a while. An example is the Virgin Rail that was

    ranked being the most unpopular rail operator by the Strategic Rail authority Review in 2000;

    this affected other Virgin Groups such as Virgin Atlantic.

    Environmental barriers are experienced by the Virgin Group. The prevailing political,

    economic, social and technological regulations are a great hindrance to effective market

    planning. These factors bring forth, limitations or restrictions that Virgin Atlantic should work or

    regulate its businesses.

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    10/22

    MARKET PLANNING 10

    Cultural barrier is faced by the company. Organizational culture has a major influence in any

    organization performance. Cultural barriers in Virgin Atlantic include; sexual explicitness,

    stereotyping, emotional appeals and gender roles. Management also has issues with an increase

    of intercultural employees. The problem is managing different cultures and knowing various

    laws that different countries implement.

    Cognitive barriers pose a threat to effective market planning. Lack of skills and

    knowledge, results to incompetence; which eventually affecting proper implementation of a

    market plan. Marketers who lack proper understanding of the market, customers and products

    make distorted market plans.

    b) How to Overcome the Barriers

    It is important for an organization to identify barriers that affect its effective market planning

    process. In order to succeed in any business, organizations need to take necessary measures to

    overcome the barriers. Virgin Atlantic can overcome these barriers by the Virgin group having a

    change in strategy, becoming less diverse and accounting year end (Micromuse 2002). The

    groups policies need to be changed in order to accommodate both joint and independent

    ventures. This should help the group to rely on short term profits from its few businesses so as to

    raise capital and to release the ring-fenced policy. Virgin Atlantic can benefit from this

    financially during its low moments. Policies and philosophies should be adjustable with time but

    not restrictive.

    The group should become less diverse as its brand name is becoming diluted. Workable

    value can be done developing and investing in real expertise rather than sharpening a knife that is

    already sharp on both sides. Accounting year end for all Virgin Businesses should be brought in

    line at the same date. This will help in giving a good picture of the wealth and health of the

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    11/22

    MARKET PLANNING 11

    Virgin Group. Finally, cultural issues can be overcome by support and participation offered by

    the management team.

    To overcome cognitive barriers, Virgin Atlantic should ensure that they employee people

    with experience and the right requirements for the given positions. In addition, the company

    should also offer training to its employees in order to equip them with the right knowledge and

    skills for their work.

    The company should also try to understand more on matters relating to cultural sensitiveness

    of its customers and employees. Environmental barriers can be overcome by an affective external

    analysis done on the company, to identify the issues and knowing the correct measures to take

    from the analysis.

    Task 3-Marketing Plan

    a) Market Plan for a New Product

    The new product: Energy drink

    Market analysis

    Energy drinks are a small player in the drinks market, but they are acquiring ground

    alongside other non-alcoholic drinks. Currently in US, energy drinks account for less than 2% of

    all carbonated soft drinks valued at $60 billion dollars (Roberts 2004). Energy drinks trend in the

    market are; market is usually males between ages of 18 and 25 years, containers revolve around

    size and imagery, marketing of energy drinks is usually through ports, video games, music and

    drugs. In the beverage industry, energy drinks are the fastest growing sector (Day 2004).

    Customer Analysis

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    12/22

    MARKET PLANNING 12

    Generally energy drinks are made foe males between ages of 18 and 25 but this trend is

    changing. Hip hop audience are targeted by brands such as Russell Simmons among others,

    video gamers are targeted by Bawls Guarana, and sugar free brands for athletes and adults such

    as Pit Bull are changing the trend too.

    Target markets for consumers in geographical terms would be Asia and North America

    they are the biggest consumers of energy drinks. In terms of psychographics, the energy drink

    should be one that increases energy for studying, partying and working (Balfour 2005).

    Secondary target market should be considered so as to expand into new market, for example,

    women and health conscious consumers.

    Competitor Analysis

    Industries like Red Bull offer strong competition being the market share leader in energy

    drinks which controls almost 70% of the global sales in energy drinks. Other competitors are

    Coca-Cola, Anheuser-Busch and Pepsi Co (Day 2004).

    SWOT analysis

    Strengths include; quality services to customers, a globally recognized brand, innovative

    technology, and quality trained employees. Weaknesses include; flight delays, limited travel

    routes, and high costs of overheads. Opportunities include; inflight technology, strategic

    marketing above other airlines, and adding more routes. Threats include; brand dilution, and

    competition from other airlines especially British Airways.

    Selected marketing strategy

    Marketing less expensive products will help in compete with the products already in the

    market. Another marketing strategy would be to increase the number of ounces in each can.

    Monitoring and Reviewing

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    13/22

    MARKET PLANNING 13

    Virgins consultants propose that the target market be women who have an active life

    style, and want an energy drink that is healthy and one that provides extra energy with a pleasing

    taste. Virgin should practice segment marketing to create a unique product, hence efficient

    distribution channels and communication. Women are currently generating more income and,

    therefore, this means a great purchasing power, in addition to maintaining a healthy lifestyle. On

    basis of product concept, Virgin Vibe, the energy drink to be developed can be patented since no

    other product goes by that name in the US. On price matters, Virgin Vibe can be sold at a much

    lower price and still make profits because, according to our research, energy drinks are

    overpriced.

    Distribution is to be done using already existing channels because costs will be

    minimized. Promotion willbe done using a model of do-feel-learn because our target audience

    perceives minimal differentiation within this category of beverages. On matters relating to

    budget, for the first couple of years the promotional budget will be higher.

    Conclusion

    The product is very much sustainable, and its introduction would realize great profits

    according to the analysis made.

    b) Why Market Planning is Essential in Strategic Planning Process

    Market planning helps in identifying what the consumer wants and needs are and determines

    the demand of their product (Chan, 2000). Design of products fulfilling consumer needs is aided

    by a market planning. Identification of competitors and evaluating of Virgin Atlantics

    competitive advantage over its competitors is aided by a market plan. New product areas or

    potential and new customers are realized through a market plan.in addition measure for cash

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    14/22

    MARKET PLANNING 14

    generation to make profits and debt repayment are identified by a market plan. Lastly, Virgin

    Atlantic can identify its weaknesses and work on them by the help of a market plan.

    c) Techniques for New Product Development

    For a new product development, there are several techniques done in seven steps (RDI 2011).

    The steps are;

    Step 1

    Idea generation

    Step2

    Screening

    Step 3

    Concept testing

    Step 4

    Business analysis

    Step 5

    Product development

    Stet 6

    Market testing

    Step 7

    Commercialization

    Idea generation is whereby a company comes up with a product idea that enables it to realize

    the targeted objectives. Various sources like researchers, marketing team and sales staff, bring

    about these ideas. The next step is screening of the ideas since not all of them will meet the

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    15/22

    MARKET PLANNING 15

    companys objectives and capabilities. Those that do not are rejected. Concept testing involves

    testing the product concept with potential consumers and customers. By doing this, the company

    tests the reaction of the customers towards the new product.

    Business analysis is the next step which entails assessing the product to determine whether it

    will add to the companys sales, profits and costs. At the fifth step, the company checks the

    feasibility of the product on technically basis. Benefits in consumers minds, tangible and

    intangible attributes are revealed at this step. Market testing is a step where introduction of the

    proposed product is introduced to a given area representing a potential market. Finally,

    commercialization is put in place which is manufacturing of the new product and plans for a full-

    scale marketing are refined.

    d) Recommendations for Pricing Policy, Distribution and Communication Mix

    I would recommend that Virgin Atlantic implement a market- oriented pricing policy in the

    company. This is because, unlike other pricing, techniques, marketoriented pricing takes into

    account particular market conditions (Parker & Donnelly 2001). Political factors, competition,

    costs, and explicability are some of these market conditions. Virgin Atlantic will actually judge

    what is paid for by their customers rather than just looking at the costs incurred in producing the

    products.

    Another suggestion based on distribution to the company would be to concentrate more on

    selling directly to consumers as opposed to selling through agents or third parties. This is

    because the company can contain costs that are attached to their products distribution.

    More should be done on internet communication since technology is advancing and most of

    information or communication is done through the internet.

    e) Factors affecting Effective Implementation of the Marketing Plan

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    16/22

    MARKET PLANNING 16

    These include barriers, timing, performance measures and marketing budgets. In terms of

    barriers, people in a company tend to feel threatened or aggrieved if a company tries to

    implement new strategies. People need to change for a new strategy to be implemented. Virgin

    Atlantic ensures that it cultivates change to its employees for effective implementation. Some of

    the employees may not support the change no matter the level of persuasion. However, a support

    ladder (Parker & Donnelly 2001) shown below may help in creating the change.

    Virgin Atlantic ensures that performance measures are taken into account by ensuring that a

    good work framework is in place. The frame work involves setting of clear objectives, then

    having a strategy in internal marketing; proper execution on everything in the company follows,

    and lastly evaluation is done. A clear time schedule is put in place, and market budget is taken

    into consideration by analysis on sales and profits made by Virgin Atlantic. This ensures a proper

    implementation of a market plan.

    Commitment

    Acceptance

    Compliance

    Resistance

    Opposition

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    17/22

    MARKET PLANNING 17

    Task 4-Ethical Issues

    a) How Ethical Issues Influence Marketing Planning in Virgin Atlantic

    Ethics such as marketing ethics (product, price, promotion, and distribution),

    environmental ethics, ethical behavior, and consumer ethics influence market planning in Virgin

    Atlantic. Product ethics arises when a company gives misleading information concerning the

    value, function or use of a product. Virgin Atlantic provides correct information about its

    products and services.

    Pricing ethics comes handy when a company offers unfair, unstable and discriminating

    prices. Virgin Atlantics prices are very fair and stable according to the different classes of flight

    products. Promotion ethics is concerned with misleading and manipulative advertisement or sales

    promotions. The company does not give manipulative promotions. Their advertisements reflect

    the value and standards of products and services that they offer.

    Distribution ethics entails limited provision of a companys products or services.

    Consumer ethics comes into consideration in situations where customers dupe or mislead

    companies, and environmental ethics deals with issues relating to pollution and waste problems.

    There are policies that certain regulatory bodies, for example, the Federal Aviation

    Administration (FAA), put forward to be implemented by airline industries (Feldman 2002).

    Environmental ethics are closely monitored by FAA and therefore Virgin Atlantic ensures that it

    has the required standards. Lastly, ethical behavior involves responding to situations by behaving

    in appropriate ways in different situations. All these ethics must be considered since they

    influence market planning I one way or another.

    b) How Virgin Atlantic Responds to these Ethical Issues

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    18/22

    MARKET PLANNING 18

    Virgin Atlantics products, which are flights, in upper class, premium economy class, and

    economy class are provided for with all true and necessary information involving the products.

    Any changes are communicated to the customers about these products. Their prices are fair,

    stable and not discriminating, according to the services that the company offers, in its different

    flight classes. Virgin Atlantic does not offer misleading and manipulative advertisements,

    manipulative or deceptive sales promotion; it does not use deceitful information to attract

    customers nor publicize confidential information about their competitors. The company provides

    quality services through their flight worldwide. They do not restrict their supply of their

    products.

    The wellbeing of employees and passengers safety is highly reflected by the Virgin

    Atlantic company since safety is the uppermost priority. The management has a procedure that

    checks on shifts, schedules and rests for pilots (Oyama 2001). This procedure ensures that the

    pilots are not overworked, or fatigues, at any time, to avoid plane crashes.

    The airline has a code of conduct that creates ethics. Employees are aware of what is

    wrong and what is right. This ensures that whatever they do adheres to the companys rules and

    regulations thus eliminating ethical dilemmas to employees. Customers are treated fairly and

    equally regardless of whatever class they are taking their flight on. Employees are engaged in

    decision making process on the company, and they are promoted on merit basis rather than gifts

    or bribes. Lastly, the company ensures that environmental issues are taken seriously. For

    example,planes engines kept off, therefore, preventing air pollution where a total of two tons of

    carbon pollution per every flight is cut. Recycling of their waste products such as papers vending

    cups aluminum cans etc. is highly practiced

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    19/22

    MARKET PLANNING 19

    c)Examples of Consumer Ethics and the Effect it has on Market Planning in Virgin

    Atlantic

    Consumer ethics arise when consumers act in a way to dupe or mislead a company (RDI

    2011). There are five instances of such cases. Return of merchandise is where customers change

    their minds about goods they have already bought, and they go ahead seeking for a refund.

    Warranty deception, is whereby customers have damaged goods they have already bought, but

    they make claims against the company based on the manufacturers warranty.

    Another example of consumer ethics is false insurance claim (RDI 2011). Customers in

    such scenarios exaggerate the size of the loss. In other instances customers lose or damage the

    goods themselves deliberately, in order to make a claim. The fourth type of consumer ethics is

    recoding of videos and music. Many consumers are downloading and recording music and

    videos from the internet illegally. When such copies are sold this becomes a legal matter. Lastly,

    we have software copying (RDI 2011). Again, customers are copying software from the internet

    which is illegal especially if it is for financial gain.

    Returns of merchandise and warranty deception are two examples of consumer ethics that

    affect Virgin Atlantic. An example is, returned flight tickets already bought. This has affected

    Virgin Atlantic as it brings losses to the company; it has forced the company to come up with

    strict policies to overcome and to discourage such practices (Skytrax 2005).

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    20/22

    MARKET PLANNING 20

    References:

    Aviation Week 2005,Richard Branson: Winner of the 2005 Wings Club Awards

    Among,

    Above and Beyond, Aviation Weeks Spotlight, Washington, DC.

    Balfour, B 2005, February 24, Buzz words: Sobe it...Its no Bull that marketers

    have gone Full Throttle into energy drinks. CanWest News Service. Retrieved March

    2, 2005, from LexisNexis Database.

    Chan, D 2000, The Development of the Airline Industry from 1978 to 1998: A Strategic Global

    Overview. Journal of Management Development, Vol. 19 No. 6: pp. 489-514.

    Day, S 2004,Energy drinks charm the young and caffeinated. The New

    York Times. Retireved March 2, 2005, from Factiva Database.

    Department for Transport (DfT) 2003, The Future of Air Transport. Presented to Parliament by

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    21/22

    MARKET PLANNING 21

    the Secretary of State for Transport by command of Her Majesty.

    Feldman, J.M 2002, CRM is back,Air Transport World, Vol. 39 Issue 6: p. 52.

    Keegan, W & Green, M 2000, Global Marketing, 2nd Edition, New Jersey:

    Prentice Hall.

    McDonald, M & Wilson, H 2011,Marketing Plans: How to Prepare Them, How to Use Them,

    Oxford: Butterworth Heinemann.

    Micromuse 2002, Virgin Atlantic Case Study, Micromuse Inc., San Francisco, CA.

    Oyama, D 2001, Virgin Atlantic Plans to Reduce Capacity, Cut 1,200 Positions. The

    Wall Street Journal, 18 September 2001, natl. ed.:A14.

    Parker, J & Donnelly, J 2001,Marketing Management: Knowledge and Skills

    6th Edition, New York: Irwin/McGraw-Hill.

    Rhoades, D, Treudt, E & Waguespack, B 1998, Service Quality in the US Airlines Industry:

    Progress and Problems. Vol.8, No.5; pp. 306-311.

    RDI Learning Materials 2011. Marketing Planning. [Online] Available at http://www.rdi.co.uk/

    Accessed July 23, 2012.

    Rifkin, G 1998,How Richard Branson Works Magic, Strategy and Business, Booz, Allen,

    & Hamilton, 1998, http://www.strategy-business

    Roberts, Jr & William, A 2004, June,Beverages with a boost. Retrieved March 1, 2005,

    from http://www.findarticles.com/p/articles.

    Skytrax 2005, Virgin Atlantic (online). Available at:

    http://www.airlinequality.com/Forum/vir_atl.htm

  • 7/30/2019 RDI/EDEXCEL--Programme: Business Marketing Module: Marketing Planning

    22/22

    MARKET PLANNING 22