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MKTG 1021

American Airlines Current Marketing Strategy Business Objective: American Airlines, under parent companyAMR Corporation, currently defines its business entity and business mission as serving to provide every citizen of the world with high quality air travel to the widest variety of destinations possible. Some ofAmerican Airlines’sustainable competitive advantages include a vast network, a strong corporate clientele and focus on the business customer, and the creation of the first airline rewards program. However, analysis suggests that whileAmerican and other large airlines may have assumed that their size and dominance in the market provides them with sustainable competitive advantages, smaller, low-cost companies such as Southwest for example are disputing this idea. In terms of business related goals,AmericanAirlines is focused on maintaining its position as the largest airline in the world while also becoming the most profitable one.AMR Corporation filed for bankruptcy in 2011 as a means of restructuring itself so thatAmerican Airlines can remain competitive in the airline industry and continue to provide high quality air travel to its customers. Acqusition/Retention Focus: SinceAmerican Airlines is primarily concerned with earning the satisfaction and loyalty of their customers, it makes sense to say thatAmerican is primarily focused on retention of existing customers. They feel strongly that each of their customers should be made invaluable. Segmentation and Targeting: American Airlines currently targets several diverse customer segments which include “The Domestic Commuter”, “The Entrepreneur”, “The Global Professional”, 1 “The Climber”, and “The Up and Comer.” WhileAmericanAirlines’audience covers a large demographic and psychographic scale, basic customer demographics and psychographics include: 56% male, 44% female; median age is 49; purpose of travel: 39% business, 47% pleasure/personal, and 14% combination; and the median household income is $163,300. It is evident thatAmericanAirlines caters to both the frequent flyer and the occasional traveler, as well as serves passengers who are going on business trips and family vacations. Additionally,AmericanAirlines incorporates its diverse customer base by offering unique services to different groups. For example, the airline has specific pages set up on its website for their loyal gay, lesbian, bisexual and transgender customers who want to book vacations (, while is a page designated for the company’s female travelers that offers women customers travel and safety information as well as lifestyle and business articles that would be of interest to them.AmericanAirlines has modified its services to offer customers personalized travel experiences, as this is a primary benefit that customers seek.Additionally, American takes customer feedback very seriously by implementing online surveys, correspondence, focus groups, and most importantly social media as a means of connecting with customers on a personal level. Prototypical Target Customer Description: John is a 34 year-old single professional working for a consulting firm in Boston, MA. Since he is a frequent flyer who travels across the United States often for work, he is considered a “Domestic Commuter” toAmericanAirlines.Always on the go and social media savvy, John utilizesAmericanAirlines’online booking tool available on, 2 and he also finds it convenient that he can useAmerican’s easy to use phone reservation system. He enjoys the features of the airline’s flight entertainment, as well as the system American has in place to notify him in case of a last-minute delay. He chooses to fly with an airline likeAmerican that offers automation of services and improved bag handling so traveling is less stressful and more convenient for him.Additionally, John chooses to fly with an airline that offers him personalization options, whichAmerican provides through their Your Choice menu which has options such as preferred seats, inflight internet, and priority boarding as well as five star service. Positioning: American Airlines positions itself as one of the largest airlines in the marketplace. It serves approximately 250 cities in over 40 countries with an average of 3,400 daily flights. The benefits that the brand emphasizes in its positioning are its superior network and global reach, as its network covers locations throughout NorthAmerica, the Caribbean, LatinAmerica, Europe and the Pacific.Additionally, in the United States American Airlines serves five major markets, including New York, LosAngeles, Dallas/Forth Worth, Chicago, and Miami, which are all important cities for both business and leisure travelers. AmericanAirlines position as one of the largest airlines in the marketplace is enhanced by daily statistics, as on any given day the airline flies approxim
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