Ch.7- Business Marketing

   As we know business marketing is the marketing of goods and services to individual and organization for purposes other than personal consumption. American Airlines, which is known as one of the best airlines in the world has a good business marketing, however they are most likely focused on strategic alliances.

   American Airlines has strategic alliances with leading carriers around the world that makes global travel smoother, easier, more rewarding and a much better value. they form part of the oneworld alliance, which is created of 12 of the world's leading airlines that have been successful in the market.

                                                                          

  oneworld is an extraordinary alliance that helps American airlines not only to build business, but to become profitable.

   

Ch.-8 Segmenting and Targeting Markets

   One of the common base of demographic segmentation is called Ethnic segmentation, which is defined as the differential economic and social resource accumulation of social groups. Now by using ethnic segmentation American Airlines has been focused on the Asian communities. This is an ethnic group that represent a small part of the ethnic makeup of the united state, which is relatively affluent and highly educated, making them a desirable segment.

  American Airlines understand that making the Asian customers feel welcome goes beyond speaking their language to embracing their culture and communities in addition to providing them the best travel experience possible.

Ch. 11- Developing and Managing Products

 As we know "New Products" are important to sustain growth, increase revenue and profits, and replace obsolete items. American Airlines is a very creative company and can be classified or known as an innovative customer experience, because the airlines always try to make customers travel experience more interesting.

   But now, American Airlines doesn't want customer's travel experience to be complicated, by getting into hard or difficult situation. In the last few decades the airlines has made a significant investment and commitment to technology and innovation with the goal of enhancing the customer experience. In fact, AA came out with a new product called "Dealfinder"; a downloadable desktop tool offered by American airlines, which allows customers to receive automatic, personalized fare alerts and others information via their computers. This is basically a type of program that customers would have in their computers,  keeping them alerts with the currents lowest fare, news and promotions from American airlines.

     I think that this is a great new product strategy that America airlines has launched, because now customers would have the opportunity to find easier new offers and that also they'd be in touch with these offers and promotions all the time.

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Ch. 16- Integrated Marketing Communications

  When we talk about promotional strategy in terms to convince target customers that the goods and services offered provide a comparative advantage, then we can talk about "American Airlines". They have a great competitive advantage, which is based on the AAdvantage program. This feature has been perceived by the target market as significant and superior to the competition. In fact, as I posted in chapter 18, AAdvantage program is one of the largest and most popular loyalty program in the world, which makes American Airlines to become not only a competitive advantage , but an absolute advantage. 

    American Airlines has a great promotion on their website, now by applying for a new citi platinum select and citi business/AAdvantage visa card, customers would have the flexibility and convenience by earning AAdvantage miles not only by just flying, but also by purchasing with these cards. This is a great and excellent offer that would make customers and the target market to choose American Airlines for the rest of their life.

  

                  

Ch. 10- Product Concepts

    When we talk about American Airlines Product Concept, we can say that their product are more related and focus on flight ticket. Early this year, America Airlines came out with a great strategy about returning with two of the world's leading online travel companies "Expedia and Hotwire". Access to fares and schedule information of American airlines and its subsidiary american eagle has been restored for search and ticketing on Expedia and Hotwire sites worldwide initially via distribution system (GDS) technology.

    This strategy may look as a product line extension, in where American Airlines is trying to compete more broadly in the industry. Also this presents an opportunity for the airline to sell more of what customer demand.

   Now by having these two companies, American Airlines would make good business allowing customers to have greater visibility, choice and control of their travel experience. 

Ch. 18- Sales Promotion and Personal Selling

 American Airlines sales promotion is very intensive when they refer to their customers. They have a loyalty marketing program, which is basically based on their AAdvantge program one of the largest and most popular loyalty program in the world. This frequent flyer program offer customers exceptional convenience, value and flexibility allowing them to earn miles.

      In addition, sale promotion is continuously increasing in American Airlines. Early this year American Airlines started a new contests and sweepstakes promotion which gives customers exciting opportunities to win trips AAdvantage miles and experience of a lifetime. American Airlines had a successful year obtaining thousand of winners through this promotion.

             The table below shows the list of winners from this year and rewards won through this promotion.

              2011 Winners

American Airlines Flights. Camera. Action. Video Contest and Sweepstakes

Video Contest End Date:: July 15, 2011 Prize Package Included: Each of the following Grand Prize finalists received: - Business ExtrAA® points equivalent to 10 roundtrip flights - An annual Admirals Club® membership - An all-expense paid trip to the SCORE Awards Gala on September 15, 2011 Five (5) Grand Prize Finalists: - Gondola Adventures, Newport Beach, CA - Hope Force International, Brentwood, TN - Light of the World Charities, Palm City, FL - Project Harambee, Berwyn, IL - YAK Films, New York, NY Grand Prize Package Included: - One hundred three thousand (103,000) Business ExtrAA points redeemable for fifty(50) round-trip tickets on American Airlines - One (1) annual Admirals Club® membership - Exposure on AA media channels, including inflight programming, American Way Magazine, Admirals Club, and AA.com One (1) Grand Prize Winner: - Hope Force International, Brentwood, TN Sweepstakes End Date: August 26, 2011 Sweepstakes Package Included: 25,000 American Airlines AAdvantage® Miles One (1) Sweepstakes Winner: R. Stallman - Palm Harbor, FL

American Airlines AAdvantage 30th Anniversary Promotion

Grand Prize Included: -Thirty thousand (30,000) American Airlines AAdvantage® Miles Week 1 Winners 4/18 - R. Mitchell 4/19 - G. Denny 4/20 - A. Snow 4/21 - E. Chidester 4/22 - L. Bland Week 2 Winners 4/25 - S. Bugala 4/26 - R. Hood 4/27 - H. Bader 4/28 - G. Draves 4/29 - J. Spruiell Week 3 Winners 5/02 - S. Benegas 5/03 - R. Schaps 5/04 - A. Perille 5/05 - R. Hannan 5/06 - D. Collins Week 4 Winners 5/09 - R. Poehlmann 5/10 - R. Yan 5/11 - M. Cirlos 5/12 - B. McKie 5/13 - C. Anderson Week 5 Winners 5/16 - K. Johanson 5/17 - K. Reager 5/18 - S. Young 5/19 - M. Gao 5/20 - A. Campbell Week 6 Winners 5/23 - W. Butler 5/24 - A. Patel 5/25 - J. Doolittle 5/26 - R. Bertolasi 5/27 - K. Smith American Airlines Admirals Club® Transform Your Travel Life for Life Sweepstakes Sweepstakes End Date: September 27, 2010 Grand Prize Package Included: - One (1) Admirals Club® lifetime membership One (1) Grand Prize Winner: L. Degand, Fowler, IL Picture The Stories Sweepstakes Sweepstakes End Date: June 1, 2010 Grand Prize Package Included: - Five-hundred thousand (500,000) AAdvantage® miles - Five-hundred (500) dollars to use toward the purchase of a camera - One thousand (1,000) photo prints One (1) Grand Prize Winner: Please stay tuned. Once a winner has been identified they will be contacted by Sweepstakesadministrator@aa.com for further instructions and prize verification.

Ch. 17- Advertising and Public Relation

    When we talk about advertising, by giving a high prestige of quality and building up the images of a company , then we can talk about American Airlines. they have a good influence in customer's attitudes and beliefs when they talk about their service. American Airlines was selected as the official sponsor of "Meet in Beijing" arts festival, an event that attracts world- class international performers and artists to Beijing.

   In addition, I personally like the way in how American Airlines try to convince consumers, with emotional and humorous ads, such as, the army commercial " putting them first " which shows that american airlines really cares about those who serve for our country.

     Now they've place an order for 460 narrowbody planes from Boeing and Airbus. This mark the largest aircraft purchase in history.  Moreover, using product advertising by promoting this new product American Airlines would beat the competition.

                                  Check out this preview video of their new fleet.

                                                   

                                                                   

Chapter. 15- Retailing

  American Airlines is not only specialized on flight tickets or taking customers to their destinations, but in retailing. Through AAvantage program, American Airlines create “AAdvantage eShopping mall" which is an exciting way for customer earn AAdvantage miles with over 300 brand new retailers. This is a great strategy plan for American Airlines of being a partner of other types of business, by promoting and offering them through their website in a way that customers can earn AAdvantage miles.

        These are some of the retailer’s stores that they are promoting in their website:

Shopping and Dining

AAdvantage eShoppingSM Mall

Earn miles for shopping online or in store with more than 500 brand name retailers.

SkyMall

Earn 5 miles per $1 spent at SkyMall.

The AAdvantage DiningSM Program by Rewards Network

Earn miles when you dine.

Flowers and Gifts

 

FTD

Earn 10 miles per $1 spent on flowers and gifts.

Teleflora

Earn 10 miles per $1 spent on flowers and gif

1-800-FLOWERS.COM®

Earn 10 miles per $1 spent on flowers and gifts.

Florist.com

Earn 10 miles per $1 spent at Florist.com.

Computers and Electronics

Bose

Earn 2 miles per $1 spent at Bose.

Dell

Earn up to 6,000 miles with the purchase of a new Dell computer.

Other Retail Partners

Office Depot

Earn 3 miles per $1 spent on office products.

Magazine Mileage Awards

Earn miles when you subscribe to popular magazines.

USA TODAY

Earn miles while reading USA TODAY®.

Points.com™

Earn more miles by exchanging other loyalty program currencies.