The application of marketing in air service of vietnam airlines

This thesis would not have been made possible without the help from many wonderful people who gave their supports in different ways. To them I would like to express my deepest gratitude and sincere appreciation.

First of all, I am deeply indebted to my supervisor Asso. Prof., Dr Do Thi Loan, a senior lecturer and the Dean of the Post Graduate Studies Faculty of Hanoi Foreign Trade University, for her valuable instruction, corrections, comments, suggestions and enthusiasm during the development of my graduation thesis. Her guidance and encouragement have been invaluable to me and she will always be remembered as the key factor that influenced my career towards this path.

Second, I am especially grateful to the lecturers of the English Faculty who provided me with a basic knowledge that is absolutely important in writing the thesis.

CONTENTS:

ACKNOWLEDGEMENT III
LIST OF ABBREVIATIONS IV
LIST OF CHARTS AND TABLES V
INTRODUCTION VI
CHAPTER 1: AN OVERVIEW OF AIR SERVICE MARKETING 1
1.1. WHAT IS AIR SERVICE MARKETING? 1
1.1.1. Special features of air service 1
1.1.1.1. Intangibility 1
1.1.1.2. Inseparability 2
1.1.1.3. Heterogeneity 2
1.1.1.4. Perishability 3
1.1.1.5. Lack of ownership 3
1.1.2. Service and Marketing service 3
1.1.3. Marketing in air service 4
1.2. PROCEDURES OF DOING AIR SERVICE MARKETING. 5
1.2.1. SWOT analysis 5
1.2.1.1. Strengths 5
1.2.1.2. Weaknesses 5
1.2.1.3. Opportunities 6
1.2.1.4. Threats 6
1.2.2. Doing market research 7
1.2.2.1. Finding out customers needs and wants 7
1.2.2.2. Segmenting markets 8
1.2.2.2.1. What is market segmentation? 8
1.2.2.2.2. Benefits of Segmentation 8
1.2.2.2.3. The process of Segmentation 9
1.2.2.3. Targeting market 10
1.2.3. Working out marketing mix strategies 11
1.2.3.1. Product Strategy 11
1.2.3.2. Price Strategy 13
1.2.3.3. Place Strategy 13
1.2.3.4. Promotion Strategy 14
1.2.3.5. People Strategy 16
1.2.3.6. Physical Evidence Strategy 18
1.2.3.7. Process Strategy 19
CHAPTER 2: ASSESSMENT OF THE APPLICATION OF MARKETING IN AIR SERVICE OF VIETNAM AIRLINES 20
2.1. AN OVERVIEW OF VIETNAM AIRLINES 20
2.1.1. Vietnam Airlines’ history 20
2.1.2. The status of Vietnam Airlines in the Region 23
2.2. THE APPLICATION OF “MARKETING IN AIR SERVICE” OF VIETNAM AIRLINES 26
2.2.1. Studying Marketing environments 26
2.2.2. SWOT analysis 28
2.2.2.1. Strength 28
2.2.2.2. Weaknesses 29
2.2.2.3. Opportunities 30
2.2.2.4. Threats 32
2.2.3. Doing market research 34
2.2.3.1. How does Vietnam Airlines find out the customers’ needs and wants? 34
2.2.3.2. Market Segmentation 35
2.2.3.2.1. Broad Segmentation 35
2.2.3.2.2. Needs-based segmentations and segment identifications 36
2.2.4. Targeting Markets of Vietnam Airlines 38
2.2.5. Marketing Mix Strategies 39
2.2.5.1. Product Strategy 39
2.2.5.2. Price Strategy 44
2.2.5.3. Place Strategy (Distribution Network) 45
2.2.5.4. Promotion Strategy 47
2.2.5.5. People Strategy 51
2.2.5.6. Process Strategy 52
2.2.5.7. Physical Evidence strategy 53
2.2.6. Evaluation 53
2.2.6.1. Achievements 54
2.2.6.2. Drawbacks 55
CHAPTER 3: MARKETING SOLUTIONS TO IMPROVING VIETNAM AIRLINES’ SERVICE 58
3.1. MARKETING SOLUTIONS 58
3.1.1. Diversification and improvement of the quality of Vietnam airlines 58
3.1.2. Enhancement of air service marketing and promotion activities 59
3.2. RECOMMENDATIONS 60
3.2.1. For the Government 60
3.2.2. For Vietnam Airlines 62
 Company interview (Directly) 63
 Questionnaire 64
CONCLUSION 69
APPENDIX 74

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