The Internal and External Factors Which Affected Airasia’s
1. Describe and assess the internal and external factors which affected AirAsia’s pricing strategy.
Internal factors affecting pricing include the company’s marketing objectives, marketing mix strategy, costs, and organization considerations. Marketing objectives before setting a price, the company must decide on its strategy for the product. If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. AirAsia is introduced as Asia’s first low-fare, no-frills airline in 2002, according to its tagline “ now everyone can fly”, this positioning required charging a low price.
Besides, marketing mix strategy which is price is only one of the marketing mix tools that a company uses to achieve its marketing objectives. Price decision must be coordinated with product design, distribution, and promotion decision to form a consistent and effective marketing program. Decision made for other marketing mix variables may affect pricing decision. 4P’s includes product, place, price and promotion. For examples, flies only one type of aircraft, operating 13 Boeing 737s on a 12-aircraft schedule, reduces staff training, operating and maintenance costs In addition, use secondary airports like Subang, procedures are cheaper and less complicated Then, promotion such as price promotions, it set aside 100000 seats for sale on the internet, charging one-way fares ranging from S$ 2.60 to S$ 23.70 on selected routes
Costs set the floor for the price that the company can charge. A company’s costs may be an important element in its pricing strategy. AirAsia with lower costs can set lower prices that result in greatest sales . Then, AirAsia implement such ways to make costs lower, for examples quicker turnaround time, flight utilization of its aircraft, flies only one type of aircraft to reduces staff training, operation and maintenance costs, does not offer complimentary meals or
Internal factors affecting pricing include the company’s marketing objectives, marketing mix strategy, costs, and organization considerations. Marketing objectives before setting a price, the company must decide on its strategy for the product. If the company has selected its target market and positioning carefully, then its marketing mix strategy, including price, will be fairly straightforward. AirAsia is introduced as Asia’s first low-fare, no-frills airline in 2002, according to its tagline “ now everyone can fly”, this positioning required charging a low price.
Besides, marketing mix strategy which is price is only one of the marketing mix tools that a company uses to achieve its marketing objectives. Price decision must be coordinated with product design, distribution, and promotion decision to form a consistent and effective marketing program. Decision made for other marketing mix variables may affect pricing decision. 4P’s includes product, place, price and promotion. For examples, flies only one type of aircraft, operating 13 Boeing 737s on a 12-aircraft schedule, reduces staff training, operating and maintenance costs In addition, use secondary airports like Subang, procedures are cheaper and less complicated Then, promotion such as price promotions, it set aside 100000 seats for sale on the internet, charging one-way fares ranging from S$ 2.60 to S$ 23.70 on selected routes
Costs set the floor for the price that the company can charge. A company’s costs may be an important element in its pricing strategy. AirAsia with lower costs can set lower prices that result in greatest sales . Then, AirAsia implement such ways to make costs lower, for examples quicker turnaround time, flight utilization of its aircraft, flies only one type of aircraft to reduces staff training, operation and maintenance costs, does not offer complimentary meals or