Marketing also involves the finance activities such as credit and collection that are associated with ticket sales. Marketing is customer oriented. Creating products and services that fulfill the needs of existing customers and attract new customers is the primary goal. Determining who the customers are or could be and what their needs are part of the process. Marketing must also assist in achieving the company’s objectives: an acceptable return on investment, a reasonably level of profits, and an adequate market share.Why is marketing so important? Without marketing and sales, there would be no airlines. Marketing is the stimulus that encourages innovation, research, and investment. A carrier can have the latest equipment and the most efficient human and capital resources available, but unless somebody is there to sell the output produced, it is all for naught.The carriers’ marketing history before World War II was considerably different from what goes on to day. In theearly years, emphasis was placed on the carriage of mail, not passengers. There was more profit in carrying mail, and besides, the mail didn’t complain if it arrived late or was too hot or too cold. Furthermore, people still had a love affair with railroads capacity. This era was the production-oriented period in airline marketing history-a time when services were so scarce that customers accepted whatever was available.These four elements are the controllable marketing factors that should be used to reach the target market. Thus, any discussion of the business activities that direct the flow of services to customers must stress the four Ps. Because all four elements are present to some degree in any marketing situation, the airline marketer’s task is not to decide whether to use a particular element, but rather to determine the relative emphasis to place on each element in the final marketing program.It must be recognized that the marketer must contend with certain uncontrollable variables. Unfortunately, the marketing team does not work in a vacuum. Its actions and strategies will be affected by some or all of the following variables:1. Cultural and social differences. These are the traditions and values of various ethnic groups that represent potential customers. Such traits as eating habits can vary considerably in different parts of our own country, to say nothing of different countries.
2. Political and regulatory environment. Political climates are constantly changing. New levels of taxation and government spending can affect marketing strategies set by the carriers. Regulatory requirements, such as allocations of landing quotas at certain airport because of extreme peaking in the number of flights, can undermine the best of marketing plans.