1. Course Contents Content 8 chapter: Chapter 1:FUNDAMENTAL OF AM. Chapter 2:MARKET FOR AIR TRANSPORT SERVICE. Chapter 3:MARKETING ENVIRONMENT& AIRLINE BUSINESS Chapter 4:PRICING AND REVENUE MANAGEMENT --------------------------------Mid-term------------------------------------------ Chapter 5:DISTRIBUTING OF THE PRODUCT AND BRANDING Chapter 6:RELATIONSHIP MARKETING Chapter 7:AIRLINES SELLING,ADVERTISING&PROMOTE Chapter 8:THE FUTURE OF AM ----------------------------------Final exam--------------------------------------

2. Chapter 5: DISTRIBUTING OF THE PRODUCT & BRANDING MANAGEMENT Recite a prayer….(15 seconds)

3. LEARNING OUTCOME The expose the student about the importance of distribution product and branding in airline marketing

4. Chapter 5 DISTRIBUTING THE PRODUCT

5. ~~What is the distributing product?~~ ~~The manner in which goods move from the manufacturer to the outlet where the consumer can purchases them.~~ Example: like distributors, wholesaler,brokers and etc.. ~~What is the important of the distributing product?~~ -to achieve target and demand from customer. -to improve your sale & profit -to expand your business -etc…

7. Sub-Topic TYPES OF DISTRIBUTION CHANNEL THE TRAVEL AGENCY DISTRIBUTION SYSTEM TODAY’S DISTRIBUTION CHANNELS FUTURE OF DISTRIBUTION DISTRIBUTION CHANNEL IN THE AIR FREIGHT MARKET

8. ~~What is the distribution channel@ chain?~~ It is defined as a process @ chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

10. CHAPTER 5:DISTRIBUTING THE PRODUCT Types of Distribution Channel 1. DIRECT ROUTE 2. WHOLESALER 3. USING AGENCY

11. 1.Types of Distribution Channel a)Direct Route ~~This is where the producer makes direct contact with the final customers for its product, without any intermediaries being involved at all~~ e.g.: -Selling their goods through email @ internet. - Face to face appointment. - etc….. CHAPTER 5:DISTRIBUTING THE PRODUCT

12. ~~WHAT IS THE ADVANTAGE BY USING DIRECT ROUTE???~~ ~~No mark-ups or commission to intermediaries~~ ~~Airline able to control marketing activities~~ ~~reduce cost of operation and etc….~~ ~~What is the disadvantage by using direct route?~~ ~~Difficult to cover or to achieve sufficient geographical coverage~~ e.g. : not able to cover for the whole country. Pages :195

13. CHAPTER 5:DISTRIBUTING THE PRODUCT Types of Distribution Channel 1. DIRECT ROUTE 2. WHOLESALER 3. USING AGENCY

14. CHAPTER 5:DISTRIBUTING THE PRODUCT b) Using Wholesalers - Wholesalers buy in bulk from a range of producers @ manufactures - Have the power to negotiate appropriate discounts. - They sell the product by direct route or through retailers. - My din, Tesco and etc.. What is an advantages to wholesalers? ~~Get discount from manufactures and can get high profit~~ What is an advantages to producers @ manufactures? ~~Once the goods have been sold to a wholesaler, unsold good cannot be returned~~ What is the Disadvantage to the wholesalers? ~~unsold good cannot be returned and they have a liability,~~ What is the Disadvantage to producers manufactures? ~~need to give competitive discount~~ ~~reduce profits~~ Pages 195

17. CHAPTER 5:DISTRIBUTING THE PRODUCT Types of Distribution Channel 1. DIRECT ROUTE 2. WHOLESALER 3. USING AGENCY

18. CHAPTER 5:DISTRIBUTING THE PRODUCT Agency??? can be defined as the name for the arrangement where an agent intermediates between buyers and sellers and charges a commission for his participation. ~~Why the company should using agency?~~ In such industries, producers often require wide geographical coverage, but find it costly or impossible to provide this in their own. They therefore use agents, who are paid commission each time they sell on behalf of a particular firm. The agent is able to make a living by selling a variety of products on behalf of many firms, in what should be a mutually beneficial relationship. What is the PROBLEM if using agency? To sell the products of the firms which pay them higher commissions. Pages:195

19. ~~What is the advantage and disadvantage by using the agency??~~ ~~please find by your self~~hahaha…..

20. Sub-Topic TYPES OF DISTRIBUTION CHANNEL THE TRAVEL AGENCY DISTRIBUTION SYSTEM TODAY’S DISTRIBUTION CHANNELS FUTURE OF DISTRIBUTION DISTRIBUTION CHANNEL IN THE AIR FREIGHT MARKET

21. The Travel Agency DISTRIBUTION SYSTEM a)Advantages A TRAVEL AGENT PROVIDED : 1.Selling tickets on behalf of all airlines and tour operators 2.Offering services such as hotel, car rental and theatre bookings. 3.Golf and winter sports, and those focusing on particular ethnic groups. 4.not a heavy overhead burden on the airlines. 5.Geographical coverage 6.Minimized manpower structure 7.Reduce the cost or air travel administrations CHAPTER 5:DISTRIBUTING THE PRODUCT

22. The Travel Agency DISTRIBUTION SYSTEM b)Disadvantages 1.INCREASING COMMISSIONS/OPERATION COST e.g.: will make cost of operation of airline increase. CHAPTER 5:DISTRIBUTING THE PRODUCT

23. Sub-Topic TYPES OF DISTRIBUTION CHANNEL THE TRAVEL AGENCY DISTRIBUTION SYSTEM TODAY’S DISTRIBUTION CHANNELS FUTURE OF DISTRIBUTION DISTRIBUTION CHANNEL IN THE AIR FREIGHT MARKET

24. ~~WHAT DO YOU THINK THAT TODAY’S DISTRIBUTION CHANNELS??~~

25. TODAY’S DISTRIBUTION CHANNELS : Airline should take an action: Commission re-structure: - Use “Task –Based “ approach - Where agents are no paid a percentage of the price of the ticket they sell, instead flat rate payment are made for each task the travel agent has undertaken -E.g - one agent travel need to sell 3000 ticket per month and get reward flat rate payment by airline whether the ticket sold or not. - has publish airline promotion beyond their expectation. - Not paid on percentage of ticket price - Payment for making the bookings - Payment for issuing the tickets - Payment for dealing with payments 3. Implication on to an airline and Travel Agent - Airline still can reduce their cost of operation, meanwhile travel agent still s sustain their profitable. CHAPTER 5:DISTRIBUTING THE PRODUCT

26. Sub-Topic TYPES OF DISTRIBUTION CHANNEL THE TRAVEL AGENCY DISTRIBUTION SYSTEM TODAY’S DISTRIBUTION CHANNELS FUTURE OF DISTRIBUTION DISTRIBUTION CHANNEL IN THE AIR FREIGHT MARKET

27. ~~WHAT DO YOU THINK THAT FUTURE DISTRIBUTION CHANNELS??~~

28. FUTURE OF DISTRIBUTION IN AIRLINE INDUSTRY Maybe: -the existence of Airline call centre, customer service, Airline website which more advance and high technology and beyond our expectation. Where: - Airline seat sold using direct distribution channel. - Simple reservations and ticketing procedures. - Selling ticket through Airline Shops at hotel, shopping complexes - Business using the internet CHAPTER 5:DISTRIBUTING THE PRODUCT

29. Sub-Topic TYPES OF DISTRIBUTION CHANNEL THE TRAVEL AGENCY DISTRIBUTION SYSTEM TODAY’S DISTRIBUTION CHANNELS FUTURE OF DISTRIBUTION DISTRIBUTION CHANNEL IN THE AIR FREIGHT MARKET

31. Distribution Channel in the Air Freight Market 1.Freight Forwarder :similar role as travel agent 2.Integrated Carriers dominance : cargo transportation, DHL,FEDEX,TNT 3.Airline strategy IN AIR FREIGHT MARKET: - buy forwarding company - set up forwarding subsidiary CHAPTER 5:DISTRIBUTING THE PRODUCT

32. FROM 6 GROUP EACH GROUP CONSIST 6 STUDENT

33. Q-BANK What are you understand about Distributing Channel? Please explain 3 type of distribution channel in airlines industry. In your opinion, what suppose airline do to increase their profit in air freight market?

35. AIRLINE MARKETING Chapter 5 BRANDING MANAGEMENT IN AIRLINE MARKETING

36. ~~What are you understand about branding??~~

38. AIRLINE MARKETING ~~WHAT IS THE DEFINITION OF BRANDING?~~ The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. “

39. Or in other word…. ~~A brand is the identity of a specific product, service, or business~~ What is your definition????

40. AIRLINE MARKETING ~~What is the definition of Commodity~~ can be defined as any situation where customers do not perceive significant different in the products of competing suppliers e.g.: price of petrol… : price of goods,,(rice,oil) *Komoditi ialah barang yang mempunyai permintaan dan yang dibekalkan tanpa pembezaan kualitatif merentasi pasaran. Ia merupakan produk yang sama tanpa mengira siapakah yang menghasilkannya, misalnya petroleum, kertas buku nota, atau susu.

41. ~~Why Brands is so important ?~~ Strong brands bring 2 benefits: 1. They add value to the product E.g: product to be sold at a premium price 2. Assist firms in establishing and maintaining control of their distribution channels. E.g: well-known

42. AIRLINE MARKETING ~~What the objective of the brand?~~ 1.Delivers the message clearly 2.Confirms on credibility 3.Connects with target prospects emotionally 4.Motivates the buyer 5.Concretes User Loyalty

43. ~~What the implication if the firm have a bad brand?~~ Customer no idea about your product… Not interested with your product. Neglect and ignore by customer…. Etc……

46. AIRLINE MARKETING Defining Your Brand Defining your brand is like a journey of business self- discovery. It can be difficult, time-consuming and uncomfortable. It requires, at the very least, that you answer the questions below: What is your company's vision and mission? What are the benefits and features of your products or services? What do your customers and prospects already think of your company? What qualities do you want them to associate with your company?

47. AIRLINE MARKETING The foundation of a brand is : -it’s logo - The website - It’s packaging - The promotional materials - All should integrate with logo - It communicates the brand.

48. AIRLINE MARKETING Your brand is derived from: - who you are, - who you want to be and - who people perceive you to be.

49. AIRLINE MARKETING What constitute Brand strategy : - How to advertise, - What to advertise - Where to advertise - When to advertise - Whom to communicate and deliver the messages. -The distribution channels - What you communicate visually and verbally

50. IDEA OF BRAND MANAN + SALINA= ~~MANSALIN CORPORATION~~ MAZNAH + DAUD= ~~MAZDA~~ SUHAIMI+ZUKIAH= ~~SUZUKI~~

51. AIRLINE MARKETING The Result of a Good Branding : - It add values to product, allows to sell at premium price. - gives you a major edge in increasingly competitive markets -branding creates loyalty. - your brand is your promise to your customer. - It tells them what they can expect from your products and services. - and it differentiates your offering from your competitors'

52. ACTIVITY 1 Please create and draw your own airline brand…. ( Bayu airlines, Sendawa airlines) Please state you airline tagline….. ( fly without wing…,fly without money..) Please state your fleet.(destination) (a/c type, frequency, short haul, long haul) Benefits if customer by ticket from you. (massage service, Jacuzzis, pool) What is your strategy to get more customer. (member card,etc….)

53. TICKET YOUR LOGO. TERM & CONDITION PACKAGE/PRICE TIME/FLEXCIBLE OR FIX DESTINATION/HOUR ETC….