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CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Marketing strategy can be said to the marketing logic by which he business unit experts, to achieve its marketing objectives, which consists of decision making, marketing expenditures, marketing mix and marketing allocation in relation to expected environmental and competitive conditions to expected environmental and competitive conditions. Kotler (200:170). However, the airline operation has to blend effectively with the above variables in the most efficient and result best out of their strategic, which results to an improved performance. To will also enable them to beat the competitors from every angle.

The importance of Airlines in transport industry need be over emphasized. It helps to create time and place utilities. Airlines is regulated for its high speed and comfort, it is therefore mostly used for transporting high value, perishable and emergency freight. In order to serve the customers transport, need very well, there is need for airline industry executive airline service to embrace the effective marketing strategies.

Olakunori (2000:247) noted that the aviation industry is very interesting though air transportation is regarded as the most modern means of transport today. Executive airtime services as the name implies, simply means executive airlines services. The common assumption of airline users were that the airlines was for the executives. Cut in actual sense it was not meant for the executives alone. An average citizen can fly with executive airline services to different places comfortably the executive airline services do not start with the name executive airline services. But rather they started as a chartered in 1996, from they went into cargo operation. Although thy were into partnership business, they operated for some years before it was changed to executive airline services about three (3) years ago and from there. They have been into passenger / commercial operation.

Executive airline services through relatively new in the transport industry has made on appreciable contribution to the industry. But of recent, there have been increase in airlines like sosoliso, Abarika airlines etc. these has brought about competition, that have been affecting its profit and customers patronage, one is bound to ask how executive airline services can improve its services in order to survive in our competitive marketing environment designing effective marketing strategies is the answer. Thus, the study, the researcher takes a look at effective marketing strategies for the airline operating in Imo metropolis with particular interest on executive airline service.

STAEMENT OF THE PROBLEM

The market for airline service is highly competitive, this is due to the present of both national and international airline that has made in road into the industry. Among these, is executive airline service (EAS) it occupies a significant position within the industry with its airline operation that cares the following routes – legal, port Harcourt, Jos, Abuja, Kano and Imo. The company has been performing very creditably as an evident from becoming a household name among airline users.

The questions that come to mind therefore are what are the sources factors that have determined effective performance of executive airline service operation? How effective are the company’s marketing strategies? And what is customer’s perception of the company’s devices in relation to other airlines? In order to provide answers to the above questions the researcher critically investigated the marketing strategy adopted by executive airline services.

OBJECTIVES OF HE STUDY

The objective of the study among other things include:

1.  To determine the level of airline users of executive airline services.

2.  To determine the impact of marketing strategies on profit of executive airline services.

3.  To determine whether airline users are satisfied with fare charge by executive airline services.

4.  To determine the impact of executive airline service promotion strategies on its services.

5.  To determine the factors that influence the choice of airline by passengers.

6.  To recommend appropriate measures aimed at importing the marketing strategies of executive airline service.

SIGNIFICACE OF THE STUDY

The importance of the study cannot be over looked or are emphasized. The research which was carried out is to determine the extent to which the marketing strategies performance in airline operating in Imo metropolis is quite valuable in the following ways:

To help the researcher to know about marketing strategies for airline operating in Imo metropolis.

To help the airline operators in Imo metropolis to realize and understand better the importance and effectiveness of marketing strategies in attracting and maintaining customers.

It serves as a reference point to the airline operators in Imo metropolis by giving them insight about the danger, use of wrong marketing strategies and ideas which place the marketing strategies of airline operators in a right channel.

To highlight areas that requires improvement in marketing strategies airlines operating in Imo metropolis for better performance.

It will enable the airline operators to know how to maintain their customers in order not to leave them for another airline.

It motivates patronage due to the potential treatment like the instant discount.

The user enjoys the privilege of being among the easy group of easy fliers

It helps the read to know some of the things that may also attracts the needs o patronize executive Airline services.

SCOPE OF THE STUDY

This research work covered all the area in marketing strategies in airline operating in Imo metropolis which includes their promotional, price, product and place. However, the extent of the study “Effective marketing strategies for airline operating in Imo metropolis focuses on EAS airlines.

LIMITATION OF THE STUDY

The study has the following limitation and constraints.

Hoarding of information: This is a common problem with company executive and consumers information that is classified as confidential activities are never disclosed for the fare that such might expose the strategies, weakness or strength of the company to the public and competitive.

Non – availability of literature: Challenges of marketing for small scale business as subject matter is relatively small one and not much has been publish about it, hence it was difficult to get enough information to buttress the challenges of marketing for small business enterprises.

Finance: As a result of the economy, hardship in the country, the researcher found it difficult to get enough money to make work more attractive.

Time factor: The time given for research work was too short, hence the researcher combined the project with normal class work to ensure speedy competition of the work.

Sample size: The researcher encountered problems of reaching a reasonable sample size of the population in order to have actual and genuine option.

DEFINITION OF TERMS

Marketing: All important set of creative human activities aimed at identifying human needs and want through exchange as efficiently and as effectively as possible (Adinika (19903).

COMPETITION: The struggle to gain advert, profit or success from the customers over the next person mostly among firms in contemporary business (Ozor 2001)

VARIABLES: Anything that is extended to the firm not under the control of the management, such as the government, policies, political crises, competitor etc.  (Olakunori 200:224).

MARKETING STRATEGIES: A game plan for achieving a set of objective. It is part and parcel of strategic planning process (Subbash 199-:12)

CUSTOMERS: The people that buy from either a manufacturer or consumers, but may not necessarily be the users of those product ( Olakunri 2000 : 227)

PRINCE: The amount of money, he customer pay for product or service of the time and place of exchange (Kotler 1996:46).

PROMOTION: This is one of the components of the market mix used by an organization to inform, educate and persuade the marketing, regarding the company’s offering (Ebu, Adirika and Naolin 2001:58)

DISTRIBUTION: This is concerned with the effects which firm makes in order to get its products to the target market (Olakunon 1999:93).

PRODUCT: Anything that can be offered to market for attention, acquisition, or consumption that might satisfy a want or need it includes physical, services, persons, organization and ideas (Kotler 2000:247).

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