Questions for Discussion
Give examples of needs, wants and demands that Pegasus customers demonstrate, differentiating these three concepts. What are the implications of each for Pegasus’ practices?
Needs – Pegasus customers need variation ; business travels.
Wants – Improve airlines industry.
Demands – low cost airline, many destinations, quality.
Customer-oriented company – they want to meet and exceed customer expectations.
Describe in detail all the facets of Pegasus’ practices.
Pegasus sells customers a product, a ticket for a flight. Since it is a low-cost airline company, the tickets are not expensive compared to others. However, Pegasus is not a low quality company despite having low costs. They realise that since their profit margin is small, they need to make up for it in volume – and no one would buy low quality airline tickets. Besides this, Pegasus also gives their customers all kinds of discounts and benefits such as a loyalty card, a refund strategy and free tickets. Finally, Pegasus really meets the customers’ expectations and even exceeds them because it improves itself by listening to its customers.
Which of the five marketing concepts best applies to Pegasus?
Production Concept – The company (Pegasus Airlines) believes that the main efforts of marketing needs to be done by driving the costs as low as possible and making the product available and affordable. Since the good is at a very reasonable price, the business will have a small margin (change between the cost price and the selling price). What they are giving up in margin, they need to make up for in volume – so Pegasus Airlines needs to sell many units. In order to minimise costs they moved to secondary airports instead of the main airport.
What value does Pegasus create for its customers?
Pegasus creates value for its customers through the 7Ps; Price, Product, Place, People, Physical Evidence, Promotion and Process. It uses a mixture of all these 7Ps, however the most important value is that Pegasus has a great price-quality ratio. Pegasus ensures successful service through safety, training for devoted employees, uses creative communication with customers, offers great destinations and delivers low prices whilst ensuring high quality service.
Is Pegasus likely to continue being successful in building customer relationships? Why or why not?
Yes because it has a lot of customer-oriented relationships and they focus a lot on creating customer loyalty and retention by keeping up with customers even during their passive stage so that when they enter the active stage they look for them first. They have also managed to build the right relationships with the right customers by treating the customers as assets that need to be managed and maximised as different types of customers require different relationships management strategies.