Appropriate distribution channel for an airline, how long term relationships with the customers, distributors, and suppliers will be maintained and the corresponding potential problems.
Distribution channels play a very important role in an organization. They facilitate the transfer of the products/services to the end users. The more effective the channels are, the better the chance that products reach the consumers or end users. This would result to higher revenues and eventually higher profits, assuming well - managed expenditures.
In the case of an airline, particularly Southwest Airline, the end users may be composed of business executives, tourists, immigrants, exchange students, entertainers, investors, domestic helpers, and other forms of employees. The marketing approach requires that the needs of these target end-users be determined first before a decision on the appropriate channel of distribution be made.
The target end users as mentioned earlier have the following characteristics:
1. busy people
2. time conscious/ value their time so much
3. varied as to ...
The problem requires for a determination of the most effective channel of distribution for an airline business, particularly Southwest Airline. After determining the possible target buyers/consumers and their characteristics, their needs in relation to access of airline services were identified, hence a recommendation for the airline to put up its own web site to serve as the company's primary distribution channel. Relationship marketing strategies proposed include feedback system, customization, monetary and non-monetary rewards, and sustained service quality.