Transcript AST 205 Chapter 3

AST 205 Chapter 3
FBO Marketing
What we’ll cover
Home
Previous
• The need for marketing in G.A.
• Ways the FBO’s market
Next
• The 4 P’s of marketing
Help
• The world’s natural markets
• How to achieve market growth
• What is a market niche?
• Pricing- Cost plus and Demand
Why G.A. needs to advertise (the 4th PPromotion)
Home
Previous
Next
Help
• Product- FBO’s are unique because they sell
both Products and Services.
• FBO’s compete with other modes of
transportation
• Competes with other hobbies for peoples
time, money, and interest
• Must relate to a wide range of clientelecorporate executives to the casual flyer
The worlds 3 natural markets:
Home
Previous
Next
Help
• Those with any discretionary income- up to
80% of the population• Young Professionals- 25 – 35% of
those with discretionary income- +
$55,000 per year
• The wealthy- 2% - 4% of the
population with discretionary income
Marketing Defined
Home
Previous
Next
Help
• Why an FBO needs to market- unique
aspects
– Competes with other modes of
transportation
– Competes withother hobbies for people’s
time and $
– Must sell both products & services
– Must accomodate corporate execs. as well
as the casual flyer
Marketing ctn.
Home
Previous
• What are some ways that FBO’s
market?
– Yellow pages
Next
Help
– Limited T.V.
– Signage
– Websites (their own and others)
– Newspaper
– Fly-ins
– Others?
All marketing is based on the 4 P’s:
Home
Previous
• Product
• Price
Next
• Place
Help
• Promotion
Home
Previous
Next
Help
• The world’s 3 natural markets:
– Those with discretionary income- 80% of
the population
– Young Professionals- up to 25% of pop.
and growing
– The wealthy- less than 2% of the
population
Aviation Stats.
Home
Previous
Next
Help
• Aviation related statistics of this
population• Roughly .002% of the population are
pilots
• 1 person in 1,500 owns an aircraft
• Non-pilots use G.A. for traveling 25%
of the time
CURRENT & FUTURE TRENDS
Home
Previous
Next
Help
• Modern FBO’s need to become more
customer oriented- find unique ways to attract
and maintain customers.
• Technology and the economy will drive the market
• Pilots/aircraft will need to become more neighbor
friendly- Noise
• 1988 FAA 10 year G.A. activity forecast– Said society was experiencing a fundamental shift
in tastes and preferences- away from aviation
Economic characteristics of FBO
products/services
Home
Previous
• -Air travel is an incidental need- dependant
on another purpose
• -Follows the economy in greater cycles
Next
Help
• Products/services should be counter
recessionary:
– Used Aircraft
– A/C Refurbishments instead of new
– Engine overhauls instead of new or rebuilds
– Avionics repair instead of new
– Recurrent training instead of new students
Good Marketing begins with a good selfassessment
Home
Previous
Next
Help
• What is the local economic condition?
• What is happening to the local
market?
• What has been my past performance?
• What are my future plans for sales?
There are only 4 ways to grow your marketSell:
Home
Previous
• New Products to Existing Customers
• Existing Products to New Customers
Next
• New Products to New Customers
Help
• More Products to Existing Customers
The 4 P’s- Product
Home
Previous
Next
• Choose the best mix of products and
services based on:
– Past performance
– Local market demands- research-based
Help
– A market you create
The 4 P’s- Price
Home
Previous
Next
Help
• A. Cost Based- “cost plus” or
wholesale plus an added margin for
profit
– requires you know your fixed and variable
costs
– For example: Fuel sales• Fixed- Those that don’t change with volume
sold such as equipment lease payments etc.
• Variable- those that change with the level of
volume sold such as your cost of fuel and any
additives such as “Prist”.
Pricing ctn.- demand-based
Home
Previous
Next
Help
• Demand Based- Charging what the
market will bear. More complicated as it
requires you to know the concepts of:
– Scarcity- goods that are scarce or “in
demand” will bring a higher price
• Q) What are some items that have been in
demand recently?
– Elasticity- For most goods, as price goes
up, demand goes down and quantity
available goes up and visa versa.
Other Pricing Policies
Home
Previous
• One price or flex pricing- peak or off
peak
Next
• Price w.r.t. perceived value
Help
• Product life style pricing
• Promotional Pricing
• Geographic Pricing/-Market channel
(distributors)
Place/Promotion
Home
Previous
• Place in the FBO realm is limited to airports
and some limited online sales
Next
Help
• Promotion- previously discussed
All of this information is gathered into your
marketing plan- placed in your business plan
Home
Previous
Next
Help
• Questions?