Responding to the market
Whether a business wants to promote a product or a service, it can use a number of methods to market itself to its potential buyers. When NIVEA launched its latest product range NIVEA VISAGE Young in 2008 to a teenage audience, it chose below-the-line routes such as product samples and advertising via its online magazine as well as popular teenage websites. High demand for a product gives the manufacturer the option of setting a higher price when the product enters the market.
However, marketeers may need to review elements of the marketing mix if the demand for a product or service changes. British Airways and Virgin Atlantic are both currently running a series of sales to encourage more people to buy flights. Virgin Atlantic is celebrating its 25th anniversary by offering fixed price long-haul flights to New York and Sydney including on and off peak season, while British Airways has sales of 2 for 1 on business class. This is in response to falling numbers of passengers using BA premium classes. (The Times 22nd May 2009)
Promoting the product or service in the right way does have its rewards as Virgin announced its annual profits almost doubling in the year up to February 2009, despite high fuel costs. Steve Ridgway, Chief Executive of Virgin Atlantic said,”….the airline had increased market share and we are just managing the business to make sure we remain strong and hang on to our cash.” (The Times 26th May 2009)