The micro and macro environment both have different factors. The Micro environmental factors include: organisations, suppliers, customer market, the intermediaries and competitors. Macro factors include Demographic, natural, technological, cultural, political and economic factors. However, these factors may vary depending with the company. In this study case of Air Asia, low price was the smartest marketing strategy Air Asia used. The company has done its research and found that there were a huge mass middle-class people that love to travel by plain.
They targeted these people and offered them convenient and affordable air travel experience. By this approach, the company has satisfied its slogan “Now everyone can fly”. Second factors in micro enviroment is 'the company'. One department must work closely with other company departments. Other departments have an impact on marketing department's plans and actions. Fernandes (the CEO of Air Asia) contributed heavily to the success of Air Asia. He was seen working alongside with the employees as a baggage hander to get to know his staff members and to listen to the customer’s wants and needs.
Mr. Fernandes also asked customers for feedback for the service that was provided for them. Feedback is crucial for Air Asia so that they could implement their strategy effectively and efficiently. Moreover, Frenades has support and engaged Dr, Mahathir M. to network with neighboring countries in an effort to develop an open-skies agreement and grant landing rights to Air Asia. This worked to the advantage of the company now it could penetrate a bigger market and target a wider pool of customers.
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Convenience also played a major role in the marketing strategy. To keep customers happy, Air Asia offered customers with agents to cater to travelers who are uncomfortable with booking online. Also it provided an easier way to pay for tickets by visiting a local bank and pay by cash. This is a genius strategy because Air Asia knows its customers. It knows that a portion of its customers that fly Air Asia don’t have that much money to carry around so there are little chances that they would own a personal credit/debit card.
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