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Q.no 1. Write a commentary on the marketing philosophy followed by Southwest Airlines?

Marketing concepts are the guiding principles of business operation and organization. They
are the study of philosophy of marketing and system of thought. Manufactures, Producers,
and service organizations follow certain kind of concept to conduct their marketing
operations. The concepts guide their Marketing efforts and activities. Some of the
fundamental concepts are listed below.
1. The Production Concept:- This concept is a management orientation that assumes that
consumer will favor those products or services that are available and affordable.
According to the Production concept, consumer prefer widely available and low cost
Product or service. It assume that low Prices attract the customer.
2. The Product Concept:- According to this concept, Consumer response to good quality
product or service. This concept focus quality is of primary concern.
3. The Selling Concept:- This concept assume that goods and services are not be sold until
don’t get heavy promotion. It focus on aggressive advertising, heavy price discount, strong
publicity and public relation.
4. The Modern Marketing Concept:- This concept is developed out of the awareness that
marketing starts with determination of consumer wants and ends with satisfaction of those
wants.
5. The Societal Marketing concept:- This concept implies the orientation of the
organization’s social responsibility to face the major environmental and demographic
challenges.
6. The Holistic Marketing Concept:- This concept focus all matters related to the marketing
activities. These activities are concerned to the relationship, internal, integrated social
responsibility and performance Marketing.
These are the philosophy that the companies adopt for their goods and services. Likewise
Southwest Airlines Company also adopts some of these philosophy which is mention above.
Southwest Airlines Company offers short-haul, low cost, point to point services between
midsize cities and does not fly great in large city. Its customers include business travelers,
families and students. It offer low price an attract price sensitive customer who otherwise
would travel by bus or car. It ignores the high class people, their needs and wants. This
company assumes that if price of the services are low then customers are attracted. By
analyzing the policy adopts by the Southwest Airlines Company, we can evaluate that this
company follow the oldest concept that is Production concept. It only focus on price of the
services. It does not care about customer conveniences and other facilities such as, it does not
offer meals, assigned seats, interline baggage checking, or premium classes of services. It
provides automated ticketing which avoids commission for agent. These above polices or
philosophies are adopted by the Southwest Airlines Company. Some of the Polices are good
but it is not enough to get success in future. They must be change their some polices and plans
for future purpose.

August 14, 2017 1


Prepared by:- Sandesh Kandel. Roll no. 206 Sec ‘c’. Email: sandeshkandel94@gmail.com
Southwest Airline Company takes some good polices, it helps to mid-range income level
people. If the wants to do better in future and to compute the full service airlines they must be
adopt, Product concept and marketing as well as holistic concept. Nowadays people don’t
consider related to price but they need facilities and comfort travel so, Southwest Company
think about this matter to compute to the other airlines. If they provide quality services within
the reasonable price and fly all over the city then this company fulfilled the needs and wants
of customer. These things create positive response from the side of customer and they never
lose their customer in future time.

Q.no.2. Identify the reasons for the success of a budget airlines like southwest in the current
time?
There are the various reasons to get success in the field of airlines. But nowadays budget
airlines like southwest Company are most be famous and get success because of several
reasons. They are listed below.
1. Price:- Price is the major thing to determine the value of the product and services. Budget
Airlines Company mostly focused no mid-range income level people. It generally focus
on business travelers, families and students. This types of customer fly at least 4 to 5
times during a week. They must be think about reasonable price. So, due to reasonable
or low price people should be attracted towards this services. This is the first reasons for
the success of a budget airlines.
2. Time saving to the consumer:- This types of airlines fly within the cities and not take a
larger distance. It helps to save the time of customer and they never take a car or bus.
These things attract to the customers towards this airlines. Most of the business man and
student wants to save their time so they chose airline for shorter distance rather than car.
It create more customer to the company and they make profit from larger customer.
3. Low cost: - This types of airlines doesn’t fly larger distance so they cannot be provide
conveniences facilities to the customer this things reduce the cost of the company. And
they do not need maximum plans for fly because it take short distance and few plan are
enough to fly. These thing helps to maximize the profit of the company.

The above mention reasons are the most important reasons for the success of the budget
airlines. It also have different kinds of strategies for archives success. Every people wants to
fly by plans but not have enough money to travel so it offers these types of people. More
customer leads to more sale and altimetry company reach the goal in the current situation.

August 14, 2017 2


Prepared by:- Sandesh Kandel. Roll no. 206 Sec ‘c’. Email: sandeshkandel94@gmail.com