Marketing Environment

Marketing Environment

Marketing Environment

Introduction

The purpose of this research paper is to make an analysis on the marketing environment of the Southwest Airlines and explain that how the marketing environment does affects the company's decision making.

Southwest Airlines is one of the major domestic aviation companies in the United States of America. Southwest Airlines is considered to be one of the most successful budget airlines of the USA. Every day, around 3300 flights are operated by Southwest (Kotler 2004). The Southwest Airlines is low cost airline of the United States of America which connects 64 cities of 32 American states.

Since 1989, the Southwestairlines of the United States of America is considered to be one of the leading domestic carriers of the country. Cargo facility is also offered by the Southwestairlines. You can also avail the quick flight booking option on our website to book flights on Southwest Airlines. The corporate office of Southwest airlines is at Dallas, Texas. Except online flight schedule, Southwest airlines also offers weather forecasts, Interactive route map and online flight status information.

Body: Discussion and Analysis

Southwest Airlines Co. (SWA), the model for budget upstarts everywhere, has become the largest domestic airline in the United States, by number of passengers carried. More than 70 million passengers fly SWA each year to about 60 destinations around the country. Passengers have found that Southwest's rock bottom pricing creates almost a new form of transportation, more in competition with the automobile than other airlines. They are willing to forsake in-flight meals, baggage transfers, and other traditional frills for economically amenable wings (Proctor 2000).

Marketing Environment of South West Airlines

South West Airlines success is influenced by factors operating in it's internal and external environment; an organisation can increase it's success by adopting strategies which manipulate these factors to it's advantage. A successful organisation will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates.

Political

The first element of a PEST analysis is a study of political factors. Political factors influence organisations in many ways. Political factors can create advantages and opportunities for organisations. Conversely they can place obligations and duties on organisations. Political factors include the following types of instrument:

- Legislation such as the minimum wage or anti discrimination laws.

- Voluntary codes and practices

- Market regulations

- Trade agreements, tariffs or restrictions

- Tax levies and tax breaks

- Type of government regime eg communist, democratic, dictatorship

Non conformance with legislative obligations can lead to sanctions such as fines, adverse publicity and imprisonment. Ineffective voluntary codes and practices will often lead to governments introducing legislation to regulate the activities covered by the codes and practices.

Economical

The second element of a PEST analysis involves a study of economic factors.

All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organisational stakeholders such as suppliers and creditors behave within ...