Business Marketing

Boeing reaches out by the use of the internet to facilitate the exchange of goods, services and information between organizations. Earlier this year, Boeing and Siemens has created a strategic alliance with secures of DOD contracts. The alliance between Siemens and Boeing has been awarded a funded project by the U.S Department of Defense to use both of their leading cyber-secure energy savings technology. This will let the DOD save 40% on energy cost at this one installment.

Boeing has also formed a strategic alliance with Lockheed Martin to promote next generation air transportation system. Although they are working together, they both are also competitors where Lockheed Martin products and services supply to large aerospace, defense, and information technology companies. Even though they have been long competitors, they have teamed up for a few partnerships with projects such as the AGM-114 Hellfire Missile and where both contracted the F-22 Raptor defense program. However, without a good relationship commitment and trust, you won’t get far, but for Boeing they have a great relationship with their partners.

Sources:

http://www.prnewswire.com/news-releases/siemens-and-boeing-strategic-alliance-secures-dod-contract-140536583.html

Segmenting and Targeting Markets

The Boeing Company long term forecast sets out an anticipated delivery of 33,500 new airplanes valued of over 4 trillion dollars. Boeing is now expanding its air service within China and other emerging countries and the spread of LLC business models drive this market segment. Boeings most valuable target is the commercial airline companies it serves. Over the years Boeings number 1 competitor is Airbus (owned by EADS, the European Aeronautic Space and Defense Company), where consumers debate which is best. Recently there is a debate on which jetliner is considered “best”; Boeing with the 747-8I or Airbus with the A380. The A380 was marketed a few years ago, but is still a big talk, as it is the largest passenger plane in the world, whereas the 747-8I is actually the longest passenger aircraft in the world. But calculating it all up, the A380 beats the 747-8I by a close call for the A380 is the bigger, more luxurious and the most availability to the market to date.

Boeing 747-8I

Airbus A380 Singapore Airline

Airbus A380

Boeing's Hanger for the 747-8I

Sources:

http://www.businessinsider.com/airbus-a380-v-boeing-747-8i-breakdown-2012-9?op=1

Developing and Managing Products

Boeings latest products are the Dreamliner 787, 747-8 intercontinental and 747-8 Freighter. The 747s offer high capacity which includes the lowest operating cost and best economics of any large passenger planes, which is practically a branch of the Dreamliner. Boeings new product development focuses on the Boeing 787 Dreamliner and the 747-8. They have nearly 12,000 commercial jetliners in service worldwide, making it a roughly 75 percent of the world fleet. The company provides an unsurpassed, around the clock technical support to help maintain the operator’s airplanes in peak conditions through the Commercial Aviation Services. 

According to their 2010 environment report on their website, their life cycle approach is to improve the products by helping the environment with the help of their research and development programs.

Integrated Marketing Communications

Television; it’s the best way to attract customers; well it used to be. Now people are turning their heads elsewhere. Television used to be the number 1 past time in America with an average of four hours and thirty-nine minutes per person every day.

The use of internet videos, social media networking, mobile phones and video games replaces those times of watching television, cutting down the attention spans of Americans. The internet has practically everything and everyone; opening a new world to Americans, especially the younger generations. I used to be in that category of watching TV every single night for hours and streaming the internet simultaneously.

Nowadays, there are many ways of advertising and getting your name out there. Social media ads such as facebook, twitter, instagram and youtube is where tens of millions of people connect in one place.

Connecting online is the best way the Boeing Company can get their messages across the globe. It lets them connect to people, letting them know new discoveries and technologies they have encountered. Boeing has their own website, advertising the companies name, help market their products. They don’t need to spend a lot of money on advertising because Boeing’s target market is a small group of people like big company spenders and not to everyone.

Product Concepts

Many companies have their own views of product concepts. Some companies look for the best quality over quantity. They look for the best products that functions very well and suits their needs as well. They are willing to look past the cost of the production for the best quality.

A few weeks ago Boeing has teamed up with NASA, university of Alabama in Huntsville aero physics research center and oak ridge national laboratory are working together to form a new project to produce nuclear fusion impulse rocket engines. You’re probably wondering what nuclear fusion impulse engines are, well let me explain it to you in a better context. Remember star trek, the television series? Well guess what, this engine will be similar to it. It although may not be “warp speed”, but it still would let us travel the galaxy a lot quicker than space rockets.

What an impulse engine looked like in Star Trek

 

Based on the information from Txchnologist.com, the scientists are hoping to release the impulse engines by 2030. It is said that this engine would take a spacecraft from earth to mars in as little as 6 weeks compared to the recent shuttle that was launched earlier this year (2012) where the Curiosity Lander took 253 days. This engine will be fueled by stabilized isotope of hydrogen (deuterium) and Li6 (a stable isotope of the metal lithium) in a crystal structure, which is basically dilithium crystals, just like they use in star trek!

Dilithium crystals used in Star Trek

 

This surely will attract company buyers and get keep a close eye on their progress because this is the biggest project people have seen for an outer space project since the space shuttle and the moon landing. This project will let us travel and explore this galaxy and possibly even the universe in the near future, and we may even hit “warp speed”!

The making of the impulse engine

 

 

Sales Promotion and Personal Selling

Sales are what keep companies alive, and without it, Boeing would not be where it is today. However Boeing gets their products out to the world is working because they sure get a lot of sales. Sales promotion helps increase sales, drawing in more customers where as at the same time retain our older ones.

Boeing Company is very well known now that they don’t need to increase their advertising campaigns as they get around through reputation/word of mouth. Boeing has a great reputation and customer relationship that they don’t need to give out coupons, telemarketers, mails and price cuts to get them around. However, if they are regular customers and have a great relationship, there’s a possibility that they give discounts.

Your probably wondering how they get people to buy their products (aircrafts, weapons, etc.), well since they are one of the largest global aircraft manufacturers and the third largest aerospace and defense contractor, companies can rely on their name alone and their reputation to buy from them.

Other than word of mouth, Boeing Company introduces its products through the internet and public relations. Because of their high tech equipments and modern products, it attracts many consumers to buy and look into their company. Also, somewhat of a sampling, Boeing lets people go in their aircrafts to take a sneak peak of what is to come in their latest product releases.

 

Advertising and Public Relations

Every day, more people choose the convenience of buying things online, than visiting a store. Thousands of different companies improve their sales by expanding their companies to the online world. Everywhere you turn, there are ads; from public transportation, build boards, television commercials/movies, radio broadcast, newspapers/magazines, mail and of course the internet, where practically everyone is connected.

Boeing used to advertise their company on television commercials, but stopped it a few years ago. Probably the reason why is because it wasn’t attracting the right kinds of customers because mostly all of you will not say, “I’d like to buy that plane”. And because the advertising didn’t bring in the set amount of customers they wanted, money was lost from creating those commercials.

Another way attracting in consumers is, connecting through the internet. They advertise through YouTube videos where they can share it with friends, adding ads on different websites and connecting to social media networks. The internet immediately connects with customers, stockholders, employees and anyone involved in the company, where Boeing can share their latest news, making it a faster and more convenient way of letting them in the loop. However, Boeing does need to improve their ad campaigns and connect with the people because in the latest check on facebook, Airbus (Boeing's biggest competition) has more fans than Boeing with Boeing trailing by 92,417 likes. Although, Boeing does have a good reputation for public relations where their company is talked about a lot, and people address them on their own websites and make great reviews.

Retailing

I went to a vocational school that specialized in the teaching of aircrafts, and that was Aviation high school. All four years I have learned so much about the life in the aviation industry and respect how incredibly smart and dedicated AMT (Aircraft Maintenance Technician) work. The reason why I choose Boeing is because I have some knowledge about planes but not about the company and their work environment.

Over the weekend my friend and I drove to LaGuardia Airport to pickup his sister up from work. It was a great opportunity for me to go with him since I planned ongoing anyhow. Now it may not be Boeing’s corporate headquarters, which is in Chicago, Illinois, but it’s close enough for me to observe a few of the planes. Hundreds of planes pass through LaGuardia every day. I was even surprised on how many carriers there are other than JetBlue, United Airlines, American Airlines, Delta and a few others. Now not all planes come in at once, as a few do get delayed due to weather, air traffic, Go-Arounds (which is when the pilot doesn’t seem that it’s safe to land) and/or mechanical problems. One of the things that I enjoyed watching was when the planes landed, taxied, and took lift. Now I wasn’t there for long since we were there to pick up my friend’s sister, but it was a pretty good experience. There were a lot of emotions that day, as I saw families meeting each other up happily running towards each other, or saying bye with tears to their loved ones as they went through the terminals.

As we were driving away, I looked up at the sky hoping to work on one of those planes someday and hopefully work at LaGuardia as an AMT.

Consumer Decision Making

Unlike every other airline, Boeing chooses to expand its company and limits by broadening their spectrum into developing products that are far better than the leading companies.

Consumers who use Boeing's products are mainly aimed towards the commercial airlines and their customers. Consumers use Boeing aircrafts for a faster way of travel compared to other transportations like trains, boats, buses and cars. Traveling by airplanes is more convenient and relaxed as opposed to driving because then you don't need to worry about gas, tolls, traffic and making pit stops delaying your travel time.

You can't narrow down to what type of consumers use planes for because thousands of people use them daily. Although, I could tell you that there are increases in air travel during vacations; like winter, spring and of course summer vacation.

 

Developing a Global Vision

Boeing is a multinational corporation, being the world’s leading aerospace company and the largest combined manufacturer of commercial jetliners and military aircrafts. They supply for defense (military), space and security and also make commercial airplanes.

Boeing has reached its products worldwide, reaching any potential buyers. For the past few years now, people have asked for companies to make products that are more Eco-friendly. Boeing took that into account by making a better engine that's been put on in their new aircraft, the 787 Dreamliner, which uses fewer emissions. Japan has received the first 787 Dreamliner, along with Air India and United Airlines. Boeing has 821 orders worth $150 billion. They intend to make 10 planes each month, and by 2013 they will have marketed about 3,300.

The Marketing Environment

Target marketing is an important part in a sale. It makes the company easier to sell the products to the consumers that they intend to sell by possibly promoting more advertisement that appeals to that specific target group.

Boeing knows that their products are pricey. They also know to keep their prices high because only a handful of companies make aircrafts, so pretty much it is high in demand.

Boeings target is mainly towards their existing clients. They are Boeing's corporate clients and they include commercial airline companies, governments and government agencies and other nongovernmental organizations such as private companies. The commercial airline companies are Boeing's most valuable targets. Boeing also gives their clients discounts and measurable offerings/benefits, giving a stronger relationship.

The company buyers know to buy from Boeing because the customer travelers not only want comfortable rides, but also a luxurious one too, and Boeing gives that.

 

Source: http://www.123helpme.com/view.asp?id=88896

 

Ethics and Social Responsibility

Every human in this world all feel emotions, one of which is being ethical. We all can distinguish between wrong and right, good and bad, and being ethical is a moral/unwritten but expected behavior. In a society, we live upon these ethical relationships, and also have become important to the business industries. Ethics play a role in relationships because consumers share what they have bought with their family and friends and that results in a chain of relations between the customers and the sellers. A few of Boeing’s ethical contributions to the society is having a trustable and good relation to the buyers and also to their employees.

You always want a good relationship with your customers because then they would come back and sometimes with a few friends. Now what if the company’s quality and service is bad, would you go back for more? I suppose you wouldn’t. Luckily Boeing satisfies their buyer’s needs, although they did lose a big buyer to one of their biggest competitive threats, Airbus. They lost that buyer because of so many delays Boeing pushed back to launching their new and latest aircraft, but it was worth the wait.

Thanks to Boeings new aircraft, the Boeing 787 Dreamliner, they have become a “greener” airline by using less fuel, and still be powerful enough to get from point A to point B. This is possible because of the demand customers wanted to become more of an environmental friendly company to not put out less pollution into the air. Now we think of Boeing as an airline that contributes to the “go green” corporation.

The company commitment states that they are committed to foster an environment where integrity is valued and is the foundation for all decisions. They will maintain and encourage an open and honest relation with their employees. The company has said, “Managers are responsible for creating an open and honest environment in which employees feel comfortable in bringing issues forward. Retaliation against employees who raise genuine concerns will not be tolerated.” They have also added an ethics line to express any concerns expressed by the employees of any violations or any wrongful doings.

Source: http://www.boeing.com/companyoffices/aboutus/ethics/

 

Strategic Planning for Competitive Advantage

For a company to have a long term, it is essential to have a strategic plan. Now what is strategic planning? According to chapter 2 in MKTG, It is a means of creating and maintaining a fit between the organizations objective and resources. How they conduct these goals is by having a marketing plan, which falls under the SWOT analysis. Having this plan helps the company addresses what they need to improve on and how they can make it better by knowing their own Strengths and Weaknesses, followed by their Opportunities and Threats.

Boeing Company remains efficient by setting goals in within all its departments such as engineers, sales, mechanical, product testing and many more. This will address issues such as management, personnel, inventory etc. 

For Boeing, strategic planning is highly important for a company as big as it is. They use strategic planning to influence the communities, airlines and military. Reliability and performance are two greatest concerns for an aircraft manufacturer. Boeing Company looks towards the buyers/consumers and apply their request. The most recent request from customers is looking for an environmentally friendly type of plane. You may think, “How can they make airplanes environmental?”

Well not long ago, after 5 years of preparation, the Boeing 787 “Dreamliner” entered the commercial service in October 26, 2011. This aircraft is the most fuel-efficient airliner and the world’s first major airliner to use composite materials for most of its construction. The 787 also consumes 20% less fuel than its competitors. This has made a large entry into the new advantages Boeing has in the upcoming future.

http://www.upxsuccess.com/management_boeing.html