Pricing policy, Distribution and Communication Mix Within Virgin Atlantic

Pricing policies, distribution and communication play a crucial role in the marketing planning of any organization (Brennan, 2008). Pricing policies form an important part of the achievement of the company’s profitability objectives. Pricing policies affect demand which in turn influences the sales of the company and finally impacts on its profitability. Price increase reduces a product’s demand, reduces its sales and hence reduces its profitability.

An important pricing policy that can be pursued by the company is the value based technique. In this case, the value which the company places on the product or service is considered. In a situation where travelers value a fast-moving helicopter, the price of the traveling service will definitely go up (Blythe, 2009). Another pricing technique that may be used by Virgin Atlantic is cost-based pricing. In this case, prices are determined in respect to costs associated with the service development. Virgin Atlantic also has the option of setting pricing policies based on the conditions of the market. This is referred to as market oriented approach.

Distribution channels also matter in the success of the company. A good promotional mix element considers the type of customers, their location, preferable distribution channels, and the distribution channels of competitors. Direct channels of distribution are necessary in the service sector because the client of the service is offered the services that are specific to their demand and needs. Direct contact between virgin Atlantic and upper class travelers with is necessary for the company to understand them and strive to satisfy them. Intensive distribution channel is also necessary for the company to meet the needs of a wider customer base.

Virgin Atlantic should also attempt to use an appropriate communication mix and policies so as to enable the formation of a good forward and backward link between the company and the suppliers and customers. A good communication mix also provides room for a feedback loop where the changing aspects of customers can be communicated in order to devise appropriate strategies (Ludi, 2004). Some of the communication tools that may be used by Virgin Atlantic include: exhibitions, advertising, personal selling, public relations, promotions, sponsorships and direct marketing.

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