Design and validation of value-oriented strategic marketing model in Iranian airlines

Document Type : Original Article (Mixed)

Authors

1 Department of Business Management, Kish International Branch, Islamic Azad University, Kish Island, Iran

2 Department of Business Management, South Tehran Branch, Islamic Azad University, Tehran, Iran

3 Department of Business Management, Shahr-e-Qods Branch, Islamic Azad University,Tehran , Iran

Abstract
Abstract
The purpose of this research is to design and validate value-based strategic marketing model in Iranian airlines. In terms of purpose, the current research is applicable, and is a mixed research (qualitative-quantitative), and the philosophy of this research is positivistic-interpretative with an inductive approach. The statistical population of the research in the qualitative part includes 10 marketing specialists of airline companies and university professors with trends related to the research topic, selected by the purposeful sampling method and the snowball method. The statistical population of the quantitative part also includes 520 commercial and marketing specialists of airline companies, among whom a sample size of 221 were selected using Cochran's formula, and by stratified random sampling. The data collection tool includes a semi-structured interview in the qualitative part; and a researcher-made questionnaire in the quantitative part. Data analysis was done by the data method of the Corbin and Strauss Foundation (2015) and using MAXQDA (2020) software in the qualitative part; SPSS and AMOS software were used and in the quantitative part. The research model was extracted based on identifying 1015 open codes, relating the codes to 215 concepts and 31 main categories (in 12 categories). The results of the research, in addition to presenting a comprehensive and new model for strategic marketing for Iranian airlines with a value-based approach, showed that in order to have a dynamic and successful marketing and achieve the goals of profitability, customer satisfaction and economic development of the society, Iranian airlines should adopt marketing and development strategies.
Extended Abstract                                          
Introduction
Air travel creates many social and economic benefits for many different people, governments, national economies, large and small businesses, and travelers who simply want to visit family or enrich their lives by seeing new places and experiencing new cultures (IATA, 2022). The airline industry is one of the most competitive and capital intensive sectors in the world due to various factors such as low entry barriers and large number of airlines. This has led various airlines to propose or adopt strategies that help them gain a competitive advantage over their competitors (Garrett, 2019).
Strategic marketing is the use of marketing disciplines to achieve organizational goals by developing and maintaining sustainable competitive advantage. It deals with high-level considerations, such as what markets to target, which services to offer, and how to price and promote them (Frederiksen, 2022). Researchers believe that the more organizations can gain a better understanding of customer needs as well as competitors' activities and factors affecting market conditions and information distribution at all levels of the organization, the more they will have the ability to survive in the competitive market. From a practical point of view, creating value for the customer becomes more important every day. Creating value for customers includes customer participatory behaviors and customer citizenship behaviors. Participatory behavior refers to the behavior and participation of customer information, accountability and personal interaction behaviors (Aroofarakh et al, 2023).
Based on this, the current research is looking for an answer to this question: What is the design and validation of value-oriented strategic marketing model in Iranian airlines?
Theoretical Framework
Strategic marketing
Current trends and forces in the 21st century encourage leading companies to define and apply comprehensive marketing concepts. Every decision and behavior in the framework of marketing activities is influenced by environmental factors. The most important feature of the environment is transformation and change. Strategic marketing is long-term marketing activities according to the marketing environment, which has long-term effects on the company and its future (Keller, 2017).
Airlines
It usually refers to an industry group that moves passengers or cargo through airlines. Airlines usually sell air tickets to their various destinations in a systematic way or allow them to create domestic and foreign tourism tours in the form of rental distribution between airline agencies (Halpern, 2022).
Valorization
The value creation process has moved from the traditional product and company-oriented perspective to the personal experiences of the consumer. Value creation and extraction is increasingly created through interactions between consumers and organizations, and value can be created through multiple elements such as price, quality, and location. Therefore, companies are responsible for determining the value delivered based on their strategies and shareholder values ​​(Tuominen & Matthyssens, 2022).
 Shadbakhsh (2023) investigated the impact of using sustainable marketing strategies on the performance of digital businesses with the mediation of information technology in the country's real estate industry. The results showed that marketing trends and sustainable marketing experiences have a positive effect on the performance of the studied companies. Also, marketing trends, sustainable marketing experiences and sustainable marketing strategies have a positive effect on the performance of selected companies.
Wang (2021) has investigated the marketing strategies of Qatar Airways in a research titled "Understanding the strategy used by leading airlines". The results confirm that considering that the aviation industry is very competitive, it requires strong marketing strategies to create value and identify opportunities. The nature of services offered in the airline industry is attractive in terms of transportation, facilities, amenities and privileges. Companies must align themselves with specific segments or target customers based on capabilities and market dominance.
Research methodology
In terms of purpose, the current research is applicable, and is a mixed research (qualitative-quantitative); and the philosophy of this research is positivist-interpretative with an inductive approach. The statistical population of the research in the qualitative part includes 10 people from the marketing specialists of airline companies and university professors with trends related to the subject of the research, selected by the purposeful sampling method and the snowball method. The statistical population of the quantitative part also includes 520 commercial and marketing specialists of airline companies, among whom a sample size of 221 were selected using Cochran's formula and stratified random sampling. The data collection tool includes a semi-structured interview in the qualitative part, and a researcher-made questionnaire in the quantitative part.
Research findings
Data analysis was done through the data method of the Corbin and Strauss Foundation (2015) and using MAXQDA (2020) software in the qualitative part, and SPSS and AMOS software in the quantitative part. The research model was extracted based on identifying 1015 open codes; relating the codes to 215 concepts and 31 main categories (in 12 categories). The results of the research, in addition to presenting a comprehensive and new model for strategic marketing for Iranian airlines with a value-based approach, showed that in order to have a dynamic and successful marketing and achieve the goals of profitability, customer satisfaction and economic development of the society; Iranian airlines should adopt marketing strategies of development.
Conclusion
The current research was conducted with the aim of designing and validating value-based strategic marketing model in Iranian airlines. The results of this research are in agreement with the results of Gill (2020), Zhang (2020), Dini et al, (2018), Cobena et al, (2019), Wang (2021), Shafiei & Mirabi (2019), Camilleri (2018), Mikalef et al, (2020), IvyPanda (2021), Dewsnap et al, (2020), Day & Schoemaker (2020), Afshani & Hatefirad (2017), and Appel et al, (2020). Wang (2021) showed that considering that the aviation industry is very competitive, it requires strong marketing strategies to create value and identify opportunities. The nature of services offered in the airline industry is attractive in terms of transportation, facilities, amenities and privileges. Companies must align themselves with specific segments or target customers based on capabilities and market dominance.
According to the results of the research, the following suggestions are provided:
1- It is suggested that Iranian airlines offer travel packages in the form of group and business trips with discounts on ticket prices and additional services such as carrying more luggage, boarding and disembarking from a separate gate, etc. This package aims to attract experts from industrial, commercial, academic groups, etc., who travel a lot, and can be effective in sales development.
2- In order to reduce costs caused by economic sanctions and improve the quality of airline services, it is suggested to cooperate with knowledge-based companies in the field of supplying and manufacturing aircraft consumable parts.

Highlights

Abroofarakh, M., Shahroodi, K., & Delafrooz, N. (2023). Presenting a Data-Driven Value Creation Model for Insurers with an Interpretive Structural Approach. International Journal of Knowledge Processing Studies (KPS), 3(3): 17- 28. Doi: 10.22034/kps.2023.374799.1079

Afshani, S., & Hatefirad, L. (2017). Investigate Related Factors with Work- Family Role Conflict with Emphasis on Organizational Factors Among Employed Women. Journal of Applied Sociology, 28(4), 1-18. doi: 10.22108/jas.2017.21734. (In Persian).

Ansoff, H. I., & Kipley, D., & Lewis, A.O, & Helm-Stevens, R., & Ansoff, R. (2019). Societal strategy for the business firm. In Implanting Strategic Management (pp. 285-310): Springer. DOI:10.1007/978-3-319-99599-1

Appel, G., & Grewal, L., & Hadi, R., & Stephen, A. T. (2020). The future of social media in marketing. Journal of the Academy of Marketing Science, 48(1), 79-95. DOI: 10.1007/s11747-019-00695-1

Camilleri, M. A. (2018). “The Airline Business”. Travel Marketing, Tourism Economics and the Airline Product (Chapter 10, pp. 167-177) Cham, Switzerland: Springer Nature https://ssrn.com/abstract=3289485

Chernev, A. (2018), Strategic marketing management, Cerebellum Press.

Cobena M., Gallego A., Casanueva C. (2019). Diversity in airline alliance portfolio configuration. Journal of Air Transport Management 75, pp16–26 DOI: 10.1016/j.jairtraman.2018.11.004

Collantes, Carlos (2022). Successful Airline Marketing, https://www.aeroclass.org/airline-marketing

Corbin J, Strauss A (2008), Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory, 3ed. Los Angeles, Calif: Sage Publications, Inc

Corbin, J., & Strauss, A. (2015). Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory (4th Ed.). Thousand Oaks, CA: Sage Publication

Cross, Vanessa (2022). The Goals of Values-Based Marketing, Small Business. https://smallbusiness.chron.com/goals-valuesbased-marketing-21639

Day, G. S., & Schoemaker, P. J. (2020). How vigilant companies gain an edge in turbulent times. MIT Sloan Management Review, 61(2), pp56–64

Dewsnap, B., & Micevski, M., & Cadogan J.W., & Kadic-Maglajlic S. (2020). “Flexibility in marketing & sales interfacing processes”, Industrial Marketing Management journal,91, 285–300 DOI:10.1016/j.indmarman.2020.09.005

Dini, B., & Fakharyan, M., & Masoomzadeh Zavareh, A., & Golkaran Mohgadam, S. (2018). Analyzing customers’ perceived risks in electronic tickets of airline companies based on technology acceptance model (Case study: Iran Airline Company). Jounal of Marketing Management, 13(no 41), 61-78. (In Persian).

Fatahi, H. & Khodadad Hosseini, H. (2023). Knowledge Acquisition in Market by Customer-Seller Interaction Model based on Accepting Seller's Misbehavior by Customer (Case Study: Gold and Jewelry Industry of Iran). International Journal of Knowledge Processing Studies (IJKPS), 3 (1), 51-65. DOI: 10.22034/kps.2022.361200.1050

Frederik, D., & Wiersema, M. T. (1993). “Customer intimacy and other value disciplines”, Harvard Business Review

FREDERIKSEN, LEE (2022). Strategic Marketing for Professional Services, https://hingemarketing.com

Garrett, M. (2019). The Effect of Cost Leadership Strategy on Performance of EasyJet Company, Columbus State Community College

Gill, M. (2020). “Aviation: Benefits Beyond Borders”, Air Transport Action Group

Hammerschlag, Z., & Bick, G., & Luiz, J. M. (2020). The internationalization of African fintech firms: marketing strategies for successful intra-Africa expansion. International Marketing Review, 37(2), 299-317. DOI:10.1108/IMR-05-2019-0130

Halpern, N. (2022). Airline types. In Encyclopedia of Tourism Management and Marketing, edited by Buhalis, D. Cheltenham, Edward Elgar Publishing.

IATA (2022), https://www.iata.org/en/policy

IvyPanda. (2021). Emirates Airlines' Internal and External Factors. Retrieved from https://ivypanda.com

Keller, K. L. (2017). Managing the growth tradeoff: Challenges and opportunities in luxury branding. In Advances in Luxury Brand Management (pp. 179-198): Springer. DOI:10.1057/bm.2008.47

Kirk, Ian (2022). What Is Strategic Marketing and Why Is It So Important? Opportunity Marketing, https://Opportunitymarketing.Co.Uk

Leroi-Werelds, S. (2019), “An Update on Customer Value: State of the Art, Revised Typology, and Research Agenda,” Journal of Service Management, 30 (5), 650-680. DOI:10.1108/JOSM-03-2019-0074

Mikalef, P., & Krogstie, J., & Pappas, I.O., & Pavlou, P. (2020). Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities. Information & Management, 57(2), p.103169. https://doi.org/10.1016/j.im.2019.05.004

Noami, A., & Yazdanfar, S., & Azad, N. (2019). Design of Content Marketing Strategy for Digital Business Services. Journal of Business Management, 18(1), 99-120. doi: 10.29252/jbmp.18.37.99. (In Persian).

Park, E. (2019). The role of satisfaction on customer reuse to airline services: An application of Big Data approaches. Journal of Retailing and Consumer Services (47), pp 370–374. DOI:10.1016/j.jretconser.2019.01.004

Pakparvar, M., & Mahmoudi Mimand, M., & Hosseini, M. H. (2020). Smart Digital Marketing Model (SDMM) for Developing Iran’s High-Tech Exports in Central Asia and the Caucasus. Journal of Central Asia and The Caucasus Studies, 26(110), 39-76. URL: http://ormr.modares.ac.ir/article-28-40134-fa.html (In Persian).

Sharmelly, R., & Klarin, A. (2021). Customer Value Creation for the Emerging Market Middle Class: Perspectives from Case Studies in India. Journal of Risk and Financial Management, 14(10), 455. DOI:10.3390/jrfm14100455

Shadbakhsh, A. (2023). Investigating the impact of using sustainable marketing strategies on the performance of digital businesses with the mediation of information technology in the country's real estate industry, the fifth national conference and the second international conference on new models of business management in unstable conditions,Tehran,https://civilica.com/doc/1780201. (In Persian).

Shafiei, A., & Mirabi, V. (2019). Presentation and Validation of Strategic Marketing Model in Major Steel Companies. New Marketing Research Journal, 9(2), 77-108. doi: 10.22108/nmrj.2019.109819.1628(In Persian).

Sangwon P., & Jin-Soo Lee, & Juan L. Nicolau, (2020). Understanding the dynamics of the quality of airline service attributes: Satisfiers and dissatisfiers. Tourism Management 81 (2020) DOI:10.1016/j.tourman.2020.104163

Strauss, A. L., & Corbin, j. M. (1998). Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory, 1ed. Los Angeles, Calif: Sage Publications, Inc

Tuominen, V., & Matthyssens, P. (2022). Customer Value Management of Digital Transformation: Literature Review and Conceptual Synthesis, Global Business and Technology Association, virtual twenty-third annual international conference, PP:213-222

Universari, N., & Harsono M. (2020).” The Development of Strategic Orientation in Business Research”, repository Universitas Semarang

Wang, Z. (2021). Understanding the strategy used by leading airlines (A case study of Qatar Airways). LAB University of Applied Sciences

Wang, Zh., & GUAN, Z., & Hou, F., Li, B., & Zhou, W. (2019). What determines customers’ continuance intention of FinTech? Evidence from YuEbao. Industrial Management & Data Systems. DOI:10.1108/IMDS-01-2019-0011

Zeithaml, V.A., & Verleye, K., & Hatak I., & Koller, M., & Zauner, A. (2020). Three Decades of Customer Value Research: Paradigmatic Roots and Future Research Avenues, Journal of Service Research, Volume 23, Issue 4, pp: 1-24 DOI:10.1177/1094670520948134

Zhang, F., & Graham, D. J. (2020): “Air transport and economic growth: a review of the impact mechanism and causal relationships”, Transport Reviews Journal https://doi.org/10.1080/01441647.2020.1738587

 

Keywords

Subjects


Abroofarakh, M., Shahroodi, K., & Delafrooz, N. (2023). Presenting a Data-Driven Value Creation Model for Insurers with an Interpretive Structural Approach. International Journal of Knowledge Processing Studies (KPS), 3(3): 17- 28. Doi: 10.22034/kps.2023.374799.1079
Afshani, S., & Hatefirad, L. (2017). Investigate Related Factors with Work- Family Role Conflict with Emphasis on Organizational Factors Among Employed Women. Journal of Applied Sociology, 28(4), 1-18. doi: 10.22108/jas.2017.21734. (In Persian).
Ansoff, H. I., & Kipley, D., & Lewis, A.O, & Helm-Stevens, R., & Ansoff, R. (2019). Societal strategy for the business firm. In Implanting Strategic Management (pp. 285-310): Springer. DOI:10.1007/978-3-319-99599-1
Appel, G., & Grewal, L., & Hadi, R., & Stephen, A. T. (2020). The future of social media in marketing. Journal of the Academy of Marketing Science, 48(1), 79-95. DOI: 10.1007/s11747-019-00695-1
Camilleri, M. A. (2018). “The Airline Business”. Travel Marketing, Tourism Economics and the Airline Product (Chapter 10, pp. 167-177) Cham, Switzerland: Springer Nature https://ssrn.com/abstract=3289485
Chernev, A. (2018), Strategic marketing management, Cerebellum Press.
Cobena M., Gallego A., Casanueva C. (2019). Diversity in airline alliance portfolio configuration. Journal of Air Transport Management 75, pp16–26 DOI: 10.1016/j.jairtraman.2018.11.004
Collantes, Carlos (2022). Successful Airline Marketing, https://www.aeroclass.org/airline-marketing
Corbin J, Strauss A (2008), Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory, 3ed. Los Angeles, Calif: Sage Publications, Inc
Corbin, J., & Strauss, A. (2015). Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory (4th Ed.). Thousand Oaks, CA: Sage Publication
Cross, Vanessa (2022). The Goals of Values-Based Marketing, Small Business. https://smallbusiness.chron.com/goals-valuesbased-marketing-21639
Day, G. S., & Schoemaker, P. J. (2020). How vigilant companies gain an edge in turbulent times. MIT Sloan Management Review, 61(2), pp56–64
Dewsnap, B., & Micevski, M., & Cadogan J.W., & Kadic-Maglajlic S. (2020). “Flexibility in marketing & sales interfacing processes”, Industrial Marketing Management journal,91, 285–300 DOI:10.1016/j.indmarman.2020.09.005
Dini, B., & Fakharyan, M., & Masoomzadeh Zavareh, A., & Golkaran Mohgadam, S. (2018). Analyzing customers’ perceived risks in electronic tickets of airline companies based on technology acceptance model (Case study: Iran Airline Company). Jounal of Marketing Management, 13(no 41), 61-78. (In Persian).
Fatahi, H. & Khodadad Hosseini, H. (2023). Knowledge Acquisition in Market by Customer-Seller Interaction Model based on Accepting Seller's Misbehavior by Customer (Case Study: Gold and Jewelry Industry of Iran). International Journal of Knowledge Processing Studies (IJKPS), 3 (1), 51-65. DOI: 10.22034/kps.2022.361200.1050
Frederik, D., & Wiersema, M. T. (1993). “Customer intimacy and other value disciplines”, Harvard Business Review
FREDERIKSEN, LEE (2022). Strategic Marketing for Professional Services, https://hingemarketing.com
Garrett, M. (2019). The Effect of Cost Leadership Strategy on Performance of EasyJet Company, Columbus State Community College
Gill, M. (2020). “Aviation: Benefits Beyond Borders”, Air Transport Action Group
Hammerschlag, Z., & Bick, G., & Luiz, J. M. (2020). The internationalization of African fintech firms: marketing strategies for successful intra-Africa expansion. International Marketing Review, 37(2), 299-317. DOI:10.1108/IMR-05-2019-0130
Halpern, N. (2022). Airline types. In Encyclopedia of Tourism Management and Marketing, edited by Buhalis, D. Cheltenham, Edward Elgar Publishing.
IvyPanda. (2021). Emirates Airlines' Internal and External Factors. Retrieved from https://ivypanda.com
Keller, K. L. (2017). Managing the growth tradeoff: Challenges and opportunities in luxury branding. In Advances in Luxury Brand Management (pp. 179-198): Springer. DOI:10.1057/bm.2008.47
Kirk, Ian (2022). What Is Strategic Marketing and Why Is It So Important? Opportunity Marketing, https://Opportunitymarketing.Co.Uk
Leroi-Werelds, S. (2019), “An Update on Customer Value: State of the Art, Revised Typology, and Research Agenda,” Journal of Service Management, 30 (5), 650-680. DOI:10.1108/JOSM-03-2019-0074
Mikalef, P., & Krogstie, J., & Pappas, I.O., & Pavlou, P. (2020). Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities. Information & Management, 57(2), p.103169. https://doi.org/10.1016/j.im.2019.05.004
Noami, A., & Yazdanfar, S., & Azad, N. (2019). Design of Content Marketing Strategy for Digital Business Services. Journal of Business Management, 18(1), 99-120. doi: 10.29252/jbmp.18.37.99. (In Persian).
Park, E. (2019). The role of satisfaction on customer reuse to airline services: An application of Big Data approaches. Journal of Retailing and Consumer Services (47), pp 370–374. DOI:10.1016/j.jretconser.2019.01.004
Pakparvar, M., & Mahmoudi Mimand, M., & Hosseini, M. H. (2020). Smart Digital Marketing Model (SDMM) for Developing Iran’s High-Tech Exports in Central Asia and the Caucasus. Journal of Central Asia and The Caucasus Studies, 26(110), 39-76. URL: http://ormr.modares.ac.ir/article-28-40134-fa.html (In Persian).
Sharmelly, R., & Klarin, A. (2021). Customer Value Creation for the Emerging Market Middle Class: Perspectives from Case Studies in India. Journal of Risk and Financial Management, 14(10), 455. DOI:10.3390/jrfm14100455
Shadbakhsh, A. (2023). Investigating the impact of using sustainable marketing strategies on the performance of digital businesses with the mediation of information technology in the country's real estate industry, the fifth national conference and the second international conference on new models of business management in unstable conditions,Tehran,https://civilica.com/doc/1780201. (In Persian).
Shafiei, A., & Mirabi, V. (2019). Presentation and Validation of Strategic Marketing Model in Major Steel Companies. New Marketing Research Journal, 9(2), 77-108. doi: 10.22108/nmrj.2019.109819.1628(In Persian).
Sangwon P., & Jin-Soo Lee, & Juan L. Nicolau, (2020). Understanding the dynamics of the quality of airline service attributes: Satisfiers and dissatisfiers. Tourism Management 81 (2020) DOI:10.1016/j.tourman.2020.104163
Strauss, A. L., & Corbin, j. M. (1998). Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory, 1ed. Los Angeles, Calif: Sage Publications, Inc
Tuominen, V., & Matthyssens, P. (2022). Customer Value Management of Digital Transformation: Literature Review and Conceptual Synthesis, Global Business and Technology Association, virtual twenty-third annual international conference, PP:213-222
Universari, N., & Harsono M. (2020).” The Development of Strategic Orientation in Business Research”, repository Universitas Semarang
Wang, Z. (2021). Understanding the strategy used by leading airlines (A case study of Qatar Airways). LAB University of Applied Sciences
Wang, Zh., & GUAN, Z., & Hou, F., Li, B., & Zhou, W. (2019). What determines customers’ continuance intention of FinTech? Evidence from YuEbao. Industrial Management & Data Systems. DOI:10.1108/IMDS-01-2019-0011
Zeithaml, V.A., & Verleye, K., & Hatak I., & Koller, M., & Zauner, A. (2020). Three Decades of Customer Value Research: Paradigmatic Roots and Future Research Avenues, Journal of Service Research, Volume 23, Issue 4, pp: 1-24 DOI:10.1177/1094670520948134
Zhang, F., & Graham, D. J. (2020): “Air transport and economic growth: a review of the impact mechanism and causal relationships”, Transport Reviews Journal https://doi.org/10.1080/01441647.2020.1738587
Volume 4, Issue 4 - Serial Number 14
Winter 2025
Pages 214-237

  • Receive Date 13 October 2023
  • Revise Date 25 December 2023
  • Accept Date 31 January 2024