Boeing Case

1. Introduction:

In nowadays, the competition between companies are more keener than past. Each

company has to innovate more ideas or improve their technology, then they may get

more advantages to compete with other companies. In other words, always try to think

about the customer's side, what kind the product should we need to invent , and what

kind the product does our customer need; If a company can predict it, that will be very

useful information for this company. Boeing is one of the successful companies.

It's very interesting to analyze this case about Boeing.

Boeing is the biggest aerospace manufacture in the world. This company start in

1916, and it's about 94 years ago. That's why they know how to keep a good

relationship with customer is the most important part in a company. The salespeople

must to keep the contact with the customer and make sure the product they sold is

satisfied, even after they received the order. A successful relationship with customer

is relied on trust and their performance. "When we sell an airplane, it seems like

getting married." Quips Alan Mallaly, the head of Boeing's commercial airplane

division. "Have a good relationship with customer is very important, and it will be a

long-term relationship." There is a slang from China: You may earn the money in a

short time, but if you can keep a good relationship with your customer, then you can

earn more money and longer.

This article shows that Boeing try to design a new airplane (Dreamliner) which

can save more than 20 percent fuel than comparably sized planes, more legroom and

less 40 percent noise compare with other planes in the same class. This design was

launched in April 2004. This new design was expected can increase the revenue and

replace the old style plane. After they received the order, they could not give the

planes that customer ordered, and the worst thing is all the orders was delayed at least

15 months past the original deadline. However, the problem Boeing made will most

certainly affect customer relations and future orders. On the other hand, they also

give a chance for their competitor, because the customer may switch the order to

them.

2. In-depth analysis:

In the past, the sense of marketing is how to sale more product, increase the revenue; the sense by now is fingering out how to satisfied customer needs.

A Simple Model of the Marketing Process.

The first step of marketing process is understanding the marketplace and

customer needs and wants. It's the most important step in the process, every

company before they create new product, they must to think about what kind the

product is customer needs and wants, because if the product is not customer wants or

needs, then nobody will buy it. That's why the first step is so important. In this case,

Boeing try to improve the plane's work efficiency, they design a new plane can save

more than 20 percent fuel, because the price of fuel is increasing every year, and the

fuel cost is about 25 percent in total cost of airplane company. If an airplane company

can reduce consumption of fuel, then the profit will be increased. That's what they

want. Thus, Boeing want to design a new plane which offer bigger legroom, higher

cabin pressure and humidity, that can help all the passengers can feel more

comfortable during their flying, but use less fuel.

After the first stop, the second step is designing a customer-driven marketing

strategy. The company must to select which market will be their target. The target

market for Boeing is all the airplane companies. Thus, Boeing should think about how

to make a strategy can attract their customer to order the plane.

Environmental Organizational Interpersonal Individual

Economic

Developments

Technological

change Objectives

Policies

Organizational

structure Authority

Status

Empathy

Persuasiveness Age

Income

Education

Personality

Major Influences on Business Buyer Behavior

Many reasons can affect the Business buyer when they make the buying decision.

Most people think the economic situation in the future could be the major influences.

If the economic is very bad in the future, then number of people who buy the ticket

must be decrease, so airplane company will not purchased more planes, because buy

more planes will cause higher risk. Buyer also are affected by technological and

political