Executive Summary
The marketing management of Airbnb was looked at in this case study. The organization has used the marketing mix to attract potential customers through a value-based pricing strategy, targeted segmentation, and advertising and promotion. In addition, Airbnb has customized its marketing strategies using a data-driven approach, built a robust loyalty program, and prioritized giving customers a wonderful experience. Additionally, SWOT analysis and the Ansoff Matrix have been used by Airbnb to develop effective marketing strategies. Overall, Airbnb’s marketing mix is well-balanced, contributing to its success as one of the most successful start-ups ever.
Introduction
In my case study on many facets of marketing management, I highlight Airbnb. People can rent or lease short-term accommodations, primarily homestays and tourism experiences, on the online marketplace known as Airbnb. Since its founding in 2008, Airbnb has grown exponentially, making it one of the most successful start-ups ever. Pricing, segmentation, and advertising are marketing management factors that apply to Airbnb. With a creative marketing strategy, segmentation, and a robust loyalty program, the company has produced satisfying customer experiences.
Literature Review
Marketing Mix
The case study regarding Airbnb utilizes various aspects, as analyzed below. The group of components known as the marketing mix is used to develop and carry out a marketing plan. According to Khan et al. (2019) and Darmawan and Grenier (2021), the marketing mix consists of the four Ps (product, pricing, place, and promotion). The marketing mix’s essential pricing component, which also establishes how much buyers are ready to pay for goods and services, is pricing (Darmawan and Grenier, 2021; Olson and Grunert, 1999). The approach used to determine the fair price for goods and services is referred to as the pricing strategy described by Yang et al. (2019).
Segmentation and Promotion
To better target marketing efforts to fulfill customers’ demands, segmentation aims to identify groups of customers with similar traits and requirements (Dolnicar, 2021; Peter, Olson, and Grunert, 1999). Segmentation can be based on behavioral, psychographic, geographic, or demographic traits. Moreover, while promotion uses activities like discounts, events, and sponsorships to raise awareness and boost sales, advertising uses paid media to spread a message to a particular audience (Darmawan and Grenier, 2021; Dolnicar, 2021).
Marketing Management Concepts
To achieve organizational objectives, marketing management is creating, putting into operation, and overseeing marketing strategies and methods. It entails comprehending the requirements and desires of the client, developing marketing strategies and plans to satisfy those needs and desires, and monitoring and assessing the success of those plans (Varadarajan, 2020; Oliva, 2022).
Marketing Plan
A marketing plan is a written document that details the strategy, procedures, and financial allocation for marketing initiatives (Oliva, 2022; Peter, Olson, and Grunert, 1999). It should have objectives and goals, a communications plan, a budget, and an analysis of the present market and rivals.
Market Analysis
A SWOT analysis analyses a company’s opportunities, threats, weaknesses, and strengths. It is used to pinpoint areas where the company can obtain a competitive edge and weak spots where it has to strengthen. Peterdy (2023) and Dudovskiy (2019) state that the Ansoff Matrix is a technique used by managers to find prospective corporate growth options. It lists four potential growth strategies: product development, market development, market penetration, and diversification (Dudovskiy, 2019). Based on the present market and their available resources, it can assist managers in determining the optimal approach for their company.
Application of Theory to Practice
Marketing Management Concept, Process, and Strategies
A thorough marketing management plan, which Airbnb has developed, has proven crucial to its success. Value-based pricing is the company’s preferred method, with costs determined by how customers perceive value. To better serve each segment’s needs, Airbnb has divided its client base into groups based on their demographic, psychographic, geographic, and behavioral factors (Dudovskiy, 2019). Additionally, the business has employed targeted marketing and advertising to raise knowledge of and interest in its goods and services.
Marketing Mix
The customer experience and convenience are central to Airbnb’s marketing strategy. Customers can make reservations online or through the company’s mobile app for various services, including traditional lodging and unique experiences. The critical component of Airbnb’s business strategy is price, and the company employs a dynamic pricing model where rates are adjusted in response to supply and demand.
Airbnb uses targeting and segmentation strategies to draw in the most appropriate clients. The company uses collaborations with other businesses in addition to digital channels like social media and search engine optimization as part of its advertising and promotion tactics to reach potential clients. Superhost, the company’s program that awards hosts for providing excellent service, has contributed to Airbnb’s ability to maintain its high level of client satisfaction.
Marketing Models
Airbnb has utilized SWOT analysis to pinpoint areas for improvement and seize growth possibilities. For instance, one of Airbnb’s key advantages is its solid brand awareness and reputation as a reliable vacation platform. This has made it possible for Airbnb to seize development possibilities in new markets and develop new goods and services to fulfill the demands of their clients (Airbnb marketing strategy and mix: 4 creative tactics to skyrocket your success 2023). In addition, Airbnb has employed SWOT analysis to spot prospective threats that might affect business operations, such as competition from other online travel agencies (Dudovskiy, 2019). Moreover, one of the company’s shortcomings is its inability to set itself apart from its rivals’ offerings, so it developed a component called Experiences to provide users with unique, local experiences and lodging.
The firm further noted that the Chinese market represented their most incredible opportunity. They took advantage of it by providing Chinese language assistance, local payment choices, and a customer service team stationed in Beijing. Airbnb has also utilized the Ansoff Matrix to create successful marketing strategies. For instance, Airbnb has concentrated on growing its selection of services, including experiences, upscale travel, and property management services. Due to this, Airbnb has been able to tap into already-existing markets and reach out to potential new clients who may have yet to consider utilizing the site.
Moreover, Airbnb has created marketing campaigns aimed at current customers using the Ansoff Matrix. As a result, Airbnb has seen a rise in repeat business and consumer loyalty (Dudovskiy, 2019). Airbnb has also used segmentation to identify customer segments and customize its marketing strategies accordingly.
Conclusion and Recommendations
According to research on Airbnb’s marketing strategy, the business has successfully employed several tactics to attract new clients and keep its existing clientele happy. This has been accomplished through a data-driven methodology to segment customers and modify marketing, targeted marketing, and advertising to increase awareness of and interest in its products and services, as well as cost-based, value-based, and competitive pricing tactics to establish prices. Based on the results of this investigation, Airbnb should concentrate on employing customized advertising to connect with the right client groups. Airbnb should also consider expanding its rewards program to encourage repeat business and boost consumer loyalty. Finally, Airbnb should also consider diversifying the products they offer.
Reference List
Airbnb marketing strategy and mix: 4 creative tactics to skyrocket your success (2023) CoSchedule Blog. Web.
Darmawan, D. and Grenier, E. (2021) ‘Competitive advantage and service marketing mix‘, Journal of Social Science Studies (JOS3), 1(2), pp. 75–80. Web.
Dolnicar, S. (2021) ‘Market segmentation analysis in tourism: A perspective paper‘, Tourism Review, Emerald Publishing Limited, 75 (1), pp. 45-48. Web.
Dudovskiy, J. (2019) Airbnb SWOT analysis – research-methodology, Research. Web.
Khan, E.A. et al. (2019) ‘The impact of enviropreneurial orientation on small firms’ Business Performance: The Mediation of Green Marketing Mix and eco-labeling strategies‘, Sustainability, 12(1), p. 221. Web.
Oliva, R. (2022) ‘A high-level overview: A value perspective on the practice of business-to-business marketing‘, Handbook of Business-to-Business Marketing [Preprint]. Web.
Peterdy, K. (2023) Ansoff matrix, Corporate Finance Institute. Web.
Peter, J.P. Olson, J.C. and Grunert, K.G. (1999) ‘Consumer behavior and marketing strategy’, London: McGraw-Hill, 07, pp. 329-348.
Varadarajan, R. (2020) ‘Customer Information Resources Advantage, marketing strategy and Business Performance: A Market Resources Based View‘, Industrial Marketing Management, 89, pp. 89–97. Web.
Yang, S.-B. et al. (2019) ‘In Airbnb we trust: Understanding consumers’ trust-attachment building mechanisms in the sharing economy‘, International Journal of Hospitality Management, 83, pp. 198–209. Web.