Evaluation of the Customer Management and Relationship Marketing Plan for Southwest Airlines

Grace S. Thomson, Nevada State College

Abstract

Evaluation of the Customer Management and Relationship Marketing Plan for Southwest Airlines

Successful firms choose their strategic orientation using a trade-off process (Rust, Lemon & Zeithmal, 2004) to prioritize aspects of their marketing mix in the short and long-term. This marketing mix must balance customer needs and positioning in the market (Best, 2009). Southwest Airlines (SWA), one of the most profitable domestic airlines, has been studied by scholars and practitioners interested in their successful model of value delivery, employee commitment and sustainability. Its dedication to “warmth, friendliness, individual pride, and Company Spirit” (Southwest, 2008) makes SWA an exemplary case of customer management and relationship marketing in action.

This study will address the elements of the strategic orientation of Southwest Airlines through a scholarly approach to assess their choice of marketing strategy (Slater, Olson & Hult, 2006), assess its long-term sustainability, their segmentation and targeting strategies (Weinstein, 2007), value delivery (Parasuranam et al, 1988), their ethical behavior (Freeman, 1988); uses of marketing research (Boguslaski et al, 2004), and the effectiveness of customer relationship strategies (Lacey, 2007). A final section assess SWA theoretical matching and proposes recommendations for best practices for future businesses in the airline industry.