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Marketing Guidebook for Small Airports (2010)

Chapter: Part 2 - Preparation and Execution of a Marketing Plan

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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
×
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
×
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
×
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
×
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
×
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
×
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
×
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
×
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Suggested Citation:"Part 2 - Preparation and Execution of a Marketing Plan." National Academies of Sciences, Engineering, and Medicine. 2010. Marketing Guidebook for Small Airports. Washington, DC: The National Academies Press. doi: 10.17226/14353.
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Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

PART 2 PREPARATION AND EXECUTION OF A MARKETING PLAN

11 CHAPTER 3 SCOPE OF YOUR MARKETING PLAN 3.1 Step 1—Defining Marketing Goals and Objectives 3.2 Assemble the Planning Team 3.3 Brainstorm the Marketing Issues 3.4 Marketing Goals and Objectives—First Draft 3.5 Research Findings: Marketing Goals Reported by Airport Managers 3.1 STEP 1—DEFINING MARKETING GOALS AND OBJECTIVES The first step in creating a marketing plan is to define marketing goals and objectives. Every marketing pro- gram needs a scope, goals, and measurable objectives to make sure that the marketing effort is working. It is important to put time into this initial planning effort. It will require brainstorming, analysis, review, and probably revision. Key stakeholders of the airport should participate. Step 1 Step 2 Step 3 Goals/Objectives Redefine Goals/Objectives SWOT Resources Source: GMH Consulting, LLC This Guidebook recommends two passes at defining the scope of your marketing plan. Most airports know the important issues and opportunities to address. Maybe there is one single issue or two or three areas to address. They should be identified in this first step. Then, following further analysis of the situation, it is useful to come back to the initial marketing goals and objectives and fine tune them. This process allows consideration of mul- tiple viewpoints and the opportunity to prioritize and narrow the marketing goals to a manageable set. 3.2 ASSEMBLE THE PLANNING TEAM Marketing programs involve airport staff, volunteers, stakeholders, and your customer base. It is important to get your planning team on board as soon as possible. The planning team should include representation from individuals and groups that have a vested interest in the long-term success of the airport. Select team mem- bers that (1) represent key stakeholders in your airport, (2) are willing to commit time to the effort, and (3) will serve as good contributors. Make sure that there is cross representation on your team. This will help the group

12 Marketing Guidebook for Small Airports consider different futures for the airport and different marketing activities. Ideally, the planning team should include representation from the following groups: • Airport management • Airport tenants • Businesses that use the airport • Airport governing body (City Council, Airport Authority, or Advisory Committee) • Economic development group 3.3 BRAINSTORM THE MARKETING ISSUES Before defining the scope of your marketing program, you might want to look over the list in Exhibit 3.1 and ask the planning team members to jot down their first thoughts. This exercise is intended to elicit your first impres- sion or “top of mind awareness.” It is a useful place to start. Exhibit 3.1—Issues Exercise for the Planning Team. • Our customers think . . . • Our employees always . . . • We stand out from the competition because . . . • Our airport is known for its . . . • We are great at . . . • We want our customers to . . . • We want to be remembered for . . . • We are proud of . . . • What makes us different is . . . • We have gotten better at . . . • We strive to . . . • We have achieved . . . • Our community thinks . . . • Our community would like . . . Source: KRAMER aerotek, inc. In the case of Greeley-Weld County Airport, their planning team reached the following conclusions about the report: • We strive to provide a safe, efficiently run, cost-competitive facility that offers excellent access to the northern Front Range and Denver metropolitan area and a high level of service to our airport tenants and visitors. • We are known as the fifth busiest airport in Colorado. • Our customers like the outstanding restaurant at the airport and the terminal. • The pilots appreciate the 10,000-ft runway, unrestricted airspace and instrument landing systems (ILS), but would like to see the air traffic control tower finally built. • We strive to keep the airfield open with the use of excellent snow removal services and a fully capable Aircraft Rescue and Firefighting response team. • We are proud to generate $121 million in economic activity each year. • We are proud to be economically self-sufficient. Airport revenues cover all operating expenses. • We strive to improve access to the east side of the airport, extend infrastructure, and attract new busi- ness to this area of the airport. Following this exercise, you can group the responses and prioritize them. This will give you information about how the airport is perceived and what are the main issues.

3.4 MARKETING GOALS AND OBJECTIVES—FIRST DRAFT In this section, you will prepare a first draft of the airport marketing goals and objectives. First, review the def- initions of goals and objectives and the examples provided. At this stage, exact wording is not as important as identifying the most important marketing issues to address. 3.4.1 DEFINITIONS In marketing textbooks and articles, goals and objectives are sometimes used interchangeably. To avoid con- fusion, have the planning team adopt these working definitions: • Goals are general statements about what an airport wants and expects to accomplish in the future. • Objectives are defined as realistic and measurable targets established to evaluate and track progress during the implementation of the marketing plan. Marketing objectives are typically short term and achievable within the timeframe of the marketing plan. • Actions are specific activities that support achievement of an objective. Exhibit 3.2 provides an example of an airport’s goals, objectives, and actions. Remember that your objectives should be realistic and achievable. When an objective has a measurable target, it is easy to know if you are making progress. After the objective is set, you can identify activities to achieve the objective. Exhibit 3.2—Example of Airport Marketing Goals, Objectives, Actions. Goal Achieve Financial Self-sufficiency Objective Lease Vacant Airport- Owned Hangars Action Contact Existing Aircraft Owners at Airport Action Advertise on Airport Website Action Hold an Airport Tenant Meeting to Discuss Ideas Action Work With Local Economic Development Organization for Leads & Follow-up Objective Attract One New Business to the Airport Source: KRAMER aerotek, inc. Scope of Your Marketing Plan 13

14 Marketing Guidebook for Small Airports The example shown in Exhibit 3.3 is applicable to many general aviation airports. It shows how Greeley-Weld County Airport translated the goal to improve the appearance of the airport into a specific objective and several actions. Exhibit 3.3—Example of Greeley-Weld County Airport Marketing Goal, Objectives, Year 1 Actions. Goal Improve Appearance of Airport Objective Initiate, Design & Complete Landscape Project at Airport Entry Action Evaluate Resources for a Volunteer Effort Action Seek Public Partnership for Materials Acquisition Action Recruit Volunteer Landscape Designer Action Prepare Multi-Year Landscape Design Action Complete Year 1 Landscaping Source: Adapted from Greeley-Weld County Airport Economic Development Plan 3.4.2 EXAMPLES FROM YUBA COUNTY AND CHATTANOOGA AIRPORTS Two other airport examples might further stimulate your discussion of goals and objectives. EXAMPLE #1: YUBA COUNTY AIRPORT’S GOALS Yuba County Airport, a 1,000 acre general aviation facility located in north central California, prepared a strate- gic marketing plan for the airport and listed the following goals: 1. “Strengthen the Airport image and integrate its role within the Yuba-Sutter community. 2. Support the economic development activities of the County. 3. Develop programs, policies, and procedures to improve and enhance the financial growth of the Yuba County Airport. 4. Stimulate private and public interest and investment in the Airport and industrial parks.

Goal Strengthen the Airport Image & Integrate Its Role With the Community Objective Increase Public Awareness Action Host Regional Air Show Action Update Webpage & Post Strategic Plan Action Create a New Airport Logo Action Develop a Marketing Brochure Source: Yuba County Airport, Strategic Plan 2008. Adapted by KRAMER aerotek, inc. EXAMPLE #2: CHATTANOOGA’S AIR SERVICE GOALS AND OBJECTIVES Some commercial service airports create separate marketing plans devoted entirely to air service. One exam- ple is “A Strategic Plan to Improve Commercial Air Service in Chattanooga,” developed by Chattanooga as part of its Challenge 2010 program. It lists five goals: (1) bring fares into balance, (2) improve airline service, (3) improve customer service, (4) market aggressively, and (5) create a fund to address unforeseen circumstances. Within Chattanooga’s fourth goal to “market aggressively” are the following separate objectives: • “Reduce airport leakage by aggressively advertising and promoting Chattanooga Metropolitan Airport as a convenient, reliable, cost-competitive regional alternative to flying out of Atlanta, Nashville, Birmingham, and Knoxville. • Reverse lingering misperceptions about Chattanooga air service and heighten awareness of the Chattanooga airport. • Re-engage the travel agencies as partners in meeting the challenge. • Encourage community ownership of the air service problem and its solutions, much as Chattanooga Venture did in the mid-80s with its ‘commitment portfolio.’ This includes engaging the local media in a part- nership to ‘get the talk right’ about the airport and to encourage locals to avail themselves of its service.” Scope of Your Marketing Plan 15 5. Sustain and protect the airport and its enhancements. 6. Continue to participate and sponsor pilot safety programs.” Taking the first goal as an example, Exhibit 3.4 diagrams the goal, objective, and action items listed in the Yuba County Airport Strategic Plan 2008. Exhibit 3.4—Example of Yuba County Airport Marketing Goal, Objectives, and Actions.

16 Marketing Guidebook for Small Airports Chattanooga’s Challenge 2010 Strategic Plan includes goals, short-term objectives (6–12 months), mid-term objectives (12–24 months), and long-term objectives (24–60 months). The objectives are realistic and mea- surable and lead directly into an action plan. 3.4.3 YOUR AIRPORT’S MARKETING GOALS AND OBJECTIVES Now it is time to draft your airport’s marketing goals and objectives. The first draft of marketing goals and objec- tives is an ideal task for the planning team. Start with the top issues that you prioritized at the beginning of this chapter and separate out those issues that would benefit directly from marketing or public relations. This is not an easy task. There is often a temptation to describe goals and objectives in great detail, but a sim- ple statement is ideal. Exhibit 3.5 presents a few topics for your goals. Exhibit 3.5—Topics Covered by Airport Marketing Goals. • Community awareness of the airport • Public relations around airport projects, safety, noise, and land use • Air service development, retention, or reinstatement • Passenger growth and retention • Growth of existing activities and business • Growth or development of a new activity/business at the airport Source: KRAMER aerotek, inc. TYPES OF MARKETING GOALS If you are having difficulty formulating goals and objectives, you might consider the most common marketing goals for all industries. These include the following: • Market Expansion • Market Focus or Segmentation • Cost Leadership • Quality A brief description of the different goals follows. Market Expansion is the most common goal in marketing. Market expansion is accomplished by attracting new customers or new users to the airport. This is typically accomplished by (1) attracting users from a new geographic area and/or (2) offering new products or services to the airport’s existing or new users. In the late 1990s, network airlines accomplished their goal of market share expansion by increasing frequencies in markets that they wanted to dominate. Airports also sought to enhance their position as either an important spoke in a carrier’s hub structure or as a focus city. On the general aviation side, some airports have pursued their goal of market expansion by hiring outside developers to build facilities that will attract new business or based aircraft to the airport. Market Focus means specializing in a particular service or focusing on a particular type of customer. The benefits of a market focus goal are as follows:

• The airport is able to concentrate its resources for a particular group of users. • The airport’s specialty may gain local, regional, national, or international recognition. • The airport can effectively differentiate itself from competing airports. Exhibit 3.6 is an example of market specialization. After Hurricane Katrina, Houma-Terrebonne Airport in Louisiana became a staging area for offshore oil helicopter support. As a result of identifying and acting on an immediate demand, Houma-Terrebonne Airport now serves as a base for several helicopter companies that provide logistics support to offshore oil operations in the Gulf of Mexico. Exhibit 3.6—Houma-Terrebonne Airport: An Example of Market Focus Strategy. Photo Copyright Oscar Bernardi via Airliners.net Cost Leadership means striving to offer the lowest cost alternatives in the area, for example: lowest airport rates and charges, lowest cost air service, competitive ground leases, and lowest rates on aircraft services or fuel. Quality means striving to offer users a higher quality product or service than the competition. Location, conve- nience and safety are among the most important factors for basing an aircraft. Quality of customer service and culture projected by aircraft servicing companies and fixed based operators (FBOs) are also important factors. SMART OBJECTIVES AND ACTIONS Based on your airport priorities, draft a simple statement of the goals for your marketing plan. For each goal, write down a set of objectives. The objectives are really the starting point of the marketing plan and will answer the question: “Where do we want to go?” Marketing experts talk about SMART objectives. These are objec- tives that are 1. Specific, 2. Measurable, 3. Achievable, 4. Realistic, and 5. Timed. Scope of Your Marketing Plan 17

18 Marketing Guidebook for Small Airports Goals that have to do with passengers, airport development, airport operations, or airport finance lend them- selves to SMART objectives because achievement is readily measured as shown in Exhibit 3.7. Exhibit 3.7—Examples of SMART Objectives for Airport Activity. • Market Share: Increase passenger enplanements by 5% • Hangar Occupancy: Fill vacant hangars owned by airport (known quantity) within 12 months • Fuel Sales: Increase gallons (or fuel flowage fees) of fuel sold by 10% • Customer Growth: Obtain a Department of Defense fuel contract within 12 months • Tenant Expansion: Issue one new ground lease to a new tenant in the next 18 months Source: KRAMER aerotek, inc. Not surprisingly, some goals and objectives are more difficult to quantify such as goals that address airport aware- ness and identity. Progress on these goals is more readily measured by accomplishment of certain activities or separate awareness surveys. For example, you may want to focus this year’s marketing plan on raising commu- nity awareness of the airport. Exhibit 3.8 shows some measurable actions associated with each objective. Exhibit 3.8—Actions That Demonstrate Effort to Achieve Awareness and Identify Goals. • Objective # 1: Increase visibility of the airport in the media and on the Internet.  Action 1: Obtain three feature stories in local media (radio, TV, newspaper) in the next 12 months.  Action 2: Increase hit rate on the airport website by 15%. • Objective # 2: Raise awareness of aviation in the schools.  Action 3: Increase the number of school tours of the airport to five per year. • Objective # 3: Raise awareness of the airport’s economic contribution to the community.  Action 4: Publish and distribute economic impact brochure.  Action 5: Organize quarterly speaking engagements at civic groups. Source: KRAMER aerotek, inc. YOUR AIRPORT GOALS AND OBJECTIVES In summary, your airport’s marketing goals and objectives will be written to address the most important areas where marketing and public relations can have a positive impact. Exhibit 3.9 is a short worksheet that you can use as a framework to draft marketing goals and objectives.

Exhibit 3.9—Marketing Goals and Objectives Worksheet. Airport’s Most Important Marketing Goal SMART objectives to achieve this goal in the next 12 months: 1.1: 1.2: Airport’s Second Most Important Goal SMART objectives to achieve this goal: 2.1: 2.2: 2.3: Additional Goals and Objectives as needed. Source: KRAMER aerotek, inc. 3.5 RESEARCH FINDINGS: MARKETING GOALS REPORTED BY AIRPORT MANAGERS For those readers interested in more ideas about marketing goals, this section contains findings from research completed for this project. Managers of small commercial service airports and general aviation airports were asked to rank a set of airport marketing goals that they thought were important. Twelve commercial service air- ports and sixteen general aviation airports were interviewed. COMMERCIAL SERVICE AIRPORTS—MARKETING GOALS • Nearly all commercial service airports reported that their primary marketing goals—in terms of impor- tance, time devoted, and money spent—related to air service development. Improving air service, attracting passengers, and retaining existing carriers are the three primary marketing goals of small commercial service airports. • In connection with air service, a number of airports said specifically that raising “awareness” in the region was their primary focus. In other words, many area residents did not know that their local air- port offered commercial air service, or assumed that the local service was not competitive with that offered at larger airports. • The more general goal of promoting a positive view of the airport in the community is considered of equal importance to air service development, but is not ranked as high in terms of time devoted or money spent. • The marketing goals ranking next in importance are (a) attracting new businesses to the airport and (b) attracting more general aviation. • Slightly more airports placed greater importance on lobbying their congressional delegations than on attracting developers to the airport. This is likely to be a function of airports seeking help with Essential Air Service issues or federal grants (see Exhibit 3.10). Scope of Your Marketing Plan 19

20 Marketing Guidebook for Small Airports Exhibit 3.10—Marketing Goals Reported by Commercial Service Airports. 0 5 10 15 Attract passengers Promote positive view of airport in the community Improve air service Retain existing carriers Attract new businesses to the airport Attract more general aviation or business activity Lobby congressional delegation Attract developers to the airport Address public safety, noise & land use issues Market hangars Number of Airports Reporting Source: Airport Manager Survey 2008, Oliver Wyman GENERAL AVIATION AIRPORT—MARKETING GOALS • For general aviation airports, the goals of attracting new business to the airport, retaining current air- port tenants, and attracting more general aviation or business activity ranked as very important and were the general aviation equivalent of the air service development priorities of the commercial service airports. • As at the commercial service airports, promoting a positive view of the airport ranked very high. For general aviation airports, this goal ranked second in importance only to attracting new business to the airport, and was the goal on which airport managers spent the most time. • The following goals were ranked next and were of equal importance: promoting the airport to funding sources; addressing public safety, noise, and land use issues; attracting developers to the airport; and marketing hangars. • The one unexpected marketing goal that general aviation airports listed as very important was the rein- statement of commercial air service. Three airports that had lost commercial air service listed this as one of their most important marketing priorities. • For general aviation airports, lobbying their congressional delegation was the least important of the major marketing goals (see Exhibit 3.11).

Exhibit 3.11—General Aviation Airport Marketing Goals. 0 2 4 6 8 10 Attract new business to the airport Promote positive view of airport in the community Retain current airport tenants Attract more general aviation or business activity Promote airport to funding sources Address public safety, noise & land use issues Attract developers to the airport Market hangars Reinstate air service Lobby congressional delegation Number of Airports Reporting Source: Airport Manager Survey 2008, KRAMER aerotek, inc. Scope of Your Marketing Plan 21

22 CHAPTER 4 ENVIRONMENT AND RESOURCES 4.1 Step 2—SWOT Analysis and Resource Assessment 4.2 SWOT Analysis 4.3 Resource Assessment 4.4 Conclusions 4.1 STEP 2—SWOT ANALYSIS AND RESOURCE ASSESSMENT Chapter 3 outlined the initial steps for identifying important marketing issues for the airport. This chapter outlines the steps to dig deeper and clarify the airport’s strengths and weaknesses, as well as the resources available (people and money) to help market the airport. Step 1 Step 2 Step 3 Goals/Objectives Redefine Goals/Objectives SWOT Resources Source: GMH Consulting, LLC An airport SWOT analysis and resource assessment (referred to collectively as a self-assessment) is critical to formulating an effective and focused marketing plan. With this analysis, it will be easier to (1) focus the goals of the marketing plan, (2) strengthen the airport’s identity, (3) clarify the messages that the airport will convey, and (4) and construct a marketing program within a framework of available resources. Airports that do not have a current marketing plan will find this chapter helpful. Airports that already have a mar- keting plan may want to skim this chapter. For those readers interested in a detailed approach to self-assessment (including useful worksheets), please refer to Chapter 13. 4.2 SWOT ANALYSIS The most important analysis underlying any airport marketing plan is the SWOT analysis, an assessment of the airport’s strengths, weaknesses, threats, and opportunities. Conducting a SWOT analysis is necessary because the results of the analysis show the paths forward for the airport that are realistic versus those that are not. The four categories of information collected in a SWOT analysis are described in Exhibit 4.1.

Multiple sources of information, both from self assessments and from external sources, may be used to com- plete the SWOT analysis. What is important is not the source of the information but that the airport obtains an honest and accurate picture of its strengths, weaknesses, opportunities, and threats. One source of information used in the SWOT analysis is customer reviews. There are many ways to get cus- tomer feedback: postcard or Internet surveys; comment blogs or surveys on the airport website; comment cards in the terminal or at the FBO. For tenants, simple surveys or a tenant event such as a meeting, happy hour, or tenant appreciation day, are excellent ways to get feedback for SWOT analysis. Exhibit 4.2 is a set of prompts to engage your customers in how the airport is used and perceived. Environment and Resources 23 Weaknesses The weaknesses the airport wants to remedy or exit Strengths The strengths the airport wants to maintain, build on, and leverage Goals of the SWOT Analysis Opportunities The opportunities the airport wants to prioritize and optimize Threats The threats the airport wants to address Exhibit 4.2—Topic Prompts for Customer Reviews. VISITORS, PASSENGERS, AND PILOTS • We use the airport for . . . • These services are well priced . . . • These services are too expensive . . . • The most convenient aspects of the airport are . . . • The least convenient aspects of the airport are . . . • Would you recommend the airport to others? • Was it easy to find the airport? • Aircraft/car parking was . . . • General cleanliness of the terminal was . . . • Your encounter with airport staff was . . . • I will remember the airport for . . . Exhibit 4.1—Diagram of a SWOT Analysis. Source: KRAMER aerotek, inc.

TENANTS • The most important airport improvement is . . . • We chose to lease at this airport because . . . • Other businesses that may be interested in this airport are . . . • Our customers like this airport because . . . Source: KRAMER aerotek, inc. One of the primary purposes of completing a SWOT analysis is to enable the airport to determine how it compares to its peers and the competition. What unique advantages does the airport have that it can take advantage of to attract passengers, pilots, businesses, or other tenants? In general, for commercial service airports, the following information is useful to compare with competitors: • Air service offered: destinations, carriers, frequency, aircraft type • Business and leisure air fares in the airport’s top markets • History of air service at nearby airports • Runway lengths and navigational aids available • Rates of diversion to competing airports A competitor analysis of a very small commercial service airport to a very large commercial service airport is not always useful. For example, comparing Dubois Regional Airport to nearby Pittsburgh International Airport would be of limited value. On the other hand, Orlando Sanford Airport skillfully carved out a leisure market niche by understanding the opportunities presented by destination traffic bound for the Greater Orlando area, even though at one time all air service occurred at Orlando International Airport. For general aviation airports, the comparative metrics are different. General aviation airports have a diverse customer base, so a competitor analysis must focus on a particular target customer such as aircraft owners, pilots, FBOs, or other airport tenants. For aircraft owners, fractional owners, or pilots, a competitor analysis would look at the following: • Suitability of airfield for a particular aircraft • Proximity to home or work • Availability and cost of hangars or tie downs • Level of service available—fueling, aircraft maintenance, etc. • Local tax structure and aircraft registration fees versus nearby states • Atmosphere and culture • Navigational aids (including presence of a control tower) • Possibilities for self-fueling For airport tenants, the analysis would compare the following: • Availability and cost of improved or unimproved land • Airport minimum standards • Other synergistic activities on or near the airport • Airport’s access to highways or trains • Incentive packages offered by competing airports 24 Marketing Guidebook for Small Airports

4.2.1 SUGGESTIONS AND EXAMPLES FOR YOUR SWOT Exhibit 4.3 provides a list of possible responses to the SWOT analysis that may give you ideas for your airport. In addition, two airport examples of SWOT analyses are also presented. One is a summary table from the Greeley-Weld County Airport SWOT analysis that the students completed as part of their project to make a marketing plan for the airport. The other example summarizes SWOT findings for Arnold Palmer Airport in Latrobe, Pennsylvania. Exhibit 4.3—Ideas for Possible SWOT Responses. STRENGTHS • Strong demand for business travel • Population growth in the region and community • Strong presence of corporate jet activity • Community actively supports airport • Local college uses airport for aviation programs • Existing military logistics center • Good location for specialized training in . . . • Excellent airfield and/or terminal facilities • Available hangar space • 24-hour duty officer OPPORTUNITIES • Additional frequencies or new air service destinations • Development/expansion of industrial or office park next to airport • Joint marketing with other economic development groups • Contract tower • Increased fuel sales • Additional itinerant traffic • Training facilities at airport • New technology to increase capacity Source: KRAMER aerotek, inc. Environment and Resources 25 WEAKNESSES • Airport located less than 1 hour from a larger airport • Airport has low visibility with passengers and potential users • Multi-county governance complicates decision making • Airfield in need of repair • Business planning and marketing funds are scarce • Airport noise and truck traffic controversial in community • Airport rates and charges inconsistently applied • FBO not responsive to existing customer base • No air service THREATS • More air service at alternate airports • High air fares non-competitive • Current air service unreliable • Vocal opponents to the airport • Encroachment of development near airport • Insufficient funding to maintain and enhance airport SWOT FOR GREELEY-WELD COUNTY AIRPORT Chapter 2 began with an overview of Greeley-Weld County Airport and how the airport engaged students from the Metro State to develop a marketing plan. The students spent 5 months on the plan. One of their first tasks was a SWOT analysis. They interviewed airport staff, tenants, and stakeholders to better understand the actual and perceived strengths and weaknesses of the airport along with the potential opportunities and threats.

Greeley-Weld County Airport has two major competitors: Fort Collins-Loveland Airport and Front Range Airport. Fort Collins-Loveland Municipal Airport is located approximately 20 miles west of the Greeley-Weld County Airport and is considered the most direct competition. Over the past several years, both airports have competed for the same business, both new and existing. In several instances, tenants located at one airport have relo- cated to the other, and vice versa. Also, with the closing of the Fort Collins Downtown Airport, many businesses and aircraft owners chose between the two airports for relocation. Front Range Airport is located approximately 45 miles south of the Greeley-Weld County Airport, and just south- east of the Denver International Airport (DIA). Front Range Airport is comparable in size, operations, and ser- vices to the Greeley-Weld County Airport, and in the past, has directly competed with it for business. Adams County in recent years has offered economic incentives to companies willing to locate at the Front Range Airport. Those incentives, along with its proximity to the Denver metro area, have made that airport attractive to investors looking to develop facilities. However, Front Range Airport is very close to DIA, and thus, is sub- ject to airspace and flight restrictions imposed by DIA. The Greeley-Weld County Airport is not subject to the same air space restrictions as Front Range Airport. The runway is also longer than the runway at Fort Collins-Loveland Municipal Airport, allowing for the operation of larger aircraft, particularly in summer months. Based on this background, a summary of the Greeley-Weld County Airport SWOT analysis is shown in Exhibit 4.4. Exhibit 4.4—Greeley-Weld County Airport, Colorado SWOT Analysis. STRENGTHS • Airport infrastructure: runway length (10,000 ft), ILS, available land for development, outstanding fly in restaurant, great terminal/administration building, 40 hangars with 200 aircraft capacity. • Operations: aircraft rescue & firefighting capability, snow removal fleet, 5th busiest airport in CO, great weather. • Other: good location north of Denver metro area, not landlocked. • Excellent website. OPPORTUNITIES • Development opportunities: Weld County is the second fastest growing county in the nation, availability of additional land around airport for development. • Funding: availability of federal and state grants, in an enterprise zone. • Development of air traffic control tower. • Compete for area aviation business. • Aviation Industry: market to military for training, emerging very light jet market. • Community programs: Greeley Stampede, community branding. • Affiliation with local educational institutions and local college programs. 26 Marketing Guidebook for Small Airports WEAKNESSES • Airport infrastructure: access road issues, utility infrastructure on east side, lack of air traffic control tower. • Airport facilities: limited vehicle parking, public entryway appearance. • Aviation services: limited. • Policies and practices: differing goals between tenants and board, control of encroachment, unpredictability of future funding. • Marketing and promotion: work with FBO to partner in marketing. THREATS • Competition from other area airports. • Population growth to the west in Windsor, closer to Fort Collins-Loveland Airport and away from Greeley-Weld County Airport. • Insufficient future funding to build needed infrastructure, develop east side and construct air traffic control tower. • National security issues pertaining to aviation. (continued)

CONCLUSIONS • Work with State of Colorado and City of Greeley to improve access road and signage to the airport. • Continue to advertise at National Business Aviation Association (NBAA) and dispatcher conventions. • Direct advertising back to website. • Make air traffic control tower a high funding priority to pursue through state and federal programs. • Plan and launch volunteer campaign to improve appearance of airport entry. Source: Greeley-Weld County Airport, Marketing Plan 2007 SWOT FOR ARNOLD PALMER AIRPORT, LATROBE, PENNSYLVANIA Arnold Palmer Airport in Latrobe, Pennsylvania, is located approximately 60 miles from Pittsburgh. At its peak, Latrobe had nine nonstop flights per day to Pittsburgh on US Airways Express. When US Airways went through bankruptcy (twice) from 2002–2005, it dramatically reduced operations at its Pittsburgh hub. In May 2004, Latrobe lost all commercial service. In addition, due to its close proximity to Pittsburgh, it did not qualify as an Essential Air Service city. Thus, it could not look to the government for subsidized support for air service, but rather, had to rely on its own resources. In the case of Arnold Palmer Airport, the major threat was the scale of air service offered at nearby Pittsburgh International. In terms of opportunities, however, it turns out that because of Delta/Northwest’s large Detroit hub, many Latrobe travelers to international destinations could connect more conveniently by flying from Latrobe to Detroit and connecting directly to international flights than by driving to Pittsburgh and flying to US Airways’ international hub at Philadelphia. Fortunately, the community had strong business travel demand from local companies, including Kennametal, a $2 billion company headquartered in Latrobe with facilities across the globe. Sony, Timken, and Alcoa are also located in Latrobe. The community had strong local marketing support from the airport and other local busi- ness leaders who helped the community secure service from Northwest Airlines to its Detroit hub. A simplified SWOT analysis for Latrobe is summarized in Exhibit 4.5. Exhibit 4.5—Arnold Palmer Airport SWOT Analysis. STRENGTHS • Strong business travel demand. • Strong community willingness to invest in projects that make sense. • Conveniently located and friendly local airport. Environment and Resources 27 WEAKNESSES • Within driving distance of much larger airport—Pittsburgh. • Limited market size. • Community knowledge of what it would take to make the new service successful. (continued)

OPPORTUNITIES • A new carrier could attract a large share of high fare business passengers at Latrobe, including some flying to Asia and Europe, which that carrier would not attract if it operated at Pittsburgh, where US Airways remained the largest carrier. CONCLUSIONS • A high level of customer service is important. • The business traveler should be the focus. Source: Oliver Wyman 4.2.2 SUMMARIZING YOUR SWOT FINDINGS Have the planning team rank responses for strengths, weaknesses, opportunities, and threats from most impor- tant to least important. Every airport will have different answers. The SWOT analysis is a top view, so first impressions are the most important. The goal is to be able to complete the statements suggested in Exhibit 4.6. Exhibit 4.6—SWOT Summary Worksheet. 1) The airport’s key strengths are: ________________________________________________________________________________ ________________________________________________________________________________ 2) The airport’s best opportunities are: ________________________________________________________________________________ ________________________________________________________________________________ 3) The airport has weaknesses/needs to improve in these areas: ________________________________________________________________________________ ________________________________________________________________________________ 4) The airport should monitor and/or address the following threats to its competitive position or sustainability: ________________________________________________________________________________ ________________________________________________________________________________ Source: KRAMER aerotek, inc. 28 Marketing Guidebook for Small Airports THREATS • Any Latrobe service must compete against more frequent service offered at Pittsburgh. • Poor or irregular service at Latrobe would quickly result in passengers abandoning the service to drive to Pittsburgh.

4.3 RESOURCE ASSESSMENT An effective marketing program must take into account the resources available. For small airports, the best approach to this subject involves (1) taking inventory of recent marketing activities, (2) assessing internal and external staffing and expertise available, and (3) assessing funding available. 4.3.1 TAKING INVENTORY OF RECENT MARKETING ACTIVITIES Marketing an airport successfully requires a variety of activities that might include networking and public speak- ing, effective writing of marketing materials, development and maintenance of an airport website, active com- munity involvement in local organizations, and so forth. Exhibit 4.7 shows a sample of a “current marketing activities” worksheet. The worksheet illustrates activities that require funding and those that can be done with existing staff. Although the inventory is a simple list of activities, costs, and resources, it should also prompt consideration of which past activities have been the most and least effective. Exhibit 4.7—Example of an Inventory of Marketing Activities for the Last 12 Months. Estimated Airport Funding/Staffing Marketing Activity Purpose Total Cost Expenditure Resources Air Service Billboard Expand Market $25,000 $2,500 Airport Budget, State Grant Airport Open House Raise Airport $10,000 $2,000 Airport Budget, State Grant, Awareness Chamber of Commerce, Rotary, Volunteers Advertise in Economic Expand Market $2,000 $2,000 Airport Budget Development Magazine Speak at Chamber Remind Community None None None Luncheon about Airport Website Update Position Airport in $3,000 $3,000 Airport Budget, Chamber, Region, Provide In-Kind Services Public Information Young Eagles Program Community $500 $250 Airport Budget, Private Education/Outreach Donations Source: KRAMER aerotek, inc. 4.3.2 ASSESSING INTERNAL AND EXTERNAL STAFFING AND EXPERTISE AVAILABLE Most small airports have no dedicated marketing staff; airport managers typically handle marketing along with many other duties. However, small airports have many options to pull together a marketing team using a variety of either free or reduced cost resources in the community. Professional advertising agencies should not be excluded because of budget limitations. Michael J. Henley and Diane L. Hodiak, authors of Fund Raising and Marketing in the One-Person Shop (Development Resource Center, 1997) suggest approaching advertising agencies or mar- keting firms in the community that are looking for projects that will allow them to use their creativity in new ways while supporting a worthy cause either for a discounted fee or as pro bono work. Ideally, the agencies involved would view the initial discounted or pro bono work as the first step in a process likely to lead to future business. Environment and Resources 29

There are a number of other local options to consider when looking for qualified resources to help. They include the following: • Local colleges and universities (professors, students, interns, and employees) • Economic development groups at the local, regional, or state level • Chamber of Commerce • City staff • Members of the airport board or governing group • Individual volunteers • Local media • Consultants • Advertising agencies • Networking with all of the above groups to find other available resources EXTERNAL STAFFING AND EXPERTISE USED BY SMALL COMMERCIAL SERVICE AIRPORTS Research in connection with this project included interviews with 12 small commercial service airports regarding their marketing programs. Not surprisingly, at most of the smallest airports interviewed, marketing was a function handled by the airport manager along with other responsibilities. Only the largest airports had a dedicated full-time marketing person. At one of these larger airports, Ft. Wayne, the primary air service marketing person was employed by the Chamber of Commerce, while the airport also employed a public relations person on staff. Among the smaller airports, only one reported having any marketing staff beyond the airport director. At Dubois Regional Airport in Pennsylvania, the airport employs a part-time marketing person. In terms of outside help, a majority of the airports interviewed work closely with the Chamber of Commerce or economic development group and/or make use of local advertising agencies. Also, five of the airports reported using outside consultants to assist in their marketing activities. Exhibit 4.8 shows a breakdown of the outside entities that help small commercial service airports with their marketing. Exhibit 4.8—External Resources Used by Commercial Service Airports. 30 Marketing Guidebook for Small Airports 0 2 4 6 8 10 Local Chamber of Commerce Other airport staff Advertising agency Economic development group Outside consultant Joint partnership with private enterprise Airport marketing director Lobbyist Volunteers Others Responses Number of Airports Using Each Type of Resource Source: Airport Marketing Survey 2008

EXTERNAL STAFFING AND EXPERTISE USED BY GENERAL AVIATION AIRPORTS General aviation airports have fewer staff resources than commercial service airports. Of the 16 airports sur- veyed, 13 have no direct marketing staff members. They either do all the marketing work themselves or with some administrative support. As with commercial service airports, general aviation airports use a variety of external resources for marketing support. The most common are the local Chambers of Commerce, the economic development organizations, and the FBOs. These groups help fund marketing activities, staff events, and provide new business leads. Airports also often use resources at local colleges and universities for airport economic impact studies, busi- ness plans, and marketing plans. Exhibit 4.9 shows survey results. Exhibit 4.9—External Resources Used by General Aviation Airports. Environment and Resources 31 0 5 10 15 Local Chamber of Commerce Fixed based operator Economic development group Other Consultants Volunteers Ad agency Joint partners No one Lobbyist Responses Number of Airports Using Each Type of Resource Source: Airport Marketing Survey 2008 4.3.3 ASSESSING FUNDING AVAILABLE In addition to evaluating internal and external staffing available, the airport manager or planning team should evaluate potential funds (and funding sources) available for marketing. How much does the airport need to cover from its own budget versus how much can be “raised” through other possible funding sources such as (1) grants, (2) donations, (3) in-kind contributions, (4) matching funds, and (5) cost sharing with other groups? Even though the details of the marketing plan are a work in progress, it is important to develop preliminary esti- mates so that the marketing plan can be properly scaled to available resources. In the case of Latrobe, a major issue for the airport manager was getting the public to understand what it would take to make a new service successful. Funding an educational campaign can be expensive; however, the air- port manager had already met with the business community and was assured that this group would contribute substantially to a well-designed campaign. This campaign relied in part on donations of advertising services and media time. In addition, the airport raised over $100,000 to be spent on the campaign and obtained a $600,000 Small Community Air Service Development Grant.

Not all communities will have the same level of local resources available, but the resources Latrobe mobilized not only helped make its local educational campaign more effective, but also served to impress potential car- riers as to the level of local interest in their service. Exhibit 4.10 provides a framework to identify resources and funding for the marketing program. Exhibit 4.10—Resource Worksheet for the Marketing Program. 1) Funding Sources for first 12 months: Estimate Constraints/Comments Source #1: $ Source #2: Source #3: Total 2) Other potential funding sources: 3) Airport staff currently spend time on the following marketing activities: 4) Other groups and individuals are currently involved in airport marketing activities: 5) Individuals and organizations that could be available for airport marketing: Source: KRAMER aerotek, inc. 4.4 CONCLUSIONS In the previous chapter, your planning team drafted a set of goals and objectives. In this chapter, the team com- pleted a SWOT analysis for the airport and estimated the funding and staff available and required to implement a marketing program. Each of these pieces of the analysis resulted in summary conclusions. It is now time to pull them together into a few succinct statements. Exhibit 4.11 provides the prompts. Exhibit 4.11—Airport Evaluation Conclusions Worksheet. 1) The customer focus for the airport is: 2) The airport excels at: 3) The highest marketing priority is: 4) New opportunities that the airport wants to develop are: 5) Areas requiring further investigation are: Source: KRAMER aerotek, inc. 32 Marketing Guidebook for Small Airports

33 CHAPTER 5 AUDIENCE, MESSAGE, ACTIONS 5.1 Step 3—Revise Goals and Objectives 5.2 Step 4—Identify Target Audience, Message, and Actions 5.3 Target Audience 5.4 Message 5.5 Actions—Marketing Tactics Every marketing campaign has a target audience, a message to deliver, and methods of communicating. There are many ways to communicate, but the target audience should be clear and the message crisp. This chapter brings these elements of your marketing plan into focus. 5.1 STEP 3—REVISE GOALS AND OBJECTIVES Source: GMH Consulting, LLC Step 3 in the development of a marketing plan is to revisit the original goals and objectives prepared in Chapter 3 to ensure that they address your top marketing priorities and that they are consistent with the findings of the SWOT and attainable with the resources available. If necessary, revise them to be consistent. For example, if your original goal was to attract low cost carrier service, but your SWOT analysis shows that your catchment area is not large enough to support service with aircraft larger than a regional jet, you may need to revise your goal accordingly. Remember to review the objectives to make sure they are specific, measurable, attainable, realistic, and timed (SMART). If the goals and objectives need revision, now is the time to reformulate. The orig- inal goals and objectives worksheet provided in Exhibit 3.8 should be reviewed and revised to reflect what you have learned from the SWOT analysis. Step 2 Step 3 Step 4 Redefine Goals/Objectives Audience/Message/Actions SWOT Resources

5.2 STEP 4—IDENTIFY TARGET AUDIENCE, MESSAGE, AND ACTIONS Step 4 in the development of the marketing plan involves (a) identifying the target audience and message and (b) deciding on the specific marketing actions to take. Each of these is described in the following sections. Source: GMH Consulting, LLC Identifying the target audience is important because small airports have limited resources and must effectively reach the right people. Identifying the right message is critical because without the right message, even the most precisely targeted campaign will not be effective. Finally, the decisions regarding the range of actions to take to best communicate with your target audience are critical. This process of deciding what actions to take is often referred to as the development of marketing tac- tics. This chapter will provide additional guidance on that subject as well. 5.3 TARGET AUDIENCE Selecting a specific target audience to address in your marketing program should be fairly straightforward. The target audience can be defined by geographic location (in the community or outside), demographics (age, income, or occupation), user groups (pilot, passenger, tenants, or prospects) or psychographic attributes (inter- ests, attitudes, or opinions). Sometimes target audiences are sequential. In the case of air service development, the most likely first target audi- ence is the community and the most likely objectives are to raise awareness of and support for the air service. Once the community is on board, the second target audience is the air carrier and the objectives would change to retention, expansion, or addition of new air service. Exhibit 5.1 provides some examples of target audiences for airports. Within each group on the list, an airport might focus on a subset of the group as its target audience. Exhibit 5.1—Examples of Target Audiences. • Local passengers • Destination passengers • Airlines • Local businesses • Transient pilots • Aircraft owners with registered aircraft in the region • Flight schools in the area • Affiliates service centers of the local FBO 34 Marketing Guidebook for Small Airports Step 3 Step 4 Step 5 Redefine Goals/Objectives Audience/Message/Actions Tools to Reach Audience and Deliver Message

• Aviation specialists (e.g., maintenance & repair, helicopters, offshore oil rig support, aircraft painting) • Existing tenants • Tenant leads • Schools and colleges • Government groups • Congressional delegation Source: KRAMER aerotek, inc. 5.4 MESSAGE The marketing message engages the target audience and strives to influence choices. Marketing messages that airports deploy typically answer the questions: (1) Why should the target audience use the facility or ser- vice? (2) How is it better than the competition? and (3) What’s in it for the customer? Remember that the message is a direct communication with the target audience. So “what’s in it for the cus- tomer?” is much more important than a message that describes “what we do.” To assist in developing the message, Exhibit 5.2 provides a set of prompts to address your target audience. Exhibit 5.2—Worksheet to Focus the Message for Each Target Audience. 1) The marketing goal is . . . 2) The SMART objective here is . . . 3) The target audience is . . . 4) What service or facility are we marketing? 5) What benefits does it give to the target audience? 6) Why is it better than the competition? 7) What’s in it for the customer to choose your airport? Source: KRAMER aerotek, inc. The marketing message is critical to everything else you do in your marketing program. The message com- bined with an effective promotion can be very powerful. Small airports can develop their own marketing mes- sages on their own with a little time and imagination. It is also another excellent task for the planning team. Make sure to pre-test the marketing messages to members of your target audience. ST. CLOUD REGIONAL AIRPORT MARKETING MESSAGE EXAMPLE St. Cloud, Minnesota, is located approximately 80 miles from Minneapolis-St. Paul International Airport (MSP). The drive to MSP takes approximately 90 minutes, depending on traffic. St. Cloud has its own regional airport that offers a schedule of four daily frequencies to MSP. However, many air passengers elect to drive to MSP rather than start their trip from St. Cloud. Audience, Message, Actions 35

The Airport and the Air Service Advisory Committee undertook a marketing program with the principal goal to reduce passenger diversion to MSP. The target audience was air passengers driving to MSP. The message the campaign wanted to convey was converted into the tagline: Fly Local, More Time, Less Stress, Free Parking. Exhibit 5.3 below shows how the message was conveyed in a highway billboard. Exhibit 5.3—Billboard Used in St. Cloud Regional Airport Marketing Campaign. Source: St. Cloud Regional Airport 2006 MESSAGE AND AIRPORT BRAND CONSISTENCY Your marketing messages should be consistent with any airport identity or branding that is in place. Generally speaking, “branding” is the process of creating a unique, positive, and recognizable identity for an organization. It is more than just the airport’s logo and tagline, although those are important items to have in any marketing campaign. The airport’s identity encompasses its larger mission including its values, its attitude about customer service, its products and services focus—in essence, how the airport portrays itself to the larger community it serves. Not all agree that branding is appropriate in organizations with limited resources. However, the Internet and other forms of electronic communication have made some basic form of branding affordable for most organizations. When developing the airport’s identity, a good rule of thumb is to look at what the competition is doing. Do they have a website, a logo, a tag line or key message? Is their brand consistent across their marketing tools and materials? Does it reflect clearly the airport’s identity? Answers about the competition’s branding efforts and level of sophistication will help guide your airport as it establishes or refines its own identity, taking into account avail- able resources and time for these efforts. 5.5 ACTIONS—MARKETING TACTICS Your marketing program now has goals and objectives, a target audience and a message. The next step is to decide on the actions to take to best communicate with your target audience. This process of deciding what action to take is often referred to as tactics. Tactics are the actionable steps taken to implement a particular strategy and objective. In the discussion that follows, we describe different types of marketing tactics. However, in the real world, it is not important that you be able to classify your planning in terms of tactics. What is important is that you know what actions to take to accomplish your objectives. 36 Marketing Guidebook for Small Airports

5.5.1 TACTICS AND PROMOTION OPTIONS This section presents two examples of how to move from goals and objectives to action. You will note that there can be multiple approaches to achieve the same objective. The purpose at this point is to consider a variety of options. As you construct your marketing plan, the options will be evaluated and the marketing mix established according to what you think will work best and is within your resource budget of time and money. EXAMPLE #1—TACTICS/ACTIONABLE STEPS TO INCREASE PASSENGERS Exhibit 5.4 illustrates the process: 1. Set the goal. 2. Establish the SMART (Specific, Measurable, Achievable, Realistic and Timed) objective. 3. Identify the actions you will take to achieve the objective. In this example, the goal is to expand the use of the airport. The SMART Objective is to increase the number of passengers by “X” percent. There are two groups of actions the planning team is considering. One is to increase the number of passengers by improving customer service at the airport; the other it to raise airport awareness in the community. Within each approach there are a variety of options. The airport could improve customer service by providing the following: 1. Volunteer greeters to welcome and help arrivals 2. Free Wi-Fi in the terminal 3. A shuttle service from the airport to downtown 4. A business lounge with good chairs Alternatively, the airport could raise awareness of the service and benefits of using the local airport. There are a variety of airport awareness activities, for example: 1. Advertise on highway billboards 2. “Pitch” the airport to the local chamber of commerce and its members 3. Work with the airlines to communicate with local frequent flyers 4. Run promotions or contests in the community that encourage passengers to use the local airport 5. Promote the airport by improving the airport website In this first year, the marketing program could focus on raising airport awareness or it could pursue both airport awareness and customer service and select a few specific marketing activities to undertake. The general pur- pose of the diagram is to group and visualize the options. Audience, Message, Actions 37

Exhibit 5.4—Action Diagram to Increase Number of Passengers. Source: KRAMER aerotek, inc., and Oliver Wyman EXAMPLE #2—TACTICS/ACTIONABLE STEPS TO ATTRACT NEW TRANSIENT PILOTS The second example has a goal to increase general aviation operations and an objective of increasing tran- sient operations by “X” percent. Actions to attract transient pilots include the following: 1. Promote the airport by attending the NBAA national convention 2. Advertise in the Aircraft Owners and Pilots Association’s (AOPA’s) magazine 3. Have an airport open house or fly-in 4. Lower fuel prices 38 Marketing Guidebook for Small Airports Goal Expand Use of the Airport Objective Increase Passengers by ìX” Percent Option 4 Website Advertising Option 1 Volunteer Greeters Option 2 Shuttle to Downtown Option 3 Free WI-FI in Terminal Option 4 Business Lounge with Good Chairs Option 1 Billboards Option 2 Speeches Option 3 Contests Action Improve Customer Service Action Raise Airport Awareness

Just as with the first example, there are many action options to consider and evaluate (see Exhibit 5.5). Exhibit 5.5—Action Diagram to Attract Transient Pilots. Source: KRAMER aerotek, inc., and Oliver Wyman Audience, Message, Actions 39 Goal Increase GA Operations Objective Increase Transient Operations by “X” Percent Option 1 Exhibit at NBAA Option 2 Advertise in AOPA Magazine Option 3 Airport Fly-In Option 4 Lower Fuel Prices Action Attract Transient Pilots

40 CHAPTER 6 MARKETING TOOLS 6.1 Step 5—Selecting Marketing Tools 6.2 Cost of Different Tools 6.3 Tools Airports Use Today 6.4 Tools Airports Consider Most Effective 6.5 Cost and Effectiveness Matrix 6.6 Essential Marketing Tools for All Airports 6.1 STEP 5—SELECTING MARKETING TOOLS Step 5 in creating a marketing plan (the last planning step) is to select the right marketing tools. Small airports use a wide range of marketing tools depending on the subject, the audience they are trying to reach, their budget, and other factors. This chapter introduces the basic categories of marketing tools and describes the tools airports use most frequently and consider most effective. This chapter also describes the essential tools that every airport should have. Source: GMH Consulting, LLC 6.2 COST OF DIFFERENT TOOLS Because many small airports operate with very limited marketing budgets, one of the major challenges they face is how to achieve the most marketing impact with the least budget. Exhibit 6.1 introduces this subject by ranking the basic marketing and promotional tools on the basis of cost. Actual costs are not provided because they vary widely by metropolitan area. Not only television and radio ads, but also billboards and other forms of advertising cost far more in major cities than in smaller communities. Nevertheless, in all markets, there is a general hierarchy of costs that airport managers should consider in selecting media. Step 4 Step 5 Step 6 Audience/Message/Actions Execute Plan Tools to Reach Audience and Deliver Message

Exhibit 6.1—Relative Cost of Marketing Tools. Source: Oliver Wyman Fortunately, the marketing tools that small airports use most frequently and find most effective are also the tools that cost least. The top three marketing tools for small airports are the airport website, newspaper articles, and press releases. Only the website has an associated investment and it can be a very modest one in terms of the cost to set up the website. It is worth pointing out that the small airports that are the most effective at marketing seem to market continu- ously. Even with limited budgets, they are in the public’s view with great regularity. A low cost technique that is used by many of these airports is networking. Managers of these airports take every opportunity to meet with business leaders, community groups, news people, public officials, airlines, tenants and potential tenants, developers, industry groups, and a host of other individuals and organizations. Through this relentless network- ing, these airport managers succeed in getting out their message. Since much of this networking is either free or low cost, the importance of networking cannot be overstated. 6.3 TOOLS AIRPORTS USE TODAY In deciding what marketing tools to use, it is helpful to know what tools other airports are already using. Based on the interviews conducted with managers of small commercial service airports and general aviation airports, all airports rely heavily on three top tools—the airport website, newspaper articles, and press releases. Beyond these “top three” tools, airports use a wide range of other marketing tools. There are some differences, although not major ones, between the tools used most frequently by commercial service airports and those used by gen- eral aviation airports. COMMERCIAL SERVICE AIRPORTS Nearly all commercial service airports reported making the most use of their website. This was followed by the use of articles in newspapers and magazines, and then press releases and radio ads. Newspaper advertisements, chamber lunches, TV advertisements, and billboards were also used by nearly one-half of the commercial service airports. In contrast, very few commercial service airports relied on airport open houses, student education events, electronic newsletters, or magazine ads—although all these tech- niques were used to some extent. Exhibit 6.2 shows the tools used most by commercial service airports. Marketing Tools 41 Cost of Marketing Tools $ Website Promotions (e.g., free tickets, gifts) Receptions Open House Free or Minimal Press Releases Editorials Travel Related Articles E-Mail Newsletter Chamber Speeches Networking Testimonials $$ Radio Newspaper Ads Billboards $$$ TV Ads

Exhibit 6.2—Marketing Tools Used Frequently by Commercial Service Airports. Number of Airports Reporting Used “A Lot” Source: Airport Marketing Survey, June 2008 Airports differed in their views regarding the usefulness of market research. Some airports, both large and small, conducted customer satisfaction and travel destination surveys. Others said they regarded market research as useful, but did not have the budget for it. Still others said that they did not need to conduct market research because they knew the issues. GENERAL AVIATION AIRPORTS As shown in Exhibit 6.3, the most popular marketing tools among general aviation airport managers are the same top three tools—the airport website, press releases, and articles in newspapers and magazines. More so than commercial service airports, general aviation airports minimize the use of the more expensive market- ing tools and instead rely on a variety of low cost marketing tools. General aviation airports make use of economic impact brochures, printed marketing brochures, and printed newsletters to a greater extent than do commercial service airports. And they make much less use of the more expensive marketing tools—television, radio, and billboards. Although both general aviation and commercial service airports engage in substantial networking activities, general aviation airports focus more heavily on this form of promotion than do commercial service airports. Most general aviation airports reported multiple ways in which they networked on a regular basis (see Exhibit 6.4). 42 Marketing Guidebook for Small Airports 0 2 8 10 Airport website Articles in newspapers or magazines Radio ads Press releases Billboards TV ads Chamber lunch Newspaper ads Printed marketing brochure Electronic newsletter Student education events Airport open houses Magazine ads 4 6 Responses

Exhibit 6.3—Marketing Tools Used “A Lot” or “Somewhat” by General Aviation Airports. Number of Airports Reporting Source: Airport Marketing Survey, June 2008 Exhibit 6.4—Networking Activities Used by General Aviation Airports. Number of Airports Reporting Source: Airport Manager Survey, June 2008 Marketing Tools 43 0 5 15 Airport website Press releases Articles in newspapers or magazines Printed marketing brochure Airport economic impact brochure Magazine ads Printed newsletter Newspaper ads Electronic newsletter Radio ads Advertising on other websites Billboards TV ads 10 Responses 0 5 20 Meet with existing tenants on regular basis Participation in state Airport Operators Association (AOA) Attend conferences Public speaking in community Meet with business prospects Membership in AAAE Participation in local chamber or rotary Operate booth at conference/convention Guest speaker at conference Meet with airlines Other Membership in ACI-NA 10 15 Responses

General aviation airports also place somewhat greater emphasis on sponsoring educational events or other events at the airport to raise public awareness and improve the airport’s image in the community. The specific type of sponsored event varied among those surveyed, but included such activities as Young Eagles, student tours of the airport, and safety seminars. Some of the less common but creative promotional events included partnering for charity events, chamber of commerce “After Hours” events, and the local symphony. A customer satisfaction survey is the most common form of market research conducted by general aviation air- ports, but only 6 of the 16 respondents reported conducting such a survey. Also, those airports seeking com- mercial service have typically used outside consultants to conduct market research for the airport. 6.4 TOOLS AIRPORTS CONSIDER MOST EFFECTIVE Airports generally agree that local press coverage is an effective marketing tool, as are meetings with local busi- ness and civic groups. Airports know that good media relations are important and that issuing good press releases in turn leads to good radio and TV coverage. One airport manager said that he helped build good media relations by always having a story ready for when the local media needed one. Beyond the subject of obtaining good local press coverage, there is a range of opinion as to which tools are most effective. COMMERCIAL SERVICE AIRPORTS Commercial service airports reported the following: • Several airports were strong proponents of using billboards to increase awareness of the local airport. “You could be there now” was a common theme. • Several airports reported that they had conducted contests that were effective. These made use of radio, email, and Internet. One airport used a contest involving local travel agencies to encourage them to book travel at the local airport. • Four respondents mentioned that they found newspaper advertising to be the least effective market- ing medium. • Radio elicited differing reactions. Some airports rated it among the least effective marketing vehicles. Others thought it useful for short-term impacts. • Air shows drew mixed reactions. Many airports had sponsored air shows in the past, but in some cases, found them disruptive to operations. Many airports also conducted programs for students, the 4-H, Girl Scouts, or Boy Scouts. • Two airports said that it was difficult to know which media were effective. One said that the airlines had the direct relationship with the customer and that the airport was only an intermediary with much less information. 44 Marketing Guidebook for Small Airports

GENERAL AVIATION AIRPORTS General aviation airport managers found their airport website to be an effective way to keep tenants, business prospects, and other users of the airport informed and aware of current services and activities. They stressed that it is important to keep the website up-to-date, and to have a dedicated resource for this function. Several airports direct all their advertising back to their webpage. This saves time on the telephone with reporters and users who want general airport information. They ranked press releases and newspaper articles to be the most effective marketing tool, followed by either an economic impact brochure or airport specific marketing brochure. They also found different forms of net- working to be effective. It is important to note that many of the respondents have used resources at the local college or university to complete an economic impact study on behalf of the airport. Airport managers surveyed felt very strongly, either pro or con, about the effectiveness of airport open houses or air shows. Some felt they were not effective at all and were very time consuming for a limited staff to man- age, while others felt they were very effective and a great way to showcase the airport. The ability to muster volunteers to help manage the event was a key ingredient for a successful outcome. There were a range of other responses to this question, but little consensus. 6.5 COST AND EFFECTIVENESS MATRIX The matrix in Exhibit 6.5 shows how the major marketing tools rank in terms of cost and effectiveness—with the least costly tools beginning at the top of the matrix. In addition, some tools are marked as essential. Each of the tools is described in subsequent chapters. (See Exhibit 9.1 for an alphabetical listing of tools with page references.) Important caveats to the use of the matrix are as follows: • The cost of individual tools varies depending on the metropolitan area in which the tool is employed and other factors. • There are differences of opinion as to the effectiveness of each tool. • The circumstances of each situation will determine whether a particular tool is appropriate regardless of any overall “rating” of that tool. The matrix attempts to cover some of these issues, but is neverthe- less a simplified look at the range of marketing tools. Marketing Tools 45

Exhibit 6.5—Marketing Tools: Cost and Effectiveness Matrix. 46 Marketing Guidebook for Small Airports General Aviation ●●● ● ● ●●● ● ●●● ●●● ●●● ●●● ● - ●●● ●●● ●●● ●●● ●●● ●●● ● ●●● ●●● ●●● ●● ● ● - ●●● ●● - ●●● ● - ●● ●●● ●● ● ● ● ● ● - ●● ● ● ●●● ● ● ● ●● ●●● ● ●● ●●● ●● ● ● ● - ●●● ● ●● ● ● ● Commercial Service ●●● ● ● ●●● ● ●●● ●●● ●●● ●●● ● - ●●● ●●● ●●● ●●● ●●● ●●● ● ●●● ●●● ●●● ●● ● ● - ●●● ● ● - ●● ●● ●● ● ● ●●● ● ● ● ● ●●● ● - ●● ● ● ●● ●●● ● ●● ●● ● ●●● ● ● - ●●● ● ● ●● - ●●● ●●● ● Marketing Tools Articles - Newspaper, Magazine Awards & Special Recognitions Board Participation - Non-Profit Organizations Contact Managers Customer Satisfaction Surveys Earned Media Interviews (Radio and TV) Networking - Business, Civic, Non-Profit Groups Networking - Professional & Industry Organizations Networking - Strategic Partnerships Networking - Tradeshows & Conferences Newsletter - Electronic Press Coverage - Newspaper, TV, Radio Press Kit Press Releases Public Service Announcement Public Speaking Speeches - Chambers and Business Associations Speeches - Dedications & Community Events Testimonials Volunteering Advertising - Internet Advertising - Trade Journals Banners, flags, awnings Marketing Brochure Signage - Banners, Displays White Papers Advertising - Magazine Advertising - Newspaper Contests & Drawings Educational Programs Free Services & Amenities Giveaways Lobbying Open Houses Promotions Rates & Charges Reductions Sponsoring Community Events Website Advertising - Radio Digital Video Newsletter - Print Sponsoring Interns & Students Advertising - Billboards Advertising - Direct Mail Advertising - Other Outdoor (Buses, etc.) Direct Mail Economic Impact Studies Outdoor Advertising - Other Advertising - TV Air Shows Essential Tool           Cost $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - $$ $ - $$ $ - $$ $ - $$ $ - $$ $ - $$ $ - $$$ $ - $$$ $ - $$$ $ - $$$ $ - $$$ $ - $$$ $ - $$$ $ - $$$ $ - $$$ $ - $$$ $ - $$$ $ - $$$ $$ $$ $$ $$ $$ - $$$ $$ - $$$ $$ - $$$ $$ - $$$ $$ - $$$ $$ - $$$ $$$ $$$ Page 75 76 89 130 90 70 76 119 122 127 123 90 70 72 73 76 78 79 79 91 89 110 94 104 96 101 92 94 94 84 82 85 85 130 81 83 86 88 110 108 109 90 87 102 96 103 96 90 101 108 81 Effectiveness Key Costs Effectiveness Divided Opinions on Effectiveness $ - $$$$ - Source: Oliver Wyman

6.6 ESSENTIAL MARKETING TOOLS FOR ALL AIRPORTS All airports should have a marketing toolbox before they even consider conducting specific marketing programs. The required items are basic, some are not even commonly thought of as marketing tools, and most airports already have them. They include the following: • Press Kit. The Press Kit is a vital tool that supports all earned media activities. It usually takes the form of a folder that contains pertinent information about the airport. Press Kits also appear on airport web- sites. Several airports interviewed for this research reported that having a Press Kit and a photo library saved the airport manager time because when reporters contacted the airport for information they were following up on basic information already found on the website. A Press Kit typically includes the following:  A website or physical cover with the airport’s brand (logo, key message, graphics, and colors)  Information for media inquiries  Office hours  Phone numbers  How to request an interview  Parking and “live broadcast trucks”  Airport access  Fact sheet about the airport  Image library (photos of the airport)  Airport newsletter  News releases  Staff biographies  Members of the airport governing group (airport commission or authority)  Airport tenants and businesses  Airport statistics  Airport financial records  Business cards and stationery that carry the airport’s brand are used in the Press Kit If the Press Kit is online, it might also include a copy of the most recent master plan and descriptions/ visuals about current airport capital projects. • Website. Websites vary greatly, but may be thought of in two ways: (1) as a brochure or (2) as a content-driven marketing tool. The simplest form of website—the brochure type website—is like an extended business card containing basic information about the airport, its facilities, location, purpose, and contact information. Every airport should have at least this type of presence on the Internet (see Chapter 11 for more information on websites). The following activities make use of the above referenced tools and are essential for every airport: Earned Media—refers to press releases, interviews, networking, and other activities for free media coverage Networking—means establishing relationships in the community among business, civic, and non-profit groups to build awareness and support for the airport Public Speaking—refers to speeches at chambers of commerce, business associations, and other events to tell the airport story These activities are described in detail in Chapters 9 through 12. Marketing Tools 47

48 CHAPTER 7 CHARACTERISTICS OF AN EFFECTIVE MARKETING PLAN 7.1 Core Components of a Marketing Plan 7.2 Action Plan 7.3 Characteristics of an Effective Marketing Plan 7.4 Putting the Principles to Work—Community Support Case Study 7.5 Importance of a Powerful Executive Summary What are the essential elements of a marketing plan? The marketing plan is the vehicle to accomplish the air- port’s goals. It is a framework that defines the specific tasks, schedule, resources, and budgets that, when implemented, result in the achievement of the airport’s marketing goals. With the airport assessment, goals and objectives, a target audience, a message, specific actions, and tools, it is time to put together the marketing plan. 7.1 CORE COMPONENTS OF A MARKETING PLAN Marketing plans vary significantly in content, format, and length. However, most marketing plans cover the fol- lowing core components: The Airport’s Current Position. An overview of the airport’s identity, a basic description of products and services offered, major airport users and tenants, level of airport activity, competitive position in the region, and a forward looking discussion of trends in the particular sectors of aviation that the airport serves. Airport Goals and Objectives. A discussion of the goals, target audiences of the marketing plan, the mes- sage to be communicated, and measurable objectives the airport intends to achieve within a specific timeframe. Action Plan. The specific marketing activities that will be undertaken to achieve each objective. In addi- tion, the action plan includes a description of individual tasks, assignments of personnel or volunteers, schedules, and budgets. Management and Monitoring. A plan to oversee the progress of the marketing campaign, monitor progress, and fine tune the marketing plan as needed. The marketing plan serves two important functions: • It is the roadmap that converts the airport marketing goals into specific activities. • It is a reference document for all participants in the airport’s marketing campaign that provides back- ground information, a plan of action, and measurable outcomes. Once written, a marketing plan should be updated on a regular basis to reflect achievements and modifications to the action plan.

7.2 ACTION PLAN The action plan describes the specific marketing activities that the airport is seeking to accomplish. Action plans should be reviewed and updated periodically. Depending on resources available, it is a good idea to start with one or two marketing goals and three or four primary activities to establish the program. Exhibit 7.1 recaps how to design an action plan. Exhibit 7.1—Steps to Assemble an Action Plan. Step 1. Prioritize and select goals and objectives to achieve this year. Step 2. Target the audience and formulate the message. Step 3. Choose the activities that will best communicate the message. Step 4. Estimate the resources required for each activity and the source of those resources. (This includes people and money.) This step will help match activities with available resources. Step 5. Plan each activity. Prepare a list of specific tasks associated with each activity, the person or persons responsible, dates of completion, budget for the activity. Source: KRAMER aerotek, inc. A spreadsheet is an excellent tool to help with the scoping of each activity. Once the activities are planned, cre- ate a summary sheet of the activities, schedules, and budget. Chapter 13 contains worksheets to assist with evaluating specific marketing activities, scheduling tasks, and making a budget. 7.2.1 EXAMPLES OF ACTIVITIES CHOSEN The following two examples are activities chosen by small airports as part of their action plans. ST. CLOUD REGIONAL AIRPORT MARKETING CAMPAIGN St. Cloud, Minnesota, was a recipient of a Small Community Air Service Development grant. With these funds, a marketing program was constructed that included a revenue guarantee for an additional daily frequency to MSP. Implementation of the local marketing campaign included the following activities: • Permanent billboards located on Interstate 94 featuring well known local business leaders choosing to fly from St. Cloud. • Rotating posters similar to the billboards located in downtown St. Cloud and directed at walking traffic. • Radio ads that featured first-person testimonials about using St. Cloud Regional Airport (STC). • Print ads in the local newspaper announcing the additional frequency and competitive fares. • Luggage tag giveaways. Each of the marketing activities required separate planning, a budget, and coordination. St. Cloud hired a consul- tant to serve as the temporary creative director. The consultant was responsible for the design, production, and placement of each form of advertising. The airport required separate bids for each activity and the consultant was able to negotiate very competitive rates for billboards, posters, print media, and radio ads. The campaign lasted approximately 8 months and resulted in increased enplanements at STC. Characteristics of an Effective Marketing Plan 49

PUEBLO AIRPORT’S CAMPAIGN TO ATTRACT NEW AVIATION TENANTS Pueblo Memorial Airport (PUB) is located in Colorado, 110 miles south of Denver on Interstate 25. The corridor that spans from Ft. Collins-Loveland to the north down through Denver and Colorado Springs to Pueblo is known as Colorado’s Front Range and has experienced both population and employment growth. The airport owns 2,308 acres of land reserved for aeronautical purposes and has an adjacent industrial park consisting of approxi- mately 1,475 acres subdivided into 75 parcels. Pueblo Economic Development Corporation (PEDCO) offers exten- sive incentives for businesses that add jobs to the community. As a former military base, PUB has a long runway (10,496 by 150 feet), a control tower, and ILS on both ends of the runway. The airport’s principal marketing goal was to attract new aviation business. Because it wanted to gain exposure to a national audience, its target market was vendors and visitors at the NBAA convention. They crafted a message: “Clear skies over Pueblo Airport; taking your business to new heights.” The tagline was developed to remind prospects that air space was free of congestion over PUB and the airport is pro-business (i.e., willing to assist new businesses to locate at the airport). The airport, local chamber of commerce, and FBO committed to a multi-year presence at NBAA to establish identity and national visibility for PUB. The following activities were selected as effective means to contact its audience: • Operate a booth at NBAA annually. • Send invitations to registered attendees and exhibitors to visit the Pueblo booth. • Give away Pueblo Salsa and airport promotional brochures to invited and walk-up traffic. • Create a list of contacts to meet at the convention, assign team members, set up appointments to visit with specific contacts. • Capture contact information and follow-up after the convention. The Pueblo program is a concentrated marketing effort. At NBAA, the airport and the FBO also have the oppor- tunity to talk with pilots and pitch using PUB as a stopover point. The City of Pueblo, the chamber of commerce, and the FBO all contribute to the cost of the booth, promotional materials, and travel. 7.2.2 SELECTING ACTIVITIES FOR YOUR AIRPORT In selecting specific marketing activities for your airport, it is useful to ask yourself about the resources needed to accomplish each activity, as well as whether there is evidence that the activity will likely to be effective. Exhibit 7.2 provides a set of questions to evaluate specific marketing activities. Exhibit 7.2—Evaluation Questions for Proposed Marketing Activities. • Is the activity currently done by the airport today and has it been effective? • How will the current activity contribute to achievement of the marketing objective? • Can the activity be undertaken in the timeframe needed? • How much will it cost to complete the activity? • Are there enough internal resources to undertake the activity, both people and money? • Do the airport manager and staff have the capability and time to complete the task, or are technical experts such as graphic designers or computer experts required? • Can those experts be found in the local community? • Are there obstacles that need to be overcome? • Are there solutions for overcoming those obstacles? • Is it a high priority activity or one that could be scheduled for a later date? Source: KRAMER aerotek, inc. 50 Marketing Guidebook for Small Airports

7.2.3 STEPS TO IMPLEMENT EACH ACTIVITY Once the airport has decided on which activities to pursue, the next step is to break out those activities into spe- cific tasks, that is, what needs to be done from start to finish, persons responsible, schedule, and budget. Since most airports undertake multiple marketing activities, there should be a separate section of the marketing plan devoted to each activity. Each section would cover the following: 1. Tasks. These are all the steps needed to complete the activity. Typically, the tasks laid out in the action plan should follow a logical sequence, listing those that need to be completed first, second, third, and so on. 2. Persons Responsible for Completing the Task. Making assignments and communicating expectations will improve the odds of completing the activity on time and on budget. 3. Due Dates. The most important date to determine is the targeted completion date for the entire activity and then work backward to fill in due dates for each preceding task. In that manner, the airport manager will be able to determine the full-time commitment required for the activity. When working on a complex activity, sometimes due dates slip for a variety of reasons. Hence, the action plan provides separate columns for revisions to dates to provide clear visibility of date “slippage.” It is slippage that can mean the difference between successfully accomplishing the activity and meeting the airport’s marketing objective. 4. Budget. This is an estimate of what it will cost to complete the activity. Sometimes the budget is a best guess, other times the cost is both fixed and easy to obtain. If the airport has a fixed total budget, the marketing activities are defined by the available total budget. 5. Notes. Use this area to list any important notes or comments about the action plan, including assump- tions and questions to be resolved or clarified. Exhibit 7.3 presents an example of how an activity can be planned. Spreadsheets are effective ways to describe, maintain, and communicate components of the marketing plan. A worksheet can be set up using software tools such as Microsoft® Excel or Microsoft® Project so that modifications and updates to an activity can be eas- ily accomplished and sent electronically to members of the marketing team. Spreadsheets also make it easy to summarize or sort by person, schedule, and budget. Characteristics of an Effective Marketing Plan 51

Exhibit 7.3—Planning a Marketing Activity. MARKETING GOAL: Increase Transient Pilot Activity at the Airport DATE: (Today’s Date) MARKETING ACTIVITY: Advertise in Pilot Magazine VERSION: (for subsequent revisions, as needed) Person Assigned Start Revised Revised I.D. # Task to Task Date Due Date Start Date Due Date Budget Notes 1 Obtain list of possible publications Administrative 6/1 Readership, cost to including cost estimates Assistant or PR advertise, frequency of Consultant publication 2 Review list and decide on placement Airport Manager 6/2 3 Meet with graphic artist re: design of Airport Manager & 6/5 Need to get graphic artist ad, key message, look, and feel Graphic Artist JPEG file of airport logo and tagline 4 Create ad Graphic Artist 6/5 6/10 $ 500 5 Review and revise ad content Airport Manager 6/11 6 Ad final copy Graphic Artist 6/12 6/15 7 Ad placement Airport Manager & 7/1, 8/1, 9/1 $1,500 July, August, and Administrative September issues Assistant 8 Assess results Airport Manager 10/19 10/30 Need to determine ways to evaluate if ad is effective. 9 Ad “next steps” Airport Manager Renew, change content/ publication, or stop ad TOTAL ACTIVITY $2,000 Source: KRAMER aerotek, inc.

7.3 CHARACTERISTICS OF AN EFFECTIVE MARKETING PLAN As you review your plan, determine whether it has the following characteristics (as adapted from “Strategic Marketing for Nonprofit Organizations,” Sixth Edition, Alan Andreasen and Philip Kotler, Prentice Hall, 2002): • It is customer and service centered. The main focus of the plan must be on meeting the demand(s) of its target audience(s). • It differentiates itself from its competitors. If possible, the airport should differentiate itself from its competitors and spell out unique reasons why users should select this airport over rivals. • It is easily communicated. The plan needs to be simple and clear to target audiences and so that airport staff can easily understand it and talk about it. • It is motivating. A successful plan will be adopted enthusiastically by airport stakeholders. • It is flexible. The plan should be sufficiently broad to embrace a variety of marketing activities and to allow for mid-course corrections and unforeseen changes in the marketplace. Consider these attributes as a check list to evaluate the content and performance of the airport’s marketing plan. 7.4 PUTTING THE PRINCIPLES TO WORK—COMMUNITY SUPPORT CASE STUDY This section describes how a marketing plan to increase community support for air service is constructed from the principles presented in this chapter. The marketing goal listed most frequently by small commercial service airports is to increase air service. This goal was also shared by airports interviewed that had lost their air service. In many respects, community sup- port for air service is often the most important aspect of any air service development program. Airlines look carefully at the levels of community support prior to making a commitment for new or additional service. Airports have improved chances of sustaining higher levels of air service if the community is both aware and support- ive of the service. Other aspects of air service development, such as marketing programs that involve financial incentives for air carriers, marketing support provided directly to air carriers, or risk minimization programs for air carriers, are covered in ACRP Report 18: Passenger Air Service Development Techniques. The basic principles presented here will apply to most airports dealing with the issue of increasing community support for air service. 7.4.1 HOW COMMUNITY SUPPORT HELPS BUILD AIR SERVICE For air service to be successful at small airports, the airport must “capture” as many passengers as possible. The ultimate goal of community support programs is to direct and focus regional demand for air service toward the local airport. Increased community support for air service is a critical ingredient in a positive cycle of air ser- vice development. When more passengers use the local air service, demand is reinforced and a positive cycle to attract additional service begins. The primary obstacle to achieving this goal of maximizing local air service is the loss of passengers to other nearby larger airports. Passenger leakage or “diversion” occurs when passengers bypass their local airport to drive to another airport because air fares are lower or service is perceived as better. Although some amount Characteristics of an Effective Marketing Plan 53

of diversion may be inevitable, there are many cases where it may be substantially reduced through effective marketing programs. Thus, the goal of marketing programs aimed at increasing community support is to increase awareness of the commercial air service offered locally and to retain passengers who are otherwise driving to alternate, more distant airports. 7.4.2 THE MESSAGE—SUPPORT LOCAL SERVICE Most air service development work is incremental, helping to build traffic, which in turn makes the market more attractive and leads to new service. The cycle shown in Exhibit 7.4 describes how the process works and is part of the message conveyed to build community support. Exhibit 7.4—Air Service Development Cycle. 54 Marketing Guidebook for Small Airports Attracts More Service New Service Stimulates the Market Bigger Market Source: Oliver Wyman By using the air service at the local airport, residents are helping to build better air service in the future. By not using the local air service, they are doing just the opposite—contributing to a decline in air service because fewer passengers mean that the airlines provide fewer flights, which in turn makes the local airport even less attractive to local travelers. One of the obstacles faced by many small airports in their campaign to attract more passengers is the problem of high airfares. Smaller aircraft are more expensive to operate per passenger mile and fixed station costs must be allocated over a fewer number of flights at small airports. For these reasons, there is a higher cost of pro- viding service to smaller airports which is often reflected in higher airfares versus fares at nearby larger air- ports. As part of the assessment process described in Chapter 4, lower airfares at nearby airports would be seen as a competitive disadvantage for many small airports. Thus, an important part of the message conveyed to gain community support must focus on the strengths of the local airport—namely convenience, less driving, potentially lower costs for parking, easier check-ins, and so forth. Communities have successfully increased use of their airports through marketing campaigns that

remind local passengers of the overall benefits of local air service. The message conveyed is that when all costs are considered, the local air service is a bargain. Community awareness programs strive to emphasize the following points: • To keep local air service, you must use it. • Always check local airfares first before considering alternate airports. • If the local airport has a high fare reputation, the community must deal with it directly. This means high- lighting low fares that are available locally and also highlighting the other costs involved in driving to a distant airport (including mileage, parking, and wasted time). • Focus on the passengers who are driving to other airports. These messages can be highlighted through campaigns in the local press and through various other publicity channels. 7.4.3 TARGET THE BUSINESS COMMUNITY The involvement of the business community is important both in aiding general community awareness pro- grams and in helping to shift business travel to the local airport. From an air service development perspective, the involvement of the business community is crucial for several reasons: 1. First, business travelers generate a disproportionate amount of revenue and pay higher ticket prices than leisure travelers. In fact, the typical business traveler pays more than twice as much per ticket as the typical leisure traveler. Unlike airports, which focus on enplanement volume as their primary mea- sure of success, airlines focus on revenue. Thus, “high revenue” passengers are the most important to the airlines. The more of these passengers an airport can attract, the greater the chance for improved service. 2. Second, business leaders have the ability to shift business travel spending within their own companies and to influence other business leaders to do the same. This is much more difficult to accomplish with leisure travel. 3. Third, business and civic organizations are able to provide funding for marketing support and other ini- tiatives that go beyond the levels available from other sources and is not subject to the same spend- ing restrictions. For example, the business community can designate funding to be provided to support a particular carrier’s air service without concern for violating FAA rules regarding nondiscrimination. 4. Fourth, funding provided by local businesses for marketing support means more to airline decision mak- ers than does equal funding provided from other sources. When local businesses contribute money to attract or retain air service, it signals the importance of that service to the airlines’ most important customers. A government grant for the same amount does not serve to send the same signal to the airlines. For these same reasons, a respected business leader is often the community’s most effective advocate in deal- ing with air service issues. An effective business leader is able to serve as a catalyst for change, to take owner- ship of the issue to make commitments on behalf of the business community, and to fulfill them. The business leader is likely to understand the airline’s need for revenue. He or she also represents the airlines’ most impor- tant customers, speaks the language of business, and has the ability to motivate other business leaders to take concrete action. Characteristics of an Effective Marketing Plan 55

7.4.4 EXAMPLE—HARRISBURG, PENNSYLVANIA, ENGAGES THE BUSINESS COMMUNITY One example of an awareness program focused on the business community comes from Harrisburg, Pennsylvania. There, the airport persuaded a major carrier to reduce fares and then heavily marketed the lower fares by • Conducting press conferences, • Hosting dinners aimed at travel agents, and • Buying billboard, radio, and other advertisements in the regional media. The campaign not only highlighted the availability of lower fares, but also stressed that the business commu- nity would either “use or lose” those fares. The message was that the program would succeed only if travelers supported the local airport (see Exhibit 7.5). Every airport engaged in marketing campaigns to reduce diversion can look at Harrisburg’s experience and then customize a message to speak directly to its local audience. Exhibit 7.5—Example of Harrisburg, Pennsylvania’s Website Campaign to Engage the Business Community. “South Central Pennsylvania is the fastest growing region in PA and is an emerging player on the international stage. By working together the HIA (Harrisburg International Airport) Travel Network can help realize the tremendous potential of this region. Record high gas prices, pending mergers and bankruptcies are leading to air service cutbacks at cities throughout the country. With your help by continuing to purchase tickets on the airlines flying to and from we can encourage these airlines to maintain the levels of service we have today and grow levels of service to and from our region in the future!” Harrisburg International Airport Source: Harrisburg International Airport 7.5 IMPORTANCE OF A POWERFUL EXECUTIVE SUMMARY Every marketing plan should also have a powerful executive summary. A good executive summary keeps everyone on track and motivated. The summary should be a persuasive call to action and a power advertise- ment for the airport’s marketing program. The executive summary should be treated as a dynamic document. Revise it as needed. As the airport enters a new phase of the marketing campaign, add a summary of what was accomplished in the last period and how this new phase of activity is different. 56 Marketing Guidebook for Small Airports The Antidote to the Big Airport

57 CHAPTER 8 EXECUTE, MONITOR, AND EVALUATE THE PLAN 8.1 Step 6—Execute the Plan 8.2 Step 7—Monitor and Evaluate the Plan 8.3 Modify Your Marketing Plan 8.4 Funding Sources Previous chapters provide a framework to build a marketing plan. In Step 6, it is time to execute the plan, which requires focused management. In Step 7, it is important to monitor and evaluate the results, and make mid-course adjustments if necessary. This chapter also includes a closer look at possible funding sources for marketing, Step 5 Step 6 Step 7 Execute Plan Monitor and Evaluate Tools to Reach Audience and Deliver Message Source: GMH Consulting, LLC 8.1 STEP 6—EXECUTE THE PLAN The value of the marketing plan ultimately is in its implementation. One person needs to be in charge to man- age the program and make sure that roles and responsibilities are clear and that schedules and budgets are understood. The management duties include the following: • Communication with the marketing team, the airport’s governing entity, and other stakeholders • Assignment of roles and responsibilities to staff, volunteers, and other participating organizations • Milestones to gauge progress of the SMART objectives • Review Although it is possible to write much more about executing the plan, the fact is that managing a marketing program is just like managing many other multi-phased projects that airport managers have experience doing.

8.2 STEP 7—MONITOR AND EVALUATE THE PLAN 58 Marketing Guidebook for Small Airports Step 5 Step 6 Step 7 Execute Plan Monitor and Evaluate Tools to Reach Audience and Deliver Message Source: GMH Consulting, LLC After the marketing campaign is launched, it may be tempting to think that the work is done. However, the cam- paign must be monitored. Here are some examples of work that must be done: • Advertisements that are placed should be checked to make sure they ran as scheduled and in the form submitted. • Where earned media is involved, there should be follow-up with local media to inquire about the status of news articles. • Help-yourself brochures should be stocked and re-supplied. Everyone involved in the project should be tasked with monitoring the effectiveness of different aspects of the campaign. Ideally, it would be useful to have on-going information on the impact of the campaign in the same way that presidential candidates have on-going polling information. For small airports, of course, that level of monitor- ing is not possible. Instead, they must rely on anecdotal evidence. • In the case of chamber presentations, what was the audience reaction? • In the case of newspaper articles, what do people think about them? • What marketing materials are people talking about? • What changes are there in passenger demand? • What changes are there in call volume? • What new questions are being asked about the airport? One key source of information is the passengers passing through the terminal. The airport director has an ideal opportunity to talk with passengers and to get some direct feedback on the campaign. Perhaps the most diffi- cult part of this process is determining whether passengers are providing an honest reaction or simply telling the director what they think he or she wants to hear. But in any event, the passengers are in effect a captive audience and the director should take the opportunity to speak with them. Where particular media appears to be ineffective, it should be discontinued and resources shifted to media that appear to be more effective. Marketing campaigns are on-going. They should be well-planned, and then they must be carefully monitored and adjusted as needed based on the results observed.

8.2.1 MEASURING THE EFFECTIVENESS OF YOUR CAMPAIGN It is often a challenge to develop accurate measures of marketing efforts. This section describes some of the measures commonly used to determine the effectiveness of small airport marketing programs as well as the issues associated with these measures. CUSTOMER SATISFACTION SURVEYS About half of the small commercial service airports interviewed said that they had conducted customer satis- faction surveys at some point. Typically, these surveys are conducted by pollsters who interview passengers while they are waiting to board flights at the local airport. In other cases, these surveys are conducted via email using the email lists airports have assembled from newsletter, website, or contest signups. Free or low cost Internet survey services make the process quick and easy for the survey taker. Customer satisfaction surveys are effective in measuring the level of satisfaction of current airport users and their opinion of the facilities, services, and accessibility of the airport. AWARENESS AND USAGE SURVEYS A broad range of telephone, mail, and Internet surveys have been taken to provide measurements of the following: • Whether residents are aware of the services offered by the local airport • Whether residents consider using the local airport when they make air travel decisions • What price differences would be acceptable for residents considering flying from the local airport ver- sus driving to larger airports • Whether residents believe the airport is a good neighbor and strong community asset • Whether residents think it is important to have scheduled air service at the local airport In theory, a survey of population in the small airport’s catchment area has strong potential to measure the effec- tiveness of the airport’s marketing efforts. In practice, however, the cost of conducting a telephone survey using a professional survey firm is prohibitive for many small airports. Other methods of surveying, such as mail sur- veys or Internet surveys, do not always generate a sufficient response rate. What this means is that this type of survey may still be a good idea if it can be conducted inexpensively. However, the results of an airport-conducted Internet or mail survey are likely to be descriptive as opposed to statistically valid. FOCUS GROUPS Although focus groups cannot provide statistically valid information, they can provide in-depth insights into opin- ions about the local airport, how travelers make airport choices, and the effectiveness of marketing programs. There will be a cost to conduct focus group interviews if a facilitator is employed. However, the insight provided may be a good substitute for expensive telephone surveys. Execute, Monitor, and Evaluate the Plan 59

OTHER NON-SURVEY MEASURES A variety of statistical information is available about airport usage. The information is collected and distributed in raw form by the U.S. Department of Transportation (DOT) and is typically purchased through one of a num- ber of vendors. In some cases, the state DOTs may have access to this data, which it then makes available to small airports within the particular state. The available U.S. DOT data (which includes the Origin and Destination Survey and the T-100 data) permits airports to measure changes in passengers and airfares at their airport. The information is available not only for the airport as a whole but for individual routes at the airport. Using this data, small airports can rank the top destinations for local passengers and can measure changes in passenger numbers and airfares to those destinations. By comparing local statistics with the statistics for nearby competing airports, it is also possible for airport man- agers to judge whether passenger diversion is getting worse or better. A number of other analyses can be con- ducted, which can help small airports determine whether they are effectively serving their communities. The primary drawback to using U.S. DOT data to evaluate the impact of a marketing campaign is the lag time (usually 4 months) that it takes to publish the data. Thus, the data is very useful to analyze the effectiveness of a marketing program once the program is completed, but it is not sufficiently current to permit mid-course cor- rections to most marketing programs. REGIONAL MARKET SHARE TRENDS One technique employing U.S. DOT data that may prove useful in air service development activities is to measure your airport’s market share in relation to other airports in the region. For example, if there are three airports in the region that make up your market area, you might want to measure what percentage or share of the passengers you capture when the three airports’ passenger volumes are combined. By measuring your airport’s share of passengers over a period of time, you could see if your marketing efforts are having a positive impact. If your airport accounted for 20% of the region’s passengers over a period of time, and after your marketing program, your participation rose to 23%, this would certainly be a positive indicator. On the other hand, a decline in market share might indicate that there are competitive issues which you need to address with marketing. One of the benefits of using a metric that measures your airport’s performance on a relative basis (percent of market passengers) rather than merely looking at the change in total passenger volume at your airport is that it removes the effect of the economic cycle. For example, in good economic times, you might see that the passen- ger volume at your airport is rising. However, other airports in the region might be seeing the same rise in pas- sengers. It is possible that even though passenger volume is rising at your airport, your share of the passengers in the region is actually declining—a situation that might require your attention. In simple terms, “a rising tide lifts all boats,” and you want to ensure that your boat is rising faster than the others. On the other hand, a decline in passenger volume should be viewed relative to what is happening at other air- ports in the region. It’s difficult to characterize a decline in passenger volume as a positive sign, but if your share of the region is increasing despite the decline, your marketing efforts might be the reason. 60 Marketing Guidebook for Small Airports

JOINT AIRPORT/AIRLINE MONITORING APPROACH As noted, U.S. DOT data is historical; it is not forward looking. The only source of forward looking data pertain- ing to passenger volume is the airlines’ advance booking activity. Most airlines have sophisticated revenue management systems. Tracking and evaluating advance booking trends is a critical part of the revenue man- agement function. If you are launching a marketing program designed to increase passenger volume at the airport, you might want to discuss the effort with your incumbent air carrier(s) to see if they would be willing to provide some insight as to the trends they are seeing in future bookings. This could prove to be very helpful to your efforts, for it would provide the most current input possible and give you a “real time” evaluation of your program. There are several cautionary notes concerning this approach. One is that most airlines consider this type of data proprietary and may not be willing to share it. Also, even if the airline provided you with the booking data, it is unlikely that you or anyone else outside of the airline would be able to correctly interpret the trends. Airlines have staffs of analysts trained to evaluate changes in future booking trends. Rather than the raw data, what you should seek is the airline’s analysis of the change in future bookings at your airport. Make sure that the airline is aware that the program you are implementing is intended to benefit them and that feedback on future bookings is an important part of the process. It is unlikely that you will get definitive responses in this process. Most likely you will only be able to get some broad generalizations such as “bookings look stronger,” or “we see no change in advance bookings.” But even these broad statements can have value in monitoring your program. A positive response is encouraging and says you might be on the right track. A “no change” doesn’t necessarily mean that the program is not working, but certainly indicates you should carefully review the program and what you hope to achieve. 8.3 MODIFY YOUR MARKETING PLAN All marketing programs are works in progress. Airports that have on-going programs can continue activities that are effective and introduce one or two new initiatives that might involve greater attention to launch. The goal of course is to accomplish one objective and move on to the next. For general aviation airports, business devel- opment is often a matter of personal contacts and maintaining relationships. Lead generation, development, and conversion into airport business are on-going activities. Keeping in touch with your existing tenants is also part of the equation. Review and revise your marketing plan each year and remember to keep the marketing team informed, engaged, and acknowledged. 8.4 FUNDING SOURCES For most small airports, funding for marketing comes from a variety of sources, including the airport operating budget, grants, and donations. Exhibit 8.1 lists alternative funding sources commonly used for small airport marketing. Execute, Monitor, and Evaluate the Plan 61

Exhibit 8.1—Alternative Funding Sources to Help Market the Airport. 62 Marketing Guidebook for Small Airports Cash Donations • Individuals • Businesses • Airport FBO • Fundraising events • Experts in other local government departments • Experts on Airport Board • Ad agencies • Newspapers • Local Radio & TV • University or college • Marketing consultants • Chamber of Commerce • Economic development organizations • State DOT • FBO • Airlines • Other airports Grants • FAA • SCASD • State DOT • Economic development organizations • Local government In-Kind Cost Sharing Source: KRAMER aerotek, inc. FUNDING RESOURCES USED BY COMMERCIAL SERVICE AIRPORTS Many small commercial service airports have learned to be resourceful when funding marketing programs. The largest single source of marketing funds is the U.S. DOT’s Small Community Air Service Development (SCASD) Pilot Program. Some states, such as Michigan, Minnesota, and Wyoming also provide grants for airport mar- keting programs. In the survey research, commercial service airports reported spending more than $10,000 in the previous year on marketing, with five of the airports reporting spending over $100,000. Keep in mind, however, that this selec- tion of airports may not be representative. The research team believes that the airports surveyed spend a greater than average amount on marketing. In particular, three of the larger airports—Ft. Wayne, Huntsville, and Newport News—were included specifically because their marketing programs are known in the industry, and therefore it is logical to assume that they have significant marketing budgets, probably more than small air- ports typically have available. All airports obtained some marketing funding from the airport operating budget (see Exhibit 8.2). In addi- tion, 9 of the 12 airports reported receiving grant funding—either from a SCASD grant, a state grant, or other grant. Seven airports reported receiving in-kind contributions—perhaps the most unusual being the donation of locally made Vera Bradley handbags to be used in promotions. The State of Wyoming and its commercial service airports are a good example of a group application for a SCASD grant. In this case, a state contribution of $100,000 plus the SCASD grant of $800,000 meant that each airport needed only to contribute $10,000 to participate in the program. Several airports reported receiving special local government appropriations for marketing—individual donations, or matching funds from private businesses.

Exhibit 8.2—Annual Spending for Marketing. Execute, Monitor, and Evaluate the Plan 63 0 2 6 >$100,000 $50,001 - $100,000 $10,001 - $20,000 $20,001 - $50,000 $5,001 - $10,000 $2,501 - $5,000 <$2,500 4 Responses Number of Commercial Service Airports Reporting Source: Airport Marketing Survey 2008 FUNDING RESOURCES USED BY GENERAL AVIATION AIRPORTS As with staffing resources, funding for marketing at general aviation airports is more limited than at commer- cial service airports. General aviation airports reported spending from $0 to more than $100,000. The smallest general aviation airports had little or no money to spend on marketing and only the largest general aviation air- ports had sizeable budgets and dedicated resources (internal or external) to carry out their marketing plans. The greatest amount of money was spent at those airports seeking to restore commercial service. Funds were used on more expensive forms of traditional marketing such as print advertising, radio and TV spots, and con- sulting services in support of securing commercial service. These funds most often came from airport operat- ing budgets, followed by various types of grants. However, for general aviation airports not seeking reinstatement of air service, most marketing funds came from the airport’s operating budget, from special state grants or from joint marketing efforts with either the chamber of commerce or the FBO. Typical budgets for small general aviation did not exceed $5,000. Airports surveyed reported that funds went equally to either attracting new business to the airport or to promoting a positive view of the airport in the community. Exhibit 8.3 shows how marketing funds were used by general aviation airports.

Exhibit 8.3—Ways that General Aviation Airports Use Marketing Funds. 64 Marketing Guidebook for Small Airports 0 2 8 Promote positive view of airport in the community Attract new businesses to the airport Attract more general aviation or business activity Reinstate air service Address public safety, noise & land use issues Retain current airport tenants Attract developers to the airport Lobby congressional delegation Market hangars Promote airport to funding sources 4 6 Responses Number of General Aviation Airports Reporting Source: Airport Marketing Survey 2008

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TRB’s Airport Cooperative Research Program (ACRP) Report 28: Marketing Guidebook for Small Airports explores development of a marketing program for general aviation or commercial service airports on a small or minimal budget.

View information about the TRB webinar on ACRP Report 28: Marketing Guidebook for Small Airports Tuesday, April 6, 2010 at 2 PM EDT.

The November 2013 ACRP Impacts on Practice highlights how the Fort Wayne International Airport in Indiana used ACRP Report 28 to create a marketing plan.

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