Page 186 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 3 Marketing

CASE STUDY Skywards

Skywards is a frequent flyer programme that rewards the loyalty of Emirates airline passengers with a range of travel
and lifestyle benefits. In addition to the Miles earned while flying, members can also accrue Skywards Miles at partner

businesses of Emirates, such as Le Meridien, Jumeirah, Citibank, Hertz, Damas, InterContinental Hotels, as well as
other airlines. Travel privileges range from earning Miles to hassle-free check-in to excess baggage allowance and
access to the business lounge at Dubai International Airport. As well as using their Miles to buy or upgrade fl ights,
Skywards members can shop at the Emirates High Street, which has a choice of more than 400 products, ranging from
incredible leisure experiences, to global luxury brands to everyday lifestyle objects and accessories.
Source: www.emirates.com

TASK
a Identify two benefits to consumers of the Skywards reward scheme.
b Identify one benefit and one limitation to Emirates airlines and its partners of operating the Skywards loyalty scheme.

KEY TERM Personal selling

Personal selling is most often used when selling expensive items that have a
Personal selling: sales staff high profit per unit, for example cars. The salesperson has direct contact with the

communicate directly with the
potential customer when they visit the showroom or other business premises of
consumer to achieve a sale and
form a long-term relationship the seller. Sometimes the seller will visit the potential buyer in their own homes,

between the firm and consumer. for example when selling home improvements. This enables the seller to build a
184 relationship with the customer that can last after the completion of the sale and

result in further sales in the future.

This can be an expensive form of promotion because more staff are needed to
provide the level of personal service customers require. Also, to provide incentives

to sales staff the business will often pay bonuses, or a commission on any sales

TOP TIP made. This reduces the profit to the business per item sold.
If a question asks for diff erent
types of media, do not give
examples of the same type such
as advertising in newspapers,
television or radio.

EXPLORE!
Collect direct mail that is
delivered to your own home, or
ask the School Office if they have

any that you can have.
Select one of the direct mail
items and write a brief report on
what is being sold. Is the business
local or national? What message
are they trying to get across to
consumers in their direct mail?
Do you think the direct mail is
effective? Justify your answer.

Personal selling