Southwest Airlines’ marketing mix or 4P (product, price, place, and promotion) caters to the needs of travelers and focuses on affordability as a competitive factor. As a discount carrier, the company uses competitive pricing to attract travelers and make its marketing strategy effective.
These 4Ps contribute to business strengths and exploit the market opportunities noted in the SWOT analysis of Southwest Airlines. As industry trends change, so do the elements of this marketing mix to maximize profits based on commercial aviation market opportunities.
The decisions, strategies, and tactics applied in this marketing mix aim for Southwest’s long-term success against Delta, United, and other competitors. These competitors influence travelers’ perception about Southwest’s service quality and attractiveness.
Through its marketing strategy and marketing mix, Southwest Airlines develops and maintains profitable relations with its target customers, especially in the U.S. civilian aviation market. This airline business case provides insights into successful marketing involving low-cost business models.
Southwest’s Products
Southwest’s product mix revolves around the needs and preferences of travelers. The company’s marketing mix includes goods and services that complement each other to satisfy air travelers’ expectations and maximize revenues from target markets. Southwest’s products include:
- Air transport services
- In-flight merchandise
- In-flight entertainment
- Other services
Southwest’s core product is its air transport service for passengers and freight. Goods and services for airline passengers are also the basis of the other products included in this marketing mix.
These air transport services are offered at competitive prices based on the low-cost carrier model and Southwest’s generic competitive strategy to maintain the company’s low-cost airline branding.
Considering the business opportunities available while customers are traveling with the company, in-flight merchandise and entertainment are included as products in Southwest’s marketing mix.
Such merchandise includes food, beverage, and other goods sold to customers while they fly. On the other hand, for a fee, Southwest Airlines offers in-flight Wi-Fi that allows passengers to access content, such as movies and music.
Moreover, Southwest’s 4P includes other services that add value to customer experience and the airline business. For example, customers can conveniently book hotels, cars, and getaways or vacations through the company.
All these products represent Southwest Airlines’ marketing strategy that capitalizes on the niche of needs linked to travelers. This marketing mix also shows the expansion of the company’s offerings outside of its core air transport services.
The products and their specifications in this marketing mix agree with the goals and business targets based on Southwest’s mission and vision, which emphasize service quality, customer experience, and affordability for the benefit of travelers and other business stakeholders.
Price in Southwest’s 4Ps
The price ranges and price points in Southwest Airlines’ marketing mix are based on a low-cost carrier model that aims to maintain competitive advantages based on low operating costs and low fares. Southwest’s pricing strategies are:
- Dynamic pricing
- Bundle pricing
- Premium pricing
Dynamic pricing is applied to Southwest’s booking rates. For example, through time-based pricing, airfare becomes higher as the flight date nears. The resulting dynamic prices are within the ranges of low-price targets of the low-cost carrier model.
Southwest’s marketing mix also includes bundle pricing. For example, in addition to their flights with the company, customers can book vacation packages involving other companies and service providers.
On the other hand, this marketing mix applies premium pricing in a limited way for interested customers. For instance, the Choice Extra upgrade allows Southwest passengers to access premium products, such as priority boarding and complimentary drinks.
These pricing strategies indicate that the company’s marketing strategy is flexible enough to accommodate additional opportunities in the civil aviation market, corresponding to variations among target customers’ preferences.
Despite the differences among these pricing strategies, the actual price points and ranges align with the low-cost targets of Southwest’s generic competitive strategy and intensive growth strategies.
For its 4Ps, the company keeps low prices and a no-frills approach to maintain the budget carrier branding. External factors and trends affect market conditions and can lead to changes in the actual prices derived through these pricing strategies in the company’s marketing mix.
Place in Southwest’s Marketing Mix
The places or channels that allow Southwest to reach target customers rely heavily on information technology. However, brick-and-mortar locations are also included in this marketing mix. With this hybrid distribution strategy, the places in Southwest’s marketing mix include:
- Southwest’s booking websites and mobile app
- Third-party websites and apps
- Travel agencies and booking offices
Many travelers book their flights online using various options, including Southwest’s website and mobile app, as well as other companies’ booking websites and apps. Brick-and-mortar locations of travel agents and offices are also available.
These channels show that Southwest Airlines’ marketing mix depends on the company’s online presence, although the online and brick-and-mortar operations of third-party providers are also significant.
The use of information technology optimizes Southwest’s marketing strategy for high efficiency in processing bookings, an effective international market reach, and convenience for target customers.
The location strategy included in Southwest’s operations management provides support for the company’s distribution strategy to optimize business efficiency and minimize costs to enable the competitive prices included in this 4P.
Even though the place decisions in this marketing mix may affect organizational size and office locations, Southwest’s corporate structure (company structure) mainly corresponds to flight operations and the locations of airports and hubs.
Southwest’s Promotion
Southwest’s marketing communications are typical in the industry. This marketing mix promotes the business and its services mainly through advertising, although other promotional tactics are applied. The primary promotional activities of Southwest Airlines are:
- Advertising
- Sales promotion
- Public relations
- Social media marketing
Southwest advertisements effectively reach target customers. As part of its 4Ps, the company advertises on billboards, print media, and TV and the Internet to maintain brand awareness and to promote its air transport services, especially during peak seasons and special offers.
Sales promotion in Southwest’s marketing mix includes special offers. For example, the company offers loyalty deals and airfare discounts frequently tied to occasions and seasonal demand.
Public relations in this marketing mix applies some of the branding benefits of Southwest’s stakeholder management and CSR/ESG strategy. This strategy builds the company’s brand and integrates stakeholder interests into business decisions for the company’s marketing strategy.
Furthermore, Southwest’s online presence on Facebook, YouTube, and other social media platforms promotes the airline business and its affordable airfares through advertising, sales promotion, and public relations.
References
- Getaways by Southwest.
- Hendricks, L. (2026). Designing a Scalable Platform-Driven Marketing Strategy. In The Platform Playbook: The Marketer’s Guide to Designing, Scaling and Leading Platform Growth (pp. 333-340). Cham: Springer Nature Switzerland.
- Lee, D., Secatore, E., Singer, E., & Amel, E. (2026). Business model evolution and consolidation of the US airline industry: Market outcomes in the 21st century. Journal of Air Transport Management, 132, 102935.
- O’Connell, J. F. (2026). The General Trend of the Global Airline Industry. In The Airline Industry – A Comprehensive Overview (pp. 1-67). Routledge.
- Southwest Airlines – Featured Offers and Deals.
- Southwest Airlines – Form 10-K.
- Southwest Airlines – Upgrade Fare Class.
- Southwest Mobile App.
- U.S. Department of Commerce – International Trade Administration – Travel, Tourism & Hospitality Industry.