University of Phoenix
RUEDIGER MUELLER, Ph.D.
August 28, 2012
Classic Airlines Marketing Solution
Classic Airlines has seen decreases in its profit and number of members in its Classic Rewards program (University of Phoenix, nd., p. 1). Senior executives and marketers at Classic Airlines have noticed that customer satisfaction levels have become greatly affected, thus creating a concern because organizational profits have also decreased. As a result, customer loyalty has also become of concern, especially because existing customers are flying less with Classic Airlines. Meanwhile, senior executives and marketers at Classic Airlines must implement marketing strategies, thus offering more attractive incentives for existing Classic Rewards members. Hence, by selecting the appropriate marketing strategies and implementing a problem-solving model with strategies that will address such concerns is crucial in improving Classic Airlines financial position and the perception that consumers have of the organization. Classic Airlines Organizational Constraints
Classic Airlines has encountered financial constraints because of its decrease in airfare sales, thus creating marketing challenges for analysts and management. The dilemma that Classic Airlines is currently facing is its decrease in ticket sales, reduction in Classic Rewards program members, and the financial constraints placed on organizational staff and the decisions they make. This dilemma also creates challenges with organizational monies that could have been allocated for its marketing innovative projects, which are expected to take place in the near future. However, financial constraints are complicating the process because marketing analysts are aware of the marketing challenges that the organization is facing when compared to Classic’s competitors. In addition, current reward program members are not concerned with the cost of airfare solely but also with the quality of service they receive and the constraint of rewards obtained by Classic Rewards frequent flyer program. As a result, consumers are seeking to obtain the maximum value for each dollar spent, thus causing customers to either fly less or fly with Classic Airlines competitors and creating ramifications for the organization. To improve the perception that Classic delivers to consumers, organizational objectives and goals must be established. Furthermore, such organizational objectives and goals are achieved by implementing a problem-solving model; meanwhile, encouraging a collaborative effort from organizational staff as well as stakeholders to attain such goals. Applying the Nine-Step Problem-Solving Model and Describing the Situation
Applying the nine-step problem-solving model enables Classic Airlines to realign organizational values, objectives, and goals; meanwhile, focusing on customer demands. The first step in the nine-step problem-solving model is describing the situation. Taking this into consideration, there are various internal and external pressures, which are evident to Classic’s management and marketers. One of the most important external pressures that is of crucial concern is Classic’s airline prices when compared to its competitors because air fare prices a higher than competing airlines. In addition, customers have also complained about the quality of service they are receiving when flying with Classic Airlines. In like manner, the most important internal pressure is to keep costs minimal; however, implementing the desired changes to obtain desired outcomes. Another internal pressure is meeting the established goals in customer wait times for inquiries and concerns and the amount of time spent on problem-solving resolutions. Although senior administration is concerned with the amount of time spent addressing customer inquiries and concerns, it has become evident that customer...