Classic Airline and Marketing

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Classic Airlines and Marketing
University of Phoenix
Myriam Montañez
MKT/571
November 7, 2012
Dr. Magda Oquendo Santana

Classic Airlines and Marketing
Classic Airlines and Marketing is this week assignment for the marketing course. Classic Airline is an organization that is ranked number five in the airline business according to their size, which brought profits around the $10 million last year. This kind of profits has made the successful of the business for 25 years of presence in the market. Even do of last year earnings Classic is not exempt of the challenges the airline industry is going through. The upper management needs to concentrate in the problems that they are having like the falling of the stock prices, decreasing on sales, negative media reaction, the fading of their customers program, and the rising in gas prices that are some of the reasons for the failure of the organization plans. Management needs to start by finding a solution to stop the weakening of their sales without incurring in additional costs. This task will require an excellent planning and organization skills from a creative marketing plan. Another issue they need to take care of is the diminished of customer satisfaction turnover they are encountering, which also will be part of their marketing plan. The more serious problem of the airline is keeping cost-effectiveness with the continuing increases in fuel. According to University of Phoenix Simulation ( 2012) the Customer Loyalty Report indicates a decrease close to 20% in the Classic Rewards membership from last year. This is telling the business that more than 160,000 loyal customers are utilizing other airlines to fly instead of using Classic (UOPX, 2012). For this reason, the management needs to put full attention on finding and understanding what the reasons for the declining numbers. As we mention before Classic Airlines offers to their customers a service and an intangible product like the rewards program, which is divided in three different packages; basic, silver, and gold. The requisite of this program is to travel such amount of miles in the same calendar year before redeeming their rewards. According to the simulation their primary customers are business and leisure persons. Kotler & Kelly (2007) mention in their book that the primary focuses of marketing is to know the customer needs. In the readings we also found that for a company is important to create a product or a service right for its customers. Even do the company is well established they are not meeting their customer’s needs in comparison with the competition. To overcome this situation they must re-examine and make modifications to stop the negative inclination, and satisfy the needs and demands of the business. Developing brand loyalty is a possible answer for the business to change the numbers around. According to Kotler & Kelly (2006) brand loyalty is defined as consumers’ preference for a specific product or service. They should begin by cultivating the relationship between internal and external shareholders. One of their major concerns the airline is facing is the chance to go bankruptcy and the marketing department have the responsibility to develop a campaign to change the image of the business, and to focus on their products and services. To finalize, the airlines should know that a strong marketing strategy needs to be aggressive and intense in order to achieve the company goals. In conclusion, we have mention different methods that Classic Airlines may use to redevelop their marketing strategy. As we mention, we need to bring back the airline image by applying new marketing concepts to increase their earnings. Classic Airlines can use the marketing concepts mentioned above to restructure their rewards program and be more influential in the market. References

Kotler, P., & Keller, K. L. (2007). A framework for marketing management (3rd ed.).

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