December 5, 2012
Professor Sandra Woods
Classic Airlines and Marketing
An organization’s ability to market successfully its services or products can aid in determining the success or failure of the organization. Marketing involves identifying, understanding, and meeting both social and human needs (Kotler & Keller, 2006). Classic Airlines faces a marketing dilemma and must decide how to incorporate marketing concepts to be successful. This paper will focus on Classic Airlines’ current internal and external marketing challenges and identify and relate some of the marketing concepts to Classic Airlines. Classic Airlines’ Marketing Challenges
With a fleet consisting of 300-plus jets, more than 2,300 daily flights, and serving 240 cities, Classic Airlines is the fifth largest airline (University of Phoenix, 2012, Week One Scenario). Over the past year Classic Airlines is facing a decrease in their Classic Rewards program equaling a loss of more than 160,000 of its frequent flyer customers. The marketing challenge is to find ways to bring those customers back and increase the customer base without the use of airfare discounts. This presents marketing challenges because the success of the goal achievement is amid a mandatory request of a 15% cost reduction by next fall (University of Phoenix, 2012, Week One Scenario). Internal Challenges
Classic Airlines has a knowledgeable and capable marketing team in place to address this challenge, however; the support from some of the top executives appears to be minimal. The CEO of Classic Airlines, Amanda Miller does not appear to be open to the idea of forming alliances to help in the process of improving the customer base and increasing the frequent flyers. Again, the 15% cost reduction by next fall mandated by the board also presents an internal challenge. The current Customer Relations Management System (CRM) is not in use...