Classic Airlines and Marketing Concepts
As the world’s fifth largest airline, Classic Airlines operates with a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights (University of Phoenix, 2010). Since Classic Airlines’ inception, the organization has grown to have approximately 32,000 employees with earnings of $10 million on $8.7 billion in sales (University of Phoenix, 2010). As the company strives for continued success and profits, Classic Airlines is susceptible to challenges that affect today’s airlines. One challenge the organization faces is how to beef up its frequent flier program with methods that will demonstrate a measurable return on any investment (University of Phoenix, 2010). The purpose of this paper is to relate some marketing concepts from week one readings to Classic Airlines and its reward program. Marketing deals with identifying and meeting human and social needs (Kotler and Keller, 2006). The American Marketing Association defines marketing as an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders (Kotler and Keller, 2006). Kevin Boyle, Chief Marketing Officer (CMO) for Classic Airlines, is tasked with the opportunity to turn around the Classic Rewards Program. Reporting shows that membership in the program is down nearly 20% from the previous year, meaning that more than 160,000 supposedly loyal members are flying airlines other than Classic (University of Phoenix, 2010). By starting with the core concept of needs, wants and demands, the marketing team can figure out what parts of the program is working and not working to revamp the program. Needs are the basic human requirements which become wants when directed to specific objects that might satisfy the need (Kotler and Keller, 2006). Demands are wants for specific products backed by an ability...
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