Running head: PROBLEM SOLUTION: CLASSIC AIRLINES
Problem Solution: Classic Airlines
Julia Bradley
University of Phoenix
Problem Solution: Classic Airlines
Classic Airlines has lost touch with the needs and desires of their customers, as a result they are seeing a decline the “Classic Rewards” members, and those who are still members are flying less. Amanda Miller, CEO, and Catherine Simpson, CFO, tend to focus their efforts on operational excellence and finances, leaving little respect or devotion for what marketing can do for the company. The recent economy has fallen on hard times creating less opportunity for airline travel for business and pleasure while high fuel costs have raised the cost to get a plane into the air. This combination of factors has made turning a profit a difficult task for Classic Airlines. Fortunately, cost is not the only thing that a frequent flyer looks at when choosing an airline. Learning what frequent flyers look for when choosing an airline will help Classic Airlines to increase sales without decreasing the price of flights, resulting in a large return on investment and profit.
Describe the Situation
Issue and Opportunity Identification
Classic Airlines is looking for ways to maintain and increase membership in their “Classic Rewards” program. To do this they need to meet the requirements for marketing to occur, which are “two or more parties with unsatisfied needs, a desire and ability on their part to be satisfied, a way for the parties to communicate, and something to exchange” (Kerin, Hartley, Berkowitz, & Rudelius, 2006, p. 9). Classic Airlines meets all these requirements but falls short on the means to communicate. A customer relationship management (CRM) program exists at Classic but it could be better. Customer value is the combination of quality, price, convenience, on-time delivery and pre and post sale service (Kerin, et al, 2005). While, Amanda secretly believes that sales cannot be... [continues]
Problem Solution: Classic Airlines
Julia Bradley
University of Phoenix
Problem Solution: Classic Airlines
Classic Airlines has lost touch with the needs and desires of their customers, as a result they are seeing a decline the “Classic Rewards” members, and those who are still members are flying less. Amanda Miller, CEO, and Catherine Simpson, CFO, tend to focus their efforts on operational excellence and finances, leaving little respect or devotion for what marketing can do for the company. The recent economy has fallen on hard times creating less opportunity for airline travel for business and pleasure while high fuel costs have raised the cost to get a plane into the air. This combination of factors has made turning a profit a difficult task for Classic Airlines. Fortunately, cost is not the only thing that a frequent flyer looks at when choosing an airline. Learning what frequent flyers look for when choosing an airline will help Classic Airlines to increase sales without decreasing the price of flights, resulting in a large return on investment and profit.
Describe the Situation
Issue and Opportunity Identification
Classic Airlines is looking for ways to maintain and increase membership in their “Classic Rewards” program. To do this they need to meet the requirements for marketing to occur, which are “two or more parties with unsatisfied needs, a desire and ability on their part to be satisfied, a way for the parties to communicate, and something to exchange” (Kerin, Hartley, Berkowitz, & Rudelius, 2006, p. 9). Classic Airlines meets all these requirements but falls short on the means to communicate. A customer relationship management (CRM) program exists at Classic but it could be better. Customer value is the combination of quality, price, convenience, on-time delivery and pre and post sale service (Kerin, et al, 2005). While, Amanda secretly believes that sales cannot be... [continues]
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