Classic Airlines and Marketing Concepts

Topics: Marketing, Customer, Want Pages: 2 (634 words) Published: August 21, 2010
Classic Airlines and Marketing Concepts
The Classic Airlines scenario offers numerous examples of the marketing concepts found in Marketing Management.
The Classic Airlines scenario reveals the airline is the world’s fifth largest airline and commands a fleet of more than 375 jets. The airline has been profitable but also faces challenges that plague many airlines today. Classic Airlines saw a decrease in their share prices, and a decrease in the number of customers enrolled in their Classic Rewards program (University of Phoenix, 2010).

One of the marketing concepts says the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen markets (Kotler & Keller, 2006). This concept is prevalent in the airline scenario as the management team tries to find a strategy to convince their loyal customers to return as well as gain new customers. Amanda, the CEO of Classic Airlines, mentioned the Customer Loyalty Report shoed membership in the Classic Rewards program was down 20% from last year. She also stated the company could not get the company’s loyal frequent flier customers to choose Classis over the competition. The scenario shows that Classic Airlines is not more effective than their competition in creating, delivering, or communicating customer value (University of Phoenix, 2010).

The production concept also can be seen in this scenario. This concept says that consumers will prefer products that are widely available and inexpensive (Kotler & Keller, 2006). Amanda mentions in the meeting that Classic Airlines had already dropped their prices to compete with the competition. The companies began to get into a price war, and Classic Airlines could not drop their prices any lower. As a result, many of their customers began to go with the company that offered the lowest cost (University of Phoenix, 2010).

Another marketing concept can be...

References: Kotler & Keller. (2006). Marketing Management (12th ed.). New Jersey: Pearson- Prentice Hall.
University of Phoenix. (2010). Classic Airlines Scenario. Retrieved from
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