Mkt/571 Week1
Week 1 Individual Assignment
Classic Airlines and Marketing
Liza Smith
MKT/571
January 14, 2013
Nita Bergmann
Classic Airlines and Marketing
Classic Airlines is the fifth largest airline company in the world. Similarly to the competitors it is suffering from high fuel costs, resulting in lower profits. Many companies dropped number of flights (with the net result of raising passenger load factors and efficiency on remaining flights), raised prices, developed very large revenue streams from checked baggage fees and other charges, and kept very tight lid on all controllable expenses (University of Phoenix Library, 2013). This way the airline companies minimized the expenses and raised the revenue. The heel of Achilles for Classic Airlines is the partial booked flights. That is why that the good planed marketing strategy is critical to its success. The attraction of the larger customer segment will raise the demand on the company’s products. The higher flight occupancy rate will lower the expense costs for the company.
The Marketing Products Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs profitably (University of Phoenix Library, 2013)”. The management of the company needs to take in the consideration that there are different customer segments with different expectations. Some of them are interested in low prices while another’s are concerned with the quality of the service. In this scenario Classic Airline offers customers service of delivering them from one destination to another. The great way of attracting customers in service providing companies is to create the extraordinary experience. In this case the company can retrain the employees to provide its customers the exceptionally friendly customer service. Classic Airlines can always increase its revenues from additional fees such as charges for checked
Classic Airlines and Marketing
Liza Smith
MKT/571
January 14, 2013
Nita Bergmann
Classic Airlines and Marketing
Classic Airlines is the fifth largest airline company in the world. Similarly to the competitors it is suffering from high fuel costs, resulting in lower profits. Many companies dropped number of flights (with the net result of raising passenger load factors and efficiency on remaining flights), raised prices, developed very large revenue streams from checked baggage fees and other charges, and kept very tight lid on all controllable expenses (University of Phoenix Library, 2013). This way the airline companies minimized the expenses and raised the revenue. The heel of Achilles for Classic Airlines is the partial booked flights. That is why that the good planed marketing strategy is critical to its success. The attraction of the larger customer segment will raise the demand on the company’s products. The higher flight occupancy rate will lower the expense costs for the company.
The Marketing Products Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs profitably (University of Phoenix Library, 2013)”. The management of the company needs to take in the consideration that there are different customer segments with different expectations. Some of them are interested in low prices while another’s are concerned with the quality of the service. In this scenario Classic Airline offers customers service of delivering them from one destination to another. The great way of attracting customers in service providing companies is to create the extraordinary experience. In this case the company can retrain the employees to provide its customers the exceptionally friendly customer service. Classic Airlines can always increase its revenues from additional fees such as charges for checked
References: Center for the Study of Social Policy, 2007. Customer Satisfaction. Retrieved January 14, 2013 from http://www.cssp.org/publications/constituents-co-invested-in-change/customer-satisfaction/customer-satisfaction-what-research-tells-us.pdf University of Phoenix Library, 2013. Plunkett Research Ltd. Introduction to the Travel Industry. Retrieved January 9, 2013 from http://www.plunkettresearchonline.com.ezproxy.apollolibrary.com/ResearchCenter/Trends/display.aspx?Industry=17 University of Phoenix Library, 2013. MKT/571 Week One Readings. Chapter One. Retrieved January 10, 2013 from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx