...Classic Airlines Marketing Concepts Marketing MKT/571 Classic Airlines, an airline organization who faces competition is seen in its reduction of customers’ confidence resulting in lower sales. “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, 2012). The reward program is recording reduction in the number of members and the increase of fuel and labor costs is pushing the organization to the possibility of going bankrupt. Classic Airlines has had declining profits and their stock prices have fallen which has affected the organization. This has forced the company to restructure based on extreme competition and the declining metrics disclosed from their customer loyalty report. The paper is meant to identify the products or services and its challenges plus discussing the marketing concepts that the organization uses to guide its marketing efforts. Current Situation Classic Airlines is a company with an extensive history of success however, the company has encountered difficulties in their advancement toward an effective customer service and marketing campaign. Over the years the cost of fuel and labor has been increasing and the top executives at Classic Airlines have a hard time figuring out how to cut costs, so that they can afford increases. There is a need for the airline to keep up with providing the best services...
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...Classic Airlines and Marketing Concepts MKT/571 April 5, 2012 Professor Jerry Shipley Classic Airlines and Marketing Concepts The significance of marketing one’s business in the global market of today has become important to the success of an organization. Prosperous corporations, such as Wal-Mart, General Electric and Nike have learned that effective marketing entails the identification and fulfillment of consumer needs. According to Kotler and Keller (2006), “good marketing is a result of careful planning and execution” (p. 4). As one of the world’s major airline corporations, Classic Airlines has escalated to a corporation obtaining 32,000 employees, over 375 jets, 2,300 daily flights, and sales growth of $ 8.7 billion (UOP, 2011, Week One Course Materials). Inspite of Classic Airlines successful tenure of over 25 years in the airlines business, they face present financial challenges because of reduction in stock prices, employee morale, customer insecurity, escalating fuel, and labor prices, and internal managerial differences. The object of this paper is to describe some of the marketing concepts that are discovered in week one’s reading and confer how these concepts relate to Classic Airlines’ marketing challenges and existing corporate culture. The various challenges posed for Classic Airlines offers an opportunity for the business to begin with a SWOTT analysis to Classic Airlines’ strength, weaknesses, opportunities, threats, and trends, within the airline business...
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...Classic Airline The airline industry is one of the most competitive industries in today’s marketplace. An airline’s bottom line is a perfect measure of customer satisfaction and reflects customer loyalty (New York Times, 2010). Kotler and Keller (2006) state, “Marketing is 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” (p. 6). Classic Airlines has been recognized with the Wright Stuff® trophy for this year, however with the current economy Classic Airlines’ revenue has been decreasing as well as its passenger’s activity. The company has a rewards program in place, but it is still not enough to keep the profits at projected levels. Employees are concerned that their salary will be cut to offset the cost. Classic Airlines can benefit from effective marketing in a today’s economy. Marketing Concept “Marketing concept is a management philosophy according to which a firm’s goals can be best achieved through identification and satisfaction of the customers’ stated and unstated needs and wants” (Business Dictionary, n.d). Some of the concepts Classic Airlines utilizes are: production, product, selling and holistic marketing. Production concepts states the consumers prefer products widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs...
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...Classic Airlines and Marketing Paper Your Name University of Phoenix MKT/571 Your Instructor Date Classic Airlines and Marketing Classic Airlines has seen decreases in its profit shares and Classic Rewards members than in the past (University of Phoenix, nd., p. 1). Such decreases have had a significant impact on customer satisfaction levels and organizational profits. Therefore, senior executives, marketing, and financial analysts must use the appropriate marketing approach to address such issues and concerns of the organization potentially filing for bankruptcy. The senior management and analysts at Classic Airlines must use the organizational data to address the organization’s dilemmas; meanwhile, implementing marketing concepts that will be in the best interest of the commercial airline. Marketing Concepts Related to Classic Airlines The marketing concepts that have been identified in this scenario are a combination of various concepts and information systems, such as those described in this week’s required text readings. However, one of the marketing concepts that can be related to the Classic Airlines scenario is the holistic marketing concept. “The holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognizes their breadth and interdependencies” (Kotler & Keller, 2006, p. 17). This marketing concept has four components which are the following:...
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...Classic Airlines and Marketing Sunghye Shin MKT/571 16 March 2012 Chester Witkowski Background Classic Airlines has risen to become of the fifth largest airlines throughout the world airline industry since it established twenty five years ago. Classic Airlines has expanded their service to over 240 cities, over 2,300 flights daily, and have over 375 aircraft in their fleet (Phoenix, 2012). As we assume how difficult and competitive airline business is by seeing the records of airline bankruptcies such as filing the bankruptcy of the Northwest Airlines in 2005, that of the Delta Airlines in 2005, and the US Airways in 2004 (Foxbusiness, 2011). The airline industry knows itself that the airline industry as a sector has had decreases in profits and reductions of consumer loyalty. Classic Airlines is no different from the rest of their industry so they have seen a 10% reduction in their share prices. They have the 19% decrease of Classic Rewards members and a 21% reduction in flights per remaining member. Because of the rising costs such as fuel and labor, Classic Airlines has experienced other external difficulties (Phoenix, 2012). These factors greatly have affected the corporate culture and employee confidence in the performance of Classic Airlines. A new marketing plan is essential in regaining a larger market share of the airline industry, through maintaining customer loyalty, and targeting new customers. There are many concepts...
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...RUNNING HEAD: CLASSIC AIRLINES MARKETING SOLUTION Classic Airlines Marketing Solution Shelley R. Brothers MKT/571 Marketing University of Phoenix This paper will break down the problems that Classic Airlines are facing with so many pitfalls in their airline. With using the proper product launch plan, Classic Airlines should be operating up to stands if all goes well. Classic Airlines, a 25 year old airline, is ranked the world’s fifth largest airline consisting of more than 375 jets that makes over 2,300 flights daily to 240 cities. The airline has grown into a 32,000 employee airline and has earned $10 million on $8.7 billion in sales last year (Classic Airline Scenario, 2010). Although Classic Airlines have been profitable, like other airlines, they have struggled through several marketing problems in the past year which has caused them to fall short of hitting rock bottom lowering employee morale and customer loyalty. As the economy continues to struggle Classic’s Board of Director have insisted on a 15% across-the-board cost reduction over the next 18...
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...Classic Airlines and Marketing MKT/571 August 6, 2012 Dr. Isaac Owolabi Classic Airlines and Marketing Classic Airlines is the fifth largest airline in the world and faces the same challenges that continue to plague the airline industry. These challenges are the rising costs of labor and fuel, a decrease in consumer confidence, and fierce competitive pricing. Although Classic remains profitable their share price in the past year has decreased by 10% and customer confidence has also declined resulting in a 19% decrease in Classic Rewards members (University of Phoenix, 2010). The board of directors of Classic Airlines in an effort to prevent further financial crisis have mandated a 15% cost reduction across all departments within the next 18 months. Classic’s CEO, Amanda Miller, has requested Kevin Boyle, Chief Marketing Officer (CMO) to develop a marketing plan to lure back Classic’s frequent fliers. Although there are a number of marketing concepts found in this week’s readings that could be applied to address the challenges faced by Classic Airlines the two concepts that will be covered in the following paragraphs are the marketing concept and the holistic marketing concept. Marketing Concept. Unlike earlier marketing concepts such as production, product, and selling that focuses on the product or service the marketing concept focuses on the demands, wants, and needs of the customer (Kotler & Keller, 2006). The purpose of this concept is to find the...
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...Classic Airlines and Marketing Mary Jones MKT/ 571 Marketing Bernie Salvatore, MBA April 10, 2013 Classic Airlines and Marketing The fifth largest airline which is the Classic Airlines and Marketing Classic Airlines has been melodramatic sales drop, particularly among the Classic Rewards members. After subsequently reviewing the company memo it was revealed and determined the Classic Airline could benefit from considering to use two different type of marketing concepts, this would increase the awareness of the services for their has been a 19 percent decrease with Classic Airlines patrons, decrease 31 percent of the remaining patrons. The activities of Classic Airlines has loyal patron. The activities of Classic Airlines has loyal patron flying less. Current economic conditions made it problematic for the other airlines and Classic Airlines to keep in line because of the less overhead and more peaks offered. There was a meeting held on the 9th of January conveying with light to their Customers Relation Management system CRM) on how the system failed to promote the organization and its customers. Classic Airlines utilize the Product Concept to tempt patrons to return to the Classic Airlines. The company believes the CRM system would be a great way of succeeding the interaction with their client and patrons. This would give the ability to the company to stay in good standings with Classis Reward members on an individual as well as group bases. The goal would be to track...
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...Classic Airlines Classic Airlines and Marketing MKT/571 May 12, 2012 Dr. Robert Miller Classic Airlines and Marketing Competition in any field of business is usually encourages innovation and creative thinking within the organization. Management is always researching new ways to improve current operations to have an advantage over the competition. Classic Airlines is an example of the fierce competition in the business world, as they are losing customers and seeing a reduction in their sales. The company’s reward program member numbers are shrinking along with the increase of fuel prices are a few factors pushing the company towards bankruptcy. This research will identify the products and services, the challenges and also the marketing concepts the company uses. Classic Airlines travel / flight service to their customers in 240 cities. The Company offers a classic rewards program as a benefit to its frequent fliers, which allow them to collect points for flights and car rental with specific partners at many locations. These points can be redeemed for flight upgrades and pre-boards. Classic Airlines has a CRM or customer relationship marketing program which enables interaction with their customers. The marketing concept pushes an organization to thrive and focus its operations on the customer (Kotler & Keller, 2006). The concept is to alter the product to the customer orientation and lifestyle. Customer focus has to continue to be...
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...Classic Airlines and Marketing In this paper the author will provide an analysis of the Classic Airlines scenario. This analysis will include marketing concepts found that relates to the scenario. “Classic Airlines was the world’s fifth largest airline, Classic Airlines, commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights (Classic Airlines, 2010). Due to recent uncertainty of the economy Classic Airlines has experienced a variety of challenges. Their profit shares decrease 10%, and the decline of their reward program and membership (Classic Airlines, 2010). Other challenges that consumed the Airlines consisted of the lack of consumer’s confidence, and the organization decrease employee morale, revenue, and profit shares. The management team will come together to determines how to become successful once again. In efforts to increase the growth of Classic Airlines, the management team will have to develop and implement an effective marketing plan. “Marketing deals with identifying and meeting human and social needs” (Kotler & Keller, 2006). The marketing concepts that relate to the scenario consist of increasing the growth of this organization by determining the consumers needs, wants, and demand. Other marketing concepts involve planning, implementing, and controlling. From a managerial point of view, marketing is the process of planning and executing the concept, pricing, promotion, and distribution of ideas, goods...
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...Classic Airlines and Marketing Marion Ntini MKT/571 July 5, 2012 Kenneth Bloomfield Classic Airlines and Marketing Classic Airlines has rated in the top five placing fifth for the world’s largest airline carrier. Classic Airlines has attained a continuous part in the share market throughout their twenty five years in business. However, an escalation in share prices and an apprehensive investment society has primed Classic to examination from all sectors. There has been a low level of employee morale along with consumer confidence as result of the examination. The execution of a marketing concept will help Classic Airlines in transforming their impression to draw back their loyal customer base, mesh employees and interest new customers (Classic Airlines, 2010). Classic Airlines would achieve the utmost benefits using the holistic marketing concept. The Holistic marketing concept is centered on the development, design and implementation of marketing a program, processing and activities their breadth and interdependencies (Kotler & Keller, 2006). In plain expressions, holistic marketing is alert to the fact that “everything matters” in respect to marketing and the perspective that you must have an inclusive. Classic Airlines has applied marketing concepts by implementing their customer loyalty program and their frequent surveying from customers would allow them to utilize the holistic marketing method. Classic Airlines customer loyalty program has suffered a 19 percent...
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...Classic Airlines Scenario Melinda Wyly University of Phoenix Abstract What we know Classic Airlines, commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flights. In the 25 years since its inception, Classic has grown to an organization of 32,000 employees, and last year, it earned $10 million on $8.7 billion in sales (Scenario Classic Airlines, UOP, 2010). Classic Airlines has been decreasing in sales and revenue over the last year it is not a stranger to a bad economic year as everyone else faces. Marketing Concepts In today’s market marketing concepts are very important for all companies not only Classic Airlines to come up with the best pitch or eye catching concept to the consumer but also to make sure that it appeals to the customer in the best economic way. Consumers in today’s economy want the most for their dollar and they also want there dollar to go the farthest that it can. So for Classic Airlines to make sure that they are obtaining the best for the consumer it will take some creative thinking and some superior marketing concepts. Marketing Research and Demands Classic Airlines needs to do their homework. They need to make sure that they have up- to- date statistics and analysis reports. The research team has to be on there game and needs to find out how they can make Classic Airlines marketing team get ahead of the competitor. In addition to monitoring a changing marketing environment, marketers also need to develop...
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...Classic Airlines Marketing Solution Because of the tragic events following 9/11, airline industry’s profits significantly decreased which resulted in an economic downturn. Classic Airlines was not immune to the recession. Classic Airlines Classic’s Rewards Program is currently suffering. Classics Customer Rewards Program has seen a 19% decrease in the number of members and a 21% decrease in flights among its current reward members. Classic Airlines marketing department needs to make an effort to increase customer volume and sales. So what can Classic Airlines do to increase these numbers? Identifying and addressing the internal and external factors contributing to Classic Airlines current crisis will help alleviate pressure associated with this current economic downturn. Employing market data to help develop goals while recognizing and focusing on the challenges and opportunities facing Classic Airlines, will give the airline the ability to take their future to new heights. Classic Airlines is the fifth largest airline and commands a fleet in excess of 375 jets that serve 240 cities with more than 2,300 daily flights. The airline also manages a staff of nearly 32,000 employees. Classic has managed to remain profitable over the past year. The airline earned $10 million on $8.7 billion in sales; however with rising overhead costs Classic Airlines is experiencing setbacks. The airlines share prices have decreased by 10% in the past year. Furthermore, with the negative publicity...
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...Individual Assignment Classic Airlines and Marketing Shaquita V. Stewart MKT/571-Marketing Professor, Robert Barnet During the commencement of this course we have has the opportunity to acquire knowledge and insight to many different key aspects and concepts of marketing. In this brief we shall discuss the Classic Airlines scenario, consider the product (i.e. Classic Rewards Program) and service (i.e. Quality Airline Travel) that the company is marketing, while reflecting on what marketing challenges Classic is facing in addition to the corporate culture. Marketing concepts found in the week one reading assignments will also be discussed in their relation to the contents of Classic as both and institution and a brand. Upon review of Classic’s overview, overall, the airline is fairly profitable. The challenge comes in the face of waning consumer confidence; “Loyal customers [are] jumping ship and the ones still aboard seemed to be flying less frequently -- or at least less frequently with Classic Airlines.”1 Rising Costs of fuel and labor are also challenges that Classic faces; “[limiting] Classic‘s ability to compete for the valued frequent flier.” Classic, like many of its competitors overestimated the reversal of the travel downturn. that followed September 11th 2001. Having expanded too quickly, Classic now faces a restrictive cost structure that younger airlines do not. Moreover, to counter...
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...Classic Airlines and Marketing Essay Kimberly Clancy MKT/571 May 9, 2011 Alan Mandel Classic Airlines is a company that wants to be profitable by adapting a marketing concept. The company has to analyze its external and internal environment to determine opportunities any threats that would inhibit the company from success, increase profits and give the company a competitive advantage. A method some companies use to analyze the market he or she works in is the Porter’s Five Forces Model. This technique is used to identify a company’s structure to determine its corporate strategy. This method can be used to any segment of the economy to research for profits and attractiveness (Quick MBA, 2010). The barrier of entry for the company is too steep however; the strong competition in the market displays the company’s profitability. Classic Airline is the fifth largest airline and has been in business for 25 years. The airline has had decreased profits for a few reasons. First, is the public’s increase in the hesitation of flying and the decreasing of reward programs in place. Second, the increase of labor and fuel costs along with customers switching to fly with a different airline. Third, the company is being closely scrutinized and watched from all sectors (University of Phoenix, 2011). This essay will discuss how Classic Airlines has to reexamine its marketing concepts to increase profitability in addition to addressing any concepts that relate to the company scenario. Marketing...
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