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Classic

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Submitted By cenewe10
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Classic Airlines and Marketing Paper
University of Phoenix
MKT/571

Classic Airlines is a company that services air travels to its customers along with good customer service throughout the entire experience from the time the customer orders a flight till the time they reach their destination. Rising costs has been one of the main challenges to Classic Airlines. Recently with a 19% decrease in Rewards members and 20% decrease in flights, the firm is losing theirs not only new customers but existing ones as well. Other than budgeting for an expected decrease in business, the firm is also due for a significant change in its marketing strategies to ensure future revenue and avoid the possibilities of bankruptcy.
New priorities need to be developed such as highlighting important consumer needs, establishing realistic criteria for finding the appropriate market segments, and developing a relevant feedback system would help the company find problems where the most revenue is generated and enable Classic Airline executives to attack those areas. Based on the current scenario, the firm seems to be suffering from a lack of proper customer relationship management and self identity. CRM is a company-wide business strategy designed to optimize profitability, revenue, and custom satisfaction by focusing on highly defined and precise customer groups (Lamb, Jr., Hair, Jr., & McDaniel, 2006). For example, if Classic Airlines wanted to sustain revenues among its business customers, it would have to precisely recognize its frequently flying business customers and obtain a specific discount to those which fly the most frequently. Another idea would be to recognize those customers which travel on a seasonal or annual basis for recreation and offer those classes of people specific discounts which would cater to their needs. For the latter group of people, maybe contacting other

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