...Classic Airlines and Marketing MKT/571 March 28, 2013 Audrey Dorsey Classic Airlines and Marketing Currently the fifth largest airline, Classic Airlines has 375 jets serving 240 cities with 2,300 daily flights. Classic Airlines currently employs 32,000 employees and has grown considerably over 25 years. Although Classic Airlines has grown and employs 32,000 employees, the company is currently experiencing decline in stock prices, customer loyalty, and employee morale. Classic Airlines has experienced a 19% decrease with their classic reward members. These customers are currently using other airlines for travel. This paper presents challenges Classic Airlines will face relating to marketing concepts and current corporate culture. Marketing involves “identifying and meeting human and social needs” (Keller & Kotler, 2006, pg.2). Marketing Management “is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value” (Keller & Kotler, 2006, pg.3). The major area of concern is customer loyalty. Classic Airlines currently experienced a 19% decrease in classic award customers and customers who remained flew less frequently. Senior VP of Customer Relations Renee Epson stated she has been saying for the past two years “we’ve lost touch with our customers. Every day I monitor the customer service calls and hear customers tell us what they want but we don’t have the services...
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...Defining Marketing This paper will look at my personal definition of marketing and the definitions of marketing from Basic marketing: A marketing strategy planning approach (18th ed.) and Marketing management (14th ed.). The definitions presented will reinforce how marketing supports organizational success in business. By providing examples from various companies that use marketing to increase business it will be clear that marketing supports success in business. My personal definition prior to reading chapters assigned for Marketing 421 was advertising and promoting a business, service, or product to gain additional business. I believed marketing departments were used to create proposals in an attempt to win work with a competitive bid. Promoting a company by getting the companies name and services out to the public using printed company materials like pens, pencils, sticky notes, or other items to give away and hand out at seminars, lectures, and job fairs. Basic marketing: A marketing strategy planning approach (18th ed.) defines marketing as “the performance of activities that seek to accomplish an organization’s objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client” (p. 6, para. 6). Kotler, P., & Keller, K. L. (2012) defines marketing in Marketing management (14th ed.) as, “identifying and meeting human and social needs. One of the shortest good definitions...
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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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...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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...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 and mass distribution (Kotler & Keller, 2006). Product concept is where consumers favor the products that offer the most quality, performance...
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...Classic Airlines marketing Solution Student Name MTK/571 Marketing University Name April 2011 Instructor Name Classic Airlines Marketing Solution Classic Airlines is the fifth largest airlines in the world. The company services 240 cities worldwide commanding 2,300 flights daily and has over 375 jets. Classic Airlines has increased the number of its employees to 32,000 over the past 25 years. Classic Airlines earned $10 million on $8.7 billion in sales last year. Competition and the need to gain customer satisfaction necessitated the creation of innovative products and marketing techniques such as frequent flyers and reward programs. Classis Airlines faces increasing challenges similar to all other airlines. Like all other airlines, the challenges range from rising fuel costs, economic turndown, customers’ increased ambiguity about flying, and scrutiny from all sectors including Wall Street, the public, and media. Despite the company’s efforts to reduce cost by employing price cuts, these challenges continue to affect the corporation’s profitability (University of Phoenix, 2011). Furthermore, Classic Airlines’ corporate culture has become dysfunctional. The company stood stagnant while looking for ways to implement new strategies particularly when faced with challenges. To be successful and to meet the challenges, Classic Airlines will need to use the problem solving approach, which will entail employing the nine-step model. The company will need to use its internal...
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...1.6 DEFINITION OF TERMS Marketing – this is societal process by which individuals and groups obtain what they need through offering and freely exchanging products and services of value with other. The managerial perspective of marketing is “the art of selling products” (Kotler P. and Keller K, 2006). It can also be defined as an organizational function and a set of process for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organization and it stakeholder (AMA, 2007). Marketing Mix – this has been defined as the set of marketing objectives in target market (Kotler P. and Keller K, 2006). According to Borden, is the set of marketing tools that the firm uses to pursue its marketing objectives (Zinkhan et al, 2007). However, these tools were classified into four based groups which McCarthy called the four P’s of marketing: product, price, place and promotion. Marketing strategy – this is the marketing tool as well by which the business units hope to achieve its marketing objectives. It consists of specific strategies for target market positioning the marketing mix and marketing expenditure level (Levy S.J, 2004). Marketing of banking services – this is the process of identifying and stimulating demand for the banks service, meeting that demand by making available the banking services in the most effective and efficient manner to present and potential customers and achieving the profit and other objectives...
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...Defining Marketing LeeAnna Carter Marketing/421 September 17, 2012 Tina White Potter Defining Marketing Marketing is a term that I have heard in television shows, movies, and in common conversation but never really understood what it meant. I assumed it involved organizations advertising products or services to obtain a wider customer base. The more I read the more I learn that yes, that is part of what marketing means, but if covers so much more. I would define marketing as a means to retain and attract customers to a particular organization. This could mean making a wider base of customers aware of a service or a product that is offered by an organization or making sure that the service or product is still a necessity for the client base. If I owed an ice cream shop for example I would first make sure that there is a need for service and the product that I am offering. I would research the nearby like companies to make sure that my product will be beneficial to the public. I would then make sure that the community was aware of by business and new of the products I would offer. According to Perreault, Cannon, & McCarthy (2011) marketing is a means of making identifying a customer’s needs and directing a system that satisfies those needs (Kotler & Keller, 2012) define marketing is delivering and exchanging a product or service that have value to the community. Based on the definitions provided by Perreault, Cannon, & McCarthy (2011) the focus of marketing is...
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...Joshua had to take can be compared to those that take place in marketing management. Marketing management takes place when an individual takes the necessary steps to achieve desired responses from others in business. Marketing is not only about selling but more importantly it is about knowing your customers so the service you are offering them sells itself. This paper will analyze the scripture Joshua 1:9, as well as the book in comparison to marketing management. We can compare the story when Joshua led the Israelites to the Promised Land to the concept of marketing management. In Joshua 1:9 God says, “"Have I not commanded you? Be strong and courageous. Do not be terrified; do not be discouraged, for the LORD your God will be with you wherever you go." Within the context of marketing management this scripture tells us God wanted Joshua to be strong, and have courage in all that he did and wherever he went. In order to be a good leader in business, or in this case war, a person should hold these characteristics. Joshua had to be strong not just physically but also mentally so he would be able to tackle any challenge that he was faced with the help of God. To have courage requires mental and moral strength to help you make the right decisions. Challenging yourself and overcoming your fears when facing discouragement yet still acting rightly is very important. To have continued success in marketing management you need to have the same qualities that Joshua did when he led...
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...Classic Airlines and Marketing Solution Your Name Here MKT/571 December 12, 2012 Instructor Stuart Ringer Introduction The standard method for solving a problem primarily will involve defining the problem, understanding the problem in relation to the current developments, and assessing what in fact needs to change. In the case of Classic Airlines, budget restrictions, decreased sales, low employee morale, diminished customer satisfaction, and the need to cut costs are the issues that plague the organization. According to the University of Phoenix (2012), Classic Airlines has experienced a decrease in stock prices due to limited consumer assurance, rising costs of labor and fuel. In searching for solutions, this paper will employ an aggressive nine step process of defining the problem to achieve the recommended marketing solution that includes the following steps: 1) define the situation or problem; 2) frame the right problem and measure the levels of current performance; 3) describe the end-state goals that will provide direction and vision to help management make the appropriate choice; 4) identification of alternatives that determine root causes and determine the reasons the process is working or not working appropriately; 5) evaluation of alternatives and select the best strategy to solve the problem; 6) identify and assess risks; 7) making a decision; 8) develop and implement solution and appropriate changes in the process; 9) evaluation of results to stay committed...
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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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...Defining Marketing Janae Dawson MKT 421 March 14, 2012 Robert A. Cordero, MBA Defining Marketing According to (Armstrong & Kotler, 2011, p. 4) “Marketing, more than any other business function deals with the customers.” Armstrong and Kotler (2011) go on to elaborate on how marketing is the process a business takes to manage profitable customer relationships. This is known to be true from the consumer point of view. When a business has a marketing campaign they must think as if they are “I” the consumer. Every day I see what I consider to be bad or good marketing. I base these ideas if the marketing the business used attracts me to their business or product. The American Marketing Association unveiled a new definition for marketing in 2008 that defines marketing “ as an activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (“American Marketing Association releases new definition of marketing,” 2008, para. 1). The definition given by the American Marketing Association gives a more broad yet better understanding of marketing than the definition of marketing from the textbook. The elements involved in marketing provide creativity concerning ideas that will entice the consumer. An idea as simple as a slogan or phrase can gain a business customers, such as Wal-Mart’s “ Save Money. Live better.” People love to save money, and saving makes people...
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...Classic Airlines and Marketing Classic Airlines is known as the world’s fifth largest airlines, commands a fleet of more than 375 jets that serve 240 cities with more than 2,300 daily flights. In the 25 years since its inception, Classic has grown substantially with 32,000 employees. As profitable as it is, Classic like any other airlines is no stranger to the challenges as travel industry continuing to face challenging times. Consumers budgets are tight and cutting back on unnecessary expenses and in most cases finding an alternative in which they are can buy cheaper seats and better customer service. Classic Airlines is facing the challenges on how to win back the members of the classic rewards that the company offer and how to keep the frequent fliers customers that they have retained to choose Classic over the competitor. This paper will explain some of the marketing concepts to beef up Classic’s frequent flier program with methods that will demonstrate a measurable return on investment (ROI), the marketing challenges it faces, and its current corporate value. 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 benefits the organization and its stakeholders. Marketing deals with identifying and meeting human and social needs (Kotler & Keller, 2006). Financial success often depends on marketing ability. Finance, operations, accounting,...
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...0 Lululemon Marketing Strategy Introduction Marketing plays an important role in a company delivering high quality goods to target consumers. The marketing strategy of a company contributes to the quality management of a product, customer satisfaction, and company profitability. An example of a company with a strong and unique marketing strategy is Lululemon Athletic, focused on yoga-inspired athletic wear for women, founded by Chip Wilson in 1998. It has since expanded the Brand to sell merchandise for men and most recently female youth which is categorized as a separate brand, Ivivva, which operates as a separate entity with its own retail stores (Soni, 2014). Although Lululemon continues to grow profitably through its marketing strategy developed over the years, there are some changes that could be implemented to sustain and gain market share. Lululemon’s Current State Marketing goals and objectives When Wilson first created Lululemon Athletica, the objective was to create a community hub to promote people to live, longer, healthier, fun lives. Their goal was to train people on the retail floor so they could positively influence their families, communities and the people walking into the stores. Lululemon’s marketing strategy focused on the value delivering system, the entire experience the customer will have from obtaining and using the product (Keller and Kotler, 2016). To create a positive buying experience with sales people...
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...~WELCOME~ Sunderland Business School University of Sunderland MBA MARKETING MANAGEMENT Module Code: PGBM 15 ~Module Introduction ~ ~Concepts of Marketing Management~ Presented by: Frankie Lim Frankie Lim L1 Module Introduction & Concepts of Marketing Management L1-1 Lecture Outline (PGBM 15) • Welcome & Getting to know each other • • Learning Outcomes Teaching & Learning Methods • • • • Assessment Methods Content Synopsis Concepts of Marketing Management Questions & Clarifications L1 Module Introduction & Concepts of Marketing Management L1-2 Frankie Lim LEARNING OUTCOMES • Upon successful completion of this module, students will have demonstrated • Knowledge • K1. That they can interpret and evaluate the merits of particular marketing concepts when applied to selected business situations. • K2. That they can evaluate the potential impact of factors in the external environment on the marketing activities of organisations • K3. That they can understand the major decisions that organisations confront in satisfying market-place needs. • K4. That they can analyse the significance of marketing planning in organisations. • Skills • S1. How to conduct research using relevant marketing journals and business documentation Frankie Lim L1 Module Introduction & Concepts of Marketing Management L1-3 TEACHING AND LEARNING METHODS • Directed reading will provide students with an insight into the relevant theories and concepts underpinning...
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