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Classic Airlines Marketing Concepts
[student]
MKT/571
February 11, 2013
[instructor]

Classic Airlines Marketing Concepts The marketing team for Classic Airlines is facing the task of renewing the appeal of an aging airline struggling to maintain financial viability in the face of legacy costs and a decreasing base of loyal customers. They are facing an ideological division between the CEO and CFO believing too much in numbers, and the CMO maintaining that customers determine value in ways other than price (University of Phoenix, 2008, pp. 3-4, 9). The challenge for the marketing team is getting the company to embrace that they must, as Jack Welch said, “change or die” (Kotler & Keller, 2006, p. 4). Focusing on things like a 15% cost reduction target and hedging fuel prices have led to a 20% reduction in loyalty program membership, a 10% decrease in share prices, and a looming situation with union obligations (University of Phoenix, 2008, pp. 1-2, 4, 8).
Marketing Concepts To improve the outlook for Classic Airlines the marketing team knows that they will have to use some basic marketing concepts to put themselves back on the map. They plan on using their existing CRM system as a means to gather data on existing customers, conducting a thorough analysis of their current competition, and using their “fundamentally solid and robust system that's globally accessible” to form new strategic alliances (University of Phoenix, 2008, pp. 5-6, 9). According to Kotler and Keller (2006), one way that marketing has changed in modern days is that brand loyalty is no longer a significant factor as consumers can access a plethora of data prior to making any financial decision. This both empowers consumers and increases the level of competition, as consumers can seek the service that caters to their individual needs (p. 14). Kevin, the CMO

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