Running head: Classic Airlines

Classic Airlines Jauwanna Pitts MKT/571 November 19, 2012 Bryce McDonald

Classic Airlines Classic Airlines Classic Airlines The worlds fifth largest airline, 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. Classic has experience a challenge with finances for a host of reasons, which

include uncertainty of about flying has affected industry stock prices, and Classic has seen a 10% decrease in share prices in the past year. Reward programs decrease and rising costs which includes fuel and labor. A discussion of the Service that Classic Airlines provides and what the Airline can do to as a result of market research to regain customers and to gain a new customer base (University of Phoenix, 2012).

Classic Airlines offers a service, which includes providing a safe affordable, compatible flight. Classics challenge is to become superior over the competition without discounting airfare. The corporation will need to become creative without reducing margin cost. Macro-environmental change occurs when demographics, economic, physical, technological, political-legal, and social-cultural forces affect the sales and profits (Kotler, & Keller, 2006). Airline travel has definitely reduced somewhat because of September 11 perhaps no other industry was as immediately affected by the devastating events of September 11th as the airline industry. Beyond the passengers and airline crews who lost their lives on that day many airlines simply shut down. Classic Airlines can do market research in the form of online research which is less expensive than other types of research. E-mail survey costs about half what a conventional survey costs, and return rates can be as high as 50 percent. Online surveys are faster to complete

Classic Airlines

Online surveys are faster to complete since the survey can automatically direct respondents to applicable questions and be sent electronically to the research supplier once finished. One estimate is that 75 to 80 percent of a surveys targeted response can be generated in 48 hours using online methods, as compared to a telephone survey that can take 70 days to obtain 150 interviews (Kotler, & Keller, 2006). People tend to be more honest on online then by telephone or in person while being interviewed. Some disadvantages are online market research is prone to technological problems and inconsistencies and samples can be small and skewed. One major reason for undertaking marketing research is to identify market opportunities. Once the research is complete, the company must measure and forecast the size, growth, and profit potential of each market opportunity. If its forecast is far off the mark, the company will be saddled with excess inventory or have inadequate inventory. Sales forecasts are based on estimates of demand (Kotler, & Keller, 2006). Forecasting is another way for Classic Airlines to boost their chances of gaining and increase their customer based. The focus should be the available, potential and the target market. Find out the available market, find out which competitors have the potential customer and focus on this market to target new customer. It is important for Classic Airlines to provide the best in customer because the company is not able to reduce margin costs. Kotler and Keller states it is important for managers and organizations to excel in customer service. Classic could offer a free steak dinner or lunch for flying with the airline or free upgrades to first class once a customer has flown with the airline so many times. Providing incentives like this Classic can promote loyal customers. Loyalty is as a deeply held commitment to re-buy or re-patronize a preferred product 12 to 1 in the airline

Classic Airlines

business or service in the future despite situational influences. Ultimately, marketing is the art of attracting and keeping profitable customers. According to James V. Putten of American Express, the best customers outspend others by ratios and marketing efforts having the potential to cause switching behavior (Kotler, & Keller, 2006). A discussion of the Service that Classic Airlines provides and what the Airline can do to as a result of market research to regain customers and to gain a new customer base. Its always important to anticipate the competitors move and do what they are trying to do better. Classic Airlines can definitely turn the situation around by doing marker research and implementing incentives.

Classic Airlines

Reference

Kotler & Keller. (2006). Marketing Management (12th ed.). New Jersey: Pearson-Prentice Hall. University of Phoenix. (2012). Classic Airlines. Retrieved from University of Phoenix, MKT/571 website.