Classic Airlines and Marketing

Classic Airlines and Marketing Desmond Harris MKT571 Marketing January 28, 2013

Classic Airlines and Marketing Classic Airline Scenario Classic airline is the worlds fifth largest airline, it has 375 jets that services 240 cities, and

provides 2,300 daily flights. The organization has grown to 32,000 employees, has earned a net income of $10 million in the last year and is in a sales market of $8.7 billion (University of Phoenix, 2013). The objectives of the paper will explain some fundamental marketing concepts and relate the concepts to the Classic airline scenario. Classic Airlines Challenges In observance of Classic airlines challenges the airline is presently facing several concerns toward profitability, a 10% decrease in shareholder prices, and the scrutiny from the investment community, media, and public sectors have affected the organization internally causing a decline in employee morale. A 19% decrease in the classic reward member program has caused a consumer confidence and loyalty to decline. Rising costs of fuel, labor, and a limited ability to compete in the frequent flyer market has presented a restrictive costs structure. The Board of Directors has implemented a mandate of 15% reduction for the next 18 months and a possible chance of bankruptcy exists (University of Phoenix, 2013). The solution toward the dilemmas can be answered by identifying the organizations marketing strategies. Marketing According to Kotler, and Keller (2006, P. 5, Para 3) Marketing deals with identifying and meeting human and social needs. To be successful in any business, marketing is one key to that success, and implementing marketers has proven that the right marketing philosophy can ensure that success. Classic airline needs to shift their marketing management by using marketers to implement questions. Implement a plan that will benefit the organizations marketing efforts as

Classic Airlines and Marketing

well as focus on the needs and wants of its customers, stockholders, and society. According to the American Marketing Association 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 (Kotler, & Keller 2006, P. 6, Para. 1). Classic airline needs to implement a foundation for their marketing management and develop a core set of fundamental concepts that follows a holistic marketing structure. Marketing Concepts Marketing concepts were not used until the mid-1950s and followed a philosophy that was only product centered. Shifting from a make to sell marketing structure to a customer centered marketing structure that follows a sense and respond philosophy. Classic airline has been following an older philosophy and needs to shift their marketing management from relying on old marketing positions to uncovering new ones. Implementing holistic marketing concepts will help to improve the organizations performance and build a stronger relationship with their customers base. According to Kotler, and Keller (2006) The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets (p. 16, Para. 2). Holistic Marketing Concepts Based on the holistic marketing concepts Classic airline will be able to develop, design, and implement a marketing structure that provides the organization with programs, processes, and activities for making decision in their breadth and interdependencies in their target markets. The organization will also be able to recognize a new scope and complexity in their marketing that

Classic Airlines and Marketing

can broaden and integrate their perspectives toward frequent issues. A holistic marketing concept uses four components relationship, integrated, internal, and social responsibility marketing. Marketing Core Concept and Solution To create Classic airlines foundation for marketing management, an important question needs to be answered in regards to the core concepts. What are the needs, wants, and demands of their customer base. Classic airline has been out of touch with its customer base, a solution would be to regain the interest, satisfaction, and loyalty of its customer base. The organization also needs to make sure who are their target markets, making decision toward certain groups to position their selves, and create demographics segmentation within their customer base or target markets. The organization will also need to implement clear marketing channel to reach their desired target markets. External and internal stakeholders need to adapt to the right marketing mix of communication, integrate a customer relationship management system (CRM) to gain customer focus, distribution, and services to meet the target marketing demand. Conclusion In the case of Classic airline dilemmas it is clear that the need for a new marketing strategy will help to retain its present customer base while trying to target a new customer base. Classic airline already uses a customer survey process and needs to maintain this approach to help acquire the needed information to establish new customer trends and achieve a marketing plan. Implementing a customer relationship management system (CRM) and using holistic concepts will provide the needed solution throughout the planning stage.

Classic Airlines and Marketing References Kotler, P., & Keller, K. L. (2006). Marketing management (12th ed.). Retrieved January 27 20113 from Upper Saddle River, NJ: Pearson Prentice Hall.