Running Head: Classic Airlines and Marketing
Classic Airlines and Marketing
Marketing involves satisfying consumer’s needs and wants (Kotler, 2006). Industry markets are flooded with company’s that are offering the same or similar products. What makes one better than the other? Effective marketing strategies help companies move ahead of their competitors in sales and customer retention. In the University of Phoenix simulation “Classic Airlines”, the marketing team has the challenge of marketing the company as to increase the company’s return on investment. In this assignment the student discuss the situation at Classic Airlines and relates relevant marketing concepts.
Classic Airlines, known as the fifth largest airline, has a fleet of more than 375 jets in 240 cities with over 2,300 flights daily. The organization has over 31,000 employees. In 2004, the organization earned $10 million on $8.7 billion in sales.
As an organization, Classic Airlines is heading for trouble. Uncertainty regarding safety when flying has affected the industry stock prices. As a result, Classic Airlines has seen a 10% decrease in share prices, 19 percent decrease in the number of Classic Rewards members, and a 21 percent decrease in flights for the remaining members. The Board of Directors would like to beef up the frequent flier program to increase the company’s return on investment (ROI). The Board is working in the realms of a 15 percent across-the-board cost reduction over the next 18 months.
Classic Airlines marketing team believes customer retention and win-backs are possible. The team will push for increasing customer satisfaction through the Customer Relationship Management (CRM) program and a partnership alliance with another airline in Switzerland.
The Chief Marketing Officer for Classic Airlines thinks the trend can successfully change to positive by using a holistic marketing approach....