Classic Airlines

Classic Airlines and Marketing

“Classic Airlines is experiencing some challenges as “there is stock price uncertainty, with a 10% decrease in share price; and a declining membership in the in frequent fliers. Classic Airlines can benefit from effective marketing in a very competitive environment. Classic Airlines is going through some major complications as the fear of flying from September 11th had almost subsided, the economy fell apart, and Classic Airlines has the highest labor cost in the industry. Amongst the knowledge of the problems management has took a hard stance that they will not cut ticket prices another dime. Along with the hard stance on ticket prices management has also stood on fuel prices with a gas pool. Management desperately wants to rejuvenate the frequent fliers on the airline but will not spend anything to do it.

Marketing Concepts

Marketing concepts are imperative for Classic to understand and consider when determining a strategy that is appropriate to circumvent the current circumstances of the airline. Of the various philosophies, Classic should first contemplate the following concepts as they relate to their industry and the need to rescue their customer base: the selling concept, marketing concept, and the holistic marketing concept. As traveling is a service oriented business, marketing concepts directed toward products and production hold a little less weight. Although they are not the direct target for the Classic team under these circumstances, the team must understand all marketing concepts when developing a proper resolution.

Selling Concept. The selling concept is a philosophy of “selling more products to more people to make more profit” (Kolter, 2006, p. 15). This concept applies to Classic as airline tickets is a luxury for most people and a business write off for business class.

Holistic Marketing Concept.

The holistic philosophy is the concept assent to a group of philosophies based on various...