Classic Airlines Week 1

Classic Airlines and Marketing

MKT571

December 3, 2012

Classic Airlines and Marketing

Classic Airlines is one of the world’s largest airlines, and has continued to grow in the past 25 years. However, they have seen a recent decline in sales and attribute the drop to a reduction in purchases from customers in their loyalty program. Classic Airlines must make some changes if they wish to continue growing. While it may seem that Classic Airlines is trying to increase ticket sales, they need to focus on improving the customer service and build strong relationships with the loyalty members. The new marketing plan should include procedures to strengthen customer loyalty and satisfaction.

Corporate Culture

The corporate culture is diverse at Classic Airlines. Amanda Miller, the Chief Executive Officer, and Catherine Simpson, the Chief Financial Officer, are numbers oriented. They want a marketing plan that uses the least amount of money as possible. However, Kevin Boyle, the Chief Marketing Officer, and Renee Epson, the Senior Vice President of Customer Service, have a different idea. Kevin and Renee want the marketing focus to be on the customer and the relationship with Classic Airlines. The two teams must decide on a marketing plan that incorporates improving the customer service and stay within the allotted marketing budget.

The first step to develop a marketing plan is to have the entire management team decide on the goal of the plan. Amanda, Catherine, Kevin, and Renee should decide if they want to cut costs or increase customer relationship at the expense of increasing ticket prices. From that point, Kevin and Renee can work together to present a plan that will address the most important customer concerns, and adhere to the budget that Amanda and Catherine are comfortable with. The central theme is that all four employees on the team should be prepared to make compromises to do what is best for Classic Airlines.

Marketing Challenges

Marketing...