Classic Airlines Marketing Solutions

Classic Airlines and Marketing

MKT/571

Maureen Murphy

January 30, 2012

Classic Airlines Scenario and Marketing Concepts

Classic Airlines is the fifth largest airline in the world, which serves 240 cities with 375 jets over 2,300 daily flights (University of Phoenix, 2012). The organization has approximately 32,000 employees with earnings of $10 million on $8.7 billion in sales. Currently, the main marketing challenges that the organization faces, is how to increase its frequent flier program with methods that will demonstrate a measurable return on any investment (University of Phoenix, 2012). In this paper I will apply the marketing concepts learned this week to this classic airlines scenario.

Amanda Miller, CEO of Classic Airlines mentioned that the company had dropped their prices to compete with the competition. Classic has begun to get in a pricing war with other airlines and they could not drop their prices any lower. Many of the current customers, has chosen to go with the competition that offered the lowest cost (University of Phoenix, 2012). I feel that the production concept can be seen in this situation. Production cost is when customers prefer products that are widely available and inexpensive (Kotler & Keller, 2006).

Another concept I found in this scenario was marketing concepts. One problem for the airlines is their current marketing network is not as strong as the competitions, because Classic is losing profits (University of Phoenix, 2012). According to Kotler and Keller, the marketing concept holds the key to achieving organizational goals by the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets (Kotler & Keller, 2006). The purpose is to find the right products for your customers, which in our case will be the frequency flier program. This is a key marketing goal for Classic Airlines.

Marketing concepts are important and can be...