Classic Airlines and Marketing

Running head: CLASSIC AIRLINES AND MARKETING

Classic Airlines and Marketing

Akirah Carter

University of Phoenix

According to Keller and Kotler (2006), “Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs profitably”” (p. 5). In different industries companies produce similar products but what set the different companies apart are the marketing strategies that each company use. When companies use effective marketing strategies the strategies help the company advance pass competition and into the top spot. Airline companies face a great deal of competition and Classic Airlines is no different and face marketing challenges marketing the airlines product and service.

Company Background

With a fleet of more than 375 jets provide service to 240 cities that make Classic the fifth largest airline in the world. The airlines have more than 2,300 daily flights. The airline employs more than 31, 000 employees and off $8.7 million in sales the company made $10 million.

Classic Airlines is running into troubling times because of stock prices decreasing because customers are skeptical regarding airplane safety. Shares for Classic seen a 10% decrease as well as a decrease in members of classic rewards by 19% and the remaining members taking flights have seen a decrease of 21%. To increase the Classic Airlines return on investment the board of directors believes that the frequent flier program will help the company. The Board also, wants to do a cost reduction of 15% across-the-board across an 18-month span.

Challenges

When creating a program like the Customer Relationship Program (CRM) every resource, and aspect of the company’s capabilities need be under review to meet the different needs. When it come to Classic Airline the Chief Executive Officer (CEO) and Chief Marketing Officer (CMO) do not see eye to which, causes challenges the can hinder advancement. The CEO want all cylinders...