5
Running head: Classic Airlines & Marketing 1 Classic Airlines is an organization adapting a new marketing concept to increase their profitability however they must analyze their internal and external environment to identify any threats that will prevent them from successfully increasing their profits. The Porter’s Five Forces Model is used by several companies to assess their respective markets. This method identifies a company’s organizational structure allowing them to ascertain their corporate strategy ("Porter’s Five Forces", 2010). Although Classic Airlines barrier of entry is steep, the solid competition within the market demonstrates the organization’s profitability. Classic Airlines has been operating for 25 years and is the fifth largest airline. Careful assessment of the organization has determined their profits had decreased for several reasons. First, the airline is thoroughly monitored and examined from all areas sectors (University of Phoenix, 2011). Secondly, the reluctance of customers to fly due to consistently rising airfare and finally, increasing fuel and labor costs have all largely contributed to their declining profits. The purpose of this paper is to examine how Classic

Mkt 571 week 1 classic airlines & marketing

Embed Size (px)

DESCRIPTION

 

Citation preview

Page 1: Mkt 571 week 1  classic airlines & marketing

Running head: Classic Airlines & Marketing 1

Classic Airlines is an organization adapting a new marketing concept to increase their

profitability however they must analyze their internal and external environment to identify any

threats that will prevent them from successfully increasing their profits. The Porter’s Five Forces

Model is used by several companies to assess their respective markets. This method identifies a

company’s organizational structure allowing them to ascertain their corporate strategy ("Porter’s

Five Forces", 2010). Although Classic Airlines barrier of entry is steep, the solid competition

within the market demonstrates the organization’s profitability. Classic Airlines has been

operating for 25 years and is the fifth largest airline. Careful assessment of the organization has

determined their profits had decreased for several reasons. First, the airline is thoroughly

monitored and examined from all areas sectors (University of Phoenix, 2011). Secondly, the

reluctance of customers to fly due to consistently rising airfare and finally, increasing fuel and

labor costs have all largely contributed to their declining profits. The purpose of this paper is to

examine how Classic Airlines must reassess their marketing concepts to increase profitability.

Marketing Concepts

Presently the airline provides a service and an intangible product for their customers such

as their organization’s rewards program which is allocated into three separate packages; basic,

silver and gold. These three programs require their customers to travel a specified amount of

miles within a calendar year prior to redeeming their rewards. Classic Airline’s primary market

is business and leisure travelers (University of Phoenix, 2011). The text describes how

determining the needs’ of customers is the primary focus in marketing. Since the airline has a

target market they must adjust their services to best suit their customer’s needs. Furthermore the

text explains manufacturing the right services and products is crucial rather than obtaining the

right consumers (Kotler & Kelly, 2006).

Page 2: Mkt 571 week 1  classic airlines & marketing

Week Six Alternative Learning Team Assignment 2

Classic Airlines is well established in the market however unfortunately they are not

meeting their customer’s needs in comparison to their competitors. They must re-examine their

current situation to alter the trend by recognizing the demands and needs of their market.

Creating brand loyalty is a viable solution for them to turn things around. Brand loyalty is

defined as consumer’s preference for a specific service or product (Kotler & Kelly, 2006). They

must begin nurturing the relationships between their internal and external shareholders. The

airline has grave concerns of bankruptcy and the marketing department bears the responsibility

of developing a marketing campaign that focuses on their products and services as well as

change the company’s image. Finally, the organization must recognize that implementing an

aggressive and intense marketing strategy will assist them in accomplishing their goals.

Conclusion

This paper examined the various methods Classic Airlines can use to reinvent themselves

within their aggressive market. It has been identified that restoring the airline’s image by

implementing new marketing concepts can significantly increase their profits. Marketing

Concepts rely greatly on marketing research, which is used to represent illustrate a market’s

segment, size and needs. Marketing Managers must make decisions regarding controllable

elements such as marketing promotions, place, products, and price points to allow the airline to

meet their customer’s demand. The airline can use the marketing concepts mentioned in this

paper to recreate their present rewards program to become more aggressive within the market.

Management within the organization must make required adjustments from a marketing

perspective to meet their customer’s needs, which will significantly increase their profits.

Page 3: Mkt 571 week 1  classic airlines & marketing

Week Six Alternative Learning Team Assignment 3

References

Kotler, P., & Keller, K. L. (2006). Marketing Management (12th ed.). : Pearson Hall.

Porter’s Five Forces. (2010). Retrieved from http://www.quickmba.com/strategy/porter.shtml

University of Phoenix, (2011). Scenario: Classic Airline. Retrieved from University of Phoenix.

Page 4: Mkt 571 week 1  classic airlines & marketing

Classic Airlines & Marketing 4