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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).
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.
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.
Classic Airlines & Marketing 4