Classic Airlines Marketing Solution

Classic Airlines Marketing Solution

Erica Fields
Classic Airlines and Marketing
MKT/571 Marketing
Howard Wiemeyer
February 14, 2011

Classic Airlines, the world’s fifth largest airline, serves 240 cities and has an organization of more than 32,000 employees (University of Phoenix, 2011, p. 1). Classic Airlines is marketing affordable and safe transportation to customers with the goal of 100% satisfaction. However, over the past year, Classic Airlines has faced several challenges and issues. The company has seen a 10% decrease in share prices, a 19 % decrease in the number of classic reward members, and a 21 % decrease in flights per remaining members (University of Phoenix, 2011, p. 1). Some may say the decrease is because of the economy particularly the fuel, and others may blame the decrease on the functions within the company, mainly the marketing department that is to identify and meet human and social needs (Kotler & Keller, 2006, p. 5). Whatever the reason is for the decrease of business, Classic Airlines must resolve some issues and implement a new strategy to prevent bankruptcy and remain the fifth largest airlines.
Success often depends on marketing ability (Kotler & Keller, 2006, p. 4); more important, finding new innovations to beat out other competitors. Classic Airlines has the top line as discussed in chapter 1 of Kotler and Keller. The Chief Executive Officer (CEO), Chief Financial Officer (CFO), and the Chief Marketing Officer (CMO), to name a few make up a team of executives that should be able to find a strategy by asking some key questions such as
  * How can we grow our business
  * How can we keep our customers loyal for longer
  * How can we compete against lower-cost, lower-price competitors
  * How can we measure the payback from advertising, sales promotion, and public relations
In addition, marketers must identify the underlying cause(s) of the demand state and then determine a plan for action to shift the demand to a more desired state (Kotler...