Classic Airlines and Marketing

Classic Airlines and Marketing

The airlines industry is a very competitive environment; price, customer service, quick relays, and incentives are not the only focal point customers are looking for in this day and age. For this specific scenario there are multiple issues that need to be addressed in order for the airline to be more competitive and more customer orientated.

The organization in this scenario is Classic Airlines. Classic Airlines is the world's fifth largest airline with a fleet of over 375 jets that are in 240 cities with over 2,300 flights a day. Classic Airlines employs over 32,000 employees and has earned 8.7 billion last year. The downfall is uncertainty has affected stock prices with a10% decrease in share prices. Multiple outlets (press, Wallstreet) have lowered employee morale, have affected future investors, and customers. The reward program has suffered by a decrease of 19 percent and a decline of 21 percent in flights for the members of the rewards program.

Classic Airlines needs to revamp their rewards program while focusing on customer service to keep current customers but advertise for prospect customers. Classic Airlines believes they can obtain this goal by marketing. According to Kotler, P. and Keller, K.L., "marketing is embedded in everything we do- from the clothes we wear, to the Web sites we click on" (Kotler, P., Keller, L., pg. 3). Management has plans to use a cohesive marketing approach that consist of four dimensions. This includes internal marketing, integrated marketing, relationship marketing, and socially responsible marketing. This type of marketing is also known as holistic marketing. Holistic marketing "can be seen as the development, design, and implementation of marketing programs, processes, and activities that recognize the breadth and interdependencies involved today's marketing environment" (Kotler, P.,Keller, L., pg. xxx). This is basically meaning everything matters and not just customer relationship management (CRM).

These issues have arisen to the lack of drive or the lack of customer relations. Classic Airlines chose not to listen to their customers and became stagnant, losing their competitive advantage. The situation Classic Airlines faces is not impossible to overcome but there will be certain sacrifices and cutbacks necessary for the organization to maintain and gain competitiveness.

References

Kotler, P., and Keller, L.K., (2006). Marketing Management (12 ed.). New Jersey: Prentice Hall.

University of Phoenix. (2011). Scenario: Classic Airlines. Retrieved on April 14, 2011 from the University of Phoenix.