Mkt 571 - Classic Airlines and Marketing

Classic Airlines and Marketing

MKT/571

Classic Airlines and Marketing

With the current economic situations across the United States, Classic Airlines is currently facing cost reduction at a high level. While Classic Airlines has maintained its sales ($8.7 million), the market situation has affected its share prices and dropped them by 10%. In addition to this, it currently faces morale issues with its employees who have affected the customer service area (University of Phoenix, 2009). This vital marketing issue must be addressed by management to maintain a healthy work environment while continuing to operate at high levels with consumers.

Marketing Issues

In all organizations, marketing must require full-bodied strategic planning accompanied by the proper implementation of the plan; the pair will produce the maximum benefit from sales of services and products. The consumers' needs, wants, and desires are to be considered in an effective marketing plan. The plan must also include: profit objectives, cost structure, general pricing information, and competition pricing within the industry. Understanding how the services and products differentiate from competitors and continuing to be a leader in this industry at all times is vital. Classic Airlines must continually strive to provide better prices and value to consumers over the competitors in the market. Tracking the assessment of consumers by the management team assists in creating high levels of competitive advantage. Competitive advantages must be implemented in positioning, distribution strategy, and key consumers.

Classic Airlines has the opportunity to initiate customer satisfaction initiatives to attract and retain customers. Stated by Dennis Duffy, " building customer loyalty is a business strategy, not just a marketing program and the pursuit of customer loyalty is a perpetual one" also, "a company which goes through the process of developing special value for good customers benefits in three ways:

1. Customers stay customers longer. If they have a problem along the way and they feel that you care about them, they will call and complain and fix their problem rather than quietly defecting.

2. Customers buy more; they consolidate their purchases in your category with your brand.

3. Employees stay longer. When you focus more on the customer all employees think about how to ensure a delightful customer experience" (Duffy, 1998).

Currently, the economic struggle, decline in customer loyalty, and rising costs of fuel can be damaging for airline growth. Retaining consumers comes to be critical