Classic Airlines and Marketing Essay

market September 17, 2012 Classic Airlines and Marketing Classic Airlines, the fifth largest cableline carrier, soon serves 240 cities with more than 2,300 daily flights. However, Classic Airlines has experienced over the past trine course of instructions a decline in their usual flier computer programmeme Classic takingss along with customer confidence declining as well and standard prices has decreased by 10% according to University of Phoenix, 2012. Marketing is assigned the projection of revamping the customer loyalty program and change magnitude membership firearm run under a 15% reduction in expenses across the company.The challenges that the selling focusing is faced with include a downward turn of esprit de corps among the employees retaining and recruiting of new members for Classic Rewards, and the overlook of support from upper anxiety. Marketing management is the process of creating, communicating, and delivering take account to customers and for managi ng customer relationships in ways that benefit the formation and its stakeholders (Kotler & Keller, 2006, p. 6). Identifying Marketing ChallengesThe marketing management team has identified that the majority (60%) of its Reward membership argon at the basic tier, 25% atomic number 18 on the Silver Rewards level, and only 15% are Gold Rewards members. Of these members 80% are business travelers with the remain 20% leisure travelers. With this information, marketing instituted surveys to determine what the unavoidably of the members are. The replies from the business traveler ranged from the dislike for connections and delays, the desire for quality service, and the idea that the frequent flier points are the result of the air ducts investment in the customer.Whereas, the leisure traveler is more interested in lower air fare and is more willing to charter more connections if it will pay off the traveler money. Strength, helplessness, opportunities, and threats (SWOT) analysis of Classic Airlines top third competitorsBritish Airlines, northwest Airlines, and United Airlineswere completed by John Hartman, Senior Vice prexy of Human Resources. Based on the SWOT analysis, all lead competitors afford a strong and successful loyalty program. A common weakness between the three companies is the union at each airline.An opportunity know by the three companies is the customers needs are constantly changing and the airline industry is rebounding. Fuel and equipment along with competition are considered weaknesses by the three organizations. Gathering input from the Classic Rewards members was the responsibility of Renee Epson, Senior Vice prexy of Customer Service. Interviews of 500 Gold and Platinum Classic Rewards members revealed that advertising campaigns are failing in conveying an accurate and meaningful picture of the airline.In regard to the Classic reward program only 30% were either satisfied or very satisfied with the program and upgrades availab le. When asked if the members flew on former(a) airlines, all categories excluding those who fly seven to 12 times a year responded that they flew other airlines more often than Classic Airlines. Only 8% have been Classic Rewards members for more than five years with the majority been members for one to three years. Strategic Planning The marketing management team has been performing strategical planning to fulfill a value fibril.A value chain states Kotler and Keller, (2006), identifies nine strategically relevant activities that create value and cost in a specific business (p. 38). The team has identified opportunities, weaknesses, strengths, and threats for Classic Airlines competitors and through with(predicate) surveys and interviews for Classic Airlines. The identification of the concerns of the Rewards program members enables the marketing team to address these concerns and implement recommendations for improving the Classic Rewards program.This is part of the new offerin g realization program that enables Classic Airlines to develop and implement new high-quality products while remaining inwardly the budget. Another part of the value chain is the identification of new markets to inveigle new customers. Classic Airlines needs to rebuild its customer relationship management process this in turn will improve relationships and understanding with both internal and external customers. ConclusionClassic Airlines marketing management is works on improving the organizations rewards program while remaining within the budget that has a 15% decrease with the result of increasing the profits. A major challenge for the marketing management team is the lack of support from upper management. However, the team has begun the strategic planning of implementing a value chain method. The use of a SWOT analysis, surveys, and interviews of current customers has provided the team with an taste of the issues that must be addressed.Marketing is a process of delivering val ue to its customers while managing customers relationships and producing revenue and profit for the company and its stakeholders. References Kotler, P. , & Keller, K. (2006). Marketing Management (12th ed. ). Upper tear River, NJ Pearson-Prentice Hall. University of Phoenix. (2012). Scenario Classic Airlines. Retrieved from University of Phoenix, MKT571-Marketing website