Classic_Airlines_and_Marketing

Classic Airline and Marketing Classic Airlines and Marketing Classic Airlines serves 240 cities, and is the world’s fifth largest airline (University of Phoenix, 2013). According to the Classic Airlines Scenario (2013), the organization currently has 32,000 employees and most recently scored $8.7 billion in sales, earning $10 million. Waning consumer confidence has caused a significant decline in the number of Classic Rewards members as well as the number of flights taken by remaining members; in conjunction, Classic Airlines is said to be operating “under a microscope” with both upper-management and stakeholders wondering how they plan to reestablish themselves in the market (University of Phoenix, 2013). With more than 160,000 customers now flying airlines other than Classic, it is proposed that the airline become more customer-focused (University of Phoenix, 2013). The scenario suggests that consumers’ desires are not being met because the company lacks the service elements, operations procedures, or marketing programs in place to deliver. It further states that “Customers don’t always put price at the top of their decision-making criteria when choosing an airline, and, as a result, simply lowering prices would not be an efficient means of luring them back (University of Phoenix, 2013). Because marketing centers on communicating the value of a product or service to customers for the purpose of selling it, concentrating on this facet of business is critical to attracting customers, and, at this point, should be a primary focus of Classic Airlines (Kotler & Keller, 2006). Classic Airline’s demand, or estimated share of market demand, has reached a new low. Kotler and Keller (2007) write that it is contingent on how, among other things, Classics’ services, prices, and communications weigh against those of competitors. As the company admittedly does not possess the capabilities to meet customer’s needs, and are, therefore, losing them to opposing airlines, it is apparent that their company demand necessitates improvement. A firm’s marketing ability helps determine demand for their products and services, making it essential to financial success (Kotler & Keller, 2007). Consequently, the pragmatic approaches and philosophies rigidly adhered to by the Chief Executive Officer and Chief Financial Officer do not support marketing in general (University of Phoenix, 2013). Having a lack of patience for “soft” business disciplines and being “driven by numbers” may be perceived as fundamental by those focused solely on the bottom-line; however, those notions are not effective unless, as stated by Kotler and Keller (2006), there is a top-line which is where the true advantage of marketing emerges. Because the notions are essential to a company improving their value offerings, failing to monitor the needs of consumers and advances of competitors increases a company’s likelihood of failing (Kotler & Keller, 2006). This reiterates that taking the short-term, sales-driven view possessed by the CEO and CFO does not satisfy stakeholders. Alternatively, spending months observing, listening, and speaking with Classic’s employees, customers and shareholders – a stance taken by the Chief Marketing Officer – will help highlight areas of marketing that need improving, and, in turn, increase profitably (Kotler & Keller, 2006; University of Phoenix, 2013). The Senior Vice President of Human Resources believes that frontline employees represent the organization’s “face” to the customer, something he considers critical to customer service and marketing effectiveness (University of Phoenix, 2013). This idea pairs well with Kotler’s & Keller’s (2006) theory that the key to achieving organizational goals is the result of communicating superior customer value to its chosen target markets. This means that instead of finding the right customers for their products, Classic Airlines must focus on offering the right products to their customers via comprehensively understanding needs, wants, and demands. As stated by Kotler and Keller (2006), a marketer can rarely satisfy everyone in a market. Still remaining focused on consumer needs enables them to present market offerings that appeal to most. This is the chief concept Classic Airlines should contemplate as they work to improve their company demand. References Kotler & Keller. (2006). Marketing Management (12th ed.). New Jersey: Pearson-Prentice Hall. Kotler & Keller. (2007). A Framework for Marketing Management (3rd ed.). New Jersey: Pearson-Prentice Hall. University of Phoenix. (2013). Classic Airlines Scenario. Retrieved from University of Phoenix, MKT571 website.