Classic_Airlines

Week One Classic Airlines and Marketing Concepts University of Phoenix MKT/571 Marketing Robert E. Landesman, MBA, CFE 01 October 2010 Introduction Classic Airlines is one of the largest airline company in the world, it commands a fleet of more than 375 jets that serves 240 cities with more than 2,300 daily flights (University of Phoenix, 2010). From its inception, the company has grown to have approximately 32,000 employees with earnings of $10 million on $8.7 billion on sales (University of Phoenix, 2010). With the economic crisis and rising fuel and labor cost, Classic Airlines is facing new challenges. Competing with lower cost travel and trying to keep their loyal customers. In this paper I will explain marketing concepts, and how they relate to Classic Airlines. Marketing Is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders (Kottler & Keller, 2006, p. 6). Production Concepts The production concept is one of the oldest concepts in business. It holds that consumers will prefer products widely available and inexpensive. Managers of production-oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution (Kottler & Keller, 2006, p. 15). Product Concept The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features. Managers in these organizations focus on making superior products and improving them over time (Kottler & Keller, 2006, p. 15). Selling Concept The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products. The organization must, therefore, undertake an aggressive selling and promotion effort. The purpose of marketing is to sell more products to more people more often for more money to make more profit (Kottler & Keller, 2006, p. 15). Marketing Concept The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating superior customer value to its chosen target markets (Kottler & Keller, 2006, p. 16). Holistic Marketing Concept Is the development, design, and implementation of marketing programs, processes, and activities that recognizes their breadth and interdependencies. Holistic marketing recognizes that “everything matters” with marketing and that a broad, integrated perspective is often necessary. Four components of holistic marketing are relationship marketing, integrated marketing, internal marketing, and social responsibility marketing (Kottler & Keller, 2006, p. 16). Classic Airlines is marketing a service which provides transportation to customers who travels from one destination to the other. With the rising fuel cost, labor and economic crisis Classic Airlines is losing some of it loyal customers The marketing concept used by Classic Airlines is the holistic marketing. One of the challenges the company is facing is the declining members in its Classic Rewards Program. Implementing the holistic marketing concept will add value and satisfaction to new and existing customers. Corporate culture is at an all-time low at Classic Airlines because of the changes being made in the company. Conclusion With current economic crisis, the airline industry faces new challenges. With airline companies competing to keep their businesses afloat, new strategies, and marketing concepts need to be applied. In the case of Classic Airlines customer satisfaction is a must, cultivating relationship with the new and existing customers will help Classic Airlines in the long haul. Reference Kotler, P., & Keller, K. (2006). Marketing Management (12th ed.). New Jersey: Prentice hall, Inc. University of Phoenix. (2004). Week One overview. Retrieve October 01, 2010, From University of Phoenix, Week one, MKT571-Classic Airlines