Mkt_571_Classic_Airlines_Marketing_Concepts

RUNNING HEADER: CLASSIC AIRLINES AND MARKETING Classic Airlines and Marketing Micah Stanley 5-31-2010 University of Phoenix MKT 571 Professor Meraj Khan Introduction Often times there are many difficult scenarios that face a company over time and the Classic Airlines is experiencing one of these now. During these times there will be several factors involved and possible directs to choose between. This document will present marketing concepts found in the Classic Airlines scenario and how they correlate to the readings. These concepts could help Classic Airlines decide the best course of action to take moving forward. Marketing Concepts Within the Classic Airlines scenario presented, one of the concepts found both that Kotler mentions in the text is that of changing from emphasizing tangible assets to emphasizing intangible objects. This is shown in the email correspondences found in the scenario where the management is trying to understand the customer at a deeper level and supply them with what is most important to them. Kevin begins to talk about this on page five of the scenario with Renee in reference to the use of the CRM system that is not being utilized as it should be. (Classic Airlines, 6) The CRM system has data collected from customers over an extended period of time that has not been used yet but not it seems now it will be reviewed to see what the customers have been informing Classic Airlines about. Another of the concepts that presents itself within the scenario that is extremely vital to the success of any concept is defining the problem. All throughout the scenario Kevin and his team are digging in and determining what it is that the customer most wants. Kevin’s team has begun with the knowledge that 20% of their frequent flier members have left, and of the remaining members, the flights have decreased by 20% as well. So the problem is that the current way business is being done at Classic Airlines is not retaining the customers. This goes to prove that the customers perspective of “value” as stated in the scenario, does not necessarily mean price. This is backed by the fact that the past marketing VP reduced prices but no increase was seen because of this and it started a price war. Kevin’s team knowing the problem to be unsatisfied customers has begun trying to identify the main reasons that the customers are leaving based on previous data, and rough survey data. These steps are exactly what needs to be done to further understand what the issues are with Classic Airlines, and what the customer values the most. Conclusion There are many different types of marketing concepts that appear within the Classic Airlines Scenario throughout the text. Not all of these could be included within the limits of this document but many more exist and are potentially equally as important. This document has covered a few marketing concepts and principles including, emphasizing tangible assets to emphasizing intangible objects, defining the problem statement/issue and investigating the potential ways to solve the problem or issue. Thus far it appears that Classic Airlines is starting down the correct paths and is diving into determining what is wanted most of their current customer market and target markets both. References Kotler & Keller. (2006). Marketing Management (12th ed.). New Jersey: Pearson-Prentice Hall. Classic Airlines Scenario, University of Phoenix (2010).