Running head: CLASSIC AIRLINES AND MARKETING

Classic Airlines and Marketing

CLASSIC AIRLINES AND MARKETING Classic Airlines and Marketing Classic Airline added to the profitability of the airline industry by earning approximately 10 million in profits last year. Classic Airlines is considered a mega-airline in the world that commands a fleet of over 375 jets that service 240 cities worldwide with an additional 2,300 flights or more on a daily basis. Regrettably, similar to several industries or businesses that were affected by the Unites States of Americas economy, Classic Airlines has been faced with rising costs that include increasing fuel costs and labor costs deducting millions in profits over the past few years. This unique dilemma is the cause of a decline of loyal customers and reward members. The companys frequent fliers are made up of 95% of these two groups. An additional concern that must be taken into consideration is that since the September 11 Attack in 2001, flying has been unpleasant for numerous fliers. Classic Airlines has a current goal to reinvent the rewards program and make the 15% cut as intended. To offset cost inflation, the company has executed a fuel-hedging program and structured the 15% company- wide cost decrease. Consequently, to encounter the declining demand, Classic Airlines senior level executives have directed their attention on stimulating the Classic Rewards Program. The participation in this program has declined severely over the years. The Chief Executive Officer (CEO) has challenged the Chief Marketing Officer to arrange a marketing campaign with the objective of preserving the current Reward Members and attracting new members to join. After considering the products and services Classic Airlines is marketing, the marketing challenges it faces and its corporate culture, explanation of selected marketing concepts will relate to the circumstances currently taking place at Classic Airlines. The main concept of marketing is exchange, which is described as the procedure of gaining a preferred product from someone by contributing something in return (Hutton, 2001).

CLASSIC AIRLINES AND MARKETING To begin, Classic Airlines marketing team must decide which units are being marketed, For instance, what promotions are customers being offered in return for their money, customer referrals, and customer loyalty? Among the ten entities marketed, Classic Airlines will market goods, services, and experiences to re-establish the Rewards program. The physical goods are represented by airline tickets and the service is represented as the flight. There should be great importance placed on marketing the Classic Airlines flight experience due to recent studies proving that customers who are satisfied with their experience are inclined not to list price as their determining factor when making selections on which airline carrier to use. (University of Phoenix, 2013).

CLASSIC AIRLINES AND MARKETING References Hutton, J. G. (2001). Narrowing the Concept of Marketing. Journal Of Nonprofit & Public Sector Marketing, 9(4), 5. Retrieved January 27, 2013, from University of Phoenix Library. University of Phoenix. (2013). Classic Airlines Scenario. Retrieved from University of Phoenix, MKT/571- Marketing website