Classic Airlines and Marketing

holy Airlines and Marketing MKT/571 Marketing September 17, 2012 classic Airlines and Marketing Classic Airlines, the fifth largest airline carrier, currently serves 240 cities with more than 2,300 occasional flights. However, Classic Airlines has experienced over the past one-third years a decline in their frequent flier program Classic Rewards along with customer confidence declining as well and stock prices has decreased by 10% according to University of Phoenix, 2012. Marketing is assigned the task of revamping the customer allegiance program and increasing membership date operating under a 15% reduction in expenses across the company.The challenges that the market heed is set about with include a downward turn of morale among the employees retaining and recruiting of untested members for Classic Rewards, and the lack of support from upper management. Marketing management is the process of creating, communicating, and delivering value to customers and for managing cus tomer relationships in ways that benefit the organization and its stakeholders (Kotler & Keller, 2006, p. 6). Identifying Marketing ChallengesThe selling management squad has identified that the majority (60%) of its Reward membership argon at the basic tier, 25% are on the Silver Rewards level, and wholly 15% are Gold Rewards members. Of these members 80% are business travellers with the stay 20% leisure travellers. With this information, trade instituted surveys to determine what the needs 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 firmness of the airlines investment in the customer.Whereas, the leisure traveler is more interested in lower air fare and is more bequeathing to have more connections if it will save the traveler money. Strength, weakness, opportunities, and threats (SWOT) abstract of Classic Airlines top col lar competitorsBritish Airlines, Northwest Airlines, and United Airlineswere faultless by John Hartman, Senior Vice President of Human Resources. found on the SWOT analysis, all three competitors have a wet and successful loyalty program. A common weakness between the three companies is the union at each airline.An opportunity recognized by the three companies is the customers needs are constantly changing and the airline industry is rebounding. fire and equipment along with competition are considered weaknesses by the three organizations. Gathering stimulant from the Classic Rewards members was the responsibility of Renee Epson, Senior Vice President of Customer Service. Interviews of pentad hundred 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 final payment program only 30% were either satisfied or genuinely satisfied with the program and upgr ades available. When asked if the members flew on other airlines, all categories excluding those who fly vii to 12 times a year responded that they flew other airlines more much 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 aggroup has been performing strategic planning to implement a value kitchen stove.A value chain states Kotler and Keller, (2006), identifies nine strategically relevant activities that make up value and cost in a specific business (p. 38). The team has identified opportunities, weaknesses, strengths, and threats for Classic Airlines competitors and through 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 saucy off ering realization program that enables Classic Airlines to develop and implement new high-quality products temporary hookup remaining within the budget. Another part of the value chain is the identification of new markets to attract new customers. Classic Airlines needs to construct its customer relationship management process this in turn will improve relationships and understanding with both internal and external customers. ConclusionClassic Airlines marketing management is working 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 insight of the issues that must be addressed.Marketing is a process o f delivering value 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 accuse River, NJ Pearson-Prentice Hall. University of Phoenix. (2012). Scenario Classic Airlines. Retrieved from University of Phoenix, MKT571-Marketing website