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Classic Airlines

Essay by   •  February 9, 2012  •  Case Study  •  693 Words (3 Pages)  •  1,607 Views

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Classic Airlines is the fifth largest airline in the world and operates more than 375 jets that fly to 240 cities with more than 2,300 daily flights. Classic Airlines main marketing focus is on their availability of flights, low costs, and customer service. Though Classic Airlines is profitable, company share prices have decreased by 10% and the companies reward program has declined by 19%. Classic Airlines needs to analyze its marketing goal and find a way to attract its frequent flyers away from the competition. According to Kotler and Keller (2006), " "Marketing deals with identifying and meeting human and social needs." This paper will discuss the marketing concepts found in this week's readings and discuss how the concepts relate to the context of the Classic Airlines scenario.

Production Concept

"Consumers will prefer products that are widely available and inexpensive" (Kotler & Keller, 2006, p. 11). "Classic Airlines, commands a fleet of more than 375 jets that serve 240 cities with over 2,300 daily flight" (UOPX, 2012, p. 1). Classic Airlines membership program is comprised of both business and leisure travelers. Classic Airlines offers a wide variety of flights at competitive prices and reward options redeemable in four different categories. Offering such options, Classic Airlines is marketing both types of travelers. Business travelers tend to focus more on the quality, whereas leisure travelers are more likely to focus more on the price and location of the flight.

Product Concept

The product concept holds that consumers will favor those products that offer the most quality, performance, or innovative features" (Kotler & Keller, 2006, p. 11). In this case, Classic Airlines does not need to develop a new product; however, it needs to improve its current product (the frequent flier program and the timeliness of its flights). Its current customers are willing to continue to fly with them if changes are made. Classic Airlines needs to implement little changes such as pre-boarding for top-level frequent fliers, customer service calls for delayed flights, and getting the fliers to his or her location on time.

Selling Concept

According to Kotler and Keller (2006), "the selling concept holds that consumers and businesses, if left alone, will ordinarily will not buy enough of the organization's products" (p. 12). Based on the reports provided Classic Airlines memberships in its rewards program has declined by 19%, as well as the flights per remaining member at a 21% decline. With this decrease in the memberships and flights, Classic Airline will need to take an aggressive promotion and selling effort to get consumers to purchase the company's products.

Marketing Concept

"The marketing concept

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