Classic Airlines has several different marketing concepts that they have to learn to recognize, and address if they are planning on continuing to compete with their competitors. These marketing concepts will be discussed in the contents of this paper, and then used to describe their relation to the Classic Airlines scenario. After Classic Airlines recognizes the different marketing concepts that they are able to use to help make their business a more sufficient one, the company may be more apt to keep up with the other competitors in the airline industry.
Classic Airlines and Marketing
Classic Airlines is the world??™s fifth largest airline that is used as a command fleet for 375 jets. Classic Airlines has grown to an organization of 32,000 employees, and they have earned a $10 million profit on their business. The company has sadly also seen a 10% decrease in their share prices. There has also been a sharp decrease in the amount of customers that are enrolled in the Classic Rewards program that Classic Airlines has to offer (University of Phoenix, 2010). One marketing concept that would help the company would be the concept that deals with superior customer service. This selling concept would allow Classic Airlines to stand out from their competitors, and would allow them to be more effective than their competitors in the creation, delivering and communicating their value of their customers. The CEO of Classis Airlines, Amanda, has expressed her concerns with the sharp decline in the Classic Rewards program. By using this marketing concept, this would allow the company to stand apart from their competitors, and would hopefully bring in more business because of their superb customer service skills.
The production marketing concept has also been seen in this scenario. This marketing concept states that consumers will prefer products that are widely available, and inexpensive. Since Amanda had mentioned in the scenario, Classic Airlines had already been dropping their prices in order to stay in the competition. The company does not think that they are able to drop their prices any lower, which has allowed their customers to be more persuaded by other competitor??™s prices. Classic Airlines needs to find a way in which they are able to cut their expenses for the company, allowing them to have more available money so that they may match the competitors prices, this will help draw back some of the business from their previous customers.
The last marketing concept that will be looked at will be the product concept. Since Classic Airlines seems to have trouble keeping their customers happy and returning, this marketing concept should be used by the company. With the use of this marketing concept, Classic Airlines will be able to outline the price, distribution, advertisement, and insurance that the product that they are offering their customers is at the right price, and is able to keep up with the competitors prices. By using this marketing concept, Classic Airlines would be able to have a plan set in place that will ensure that they are able to provide to their customers the superior service that they are looking for, and the exceptional value of the travel expenses in which they will be receiving from Classic Airlines.
After reading throughout this paper, there have been several different problems pointed out that are occurring in Classic Airlines. The main problem that the company is seeing at the moment is that they are not able to compete with competitors prices. By using the production concept, this would allow them to cut down on costs and allow them to better match competitor??™s prices. The selling concept would allow Classic Airlines to draw in more business by identifying steps that the company can take to better serve their customers, and provide them with the support that is necessary to keep their customers happy and coming back for more service. The product concept will be able to outline the price, distribution, advertisement, and ensure that the product that they are offering their customers is at the right price, and is able to keep up with the competitor??™s prices.
Classic Airlines Scenario. Retrieved October 1, 2010 from: www.myresource.phoenix.edu
Kotler & Keller (2006). Marketing Management (12th ed.) New Jersey: Pearson-Prentice Hall. Retrieved September 30, 2010 from https://ecampus.phoenix.edu