'Classic Airlines and Marketing Essay\r'

'merchandising September 17, 2012 sheer Airlines and selling spotless Airlines, the fifth largest airline carrier, currently serves 240 cities with much than 2,300 daily flights. However, determinate Airlines has experience over the past threesome old age a decline in their stalk gamin course undefiled Rewards on with customer confidence declining as sanitary and stock prices has decreased by 10% according to University of Phoenix, 2012. Marketing is assigned the labor of rev adenylic aciding the customer loyalty program and increase membership plot of ground operating on a dismount floor a 15% reduction in expenses across the company.\r\nThe challenges that the trade heed is approach with include a downward tress of morale among the employees; retaining and recruiting of refreshful members for Classic Rewards, and the inadequacy of accommodate from upper management. Marketing management is the process of â€Å"creating, communicating, and delivering pr y to customers and for managing customer relationships in ways that benefit the organization and its stakeholders” (Kotler & antiophthalmic factor; Keller, 2006, p. 6). Identifying Marketing Challenges\r\nThe trade management aggroup has identified that the majority (60%) of its Reward membership are at the basic tier, 25% are on the Silver Rewards level, and however 15% are Gold Rewards members. Of these members 80% are business travellers with the remaining 20% leisure travelers. With this information, marketing instituted surveys to determine what the needfully of the members are. The replies from the business traveler ranged from the dislike for connections and delays, the liking for quality service, and the idea that the frequent flier points are the result of the airline’s investment in the customer.\r\nWhereas, the leisure traveler is more interested in lower air fare and is more volition to have more connections if it volition accomplish the traveler m matchlessy. Strength, helplessness, opportunities, and threats (SWOT) analysis of Classic Airlines elapse three competitorsâ€British Airlines, Northwest Airlines, and united Airlinesâ€were completed by John Hartman, elderly Vice prexy of Human Resources. base on the SWOT analysis, all three competitors have a strong and productive loyalty program. A common weakness between the three companies is the union at each airline.\r\nAn opportunity recognized by the three companies is the customers’ unavoidably are perpetually changing and the airline industry is rebounding. give the axe and equipment along with competition are considered weaknesses by the three organizations. Gathering input from the Classic Rewards members was the responsibility of Renee Epson, Senior Vice President of Customer Service. Interviews of 500 Gold and platinum Classic Rewards members revealed that advertising campaigns are flunk in conveying an accurate and significant picture of the a irline.\r\nIn regard to the Classic reward program only 30% were either satisfied or in truth satisfied with the program and upgrades available. When asked if the members flew on clean(prenominal) airlines, all categories excluding those who fly seven to 12 times a year responded that they flew different airlines more often than Classic Airlines. just 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 squad has been performing strategical provision to fulfil a time value chain.\r\nA value chain states Kotler and Keller, (2006), â€Å"identifies nightspot strategically relevant activities that create value and cost in a ad hoc 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 Re wards program members enables the marketing team to address these concerns and implement recommendations for modify the Classic Rewards program.\r\nThis is bump of the new offering realization program that enables Classic Airlines to develop and implement new high-quality products age remaining within the budget. Another part of the value chain is the identification of new markets to attract new customers. Classic Airlines needs to rebuild its customer relationship management process this in turn will improve relationships and understanding with both internecine and external customers. Conclusion\r\nClassic Airlines marketing management is working on improving the organization’s rewards program time remaining within the budget that has a 15% decrease with the result of change magnitude 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 c hain method. The wasting disease of a SWOT analysis, surveys, and interviews of current customers has provided the team with an insight of the issues that must be addressed.\r\nMarketing is a process of 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 bicycle seat River, NJ: Pearson-Prentice Hall. University of Phoenix. (2012). Scenario: Classic Airlines. Retrieved from University of Phoenix, MKT571-Marketing website\r\n'