Mkt571 Week One Classis Airlines

7/30/2019 Mkt571 Week One Classis Airlines

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Running head: Classic Airlines 1

Classic Airlines

Jauwanna Pitts

MKT/571

November 19, 2012

Bryce McDonald


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Classic Airlines 2

Classic Airlines

Classic Airlines The worlds fifth largest airline, commands a fleet of more than 375 jets

that serve 240 cities with over 2,300 daily flights. In the 25 years since its inception, Classic has

grown to an organization of 32,000 employees, and last year, it earned $10 million on $8.7

billion in sales. Classic has experience a challenge with finances for a host of reasons, which

include uncertainty of about flying has affected industry stock prices, and Classic has seen a 10%

decrease in share prices in the past year. Reward programs decrease and rising costs which

includes fuel and labor. A discussion of the Service that Classic Airlines provides and what the

Airline can do to as a result of market research to regain customers and to gain a new customer

base (University of Phoenix, 2012).

Classic Airlines offers a service, which includes providing a safe affordable, compatible

flight. Classics challenge is to become superior over the competition without discounting

airfare. The corporation will need to become creative without reducing margin cost.

Macro-environmental change occurs when demographics, economic, physical,

technological, political-legal, and social-cultural forces affect the sales and profits (Kotler, &

Keller, 2006). Airline travel has definitely reduced somewhat because of September 11 perhaps

no other industry was as immediately affected by the devastating events of September 11th as the

airline industry. Beyond the passengers and airline crews who lost their lives on that day many

airlines simply shut down.

Classic Airlines can do market research in the form of online research which is less

expensive than other types of research. E-mail survey costs about half what a conventional

survey costs, and return rates can be as high as 50 percent. Online surveys are faster to complete


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Online surveys are faster to complete since the survey can automatically direct respondents to

applicable questions and be sent electronically to the research supplier once finished. One

estimate is that 75 to 80 percent of a surveys targeted response can be generated in 48 hours

using online methods, as compared to a telephone survey that can take 70 days to obtain 150

interviews (Kotler, & Keller, 2006). People tend to be more honest on online then by telephone

or in person while being interviewed. Some disadvantages are online market research is prone to

technological problems and inconsistencies and samples can be small and skewed. One major

reason for undertaking marketing research is to identify market opportunities. Once the research

is complete, the company must measure and forecast the size, growth, and profit potential of

each market opportunity. If its forecast is far off the mark, the company will be saddled with

excess inventory or have inadequate inventory. Sales forecasts are based on estimates of demand

(Kotler, & Keller, 2006).

Forecasting is another way for Classic Airlines to boost their chances of gaining and increase

their customer based. The focus should be the available, potential and the target market. Find out

the available market, find out which competitors have the potential customer and focus on this

market to target new customer.

It is important for Classic Airlines to provide the best in customer because the company

is not able to reduce margin costs. Kotler and Keller states it is important for managers and

organizations to excel in customer service. Classic could offer a free steak dinner or lunch for

flying with the airline or free upgrades to first class once a customer has flown with the airline so

many times. Providing incentives like this Classic can promote loyal customers. Loyalty is as a

deeply held commitment to re-buy or re-patronize a preferred product 12 to 1 in the airline


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business or service in the future despite situational influences. Ultimately, marketing is the art of

attracting and keeping profitable customers. According to James V. Putten of American Express,

the best customers outspend others by ratios and marketing efforts having the potential to cause

switching behavior (Kotler, & Keller, 2006).

A discussion of the Service that Classic Airlines provides and what the Airline can do to as a

result of market research to regain customers and to gain a new customer base. Its always

important to anticipate the competitors move and do what they are trying to do better. Classic

Airlines can definitely turn the situation around by doing marker research and implementing

incentives.


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Reference

Kotler & Keller. (2006).Marketing Management(12th ed.). New Jersey: Pearson-Prentice Hall.

University of Phoenix. (2012). Classic Airlines. Retrieved from University of Phoenix,MKT/571 website.

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Mkt571 Week One Classis Airlines