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Classic Airlines and Marketing Essay Sample

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Classic Airlines and Marketing Essay Sample

Classic Airlines is the fifth largest airline company in the world. Similarly to the competitors it is suffering from high fuel costs, resulting in lower profits. Many companies dropped number of flights (with the net result of raising passenger load factors and efficiency on remaining flights), raised prices, developed very large revenue streams from checked baggage fees and other charges, and kept very tight lid on all controllable expenses (University of Phoenix Library, 2013). This way the airline companies minimized the expenses and raised the revenue. The heel of Achilles for Classic Airlines is the partial booked flights. That is why that the good planed marketing strategy is critical to its success. The attraction of the larger customer segment will raise the demand on the company’s products. The higher flight occupancy rate will lower the expense costs for the company.

The Marketing Products
Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs profitably (University of Phoenix Library, 2013)”. The management of the company needs to take in the consideration that there are different customer segments with different expectations. Some of them are interested in low prices while another’s are concerned with the quality of the service. In this scenario Classic Airline offers customers service of delivering them from one destination to another. The great way of attracting customers in service providing companies is to create the extraordinary experience. In this case the company can retrain the employees to provide its customers the exceptionally friendly customer service. Classic Airlines can always increase its revenues from additional fees such as charges for checked bags, priority seating and food and beverages on board. On board, many passengers are paying for drinks, meals and even pillows and blankets. Many airlines have begun charging fees of $30 for reserving seats in the first few rows in coach cabins (University of Phoenix Library, 2013).

This way the customers will have the opportunity to decide how much they want to spend and what service they want to get. The research shows that the customer satisfaction rises when they feel to be in charge. (Center for the Study of Social Policy, 2007) Marketing Challenges Classic Airlines has a reward program that allows the customers to earn the free miles for their every trip with the company. After certain amount of points they can earn free trips. This marketing strategy is attractive to the consumers and encourages them to book more flights with the company. However, the flow of the program is that once the customer will earn enough points to get a free flight it is inconvenient to book a flight. There are too many distractions’ about booking the nonstop flight, unavailability to select certain dates, and etc. Another marketing challenge for the company is to compete with the airlines that created alliances. The alliances are giving the competitors the advantage of offering their customers better pricing and more locations. Conclusion

The key to the Classic Airlines success is to classify the different customer segments and meet their needs while staying profitable. It means that some of the customers will expect the low prices while another’s are seeking in exceptional service.

References

Center for the Study of Social Policy, 2007. Customer Satisfaction. Retrieved January 14, 2013 from http://www.cssp.org/publications/constituents-co-invested-in-change/customer-satisfaction/customer-satisfaction-what-research-tells-us.pdf

University of Phoenix Library, 2013. Plunkett Research Ltd. Introduction to the Travel Industry. Retrieved January 9, 2013 from http://www.plunkettresearchonline.com.ezproxy.apollolibrary.com/ResearchCenter/Trends/display.aspx?Industry=17

University of Phoenix Library, 2013. MKT/571 Week One Readings. Chapter One. Retrieved January 10, 2013 from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx

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