MKT 571 Week 3 Classic Airline Paper Marketing Solution

MKT 571 Week 3 Classic Airline Paper Marketing Solution -...

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Classic Airline Marketing Solution This paper will cover a full scale and analysis of Classic Airlines, a 25 year airline organization. Classic Airlines demand is over 375 jets that serve 240 cities with more than 2300 daily flights making it the fifth largest airline in the world (University of Phoenix, 2007). Classic Airlines has grown from a small business to an organization of 32,000 employees and earned $10 million on $8.7 billion in sales (University of Phoenix). A general problem-solving process or framework provides leaders with a way to begin managing and understanding a wide range of decisions to be made, problems that needs attention, and concerns that arise from internal and external customers. According to University of Phoenix Week Three Scenario (2011), “Classical Airlines has seen a 10% decrease in share prices in the past year,” (para 2.) With this decrease in share prices the rising cost (fuel and labor) have hit the organization hard. The employees’ morale is at a low and Classic’s financial strain the corporate culture is under pressure. The board of directors for Classic Airlines has mandated a 15% cost reduction over the next 18 months. This cost reduction brings some challenges for all departments including finance, human resources, marketing, and customer service. From a marketing point of view, Classic is challenged with increasing customer loyalty and satisfaction, while decreasing expenditures. The first step of the problem-solving method is a key question to ask, “Is all the things competing for your attention, which you will deal with at this time?” There are competing issues and all involved parties have a personal vested interest. In Classic Airlines case, decreasing sales impacts the customer’s satisfaction and loyalty; lower
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employee morale and cutting costs are all examples of the competing issues. There are many key stakeholders who’s vested interest in seeking changes includes finance, human resources, board of directors, shareholders, marketing and customer service. It is my recommendation that Classic Airlines focus on efforts on improving customer satisfaction and loyalty as this will directly and indirectly improve the sales, employee morale, board of directors, and shareholders. Next, it will be important to use a priority-setting process step to gain an agreement on the problem statement and how the problems are framed. The last action item for this first step is to develop a clear statement with understanding of each gap between what is and what it should be. According to Kotler and Keller (2007) customers compare the perceived service to the expected service and if the perceived service falls below customer’s expectation, customers will be disappointed. On the other hand, if the perceive service meets or exceeds the customer’s expectation; they are apt to use the service again. The Senior Vice President of Customer Service, Renee Epson at Classic Airlines can offer some insight to these expectations. During the past
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This note was uploaded on 02/16/2012 for the course AMERICAN I American I taught by Professor Americaninternationcollege during the Spring '12 term at American Internation College.

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MKT 571 Week 3 Classic Airline Paper Marketing Solution -...

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