Marketing 571 Airline Services are unique in many ways; the companies associated with airlines maintain a group of consumers who are interested in obtaining quick and comfortable services that meets their needs. The need of this type of consumer is very attainable with the most affordable pricing and the most consumer driven services possible to be provided. Good areas in this association of services and bad areas if a consumer is not satisfied with any portion of the services provided from the airline service and Classic Airline is an airline service that has to remember that the consumer is the most important detail of the airline service.
Classic Airlines is a company that faces critical issues that has ramifications in the area of organization. The internal marketing and external marketing infrastructure does not satisfy the needs of the target consumers or that of the stakeholders of the companies. Classic airlines have a group of informed consumers who are interested in their needs and wants, not good for Classic Airlines. Consumers became more informed and Classic Airline services sales have dropped tremendously and the low sales have decreased profits. This fact has made Classic Airlines review many areas of the organization to discover the reasoning for the critical issues and times the company is facing around the connection with the consumers. The marketing plan of a firm “helps the firm connect with its customers” (Kerin et al., 2006). Consequently, Classic Airlines will need to cultivate a new and efficient plan to encourage the consumers to return and to remain customers of Classic Airline to increase the sales of services and potential profits.
The Critical Issues
Classic Airlines is a company that has 25 years of experience with a fleet of 375 jets that operate in 240 cities. The airline provides more than 2300 daily flights. Because of the increasing costs of daily service and many challenges Classic Airlines is faced with and a decrease in modernization Classic Airlines consumers are not happy with the services the company is providing. Classic Airlines upper management does not know the best way to fix the issues. The company must decide how to overcome the challenges and eliminate the problems without losing the current customers. One of the greatest achievements will be to try maintaining membership and increasing riders without discounting airfare as other airline company’s have done.
Because of the issues facing Classic Airlines the issues are simply experienced by management but employee morale has decreased. Because of the breakdown at the management level and no harmony within the groups of employees, this could ruin Classic Airlines, especially because the stock prices have decreased and the stockholders are not happy. The senior vice president of customer service within Classic Airlines stated “customers have no voice” a humongous issue for Classic Airlines company. Classic Airlines and many of its rivals expanded too quickly (Case Study, 2008).
The case study addresses to the Chief Executive Officer and the Chief Financial Officer were more numbers driven and less concerned about the marketing of the services within the company. The programs was clearly affected was the classic reward program membership that decreased by approximately 20 % , the flights decreased by about 20%, and there was a reduction in departments by 15% across the company. This was where the company had a need of environmental scanning to assist the company in changing the current pace and downward spiral.
“Changes in the marketing environment are a source of opportunities and threats to be managed. The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends is called environmental scanning” (Kerin et al., 2006).
The perspective and ethical mindset of