Classic Airlines Corporate Culture Essay

747 words - 3 pages

Running Head: CLASSIC AIRLINES








Classic Airlines Corporate Culture and Marketing Strategy
Justina Barone
University of Phoenix

Abstract
Classic Airlines ranks fifth in size in the airline industry and reported $10 million in profits last year. Although the 25 year-old airline has maintained profitability, Classic is not exempt from the challenges that plague the industry. The executives at Classic are tasked with addressing the decrease in stock prices, negative media attention, decline in customer loyalty program use, and rising fuel costs. The current corporate culture at Classic does not believe in the importance of marketing and believes prior ...view middle of the document...

“But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself” (Kolter & Keller, 2006). Classic Airlines subscribes to the exchange method of product offering. The marketing department must discover what consumers want in a flight experience and execute the offer at a profitable price while meeting the parameters of company expectations.
As the Chief Marketing Officer (CMO) at Classic Airlines, Kevin Boyle faces many challenges as the least tenured executive on the team. His predecessor tarnished the reputation of the Marketing Department by recommending slashing the prices based on the incorrect assumption Classic Airline customers were extremely price sensitive. The current customer relationship management system (CRM) requires integration with the customer service portal and updating to collect pertinent data that can be used to increase activity in the rewards program and strengthen the bond between customers and Classic Airlines. Marketing consists of actions undertaken to elicit desired responses from a target audience (Kolter & Keller, 2006). Boyle must add value to a flight on Classic Airlines while meeting the budget cut expectations of 15% set forth by the chief executive and financial officer, both extremely driven by quantitative success.
Classic Airlines falls underneath the umbrella of service industries. ...

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