Classic Airlines and Marketing
Classic Airlines and Marketing
Jared A McKinsey
MKT 571
03/29/12
Kathy Stricklin
Classic Airlines and Marketing Classic Airlines in an airline company that has been in business for over 25 years and has gained great success within the airline industry. In the 25 years since its creation the company has grown to over 32,000 employees and has generated 10 billion dollars worth of business. Although the company has seen great success, it also is subjected to the many challenges that other airlines companies face in today’s market. Classic airlines must be able to market its product so that customers will pick there product over competitors within the industry (University of Phoenix, 2012). There are several marketing concepts that Classic airlines have applied and are using in their business. The first marketing concept that Classic airlines use is the needs, wants, and demands concept. This concept is applied by understanding the needs, wants, and demands of the customer. The way Classic airlines have done this is create a rewards program for the customer. This feels the need for a customer to get something for a reduced price. If the customer has enough miles they can upgrade to first class or stay at a Classic airlines hotel partner for a free night (Kotler & Keller, 2006). The second concept that Classic airlines have applied to their business strategy is offering and brands. This concept is applied by a firm by offering benefits to a customer that fills needs and using brands that are a known commodity. The Classic airlines rewards program is a perfect example of this marketing concept. The airline offers if a customer signs up for the rewards program they will gain points which can be redeemed for free or reduced items. Although in the reading it does not state what hotel companies are partners of Classic airlines they should make sure that these hotels are name brand hotels such as Marriott or the Hilton so customers feel they are
Jared A McKinsey
MKT 571
03/29/12
Kathy Stricklin
Classic Airlines and Marketing Classic Airlines in an airline company that has been in business for over 25 years and has gained great success within the airline industry. In the 25 years since its creation the company has grown to over 32,000 employees and has generated 10 billion dollars worth of business. Although the company has seen great success, it also is subjected to the many challenges that other airlines companies face in today’s market. Classic airlines must be able to market its product so that customers will pick there product over competitors within the industry (University of Phoenix, 2012). There are several marketing concepts that Classic airlines have applied and are using in their business. The first marketing concept that Classic airlines use is the needs, wants, and demands concept. This concept is applied by understanding the needs, wants, and demands of the customer. The way Classic airlines have done this is create a rewards program for the customer. This feels the need for a customer to get something for a reduced price. If the customer has enough miles they can upgrade to first class or stay at a Classic airlines hotel partner for a free night (Kotler & Keller, 2006). The second concept that Classic airlines have applied to their business strategy is offering and brands. This concept is applied by a firm by offering benefits to a customer that fills needs and using brands that are a known commodity. The Classic airlines rewards program is a perfect example of this marketing concept. The airline offers if a customer signs up for the rewards program they will gain points which can be redeemed for free or reduced items. Although in the reading it does not state what hotel companies are partners of Classic airlines they should make sure that these hotels are name brand hotels such as Marriott or the Hilton so customers feel they are
References: Kotler, P., & Keller, K. L. (2006). Marketing Management (12th ed.). Retrieved from The University of Phoenix eBook Collection database. University of Phoenix. (2012). Classic Airlines [Multimedia]. Retrieved from University of Phoenix, MKT571 website.