Mkt 571 Week 1
Classic Airlines and Marketing
Raul Huerta
Mkt/571
February 22, 2011
Bill Gridley
Classic Airlines and Marketing
Classic Airlines is currently one of the top airline industries but have faced trying times and a decline in revenue and passenger activity. The company has a rewards program in place but obviously with a decrease in passengers the rewards program is not bringing in the type of profit anticipated. By using a macro-environmental change, a marketing research program, and developing a marketing plan the airline should be able to revamp the current rewards program to fit the current economic conditions and market the program to the public in such a way that the plan increases passenger activity and revenue for the airline and the rewards program.
Macro-Environmental Change. Macro-environmental change occurs when demographics, economic, physical, technological, political-legal, and social-cultural forces affect the sales and profits (Kotler, & Keller, 2006). In this instance, the rewards program is centered in tiers and only 40% of the members are Silver or Gold, which reap the most rewards. The demographic is directed toward the flyers traveling on business because there is an 80/20 split between business travelers versus leisure travelers. The current economic condition had not only affected the change in how many individuals fly but also how many miles individuals will accumulate. Ultimately, a macro-environmental change will allow the company to adapt to the forces that currently affecting the sales and their profit negatively.
Market Research Program A market research program is beneficial for any company big or small because it measures the market potential and forecasts future demands for the product or service that is promoted (Kotler, & Keller, 2006). Classic Airlines can market the rewards program successfully, but to ensure that the full effect is achieved incorporating a market research program into the mix is more than
Raul Huerta
Mkt/571
February 22, 2011
Bill Gridley
Classic Airlines and Marketing
Classic Airlines is currently one of the top airline industries but have faced trying times and a decline in revenue and passenger activity. The company has a rewards program in place but obviously with a decrease in passengers the rewards program is not bringing in the type of profit anticipated. By using a macro-environmental change, a marketing research program, and developing a marketing plan the airline should be able to revamp the current rewards program to fit the current economic conditions and market the program to the public in such a way that the plan increases passenger activity and revenue for the airline and the rewards program.
Macro-Environmental Change. Macro-environmental change occurs when demographics, economic, physical, technological, political-legal, and social-cultural forces affect the sales and profits (Kotler, & Keller, 2006). In this instance, the rewards program is centered in tiers and only 40% of the members are Silver or Gold, which reap the most rewards. The demographic is directed toward the flyers traveling on business because there is an 80/20 split between business travelers versus leisure travelers. The current economic condition had not only affected the change in how many individuals fly but also how many miles individuals will accumulate. Ultimately, a macro-environmental change will allow the company to adapt to the forces that currently affecting the sales and their profit negatively.
Market Research Program A market research program is beneficial for any company big or small because it measures the market potential and forecasts future demands for the product or service that is promoted (Kotler, & Keller, 2006). Classic Airlines can market the rewards program successfully, but to ensure that the full effect is achieved incorporating a market research program into the mix is more than