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Mkt 571 Week 3 Classic Airlines 9 Step Marketing Solutiona






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Mkt 571 Week 3
Classic Airlines 9 Step Marketing Solution
This paper will use a problem solving model to solve Classic Airline’s marketing
problem. The company is suffering within the airline industry due to several factors, a
couple being the massive increase of costs for fuel and labor. The resolution in
conquering the airlines dilemma will be addressed in a comprehensive nine-step
problem solving model. This model will include Defining the Problem, Gathering
Facts, Feelings, and Opinion, Identifying the Real Problem, Generate Possible
Solutions, Generate Possible Solutions, Evaluate Alternatives, Select Best
Alternatives, Gain Approval and Support, Implement Decision and Evaluate Results.
The factors of this difficulty in the marketing of this company will be identified,
analyzed, followed by a robust decision on the strategy to resolve Classic Airlines’
Step One: The Problem
There has been a reduction in employee morale (which is at an all time low), the
increase in fuel and labor has contributed to the increase in expenses these factors
have the airline in a tailspin within the industry. This is not all due to marketing the
company can not be held accountable for the price of fuel nor can it take
responsibility for the scrutiny on the airlines from the sectors of the economy outside
of the airline industry. According to the American Marketing Association Board of
Directors (2012), Marketing research is the function that links the consumer,
customer, and public to the marketer through information used to identify
and define marketing opportunities and problems; generate, refine, and evaluate
marketing actions; monitor marketing performance; and improve understanding of
marketing as a process (Definition of Marketing Research, sec. 2). The research in
marketing is vital to Classic Airline’s ability to correct most of its problems it will not
only bring loyal customers back but provide other opportunities for the airline to
further stabilize itself within the airline industry. The key to the research required for
the airline is to be as in depth as possible with the opinion of the public, it will also

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require the company to find the most cost effective resources for fuel and labor. The
research shows that economic conditions have contributed to a reduction of ticket
purchases however it is not the price of the ticket that has caused the decline.
Step Two: Gathering the Facts, Feelings and Opinions
The position in the airline industry of Classic Airlines is that it is the 5th largest airline
in the world. The leader with the airlines comprises more than 375 jets that travel to
240 cities and run in excess of 2,300 flights a day (University of Phoenix, 2012). The
company employs about 32,000 professionals to maintain its massive operation. This
industry colossal earned over $10 million in profit on $8.7 billion in ticket sales. In
spite of the leader position in the business Classic Airlines is experiencing some
negative changes recently. In the last year, the Classic Reward Program saw a 19%
decline in the number of
members and the current members purchased 21% less flights (University of
Phoenix, 2012).
The feelings of the employees are based on the public’s opinion of the airline
industry which has caused them to have doubts about their line of work and the
stability of the business. The Labor Union is the focal point in gathering the feelings
of the employees, which are the airline greatest assets. Classic Airlines can
increase moral by addressing the employees’ labor contracts to show their staff that
they are appreciated. During the Shareholders meeting the company officials can
hear the opinions of the group of people that do not control the everyday operation of
the company but provide vital capital to the airline. In many ways the opinion of the
Shareholders are a direct reflection of the publics’ view of the industry and the
company. Shareholders are the owners of a business and are the ultimate decision-
makers on the direction of a company. While the management of a company has the
day-to-day decision-making power, shareholders guide the strategy, financing and
selection of management of the firm. In many cases, shareholders are the
management of the firm ( 2013).
The opinion of the upper management via the CEO, Amanda Miller, and CFO,

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Catherine Simpson, are strictly addressing the problem through looking at the
numbers and trying to make adjustments accordingly. This is of the opposite
opinion on the CMO, Kevin Boyle, who feels that marketing will regain the trust of the
general public, the
employees and the shareholders to increase confidence in the airline. The conflict
for Classic Airlines lies in whether or not the vastly different opinions on how to
provide a solution to the company can be merged or selectively decided upon.
Step Three: Identify the Real Problem
The facts have been gathered and it has previously been stated that the confidence
in the industry has not been the same across the board. This is due to events that
have nothing to do directly with the 5th largest airline in the world, Classic Airlines, or
any other company in the business. The other side effect of the catastrophe of
September 11th caused the economy to shift in a downward motion which triggered
prices to rise. The effects of the economy and the disaster have caused a serious
predicament in the increase in expenses for materials, fuel, labor, costs of goods and
services, and labor which also reduced customer confidence.
The Classic Rewards Program is suffering losses every year and the frequent flier
association has suffered a loss of around 20% of its members (University of Phoenix,
2012). The feelings of the employees are likewise a reflection of the lack of
confidence the general public feels towards the industry and Classic Airlines is not
developing confidence by refusing to address its labor issues to stabilize their
employees. The Shareholders are also not confident in the company not because it
was not preserving its market share or position in the industry however the external
factors caused them to be a
bit more cautious in investing their money. The final real problem is the polarization
in upper management which has to be resolved immediately to not only reflect a
positive direction for shareholders but that will result in a solution that sets Classic
Airlines apart from its competition.
Another real problem for example, is the data system the company uses which is the
Customer Relationship Management system (CRM) that has not been utilized

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