Mkt 571 Week 1

According to this week’s reading marketing deals with identifying and meeting human and social needs (Keller and Kotler, 2006). In a diverse industry many companies produce products that are similar but what set them apart from their competitors are the marketing schemes that each company practice. When a company use a good marketing strategy that strategy in return helps the company advance pass its competitors and into number one spot. Competition has always been steep in the airline business and Classic Airlines is no different and face marketing challenges. This paper will discuss marketing challenges and alternative to those challenges.
Company Background
Classic Airline has an armada of 375 plus jets which provide services to 240 cities which would make Classic airline the fifth largest airline company in the world. The airline has approximately 2,300 flights daily. Classic airline employs 32, 000 employees, and earned $10 million on $8.7 billion in sales.
Like many airlines, Classic has ran into difficult times because of decreasing   stock prices.   The reason behind the decrease of stock is because customers are doubtful regarding airplane safety. Shares for Classic have witness a ten percent decrease as well as a reduction in members of classic reward program by an unprecedented 19 percent and a 21 percent decrease in flights per remaining member. The board of directors would like to increase Classic’s Return on Investment (ROI), they believe that the frequent flier program will increase the ROI and help the company. The Board also would like to implement a cost reduction of 15 percent companywide over an 18-month span.
When building a unique program similar to the Customer Relationship Program (CRM) all aspect and resources of the company’s competencies need be addressed to meet the different requirements. The Chief Executive Officer (CEO) and Chief Marketing Officer (CMO) do not share the same vision which can hinder advancement for...