Running head: CLASSIC AIRLINES: NEW MARKETING DIRECTION

Classic Airlines: New Marketing Direction MKT 571 August 6, 2012 Jacqueline Barnett

CLASSIC AIRLINES: NEW MARKETING DIRECTION

Abstract Classic Airline is a faltering company in need of a new direction. The CEO is a numbers oriented manager, generally hostile to marketing. The management team set about educating the CEO about marketing, and how a marketing plan works. Included are a definition of marketing, and the contents of a marketing plan.

CLASSIC AIRLINES: NEW MARKETING DIRECTION

Classic Airlines: New Marketing Direction In operation for 25 years Classic Airlines is the world fifth largest airline with revenues of $8.7 billion. An impressive organization that serves 240 cities, with over 2300 daily flights, on a fleet of 375 aircraft, and supported by 32,000 employees, returned an unimpressive $10 million last year. Facing rising fuel and labor costs, stiff competition, with failing consumer confidence and rewards program, Classic Airlines stock prices have dropped, forcing the Board of Directors to mandate a 15% across the board budget cut. With a numbers focused CEO at the controls of Classic Airlines, she is determined to turn these headwinds into tailwinds, and increase profitability, while reducing costs. To that end, she has charged her senior management team to develop a marketing plan. What Is Marketing? With a CEO that motivated by numbers, and somewhat hostile it is important to educate her in the value that marketing provides to both Classic Airlines and its customers. Marketing defined simply is: meeting needs, profitably (Kotler and Keller, 2006). Marketing addresses the two sided nature of a business transaction, bearing that in mind it is useful to define marketing for each side of a transaction. Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value (Kotler and Keller, 2006). In essence, marketing allows business to identify consumer needs, and deliver value to the consumer by meeting that need. On the other side of the transaction marketing is defined as a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others (Kotler and Keller, 2006). Consumers communicate their needs, and have them met through an exchange of value.

CLASSIC AIRLINES: NEW MARKETING DIRECTION

With marketing clearly defined for the CEO of Classic Airlines, she will understand the focus of Classic will be to meet the needs of consumers, by offering great value, not necessarily low prices. The Marketing Plan With a clear definition, and understanding of what marketing is, the next step is to develop a marketing plan, without direction, the destination can never be reached. With previous marketing efforts being ineffective, the CEO of Classic Airlines has significant reservations about the efficacy of future marketing efforts. With a strong marketing plan, not only will success be ensured, but Classics CEO will be assured of sound strategy that leads to meeting well defined goals. The marketing plan is a written document that outlines what has been learned about the market and sets the strategy, and steps necessary to meet goals (Kotler and Keller, 2006) The marketing plan is the central instrument for directing and coordinating the marketing effort. The marketing plan operates at two levels: strategic and tactical. The strategic marketing plan lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. The tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service (Kotler and Keller, 2006). The marketing plan has five sections: Executive Summary and table of contents: A quick overview of goal and recommendations that allows senior management to understand the main points. The table of contents is an outline of the plan market research, and detailed action steps.

CLASSIC AIRLINES: NEW MARKETING DIRECTION

Situation analysis: Included in the situation analysis will be specific market data such as sales, costs, market conditions, competitors, and the microenvironment. Also, the market will be defined; how big, rate of growth, trends. Additionally, what the product offering will be and any critical factors Classic Airlines may face. The strengths, weaknesses, opportunities, and threats (SWOT) analysis will be included in this section.

Marketing Strategy: Here the mission, marketing, and financial objectives are defined, as well as, the groups and needs the product offering is intended to satisfy. With the involvement of all departments such as sales, manufacturing, and finance organizational support can be obtained for implementation of the specific branding and customer strategy.

Financial projections: The financial projections include sales, and expense forecasts and breakeven analysis

Implementation controls: Measurements are used to determine effectiveness, and recommend adjustments to achieve objectives. Through monitoring of sales, expenses, and customer satisfaction, corrective action can be taken where necessary (Kotler and Keller, 2006)

With a well-defined marketing plan, the CEO of Classic Airlines will have a specific plan to address, falling consumer confidence, stiff competition, and tightening budgets. Conclusion Classic Airlines faces a difficult marketplace, and a CEO hostile to marketing. Yet with careful education, the value of marketing to Classic and its customers will be clear. With a disciplined execution of strategy, success is sure to arrive on time.

CLASSIC AIRLINES: NEW MARKETING DIRECTION

Reference Kotler, P., & Keller, K. (2006). Marketing Management (12th ed.). Upper Saddle River, NJ: Pearson-Prentice Hall.