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Classic Airlines:

I need help with a marketing solution for a company. The company is Classic Airline. I need to consider the internal and external pressures contributing to the company's current crisis, the objectives and obstacles of the marketing department, and the marketing resources available to resolve this crisis.

- The paper includes identification and a definition of Company marketing problem.
- The paper includes an application of a problem-solving process and of a marketing solution.
- The paper includes a justification for the solution.
- The paper demonstrates an understanding of marketing concepts.

The attached files provide information on the company.


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Step 1:
The internal pressures contributing to the company's current crisis include the labor unions who want the old agreement to be honored. This represents a fixed cost for Classic Airlines and makes it difficult to reduce costs (University of Phoenix Material 2012). The second internal pressure is the CRM system which is inflexible and does not increase customer satisfaction.The CRM reports in several cases are not usable. The third internal pressure is that Classic Airlines should not enter into a strategic alliance.The fourth and the most important pressure on Classic Airlines is the pressure to reduce costs by 15% over the next 18 months. Firth there is internal pressure to reduce customer relations staff.
The external pressures on Classic Airlines include price cutting by competitors. The lower prices are driving Classic Airlines to reduce its own fares. This is threatening the profits of Classic Airlines. The second external pressure is the increase in fuel prices. These prices are driving up the costs of Classic Airlines. The third external pressure is the exodus of passengers from the frequent flier program of Classic Airlines. The fourth external pressure is the decrease in share prices of Classic Airlines. The 10% decrease in share prices is an important pressure on Classic.

Step 2:
The objectives of the marketing department are to reverse the trend of customers leaving the frequent flier program. A key objective of the marketing department is reducing prices of Classic Airlines tickets. The third objective of marketing is to enter into a marketing alliance with a Latin American airline that would have code sharing, integrate customer facing elements, and deliver a seamless program. Fourth, an important objective of the marketing department at Classic Airlines is to get budgetary sanctions for its projects.
One of the key obstacles of the marketing department is that marketing must achieve its objectives with 15 percent less marketing expenses. The second obstacle is that even the union objects to ...

Solution Summary

This solution explains marketing of Classic Airlines. The sources used are also included in the solution.