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Classic Airlines and Marketing Essay

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Classic Airlines and Marketing Essay

Kimberly Clancy
MKT/571
May 9, 2011
Alan Mandel

Classic Airlines is a company that wants to be profitable by adapting a marketing concept. The company has to analyze its external and internal environment to determine opportunities any threats that would inhibit the company from success, increase profits and give the company a competitive advantage. A method some companies use to analyze the market he or she works in is the Porter’s Five Forces Model. This technique is used to identify a company’s structure to determine its corporate strategy. This method can be used to any segment of the economy to research for profits and attractiveness (Quick MBA, 2010). The barrier of entry for the company is too steep however; the strong competition in the market displays the company’s profitability. Classic Airline is the fifth largest airline and has been in business for 25 years. The airline has had decreased profits for a few reasons. First, is the public’s increase in the hesitation of flying and the decreasing of reward programs in place. Second, the increase of labor and fuel costs along with customers switching to fly with a different airline. Third, the company is being closely scrutinized and watched from all sectors (University of Phoenix, 2011). This essay will discuss how Classic Airlines has to reexamine its marketing concepts to increase profitability in addition to addressing any concepts that relate to the company scenario.
Marketing Concepts Currently the airline is providing a product and service that is intangible for their customers. For example, the company’s rewards program which is divided into three packages the basic, silver, and gold. This program requires its customers to travel a certain amount of miles in a calendar year before their rewards can be redeemed. The company’s main market is leisure and

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