Classic Airlines Marketing Solution Essay Example | Topics and Well Written Essays - 2000 words

Classic Airlines Marketing Solution - Essay Example The firm’s marketing plans are currently based on the Classic Rewards Program; however, the performance of this scheme has been significantly declined in 2005, compared to 2004; the relevant decrease has reached a percentage of 20% within just one year. The firm has set the return of its loyal customers, meaning especially the frequent fliers, as one of its priorities related to its marketing plans. Emphasis is also given to the enhancement of membership in the Classics Reward scheme; since last year, the membership in the above scheme has been reduced at least by 20%. Another priority of the firm’s marketing plans is the following one: the above plans should address customer needs and they cannot be aligned only with organizational culture, as until now. At this point, reference should be made to the following fact: the firm’s marketing plans have to be within a specific budget; in fact, for this year, the cost of these plans needs to be reduced by 15% so that t he firm’s targets in terms of its profitability are achieved. The development of effective marketing plans in Classic Airlines has been delayed due to a series of factors, related both to the firm’s internal and external environment. More specifically, internally the firm’s marketing department has to face the following pressures: a) the costs of the organization are still at a high level; the efforts made in the past for limiting these costs have not been particularly successful. As a result, the marketing department has been asked to keep its budget at low levels.... The firm has set the return of its loyal customers, meaning especially the frequent fliers, as one of its priorities related to its marketing plans. Emphasis is also given to the enhancement of membership in the Classics Reward scheme; since last year, the membership in the above scheme has been reduced at least by 20%. Another priority of the firm’s marketing plans is the following one: the above plans should address customer needs and they cannot be aligned only with organizational culture, as until now. At this point, reference should be made to the following fact: the firm’s marketing plans have to be within a specific budget; in fact, for this year, the cost of these plans needs to be reduced by 15% so that the firm’s targets in terms of its profitability are achieved. 2.2 Obstacles of the marketing department – internal and external pressures The development of effective marketing plans in Classic Airlines has been delayed due to a series of factors, related both to the firm’s internal and external environment. More specifically, internally the firm’s marketing department has to face the following pressures: a) the costs of the organization are still at high level; the efforts made in the past for limiting these costs have not been particularly successful. As a result, the marketing department has been asked to keep its budget at low levels, as possible, so that no turbulences are caused in the firm’s daily operations; in fact, the firm’s chief of marketing has been notified that a reduction of at least 15% should be made in regard all the firm’s marketing plans from now on; b) the views of the firm’s Chief Marketing officer in regard to the strategic priorities of the firm in terms of marketing seem to be opposed with the relevant