Classic Airlines Marketing Solution - Term Paper Example

? ic Airlines Marketing Solution ic Airlines Marketing Solution Introduction Business organizationsand companies face various problems within their business activities which arise from either internal or external forces. Therefore leaders and managers are must have problem solving skills that will enable them to identify the most appropriate problem solving approach that will help them to reach appropriate solutions to problems that business processes face (Morgan, 2012, p. 102). The nine step problem solving model is described as an ideal framework that enables leaders of business organizations and companies with guidelines of understanding problems and how they can deal with them through making the right decisions (Petrolini & Walden, 2000, p. 1). Classic Airlines is faced with a marketing problem which has resulted in the loss of customer confidence and decreased share prices. This problem is worsened by the fact that fuel costs have increased and labor force has become more expensive to acquire and maintain. The airline’s board of directors has thus decided to employ strategies of cutting costs. This has led to reduced motivation to the employees whose morale and attitude towards work has become significantly low. These challenges have had a major impact on the marketing function of the airline which is faced with a problem of increasing the satisfaction of its customers and maintaining their loyalty at the same time decreasing the airline’s expenditure. This paper gives a critical analysis and discussion of Classic airline’s marketing problem while using the nine step problem solving model in order to provide the most appropriate marketing solution for the airline. In the nine step problem solving model, the initial step involves describing the situation or the problem that needs an immediate solution (Petrolini & Walden, 2000, p. 7). The situation that the Classic Airline is faced with include low customer satisfaction, decrease in sales, reduced employee morale which are competing with the needs of the airline to cut its expenditure. The marketing function of the airline is faced with a dilemma of trying to be in line with the corporate strategy of cutting costs and maintaining the loyalty of the consumers with appropriate marketing and promotion of the airline travel services. The situation that the airline is in illustrates the need to put more effort in promoting its services through improving quality, efficiency and reducing the costs associated with traveling. Since this contradicts with the Airline’s need to reduce costs, then it is evident that a serious problem exits and thus an amicable solution is required so that the airline’s reputation and success is maintained. Classic airline’s marketing function is involved in trying to help the airline to come out of the problem that it is facing. The board of directors has engaged the marketing department in conjunction with finance and customer services so that a solution is reached. The shareholders of the airline have also shown interest in providing a solution for the company so that they could safeguard their investment. The best solution for the situation that Classic Airlines is facing is to involve the marketing strategies which will lead to enhancing the satisfaction of the consumers and in return, this will help the airline to improve its sales. The increased income would be used to compensate the staff and hence motivate them which will further improve the satisfaction of the customers and eventually win their loyalty on the airline. The management of the airline should thus set priorities in coming up with the solution for the marketing problem faced by the airline so that appropriate strategies are devised that would lead it into a lasting solution to the problem. Additionally, it is recommended the management of the airline evaluate the current situation in relation to the desired situation in order to determine how the solution would be reached with efficiency and effectiveness. This can be achieved if a clear statement is drafted which defines the marketing problem and the best strategies of effectively reaching the desired solution. Framing the right problem is the second step within the nine step problem solving model (Petrolini & Walden, 2000, p. 7). Companies must clearly state the problem that they are facing to pave way for setting up goals and strategies that would be implemented in order to reach those goals (Morgan, 2012, p. 107). Classic Airline has a marketing problem of improving the satisfaction of the customers without incurring high costs. If the customers are satisfied with the airline’s travel services, the sales will definitely increase which will provide a solution for the company’s other challenges such as the reduced employee morale. Customers normally get disappointed with a company’s services when they fall below their expectations (Wilkie & Moore, 2012, p. 53). Therefore it is recommended that the marketing problem of the company should be solved by first evaluating the needs of the customers and clearly determining their expectations. The marketing strategies of the company then will be enabled to focus on meeting the expectations of the customers. In return, the customers will be encouraged by the improved services which will eventually lead to their loyalty to the airline. Generally, customers seek to use the services of a provider in subsequent times when their expectations are met. In the provision of airline services, the expectations of the customers are likely to include the provision of quality services at affordable costs. This would be the most appropriate way that Classic Airlines should employ to promote their services to their customers. However, the evaluation of the customer’s expectations which relate to the cost of air travel should be focused on ensuring that the set costs are congruent to the profit margin which the company plans to reach. This will prevent the airline from incurring losses due to unrealistic reduction of the price of its travel services. The third step of the nine step problem solving model is the description and stating of the goals which an organization desires to achieve so that the problem is solved (Petrolini & Walden, 2000, p. 9). A long lasting solution for the marketing problem of Classic Airways is desired and thus its goal should focus on reaching such a solution. The analysis of the airline’s marketing problem requires goals that will put the company at a position of increasing its sales through satisfaction of its customers. The goals of Classic airlines are to increase its sales, improve the morale of its employees and encourage more investments within the company’s shareholding. All these goals are directly influenced by marketing that is designed to increase the satisfaction of the customers on the travel services. The attempts of Classic Airlines to improve the customer satisfaction are demonstrated by the implementation of the Customer Relationship Management (CRM) Program which is applied in managing the personal interests of the airline’s customers to ensure that their needs are met. The fact that the program looks at the needs of the company’s customers from their point of view leads to a recommendation of doing a study that will determine the expectations of the customers from their view so that their needs are identified. This will help the company lay strategies of satisfying the customer needs through promotion of its activities and thus be able to reach the desired goals with effectiveness. The nine step problem solving model presents identifying alternatives as its fourth step in coming up with solutions for the problem a company faces. There are many alternatives within the marketing strategies which companies would employ to promote their services (Wilkie & Moore, 2012, p. 57). The promotion alternatives that are available to Classic Airlines include advertising, publicity and personal selling. Advertising media also has many alternatives that the company would employ to market its services. It is recommended that the marketing function and management of the company evaluate the alternatives that are available to them in order to apply the most appropriate approach that will enable the company to market its services to the consumers in the most appropriate and result oriented manner. The online marketing is appropriate because of the advancement in technology which has made it the most used medium of promoting services to consumers. This marketing alternative is cheap and less costly which shows that it is in line with the desire of the company to cut costs. Additionally, more people would be reached through online communication of marketing information to the current and potential customers of Classic Airlines. Evaluation of the available alternatives is the firth step in the nine step problem solving model (Petrolini & Walden, 2000, p. 13). The evaluation of the alternatives that Classic Airlines has in the marketing of its services should be based on their effectiveness, cost, the number of audience reached and their impact. Additionally, the evaluation of the marketing approach should be based on the competing airlines and whether the strategies they apply gives them a competitive advantage within the market. Therefore Classic Airlines should the marketing alternatives with a view of ensuring that they give it a competitive edge over its business rivals (Gerhart, 1995). The cost marketing alternatives for the airline can be significantly reduced though online marketing. Moreover, through online marketing, the company will be able to demonstrate the desirable features of its services to a wide range of customers. The evaluation of the alternatives should also be in line with the type of customers that the airlines target. A business traveler is the commonest customer of the Classic Airlines as compared to the leisure traveler hence the marketing alternative selected should have a goal of targeting the desired audience. Classic Airlines must identify and assess the risks that are associated with its pursuit of solving the marketing problems that it faces. This is the sixth step in the nine step problem solving model (Petrolini & Walden, 2000, p. 13). The risks that are associated with the company’s strategies include a possible negative impact on the customers which would result from its cost saving marketing approaches. Additionally, it is possible that the company’s strategy would be out of line with the strategies of its business competitors which would give the rivals a competitive advantage over Classic Airlines. Furthermore, the airline faces the risk of failing to meet the chief complaints of the customers. The solution that is recommended by this marketing problem should be approached through implementation of promotional strategies that put into consideration of the needs of customers that pertain to finances. Moreover, the airline should promote its services by the use of strategies which are based on market research so that the methods used are evaluated in relation to those of the competing airline service providers. The seventh step involves making a decision on the marketing strategy that is appropriate for the problem that the company has. It is the role of the management team within the marketing function of the Classic Airlines to make decisions on the appropriate marketing solution that will lead to a lasting solution for the problem faced by the airline. The decisions that management of companies make should be informed by thorough evaluation of the available options and their effectiveness in coming up with a solution in the most efficient manner (Wilkie & Moore, 2012, p. 58). It is recommended that the online marketing approach should be decided upon for the promotion of the company’s services because of its effectiveness and low cost. The last two steps in the nine step problem solving model are the development and implementation of the solution and the evaluation of the results. The implementation of the Classic airline’s solution is the application of the strategies of reaching the solution of its marketing problem. This means that the solution which was decided upon should be developed into action to allow it to work so that evaluation of the outcome can be possible. The evaluation of the results of the solution to Classic airline’s marketing problem will be possible through determination of the increase in sales which stems out of the satisfaction of the needs of the customers. The online marketing which is recommended for the airline’s marketing solution will be evaluated through determination if it causes customer satisfaction at a low cost and whether its impact reflect an increase of sales as demonstrated by the company’s financial accounts. Conclusion The nine step problem solving model is the most appropriate approach of coming up with a lasting solution for Classic Airline’s marketing problem and implementing the solution in order to achieve the company’s goals. Through the recommendations provided in the above discussion, the Classic Airlines will be enabled to meet its goals at a reduced cost. The satisfaction of the airline’s customers will lead to increased sales and maintenance of their loyalty on the airline. In return the morale of the staff will be improved through better compensation and motivation and thus quality of service which will ultimately lead to a lasting solution to the problem. References Gerhart, C. (1995). Classic craft returns to Alaska skies. Alaska Business Monthly, 11(6), 13 Morgan, N. (2012). Marketing and business performance. Journal of the Academy Of Marketing Science, 40(1), 102-119 Petrolini, J. & Walden, D. (2000). Planning Projects and Tasks using the 9-Steps. Center for Quality of Management Journal. 9 (1), 1-25 Wilkie, W., & Moore, E. (2012). Expanding our understanding of marketing in society. Journal Of The Academy Of Marketing Science, 40(1), 53-73 Read More