Classic Airlines is the world’s fifth largest airline (University of Phoenix, 2012). The company earned $10 million last year and employed 32,000 people (University of Phoenix, 2012). The company has been doing business for 25 years and the company has been profitable, but not without challenges that affect the whole airline industry (University of Phoenix, 2012). The last year the company saw a 10% decrease in share prices (University of Phoenix, 2012). This decrease is seen in lowered consumer confidence. The company has seen a 19% decrease in the number of Classic Rewards members and a 21% decrease in the number of flights for the remaining members (University of Phoenix, 2012). The company will need to use some new marketing strategy to increase share prices and customer confidence.
Exchange is a major marketing concept that is defined as the process of acquiring a desired product from someone by offering something in return (Kotler & Keller, 2006). Conditions must be met to use exchange. The conditions are there must be two parties, each party must have something of value to the other, each party is capable of communication and delivery, each party is free to accept or reject the exchange offer, and each party believes it is appropriate or desirable to deal with the other party (Kotler & Keller, 2006). The marketing team at Classic Airlines has to determine what they are offering the consumer in return for their money. Classic Airlines will market goods, services, and experiences to jump start the Rewards program. The good is the airline ticket, service is the flight, and the experience is the condition of the flight. Classic Airlines needs to focus on the experience aspect in detail because research has shown that if consumers have a good experience price is not the number one factor in decision making (University of Phoenix, 2012).
The four P’s of marketing are the marketing tools used to pursue marketing...