Classic Airlines' Marketing Challenge

686 Words3 Pages
Classic Airline's marketing challenge. To acquire a new customer is far more costly than to maintain an existing one. This is phenomenon every company is well conversant, be it in the service industry or otherwise, this phenomenon is clearly evident to classic airlines which is facing challenges of increasing its service value in the context of a learner consumer budget. Many jobs in the travel industry are being downsized as a result of e-commerce. This has resulted to many players I the industry to use this as an opportunity to leverage their proven techniques in improving their customer relationship management (CRM) systems, in order to introduce a planning process which will increase customer loyalty. To achieve this however companies must use all possible resources available at their disposal to maximize growth and profitability by putting their eye on strategic marketing., this entails informed market forecast potential and future demand which can be achieved by establishing long term marketing objectives. Classic airlines in this case are facing an organizational issue in respect to its external and internal programs which have not been able to satisfy the needs and wants of stakeholders. This has resulted in the shift of customers to other airlines in the quest to satisfy their needs; as a result the company has recorded poor sales and hence poor profits (milaly tokhi). Lack of innovation and rising costs are the major reasons why the company is facing such
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