Market Segmentation Of Airline Industry

718 Words2 Pages

Step 1 Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing action. Each segment must be unique, have common needs, and respond in a similar manner to marketing efforts. Target market is the group of potential customer that has been selected by business to focus its marketing efforts towards. This is the group the business wants to sell its products/services to. Positioning refers to the image created in the minds of customer of its product or brand. It is a perception created in the minds of the consumer relative to that of its competitors. Step 2 There are different ways in which the Airlines industry is segmented. The first form of segmentation is the area served by the airlines. The "major" serve the entire country and even fly people internationally, the "national" airlines serve the country and provide services to most parts of the country, and the "regional" airlines provide services to single regions or among a limited numbers of cities. Other segments of the industry are the carriers that provide cargo services. Their target market is those customers that provide cargoes. Within the airline industry currently the airlines can be divided into low cost airlines and full service airlines. The low cost airlines targets customers that are seeking no frills connectivity between cities at low ticket prices. The full service airlines provide several add-ons like free meals, on plane entertainment, and communication facilities. The target market for full service airlines are customers who are willing to spend extra for the services that the airlines provides. There are other ways in which airlines customers are segmented. The airline services are divid... ... middle of paper ... ...sons), and cost conscious business traveler. The target market of JetBlue airlines is customers who along with low cost seek services. The services provided by JetBlue included in-flight entertainment, TV on every seat, satellite radio, extra leg room, free unlimited snacks, and leather seats. The target market of JetBlue is also the leisure traveler, the low cost ticket seeking traveler, and the cost conscious business traveler. JetBlue has actually, posed a threat to the other low cost airlines like the Southwest Airlines. The positioning of Southwest Airlines is a reliable, low cost, no frills airlines. The positioning of JetBlue Airlines is a low cost, reliable airline that provides extra services to its passengers. JetBlue positioning is a low cost airline with several extras to passengers. These are the perceptions of customers of airlines in the US market.

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