The purpose of this paper is to review the marketing issues identified in a fictional Airline called Classic Airlines. I was presented with a scenario in which I will attempt to identify several things about the company and its situation as presented in the scenario. I will first discuss the nature of the product that Classic is offering. Next I will analyze the types of challenges the company is facing and discuss the corporate culture within the company. Last I will attempt to apply some market concepts to the presented scenario that I believe may improve the situation for the airline.…
With the demand on transportation and advancements on technologies, airline industry became one of the fastest developing industries on the world. These developments, high leveled competitive market and the never-ending demand on faster transportation reduced the plane ticket prices. As a result the low-cost airlines (LCA) are flourished. Undoubtedly one of the key players in this progression was easyJet. They are widely known with their cheaper tickets however their marketing strategy had never been that simple. Their market segmentation, different researches on customer habits, satisfaction and their diversified services depending on these factors leaded easyJet’s marketing activities.…
Classic Airlines has is ranked in the top five of the world’s largest airlines. As one of the largest, it does not come without its company concerns of daily operation and consumer insight. Classic’s consumer rewards program has seen a 19% decrease in members and among those remaining a 21% decrease in booking flights (University of Phoenix, Classic Airlines). Finding the proper balance between consumers and the company, and remaining there continuously is the challenging part of business. Classic Airlines has much to change and not just one course of action could be the proper adjustment to boost the sales figures.…
Mason, K. (2001). Marketing low cost airline services to business travellers, Journal of Air Transport Management, Vol. 7, No. 2, pp. 103-109.…
Below an overview of aviation market segmentation targets, there are three main parts which have been arranged according to the criteria of customer income, demands, career characteristic: Economic Class,…
Beyond fuel prices, a few general complaints among airline travelers is the tight seating, lack of onboard services, constant delays, and lost bags. So with all of these concerns, it is a very difficult task for many airlines to influence business through traditional marketing like television commercials. What is becoming more popular in the airlines as a way of marketing is integrated marketing communications with their frequent flyers, as they are the majority of the profitable customers for the airlines. These approaches…
The assignment reviews industry practices which involve segmentation, targeting and positioning. I will attempt to explain these three consumer behaviors below. The airline industry will use the above mentioned practices in order to enhance and or improve marketing strategies. In order for this to take place and marketing analyst must develop techniques to observe consumer behavior by analyzing segmenting, targeting and positioning for airline industry…
Segmentation consists in dividing a population into homogeneous groups of people; these groups must be as different as possible. A business segments to better meet customer’s expectations, to exploit new market opportunities and to concentrate its forces and place of battle. Segmenting customers is to cut it into homogeneous groups, based on specific criteria, each group being distinct from each other and can be chosen as the target of a marketing action. There are many possible criteria for segmentation, which can be grouped into broad categories:…
A market segment is “the type of market or customers a company will serve” (Kotler & Keller, 2011, p.39). Market segments are generally a subset of a market, which allows the marketer to classify the type of possible customers into groupings (i.e., segment). Once defined as a segment, marketing strategies focus on influencing potential customers based on the groups shared commonalities and descriptive traits, such as demographics, psychographic, geographic, and consumer behavior.…
Market segmentation is the division of a market into different groups of customers with similar needs. Or to express it in another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, and each has common characteristics and needs and displays similar response to marketing actions. The purpose of market segmentation is to leverage scarce resources; or to ensure that the elements of marketing mix (price, distribution, products and promotion) are designed to meet specific needs of different customer groups. For companies have limited resources it is not possible to produce all possible products for all the people all the time. The best way is to provide selected offerings for selected groups of people most time. This allows companies to focus on particular customers’ needs in the most efficient and…
“One of the most important strategic concepts contributed by the marketing discipline to business firms and other types of organizations is that of market segmentation” (Myers, 1996). Segmentation involves a three-step process (Kotler et al., 1999). The first step in this process is market segmentation, dividing a market into distinct groups of buyers who might require separate products and/or marketing mixes. The company identifies different ways to segment the market and develops profiles of the resulting market segments. One of the most frequently used methods for segmenting a market has been demographic segmentation. Demographic segmentation consists of dividing the market into groups based on demographic variables such as age, gender, family life cycle, income, occupation, education, religion, race, and nationality One reason for the popularity of . this method is that consumer needs, wants, and usage rates often vary closely with demographic variables. Another is that demographic variables are easier to measure than most other types of variables. Other variables can be used to segment markets. For example, geographic, psychographic and behaviouristic variables are other common segmentation variables. Geodemographic segmentation, such as the segments created by PRIZM, creates profiles of different zip codes. Geodemographic segmentation is based on the premiss that birds of a feather flock together. For example the…
Our main target audience are young adults aging from 18-36 years old, young families and pet owners.. We must note that there are other groups which are not our main focus that may also be interested in our serivce, for example children, who do not make the buying decision, tend to influence their parents on which airline to fly on. Therefore, we will still have to look into the population in a whole.…
The fundamental component of Market segmentation is a market-based strategy. A market segment is a purchase behaviors and different descriptive characteristics and specific group of customers with distinctive customer needs (Baker M.J, 1995) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the other requirement and technical requirements of each of these, organizations may be able to secure big competitive position than if they attempted to satisfy the fundamental requirements of the market as a whole. In market segmentation there are four criteria that have to be satisfied in order for market segmentation to be effective. A market segment should be accessible, identifiable, substantial, and stable. In Identifiable, there should be indicators of observable that enable the segment to be defined and quantified (Baker M.J, 1995). Accessible, that is, it should be probable to target specifically the segment using distribution channels and existing communication. In Substantial, that the segment should be of enough size to make the effort involved in segmentation worthwhile. In the Stable, the segment there should be capitalized by sufficient time on the investment implicated in segmentation (Baker M.J, 1995).…
Etihad Airways is considered as one of the youngest airlines in the world, yet it managed to seize a leading place within the aviation industry. Etihad Airways received the 2008 Marketing Award of the “Airline Strategy Awards”, one of the most recognized awards in the industry, just five years after starting commercial operations, followed by many international awards. This early success can be attributed to the marketing strategy employed by Etihad, which resulted in creating a strong brand associated with a high quality service. Etihad’s marketing strategy focused on creating new innovative services in every touch point with the customers. This report will focus on Etihad’s marketing strategy, which enabled the airlines to achieve what other carriers achieved in a much longer time.…
The Airline companies now a day are mainly depending on marketing to attract new customers and to maintain sustainable relationships with them by promotions, Rewards and Loyalty programs.…