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Mgt 501 Case 1

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Mgt 501 Case 1
TUI UNIVERSITY

Module 1 Case Study MKT 501: Consumer Behavior: Segmentation and Targeting Professor Dr. Gordon Leichter
May 14, 2012

Abstract
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
Identify Key External Factors That Affect the Passenger Airline Industry
To explain how the key external factors affect the passenger airline and how the impact occurs. The airline industry was heavily impacted by the global recession. Many major Airline companies faced heavy revenue losses and a hand full of airlines merged in the post-recession era to handle the situation of decreasing demand in air travel. In order to be successful, they have to carry out their business from a certain value-based perspective “less for much less” and concentrate their attention on the following Key Success Factors of their industry which would be the overall low costs: overall low costs are essential to be able to offer cheap fares. They are achieved by several cost-cutting business practices such as: * Point-to-point services (no waiting for baggage or passenger transfers, less complexity) * Cheaper product design (no free food or drinks, no newspapers) * Standardized fleet (lower aircraft capital outlay, lower training costs, cheaper parts & equipment supply, lower maintenance costs) * Use of secondary airports (lower charges) * Direct Sales via Internet as main distribution channel
Explain Segmentation, Targeting, and Positioning
According to an article from the University of Southern California on segmentation, targeting and positioning,



References: Anonymous, (n.d.), University of Southern California. Segmentation, Targeting, and Positioning. Copyright ©1999-2010 by Lars Perner. Retrieved May 17, 2012 from: http://www.consumerpsychologist.com/cb_Segmentation.html Anonymous, (n.d.), Identifying Market Segments and Selecting Target Copyright © 2008 – 2012 Markets. Retrieved May 17, 2012 from http://www.managementstudyguide.com/identifying-market-segments.htm Anonymous, (n.d.), Marketing Profs. Retrieved May 17, 2012 from: http://www.marketingprofs.com/ea/qst_question.asp?qstID=37390 Anonymous, (n.d.), Integrated Company Analysis. Retrieved May 24, 2012 from: http://business.library.wisc.edu/resources/kavajecz/10_Fall/JetBlue_Report.pdf Anonymous, (n.d.), Segmentation, Targeting, and Positioning, Building the Right Relationships with the Right Customers. Copyright © 2012 Slideshare Inc. Retrieved May 17, 2012 from: http://www.slideshare.net/mehmetcihangir/segmentation-targeting-and-positioning-presentation Woodyard, Chris, Pitting Southwest vs. JetBlue USA TODAY. Retrieved May 17, 2012 from: http://www.usatoday.com/travel/news/2004-07-05-biztravel-comparison_x.htm

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