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Airline Industry: Segmentation, Targeting, and Positioning

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Review the following and explain what the major airline market segments are. Please also explain segmentation, targeting, and positioning and the target markets for First Class vs. Business Class vs. Economy Class.

Explain the impact of key external factors on Jet Blue and Southwest, to include economic conditions and the growing consumer interest in leisure travel, and also explain each company's target market and positioning

Wen, C.-H., & Yeh, W.-Y. (2010). Positioning of international air passenger carriers using multidimensional scaling and correspondence analysis. Transportation Journal (Winter):10. Available 5/4/12 through ProQuest database.

Rothman, A., & Jasper, C. (2011). The unbearable heaviness of business class. Business Week (December 19)1. Available 5/4/12 through EBSCO database.

Structure of the airline industry (n.d.). Littleton, CO: Avjobs. Available 5/4/12 at http://www.avjobs.com/history/structure-of-the-airline-industry.asp

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Solution Summary

Airline Industry is discussed step-by-step in this solution. The response also has the sources used.

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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 ...

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