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Mgt 501 Case 1 Essay

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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 …show more content…

This segment is within airline industry but needs of customer is different. Target audience is low budget travelers, however, customers within the segment look for different attributes, for example, lunch or beverages as part of travel. Here companies can offer this by charging the customer.
A niche market is worth exploring where customers are willing to pay a premium for product, entry barriers are high and market has growth potential. In local marketing, customers are local neighborhood, trading stores, for example, many banks prefer local marketing for better understanding of client and provide them right type of service. In individual marketing, companies look forward to satisfying needs and wants of individual customer. Internet is facilitating the process of individual marketing, where in customer log on to the site and creates products from available options. This process is not feasible for high technology products like automobiles.
What Are the Target Markets for First Class vs. Business Class vs. Economy Class
The target market for the different airline class is that first class is for high budget travelers comprising passengers and the target market consists mainly of German and international business. The business class traveler primary fly in first/business class and this target is mainly geared for corporate travelers by offering a very

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