Market segmentation means that offers are tailored to specific target groups. Each segment shares similar traits enabling the firm to anticipate the response of the segment to the firm’s marketing activities. Firms must trade off customer needs against the costs of meeting those needs. As mentioned by Stephen Shaw, airlines tend to base market segmentation on the following:
- Purpose of journey
- Length of journey
- Origin of country or culture
Choose any passenger airline and address how the airline uses each of these variables to segment its market. Be specific and provide examples.
Sample Solution
