Market Segmentation

Market segmentation Market consists of large number of actual and authority customers. The process of splitting the market place into different groups or segments base on the needs, characteristics or buyer behavior is called as sectionalisation (Kotler, Brown, Adam, and Armstrong, 2007). Singapore air passages (SIA) has used traditional approach adopted by legacy carriers for segmentation. SIA focuses on business travelers and the price sensitive unoccupied travelers. The business paradigm of SIA has clearly differentiated these two segments by catering to their heterogonous need. In order to penetrate their existing market and expand their revenue base they are also steering on additional segment based on consumer loyalty. The increase revenue of SIA has been depicted in appendix 1. Detailed digest of segmentation strategy used by Singapore Airline is accustomed as below: Psychographic variables Preferences: The two major groups of business and unemployed travelers differ in their predilections. Its believed that on an comely in aviation industry elite travelers contribute up to 50% of revenue though they add up to little than 20% in passenger number (Brancatelli, 2009). Hence the preference of this particular segment ( parentage travelers) is given additional importance.

They are given exclusive in-flight service with respect to variety of cuisines being served, strange drinks and special seating comfort (Wirtz and Johnston, 2003). At the same succession since the other segment i.e. the leisure travelers form the major chunk of passengers their preferences also cannot be ignored. They too are given in-flight service which can be termed best as per industry practices. reputation of demand: Since the nature of demand varies with respect to business and leisure travelers it is used as a parameter for discriminator analysis. Business travelers demand more working space, internet and telephone connections whereas leisure travelers demand more in-flight entertainment features (Singapore... If you want to get a full essay, order it on our website: Ordercustompaper.com

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