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Paper Topic:

Market Segmentation

Running Head : Qantas Airlines Market Segmentation

The purpose of the task is to develop an understanding of market segmentation and explain how it can assist organizations in the allocation of their resources more effectively and efficiently

The marketing segmentation process is a strategy adopted by organizations with an aim of preparing the organizations sales and marketing for the target clients (Steenkamp Ter Hofstede , 2002 . The target clients are the clients who are known to traditionally consume the products or services of the particular organization . The discussion below focuses on Qantas Airlines

and discuses the advantages the organization has gained from the strategy as well as associated benefits . Further the discussion aims at analyzing how the organization has been able to maximize profits as a result of the market segmentation strategy . Lastly the discussion shall in a general perspective focus on the applicability and suitability of the strategy as well as the challenges involved

Definition of consumer needs at Qantas Airlines

The airline has in an effort of market segmentation , categorized the needs for its customers into 3 distinct levels based on the perceived needs of the particular customers in the respective departments . To this end the airline has come up with the following categories or levels


Qantas Airlines has come up with a strategy of dealing with hotels which meet the standards of their customers . As a policy the airline only boos its passengers to certain hotels only where the company enjoys some interests and discounts as a laid out in a memorandum of understanding Secondly the Airline has reorganized its operations in line with the policies and procedures which the top board meets and reviews yearly . An example was the recent improved communication system which was aimed at improving communication with flight crew any were in the world . As a sales strategy it can be said to have resulted into improved profits due to high customer turn out as well as the elimination of slug- in time which would result from poor communication earlier (McKenna 1988p .275-80

Qantas Airlines has also utilized its marketing strategy to mange its inventories which are in different locations al over the world , by the use of IT the farm has been able to overcome challenges related to the task of inventory and has come out successfully to minimize loss and wastage of company assets

Consumer needs

The company has taken into consideration in the process of its product design the fact that there exists a class of consumers for its services who won 't just use a flight for the sake of it . They have to be treated and made to feel special and comfortable . To this end the company had come up with first class a prestigious class who are basically consumers whose major concern is not the much they are charged for the flight but the comfort that comes with it . This satisfies the company 's clients emotionally and therefore leaves a permanent or at least long last memory on...

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