Segmentation - marketing plan assigment PDF

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Geographic Segmentation Geographic area—countries, cities etc Geographic Segmentation is important and may be considered the first step to international marketing, followed by demographic and psychographic segmentation.

Demographic Segmentation Age, gender, education, occupation Demographic segmentation divides markets into different life stage groups and allows for messages to be tailored accordingly.

Behavioral Segmentation Usage rate, response, loyalty status Many marketers believe that behavior variables are the best starting point for building market segments. Another example of market segmentation; Qantas mainly uses behavioral segmentation to select its target market as buyers are distinguished according to trip purchase, business/leisure. This is seen with Qantas’ different classes on their planes, e.g First Class, Business Class and Economy Class

Psychographic Segmentation (lifestyle) studying activites, interests and opinions of customers Psychographic is highly important to segmentation, because it identifies the personal activities and targeted lifestyle the target subject endures, or the image they are attempting to project

1. Definition 2. Relation to Qantas Group Qantas Group Geographic Segmentation Geographic segmentation is the first step in a company’s market segmentation analysis. It defines the geographic location that the company (Qantas Group) will be targeting with their promotions and where they expect their customers to be coming from and going to. In the example of Jetstar China, from Sydney to Beijing, the geographic segmentation of that specific example is Sydney and Beijing. Distribution of information to these locations would be vital to the expanse of knowledge of the service, and will lead to increased revenue over time. Demographic Segmentation Demographic segmentation divides markets into different demographics such as race, age, socio-economic status, and education. Jetstar China will target the middle-upper class socioeconomic division who are equipped with tertiary education. More specifically, the direct flights from Sydney to Beijing are primarily focused on the business class in conjunction with the rising Chinese economy and increased trade with Asian companies.

Behavioural Segmentation The behavioural variables are the most important when it comes to building market segments as it encompasses a passengers usage rate, their response to new products or pricing changes, and the loyalty status of customers. Qantas’ brand equity is quite large, and because of that their customers are quite loyal as seen by their majority market share percentage. Qantas is seen as one of the most reliable airlines in the industry and is backed up by their high-tier services. For Jetstar – as a branch off of Qantas Group – having a company with such reputable equity as a partner leads to the lower socio-economic passengers having the ability to purchase cheaper flights for the same reliability and service Psychographic Segmentation Personal activities, lifestyles and social class makeup the psychographic segmentation section, and is based upon the assumption that the brands and products a person buys will reflect the way they live their lives. Qantas Airlines have large brand equity and cater to business travellers and up-market passengers. In comparison, Jetstar is a low-cost carrier (IBISWorld 2014). Even though both companies are branches from Qantas Group, they are able to secure a larger market segment by focusing on specific psychographic variables of passengers. Lifestyle also affects how individuals purchase tickets, as those who are accustomed to richer conditions will purchase first-class tickets in comparison to those from a lower social class whose lifestyle isn’t as revolved around money. Personal activities that the individuals undertake which affects lifestyle such as a backpackers personal activities are also taken into consideration as they are more likely to fly lower priced airlines where Jetstar is competing with multiple start-ups to secure market share....