Segmentation and Target Market
Segmentation and Target Market Paper
Product segmentation and target market identification is a critical part of a successful marketing plan. Knowing and defining both product segmentation and the target market that an organization is trying to achieve, can be done through researching of both the product and the market. Segmentation can be defined as a market that is divided into well-defined slices (Kotler & Keller, pg. 214). Knowing what these slices are can lead to understanding the target market. Knowing the target market will dictate how the marketing will be implemented and making the marketing plan a success.
Frontier Airlines is a low cost carrier, who recently is in the process of being purchased form their parent company Republic Airways. Frontier Airlines’ goal is to provide a low-cost flying experience that differs from other low-cost airlines. The target market of Frontier Airlines is the consumer who does not want to pay the high price for a ticket and have options. This type of market is becoming bigger and bigger each year, as airlines try and cut costs but keep consumers returning. According to "Centre for Aviation" (2013), “Capacity reductions that have resulted from both consolidation and a revamping of the airline business in North America have also created three distinct business models in the region – full service network carriers, hybrids and ultra-low-cost airlines. Strong contenders have emerged in each category. The remaining carriers either need to carve out a new niche or adapt to the new maturity taking hold in the market place” (para. 2). This is the target market that Frontier Airlines is trying to gain more presence and become a dominate organization in the low-cost carrier model....