Customer Driven Segmentation
Figure 1. Market segmentation archetypes
• dogged determination by their home country to have a major carrier operating in the industry, e.g. Singapore Airlines; However, regardless of their country of origin, these airlines have all, on the whole, segmented their global market on the basis of geographic territories.
The segmentation of SIA falls into the fourth cell, strategic segmentation, combines both a customer focus and a high level of organizational integration. SIA is able to apply customer-based data (collect from the customer survey and complains) in order to develop a set of defined segments. In contrast to the bolt-on segmentation approach, the organization has integrated these segments across the key functional activities.(SIA not only providing good in-flight service but also increase the efficiency of on ground service, such as set benchmarks that the first and last bags must arrive in certain period of time after touchdown). They provide a basis, not only for the promotional activity, but also for strategic decision making and internal marketing; in the case of the latter, this clarity of particular market segments provide a powerful basis for bringing the customer into the organization . They also provide a focus for the entire processes and operations of the organization on these market segments. The SIA Group is suggested as an exemplar for this cell. The SIA has a set of customer service concepts which are driven by clearly defined market segments-premium class(shown in most of their advertising). These segments have been defined around customer groups, but are also deeply embedded in the organization through their own operations and processes, which are tailored to the needs of their respective segments. In this case, all those in the organization can picture the target segment and have a basic appreciation of how the segment can be served most effectively.
Strategic No. 1: Product/service...