MARKETING SEGMENTATION

Marketing Segmentation

Marketing Segmentation

Introduction

Market segmentation is a basic element of marketing in developed industries (Wedel & Thomas, 2007). Market segmentation is the process to divide market within segments that comprises of groups of individuals, having homogeneous characteristics. The market segments describes the group of individuals to market the product or service. Market segmentation is important because it is easier to satisfy the needs of individuals with similar behaviours in small groups. The segmentation allows the companies to target groups and concentrate to satisfy them (AIC & Queensland Department of education economic development and innovation, 2009, p. 1).

Marketing Segmentation appropriate for product design and inappropriate for channel design

Virgin Australia's Initiatives

Virgin Blue was losing its market share and future unsustainably. The major revitalisation was the need. In 2012, Virgin Blue came up with new marketing strategy with its Game Change Program. Hulsbosch redefined Virgin Airlines in Australia as Virgin Australia and posed challenge for Qantas. Virgin's objectives were clearer to compete head to head with the other Airlines in the market. The decision of Virgin Blue to rebrand its Airline was one of the creative and successful decisions in the History of Airline industry of Australia. The competitors were the national and international Airlines brands, V Australia, Pacific Blue, and Polynesian Blue. The brand name development aimed to unify all operations. The major goal was to drive the revitalisation in order to increase the market share. This was only possible by attracting the customers of its competitors in a significant portion. To compete with other Airlines as a contemporary business, they need to undergo the whole process of brand repositioning which ultimately requires redesigning of its service or product strategies (Virgin Australia Group of Airlines, 2011)

Channel design of Virgin Australia

A marketing channel comprises of the interdependent organization that involve the process of manufacturing the product or service to be available to the end user. Thus, a marketing channel consists of the wholesaler, manufacturer, and retailer. Its development involves the demand and supply sides. The information is provided to manufacturer about the end user of the product. The product reaches to end user through retailer, wholesaler or other specialized intermediaries (Anne et al., 2009).

Product design of Virgin Australia

Product design is the process involves those business strategies of marketing that ensure value, standard, creativity, better perception about the product or service, and rationalization. The revitalization was possible for Virgin Airline by completely focusing to resign its services. Virgin Australia gains the knowledge about the deficiencies in the services of competing Airlines and worked to design its strategies of product design accordingly (Spath, 2007). Thus, the strategies product or service design involved the following

Virgin Airline Standardizing the product range. It provides standardized the quality of its service through initiatives in collaboration with the other Airlines and their product designs, public response to the national and international Airlines. The standardization involves the complete knowledge of the characteristics of the services provided by other Airlines (IBI, 2010, ...