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Marketing Segmentation Strategy of British Airways - Case Study Example

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The author of the "Marketing Segmentation Strategy of British Airways" paper discusses the structural and operational barriers that could arise in the implementation of the segmentation strategy at British Airways and how the company has overcome these barriers…
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Marketing Segmentation Strategy of British Airways
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Download file to see previous pages The relationship between attitude and behavior has also not been significant. Proper segmentation is the solution to make a differentiation. This requires a value-based segmentation. It is not possible to cater to all the people and hence the strengths should be ascertained through customer interactions. This helps in reaching the target segment and positioning the product according to the segment. Merely having a huge database is not a determinant of segmentation. The market is customer-driven and hence understanding the customer needs and wants is critical to success.

Globalization and internationalization have made market segmentation a strategic tool that companies have to use. It helps in well-informed decision making and is a fundamental marketing concept. The maturing market in every industry forces companies to look towards cost-cutting, reducing prices or diversification. CIM (2005) suggests effective segmentation of the existing market can play the trick. Segmentation as a marketing tool involved dividing the market into homogenous groups (segmentation), selecting one or more segments (targeting), and devising a marketing program for the selected group (Danneels, 1996). According to Goller, Hogg, and Kalafatis (2002), market segmentation is a proactive process that involves the application of analytic techniques. A heterogeneous group of customers is segregated into homogeneous groups or segments. Each of these segments requires a different marketing mix to service their needs. Based on different factors, an organization has to take a strategic decision on how to market its products or services. 

Segmentation helps to focus on the specific market and its needs. The goal of segmentation is not to have just any customer but to select a homogeneous group of customers and focus on servicing their needs. The organization can then decide on the right marketing mix for the services or products offered. ...Download file to see next pagesRead More
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