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Marketing In Business
Businesses operating in UK – University of
Sunderland
kilaM nariK
2/18/2014

Content
Task 1a – Relationship between Segmentation, Targeting & Positioning

Page 3-4

Task 1b – Benefits of Targeting and Positioning to UK Regional Airlines

Page 5-6

Task 2 – Service Excellence

Page 7, 8-9

Task 3 – Maintaining sustainability and competitive advantage

Page 10-11

Task 4 – Marketing Communication Tools

Page 12-13

Bibliography

Page 14

1|Page

Task 1a
How might you utilize the different types of market segmentation to
identify specific business segments and consumer market segments
that may offer increased passenger numbers? How might you then
utilize targeting and positioning?
UK regional airlines was established in 2003 and was facing a market boom in the years of 20072008 but then was in a loss due to market downturn but now it is thinking of focusing more on the
improvement and betterment of its marketing strategy which is having three phrases (STP Segmentation, Targeting, Positioning), all of them play a very important role in any of the business
...
The benefits of using the correct segmentation is an
effective use of resources to make customized products, gain a focus, and create value for a target
and positioning of the market
...

The types of the market segmentation are in the Figure 1
...
It has currently targeted Business
markets as it‟s a necessity for them
...
E
...
UK Regional airline can give some discounts
to the businesses who are giving tickets to its employees and it can attract more business
passengers as they are willing to buy the tickets at a premium price because they understand that
“time is more precious”
...
Another segmentation, which the airline can use, is Psychographic segmentation
means airline can target customers with specific attitudes and lifestyles
...
It is helpful for the small organisations with having limited resources
...


3|Page

Task 1b
What are the benefits to UK Regional upon, and addressing, particular
business and consumer segments in rebuilding their passenger
numbers?
UK regional, a low-cost airline have made various strategies including owning of a Boeing 737 and
the „fly-bonus‟ strategy and craft but then due to the market down turn face a loss and done a
merger with the German airline “Air Berlin”
...


Targeting: It can be done after selection of the best segment and involves defining of the
company‟s strengths and requirement and using the available resources correctly
...
It can be done for the undifferentiated (mass marketing, differentiated (multiple market
segments with different messages) concentrated (niche market)
...
e
...

The advantages for the UK Regional Airline for the effective use of differentiated targeting, is that it
would be able to capture the business and consumer market and can easily get the analysis of all
of its customers and can easily compare to its competitors and could make an award winning
strategy which would help UK Regional Airline to increase its sales and gaining more customers
which would help the company
...

As UK Regional Airline wants to focus on a consumer market due to market down-turn, so it can try
to focus on a Psychographic Segmentation which will be easy to target a specific type of customer
base and also by giving additional services like Greater degree of customer satisfaction and
customer loyalty, resulting in higher amount of customer retention
...
The process of positioning starts with the identification of advantages of
each segment and end with deciding the best positioning concept for each segment
...
UK regional‟s positioning is also linked with the product
life cycle as shown in fig
...
2

Sales

Growth (sales and profit was increasing)

Maturity (sales
stop increasing)

Introductory (started with
Re-positioning
(merger with
Air-Berlin)

Business travelers)

0
Year 2003 Year 2007 Year 2008 Year 2009

Time

In this Fig
...
2, the relationship between UK regional airline positioning and the product life cycle
has been given
...


5|Page

Task 2
What advice, using marketing analysis and tools would you suggest to
both the Board of Directors and Senior Manager of UK Regional in order
to ensure a future passenger experience of “service excellence”?
Service quality differentiates between the expected value of the customers and the performance of
the organisation
...
However, its measurement can be done on Internal basis i
...
Service quality depends
upon the productivity and UK regional can provide an excellent service with having the right number
of peoples
...
e
...
UK
Regional can achieve service excellence through the proper business planning, trained employees
and collecting the customer‟s response using primary research
...
UK regional is
having a silent customers in terms of the frequent flyers (business travelers) because for them air
travel is necessity as they will have to go for the meetings etc and they can travel on whatever the
price offered to them
...


Subjective process
For measuring this, Parasuraman, Zeithaml and Berry 1988 (SERVIQUAL model) is beneficial
for UK Regional Airline for measuring of the service quality which includes the criteria:
 Tangibles – physical facilities, trained employees and communication materials
...

6|Page

 Responsiveness – willingness of one person to help its consumers
...

 Empathy – care and attention provided to the consumers
...
It is having an ability to understand and its problems and responds
accordingly like in 2009 market down turn they have done a merger with the German airline (AirBerlin)
...
There are also gaps model of service
quality/excellence which are given in Fig: 2
...
1

7|Page

The gaps which occur in the UK Regional Airlines are:
1
...

2
...

3
...

4
...

In my opinion, the approach used to improve the conformity of service quality and to ensure the
future passenger experience of UK regional airlines can:


Recover the problems like wrong behavior of the employees etc, and guarantee to improve
for the next time
...


8|Page

Task 3
Advise in your report how UK Regional might address, and be able to
sustain, competitive advantage over its nearest competitors?
UK regional is a low-cost airline established in 2003 and was having a profits in the record years of
2007-2008 and in the meanwhile also introduced the fly-bonus strategy and Boeing 737 craft but
then due to the market down turn face a loss and done a merger with the German airline “Air Berlin”
in 2010
...

Due to the rapid change in the economy, the businesses will have to analyze the methods to
achieve the sustainable competitive advantage over its competitors
...

For gaining the competitive advantage the firm should analyze the understanding of its position in
the market and then focus on gaining the competitive advantage and they implement different
strategies
...
Cost leadership can be achieved through various methods, some of them are:
Economies of scale: the company can achieve this through lowering its production cost like
by buying the plane‟s parts from the low cost companies etc which would give the company,
high profit margin through the achievement of its goals and can more focus on its current
strategy i
...
low cost airline and can use secondary airports with lower fees
...

Technology: The UK regional airline can change its operations with the advancement of the
technology like booking of the tickets online, by providing an e-ticket which will be
convenient for the customers as their will be no travel agent reservations which can give
competitive advantage to the company
...
In cost focus a firm seeks a cost
advantage
 Differentiation: UK regional Airline can use a differential pricing according to the various
classes (business, economy class)
...
g
...


As within UK, due to the increase in the rail fares, the customers prefer low cost airlines due to the
price sensitivity and UK Regional (low cost airline) thus have an opportunity to sustain the fares for
longer period against its competitors
...




However, UK Regional Airline can also get sustainability through taking part in the
environmental and social aspects which will maintain its name; also it can provide
innovation best service which will increase its customer loyalty
...
How
might the use of „Integrated‟ and „Co-ordinates‟ Marketing
Communication be an essential part of this process?
Marketing communication is a science and art of communicating information which is playing a key
role in the integration and co-ordination with the various types of customers (individual and
business)
...
There are various methods for the marketing communication given in figure 4
...
It is considered as a heart of the marketing strategy and its
primary goal of are to build awareness of a business and its products
...
Following are
the steps used in the integrated marketing communication:

11 | P a g e

–

Identification of the target market

–

Determination of the communicating objective

–

Designing a message

–

Selection of the media

–

Collection of feedback

UK regional airline is low cost and thus will have an advantage in the electronics advertising as its
more creative but now UK regional has done a merger with the Air Berlin (German airline) which is
a budgeted airline so now it‟s important for it to effectively integrate within and with the German
airline with the company in terms of all information through co-ordinate marketing
...
1
...
UK regional airline can also use various methods
→ Personal selling to attract the businesses especially by doing a face-to-face selling through
giving them presentations
...

→ Public relation – people who brings goodwill for the company and attract the customers by
providing them information without any cost
...
nottingham
...
uk/1524/1/06MAlixjs12
...
articlesbase
...
html
Differentiated marketing strategy
http://www
...
com/info_8480591_differentiated-marketing-strategy
...
wikipedia

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