Answer: (a): Market segmentation is the first step in defining and selecting a target market to pursue and penetrate. Basically, market segmentation is the process of splitting up an overall market into two or more groups/classes of consumers. Each group of consumers is called as a market segment. Each group (or market segment) should be similar in terms of certain characteristics or product/ service needs. In business world, market segmentation is considered to be a most important tool in enabling marketers to better meet customer needs and requirements. It is the process of splitting the customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same, …show more content…
(3) Finally we implement our segmentation by optimizing our products/services for that particular segment and communicating the decision made. Answer: (b): United Airlines segments its global markets using psychographic data collected about its customers. It divides them into the following categories: Schedule optimizers: These type of costumers aim to reach their destination by a certain specific time and select their flights accordingly. Mile accumulators: These customers go out of their way to take flights that will build up their air miles entitlement. Quality vacationers: These customers treat the travel as a part of their holiday experience and therefore they fly with carriers that provide extremely superior services. Frugal flyers: These types of customers tend to seek out the lowest-cost carriers for economic reasons, but still expect their flight experience to be a good …show more content…
A SWOT analysis can be done for any company, product, place, industry, or person. They can serve as a precursor to any sort of company related action, such as exploring recognizing new initiatives, making decisions related to new policies, identifying possible areas for change and improvising. Answer: (b): SWOT analysis is performed to improve business operations by taking into account the Strength, weaknesses, Opportunity and Threats. It allows the organization to identify the key areas where the organization is performing at a high level, as well as areas that needed work and efforts to improvise. A SWOT analysis completely focuses on the four crucial elements included in the acronym, allowing companies to identify the different forces influencing a strategy, action or initiative related to the company’s venture. The first two letters in the acronym i.e., S (strengths) and W (weaknesses) are referred to as internal factors, which means the resources and experiences that are available to the organization. Examples of areas generally considered