Analysis of target marketing and market segments

The analysis of Target Marketing, Marketing Mix and its application to different market segments are very much important to understand while segmenting the market.

Segmentation is also quite essential for a business, because satisfying all the customers with the same product is very much difficult, so in order to get the positive market response, it is better to offer your product to the specific segment. The identification and analysis of the buyer behaviour also have a great impact on a business. Qatar airways are leading airline in air industry so this report is concern with this airline.

PURPOSE, SCOPE AND LIMITATION

The purpose of this report is to analyze the Target Marketing, Marketing mix, its application on market segmentation of Qatar airways. Tried best to get the maximum information about these issues, but due to limitation of provided time and space, it is not very much detailed report.

SOURCES AND METHODS

In preparing this report, hints have taken from Syllabus book of Marketing, although Internet also paid an important role in its preparation. The sites visited for references are also mentioned in the reference list.

REPORT ORGANIZATION

This report evaluates the Qatar airways Target Marketing, Marketing mix, also to understand segmentation process along with determination of buyer behaviour importance for a business.

MARKETING ENVIRONMET

All companies work within a Marketing Environment. Environment consist all the forces acting on the company .Now Environment is dividend into two types

MICROENVIRONMENT

MACROENVIRONMENT.

MICRO ENVIRONMENT

These are internal factors close to the company that have a direct impact on the organizations strategy. Factors of micro environment includes

Customers

Distributors

Employees

Suppliers

Shareholders

Media

Competitors

Customers

Customer’s satisfaction is the key to success of an organization. This is achieved by fulfilling the changing requirements of customers; failure to do so will result in a failed business strategy.

Distributors

If there were not any distributors to supply your products you could not have distributed your product at right time and right place. This shows that distributors play an important role.

Employees

Employees are very much important factors of micro environment. Keeping the skillful staff and their motivation are essential parts of the strategic planning process of an organization, particularly in service sector marketing.

Suppliers

Buyer’s good relation provides competitive edge. Supply of raw material on time is also very necessary for an organization successful business strategy, because in this way organization can provide products to the customer on time.

Shareholders

Shareholders investment can improve or decline company’s progress. Their part (dividend) in the profit affects the company’s cash flow a lot.

Media

Media support or conflicts affect an organization very much. Positive or adverse media attention on an organizations product or service can in some cases makes or breaks an organization.

Competitors

Competitor’s analysis and monitoring is crucial if an organization is to maintain its position within the market. The only success technique in the market is to provide customer with the better quality product than the competitor.

MACRO ENVIRONMENT

These are the factors, which have the influence on an organization externally. These are the widespread factors. These are called “PEST analysis”.

Political factors

Politics affects the business a lot; because a company must follow certain rules or regulations (laws) made by the government. Creation of different laws depends upon the ruling political party. For example, the end of Cold War has been a big change for weapon makers.

Economic factors

The economic condition of the country and state has a great influence on the company progression. The different economic policies, which affect business, are

Taxation

Interest rates

Currency rate

Public economic condition (either people are poor or rich)

Inflation rate

Social factors

Social values, beliefs, religion and culture really affect the business. Business must be according to social aspects. For example, in Pakistan we cannot sale or purchase things like wine, because it is against Islamic faith. Another example is of wearing shorts by the women. Here it is unsocial, so we cannot start the business of selling shorts to women.

Technological factors

The most challenging factor for marketing manager is technological factor, because growth of the company depends upon the “innovation” and for innovation, the use of new technology is very much important. In order to beat the competitors, an organization must have effective research, planning and marketing of new products and for this purpose new machinery, techniques and ideas are very much important.

INTRODUCTION TO QATAR AIRWAYS,PESHAWAR

Qatar Airways was launched by H.H. Sheikh Hamad-Al-Thani in DOHA in 1993.

The aim of the airline was to offer Superior Service and Lower Fares to only regional routes, such as Dubai.

Qatar is currently flying to 70 destinations

Currently Qatar Airways is equipped with 51 Aircrafts

EFFECTS OF MICRO AND MACRO ENVIRONMENTAL FACTORS ON QATAR AIRWAYS

Environment has a great impact on the Qatar airways the main things which influence the decision making process of Qatar airways are

Competitors

Social factors

Economically

Technology

Competitors

As Qatar airways have lot of competitors for example, Emirates airways, PIA and so they have to make new innovations in their airline. By keeping the competitors strategies in view, they are going to start their new jumbo aircraft namely, A380 in 2009 to attract more customers. They are also going to make new airport which will be the world biggest airport, named as DOHA INTERNATIONAL AIRPORT.

Social factors

Looking upon social culture of Pakistan Qatar Airways cannot introduce such advertisements in NWFP in which women are included where there is MMA government who are strictly against an involvement of women in the advertisements, so Qatar Airways have to make such advertisements which are acceptable for NWFP region.

Economically

The economic condition of Pakistan has a great influence on Qatar airways progression. As the people of Pakistan is not financially good but the ticket rates of Qatar airways are very expansive , so they have to offer reasonable tickets so that large number of customer can fly with them without any hesitation and this technique can bring good revenue for Qatar airways

Technology factors

The technology factor influence Qatar airways decisions making process because if they do not provide better technology to their customers and if they keep on going with old strategies, old aircrafts etc. then they will loss a high number of potential customers, that why they have to introduce new aircrafts, new airports , add more destinations and more advertisements of their airline to lead in the airline industry.

MARKET SEGMENTATION

Kotler defined marketing segmentation as, “The subdividing of a market into distinct subsets of customers, where any subset may conceivably be selected as a target market to be reached with a distinct marketing mix.”

(2OOO) Marketing, London, BPP Publishing limited.

Segmentation criteria of Qatar airways

Qatar airways have segmented their airline in Business, leisure, labour, student and seamen.

Fig 1,Qatar airways market segmentation

ECONOMY CLASS OF QATAR AIRWAYS

IN PAKISTAN

Age

People of different ages can travel with economic class.

Sex

Both male and female can travel with Qatar airways economic class.

Degree of interest

Ordinary people used to travel.

Place

People mostly from developed cities like Karachi, Islamabad and Lahore used to travel with them.

Price

Price is reasonable e.g. ticket rate of Qatar Airways from Pakistan to London is about 44 thousands including all taxes.

ECONOMY CLASS OF QATAR AIRWAYS

IN DOHA

Age

People with different ages can travel through them.

Sex

Both male and female can travel through them.

Degree of interest

Professionals used to travel with them.

Place

People mostly travel from Doha.

Price

Tickets are cheaper there and up to the level of people. e.g. 2500 Qatar riyal is the return ticket of London from Doha.

BUSINESS CLASS OF QATAR AIRWAYS

IN PAKISTAN

Age

All ages of people can travel through them.

Sex

Both male and female can travel with them.

Degree of interest

Mostly professionals and rich class of society prefers it.

Price

Very high price of ticket is charged. For example, 88 thousands including all taxes are charged from Pakistan to London.

BUSINESS CLASS OF QATAR AIRWAYS

IN QATAR

Age

All ages of people can travel through them.

Sex

Both male and female can travel with them.

Degree of interest

Mostly professionals and rich class of society prefers it.

Price

The pricing strategy adapted in Qatar is according to their standard.

Very high price of ticket is charged. For example, 6430 Qatar Riyal is charged from Qatar to London.

Service

Excellent service is provided in airplane and the response from the crew cabin is very fast.

BUYER BEHAVIOUR EFFECT

Consumer buying behaviour can be defined as, “the decision process and acts of individuals involved in buying and using products or services.”

(2OOO) Marketing, London, BPP Publishing limited.

Fig 2, Stimulus response model of buyer behaviour

http://www.tutor2u.net/business/marketing/buying_stimulus_model.asp

The customer only buys those things, which satisfy their needs. By gaining a better understanding of the factors which influence their customers and how there customers will respond, organization will be better able to predict the effectiveness of their marketing activities.

What, when, where, how and at what price customer will buy the product?

By identifying these areas a company can get success in its market. This thing can be seen by following example,

A pajero wagon was introduced by Japan in the market of UAE and Saudi Arabia but this was rejected there because people did not feel comfortable with its ride. People there mostly preferred Mercedes and Rose rise etc because these were according to their standard. As a result, company stopped further launching of pajero wagon in these areas. After that land cruiser took place of pajero wagon being comfortable produced by the company keeping in view the behaviour of the customer of the Arabian countries. On the other hand the same pajero wagon was warmly welcomed and accepted by the people of Pakistan since it was gifted by the company to few high class and thus it become the status symbol for the rich people. In this way the pajero wagon market in Pakistan remained successful and flopped at Arabian countries due to customer behaviour.

Our view

In our view customer behaviour is very much important for any business because the existence of business depends upon the customers, if the organization is fulfilling the needs of customers and the customers are happy and satisfied with the product/service then the buyer’s behaviour is said to be beneficial for that particular organization.

QATAR AIRWAYS

It has changed its activities according to geographical buyer behaviour, that is

Here they deal in rupees while in Qatar they deal in Qatar riyal.

Here most of their staff consists of Males while in Qatar they are equally employed.

Here, their products are more cheaper comparatively than in Qatar.

The Marketing Mix

The major marketing management decisions can be classified in one of the following four categories

Product

Price

Place (distribution)

Promotion

These variables are known as the marketing mix or the 4 P’s of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market. The marketing mix is portrayed in the following diagram

Target marketing

Target marketing

Target marketing

Target marketing

Target marketing

Fig 3, The marketing Mix

Product

It can be defined as, “Something that satisfies a set of wants that customer have.”

(2OOO) Marketing, London, BPP Publishing limited.

Service is the form of product which is offered by one party to another, which is intangible and does not result in the ownership of anything. For example,

When you buy set of wine glasses you are buying them because you want to drink wine and you prefer not to do so straight from the bottle. You may also want to impress your dinner guests with your taste, and choose to do so by possessing a particularly fine set of wine glasses.

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!
Find out more about our Essay Writing Service

When you see a magazine advertisement for a new car. You will see a long list of items. Some of them will be tangible, such as comfortable seats and airbags. Other will be intangible, such as acceleration or fuel economy. To be meaningful in the eyes of the customer these features must be expressed as benefits. The fact that car uses very little petrol is clearly a benefit.

Product has following aspects

Designs The design of a product must be proper.

Technology What different features included in a product.

Usefulness How much the product is useful?

Conveniences Availability of a product.

Value What is the demand of a product?

Quality What are the features of the product and it benefit to a customer.

Packaging Product should be available in a proper package.

Branding Product should of proper brand or you can say whether the product is

of good brand or bad.

Accessories What types of other things are available with product?

Warranties What is the warranty of a product?

There is another way of analyzing products, which also involves three aspects

Physical aspect

Functional aspect

Symbolic aspect

We will explain these aspects by taking the example of a burger.

Physical aspect

The material used in the manufacture of the product. The physical aspect of the burger is meat, bun etc.

Functional aspect

The refers that how the product performs. The functional aspect is that it fulfills the need of hunger.

Symbolic aspect

It represents the quality. The symbolic aspect represents the status and standard.

An important decision for organization is the product range.

Product range

A number of choices of the product s or services offered by a supplier. This includes two dimensions, width and depth.

Width

A wide range indicates a large number of product offered by the organization.

Depth

A depth includes the different variations made in product. For example, colour, size, accessories etc.

Qatar airways product

“TAKING YOU MORE PERSONALLY” is more than a slogan at Qatar airways. The company believes that good response keeps employees satisfied, which in turn makes better workers.

As Qatar airways is customer oriented therefore they prefers the fulfillment of the needs of customers. They have a most economical latest flights and world greatest aircrafts which are Airbus 300-600R aircraft, Airbus 330 aircraft, Airbus A319-133 LR aircraft, Airbus A319CJ aircraft, Boeing 777 etc. All these aircrafts are very comfortable and excellent services are offered in every aircraft. Therefore a lot of customers are attracted to Qatar airways and this gets high revenue for Qatar airways. A Qatar airway is also intended to add 20 Boeing 777s and they are also going to make new airport in Doha in 2009 so a large number of customer will move towards Qatar airways.

Some customer might not be able to pay high rates of traveling so Qatar airways is offering economy class for such customers, sometimes there are customers who want luxury, comfort and high standard of services so Qatar airways is offering Business class and VIP class for them. As a result, this is fulfilling the needs of the Qatar airways and customer.

Distribution

It can be defined as,” A marketing function: the process of getting products to consumers. Although some manufactures can and do sell direct to consumers, practical considerations require most to use a distribution system composed of independent middlemen, usually Wholesalers and Retailers.

Distribution can also refer to a measure of market penetration: the number of retail outlets which stocks and sell a particular product as a percentage of all outlets that could possibly sell that product.

Chain of distribution

The process which enable the flow of goods between the producer and the consumer.

Distribution channel

The means of getting the goods to the consumers. There are different point chain of distribution which includes

Retailer

Wholesaler

Distributors and dealers

Agents

Franchises

Multiple stores

Direct selling

(2OOO) Marketing, London, BPP Publishing limited.

Distribution plays an important role in making a long term relationship with customers because all the customers have some needs and demands and if all their needs and demands are easily fulfilled by using a certain product in market then they will purchase it and will become loyal to the organization .In addition, this will get good revenue for a organization .

By keeping this thing in view Qatar airways is doing their distribution both in direct and indirect way which can be seen by this chart,

Direct Distributions

Internet and corporate

Qatar airways counter sales

Fig, 4 Direct Distributions

Agents

PSA, GSA

Indirect Distributions

Offices

Fig, 5 Indirect Distributions

PSA, (Passenger sales agent)

GSA, (General sales agent)

Price

Price can be defined as a measure of the value exchanged by the buyer for the value offered by the seller.

One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, channel decisions, and promotion. Like other marketing mix elements, pricing affects the profit. It gives a competitive advantage to a product to differentiate from the others product. Price is set to achieve the objectives of business that is profit and leadership.

While there is no single recipe to determine pricing, the following is a general sequence of steps that might be followed for developing the pricing of a new product.

Develop marketing strategy – perform marketing analysis, segmentation, targeting, and positioning.

Make marketing mix decisions – define the product, distribution, and promotional tactics.

Estimate the demand curve – understand how quantity demanded varies with price.

Calculate cost – include fixed and variable costs associated with the product.

Understand environmental factors – evaluate likely competitor actions, understand legal constraints, etc.

Set pricing objectives – for example, profit maximization, revenue maximization, or price stabilization (status quo).

Determine pricing – using information collected in the above steps, select a pricing method, develop the pricing structure, and define discounts.

Qatar airways pricing strategies

First of all let us focus on the ticket rates of Qatar airways, but we will focus on the ticket rates of few countries which are as follow,

Countries Economy class Business class

London Rs 44000/- Rs 88000/-

New York Rs 62000/- Rs 180000/-

Dubai Rs 21000/- Rs 32500/-

Zurich Rs 39000/- Rs 12000/-

Qatar airways follow the pricing approach of “Value Pricing” Because a Qatar airway has a good reputation in the market.

Promotional activities

Promotion activities can be defined as, the process of both informing and educating users and dealers about the company and of influencing attitudes and behaviour.

(2OOO) Marketing, London, BPP Publishing limited.

Promotion is concerned with communication the seller and the buyer.

Promotion is most visible aspect of marketing.

Promotion builds the image of a product and services.

Promotion can be done by advertisements, press, media, personal selling and by internet.

Customers themselves are a good source of promotion because when they become loyal to any organization whose products/services fulfill their needs and wants then they recommend others to deal with that organization, which in itself is a good promotional activity.

Promotional activities are very important for every organization. Different organizations use different promotional activities to promote their products and to penetrate in a market but the promotion depends on the nature of the product, the market and the customer.

For example, a manufacturer of industrial goods may rely more heavily on personal selling, whereas a consumer goods manufacture will use advertising and sales promotions. A simple communication requires several elements.

A sender

A receiver

A message

A communication channel or medium

A feedback

Channel Of Communication

Message

Receiver

Sender

Feedback

Fig A simple model of communication

(2OOO) Marketing, London, BPP Publishing limited

This figure is showing that producer {sender} conveys his message to his targeted customers by some channel or medium and adopts different promotional techniques to ensure that customer know about his product, sometime he uses direct methods of promotion, sometime indirect methods of promotions. After that customer {receiver} gives his feedback after experiencing the product/service of a organization.

Qatar airways promotional activities

As promotion is important for every organization to live in market so Qatar airways is also using different promotional activities to penetrate in airline industry .Different promotional activities used by Qatar airways are

Internet

Press {The News, BBC, Sky news, Geo news etc}

Bill boards

Advertisements

They conducts workshop

They conduct different seminars

Catalogue

Privilege cards

CONSUMER MARKETS

FASTLY MOVING CONSUMER GOODS (FMCGs)

FMCGs are the products, which are brought on daily basis or constantly such as Soaps and toffees for children etc.

Product

These products are usually produced at a large scale and with better quality, because of their good services.

Placing

Their Distribution system is very fast and effective, because people need these products frequently and normally these products are easily available in the market.

Pricing

Their pricing is usually low to make them affordable to every customer, because the customer would be rich or poor everybody needs these products.

Promotion

Advertisement of these products is more than the rest of the consumer market segments and their promotion style is normally persuasive & attractive.

CONSUMER DURABLES

These are the products, which are bought rarely, because of their expensiveness. For example, VIP class tickets and Business class tickets.

Product

These products have a best quality, because of their best services.

Placing

Their distribution takes more time than FMCGs. These are normally sold at travel agencies and airline offices.

Pricing

As their manufacturing cost is high, so their pricing is also high. Another reason for their high pricing is this, that normally the common customers do not need these products; examples of these products are VIP class of Qatar airways.

Promotion

In such type of products, generally personal contacts have a great impact, but in some cases media promotions are also adopted.

MARKETING PRODUCTS AND SERVICES TO OTHER ORGANIZATIONS

According to our survey to Qatar airways the DSM (District Sales Manager) describe that Qatar airways has got no such relation/link with other organizations.

INTERNATIONAL AND DOMESTIC MARKETING

As the world has become a Global Village, so in order to flourish in this modern world, a business should go beyond its regional/national boundaries, to get the maximum market share and to expand the business worldwide. Qatar airways follows this phenomenon and currently they travels almost all over the world.

So in order to know the Marketing strategy of Qatar airways, let’s consider its domestic and international marketing.

DOMESTIC MARKETING

“QATAR”

“Domestic marketing is the marketing of products or services within a country/region and not beyond the borders of country”. Normally this region or country is the place where a business establishes.

Qatar airways flourished in Qatar, so it is the Domestic market of Qatar airways. Domestic marketing enables the business to understand the local needs of the customers. So therefore Qatar airways is very much familiar with the requirement of Qatar people. For domestic marketing mix Qatar airways utilizes local available options, such as

Products

Here Qatar airways services are more Customer Oriented than the services of other airline companies, because here people consider comfort more than money.

Distribution

Qatar airways distribution system is very much fast and efficient. In Qatar there are lots of travel agencies and airline offices where people can easily purchase the tickets for traveling.

Pricing

As Qatar airways is customer oriented so they have set their prices upto the level of their general public.

Promotion

Qatar airways mostly advertise their airline by hiring models.

INTERNATIONAL MARKETING

“International marketing is the marketing of products/services in more than one country”.

(2OOO) Marketing, London, BPP Publishing limited

As Qatar airways is a big multinational airline therefore it has a significant position in world or international market. Qatar airways has developed its Business, according to the local culture, traditions and values of each and every country, which makes it the customer oriented airline in the entire world. For international marketing mix Qatar airways utilizes international available options, such as

Products

Qatar airways is very much customer oriented therefore they offers best services at international level and charged reasonable fares.

Distribution

Qatar airways has a fast and strong system throughout the world. It has independent distributors and airline offices in approximately 71 countries around the world.

Pricing

As the affordability of the customers pays a very much essential role in the pricing strategy, so prices are set according to the per head income of the local customers, because Financial strength of each country is different from the others.

Promotional

For this purposes, Qatar airways promote their airline through “internet”, “media” that is they uses different international news channels such as CNN,BBC, Sky News and Geo News and press.

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

According to our survey to Qatar airways we have come to know that Qatar airways is well established airline, because if we take a look on the other airlines flying in the industry, Qatar airways is standing on the 5th rank in airline industry. This is very big achievement in very short time. They have taken start in 1993 and taking steps to their success day by day. As we have come to know that they are using latest technology throughout their aircraft and also on there airports especially in there hub Doha. Their pricing strategies are neither high nor low in this way every one is able to travel with them. They are also very punctual. We have also found some of the things which goes in the deficiencies of the organization, Qatar airways have no direct flights, such as from Pakistan to London, and most of all they don’t have any relations with any other organization to which they can promote marketing products and services rather than consumers.

RECOMMENDATIONS

Qatar airways should introduce direct flight to attract their customers, so this will save the time of the customers and they will reach their destinations in best possible time.

They should make relations with the other organization to promote marketing products and services.

In Peshawar they should increase the size of the building so they would be able to deal with the large number of the customer.

In Peshawar they should introduce their airline through billboards but their advertisement should be in such a way which is acceptable to the social culture of the Pakistan and especially

They fly from major cities like Karachi, Lahore, Islamabad, and Peshawar. So they should add more new cities to take off for more promotion.

REFERENCE LIST

BOOK

(2OOO) Marketing, London, BPP Publishing limited.

WEBSITES

http://www.tutor2u.net/business/marketing/buying_stimulus_model.asp,Date accessed 18/1/2007.

http://www.qatarairways.com, Date accessed 21/1/2007

GLOSSARY

A

Adverse Unpleasant

Aspect Phase

Activities Actions

Accessories Side dishes

Associated Linked

B

Beneficial Valuable

C

Crucial C