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Qantas market segmentation

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Oliver Smyth

on 1 October 2013

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Transcript of Qantas market segmentation

Exploring Segmentation
What will be explored
1. What is segmentation?

2. What are segmentation bases + how is segmentation used

3. How could these approaches to market segmentation be improved

4. How the case study: Qantas uses market segmentation for their success

5. Yankelovich's theory and how that links to Qantas
Segmentation bases
Segmentation bases are the dimensions’ which segment a market.

Traditional segmentation bases: 1. Geographic - nations, cities, regions and neighbourhoods. 2. Demographic- age, income and gender. 3. Psychographic - social class, lifestyle and personality. 4. Behavioural - knowledge, attitudes and uses.
Split into 5 groups to discuss the given question
Danielle Pugliese 43266282
Kimberley Jade Chan 43259669
Nick Stone 42849640
Matt Johnson 43266703
Oliver Smyth 43304087
Exploring Segmentation
To be useful, market segments must rate favorably on five key criteria:

1. MEASURABLE: The size and purchasing power of the segments must be able to be measured
2. ACCESSIBLE: The segments must be able to be effectively reached and served
3. SUBSTANTIAL: The segments must be large enough and profitable enough to serve
4. DIFFERENTIABLE: The segments must be conceptually distinguishable and respond differently to different marketing mix elements and programs
5. ACTIONABLE: Effective programs must be able to be designed for attracting and serving the segments.
In evaluating different market segments, a company must look at three factors:


What is QANTAS?
What is Segmentation?
 Dividing a market into groups of buyers who might require separate products or marketing mixes. There can be both pros and cons to market segmentation.

The types:

The criteria:
- Measurable
- Accessible
- Substantial
- Differentiable
- Actionable
Question 1
What segmentation approach do you think QANTAS uses the most in their ad. campaigns?
Question 2
Name all 4 traditional segments with one variable/factor each.
Question 3
What are two ways in which the traditional approach to marketing can be improved?
Question 4
What do you think they are trying to market here?
Question 5
How do these promotions demonstrate how QANTAS uses different market segments to market to their consumers?

How Qantas Uses Segmentation
Medium Decision:

First-class flights.

Customer: Which airline offers the best first class service?

Qantas: Utilises behavioural segmentation; target consumer’s social status.

Commercials depict successful, confident people.
Shallow Decision:

Domestic freight.

Offer domestic traditional freight as well as air freight for a premium.

Customer: Pay more for faster service?

Qantas: Are consumers willing to pay for the privilege of air freight? Should we market our cheaper services more?
How Qantas Uses Segmentation
Deep Decision:

International travel.

Tough economic climate, are people still willing to go overseas

Customer: Can I afford to holiday/travel? Is travel what I value most?

Qantas: Do we need to revise our model? Is international travel popular enough? Should we focus on cheaper domestic flights?
Segmentation Bases Summary
Yankelovich's Spectrum and Qantas
Full transcript