In case of airlines industry, there are three levels of market segmentation:
Mass marketing is done when the service provider concentrates on providing some certain type of aircraft in a bulk, such as fighter planes.
Segment marketing is done when the customers are separated on certain aspects and the service is provided accordingly. For example, the business class has been designed for wealthy people or Corporates while in the economy class commoners travel.
Niche Marketing: When the services provided by the industry do not meet with the expectation of the customers belonging to upper class and corporate world, then certain Airlines provides customized services. Hence, private jets are the kind of service provided through this marketing that is designed as per the need of the customers.
The British Airways offers its services in the form of clusters which are formed by separating the certain group of individuals to certain another group and then entertaining them.
Target: Targeting is the next process after segmentation. Here the set of customers being chosen from the segmented market and then the products and services are offered accordingly. For BA, Corporates, Upper Middle Class and Middle-Class people are the target customers. The level of services provided by British Airways is economy, premium economy, executive class and first class.
Positioning: It is the final step which is about how the products or services are placed in the market after knowing the potential customers through the segmentation and targeting i.e. it is the process of making the perspective of the customers towards the offerings of the company (Kokemuller, 2017)
BA has positioned itself as a Premium international airline that flies to international destination. It has maintained a quality standard in UK for all other airline.
Marketing Mix Recommendations (Implementations)
The marketing mix is complete set of activities adopted by an organisation to promote and sell its products or services in the market. When the company develops a product to be sold in the market, it analyses the market through this process. After developing the product, the company chooses its target customers, the prize of the product, and the place where it wants to sell its product (Times, 2017).
Products: BA is known for its standard quality services throughout the world. The economy class provides minimum space and limited food during the flight. With the increase in subsequent class, the products and services also enhances. For example, the Executive class has a much better space, seat and food on board than the economy class. Since a long time, BA has discontinued the food on board from the domestic short hauls.