Chapter 14:Euro Disney

Question 4

This is a story of a company that encountered dazzling success during turbulent times. Tokyo Disneyland is a leisure company that went against the odds to perform exemplary well at a time when the leisure industry recorded a 4.5% decrease in its turnover compared to the previous year. The secret behind Tokyo’s Disneyland can be attributed to their intensive application of brand association and brand recognition components. Together, the two ingredients featured greatly in constructing the brand image of the company. Brand recognition refers to the level to which clients know about the brand while brand association is defined as the impressions associated with s certain brand.

Chapter 21: Segmentation

Question 1

            The segmentation of airline customers can be explored when the companies consider and classify customer groups into different needs and wants. Some of the possible variables to consider during the segmentation process include gender, age, buying behaviors, purchase decisions, location, demographics, and sundry. Southwest Prime airline can segment its existing customers into different travelling groups based on the purpose of using the flights. When some passengers use the flights for leisure, others could use them for business or academic purposes. The basis idea behind such a segmentation model is to focus on the period when each class use the flights the most. Another important factor is to examine the attitudes and reactions of the groups in cases of price increases or decreases. When Southwest Prime introduced cheap prices during high fuel prices, leisure customers responded positively.

Southwest Prime targets segments such as leisure, business, exploration, and academic travels. While the business travelers respond highly to price changes, leisure travelers are not so much concerned with prices as they are with the level of service. The majority of exploration are financed by corporate sources, thus do not react negatively to slight price changes. Academic travelers usually use flights during specific periods (either when school opens or closes) and they cause prices to go up because of rapid increases in demand for air travelling space. Market segmentation seeks to narrow a wide customer base into more defined groups by evaluating a set of behavior patterns. An understanding of the various segments will help the marketing team of Southwest Prime airlines to design the appropriate promotion strategies to drive sales up. For instance, the business travelers are prone to using the services on a rapid notice. Such knowledge can inform a robust marketing promotion campaign that advertises quick flight booking services through online means.