The textbook author includes a case on airline company Allegiant Air. I would like to mention that I have never flown in a plane. I do not have a fear of planes, I just have not had the opportunity to ride one. Considering that my ultimate goal is to travel the world I know one day that opportunity will occur. I have not heard of Allegiant Air until I read this case, but from what I have read I assume they are the best option for flying within the United States and to our neighboring countries.
In the case Maurice Gallagher, owner of Allegiant Air, says they needed a strategy that was low-cost and could make money from day one. On page 50, it explains how companies determine their marketing strategy with two questions: Which customers will we serve (segmentation and targeting)? and How will we create value for them (differentiation and positioning)? I believe this case answers those questions on how Allegiant Air came up with their marketing strategy. …show more content…
This involves market segmentation, market targeting, differentiation, and positioning. For market segmentation, the company must first determine which consumers will offer them the best opportunities. To do this the market can be divided/grouped based on geographic or demographic, in conjunction with different buyer needs, characteristics, or behaviors. The case author mentions that first, Allegiant looks for uncontested turf- routes neglected by larger, more established competitors. Allegiant has done their market segmentation and now chooses who to