Step 1Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to marketing actions. Each segment should be unique, have common needs, and respond equally to marketing efforts. The target market is the group of potential customers selected by the company on which to focus its marketing efforts. This is the group to which the company wishes to sell its products/services. Positioning refers to the image created in the customer's mind of their product or brand. It is a perception created in the mind of the consumer compared to that of their competitors. Step 2 There are different ways to segment the airline industry. The first form of segmentation is the area served by airlines. “Major” airlines serve the entire country and even carry passengers internationally, “national” airlines serve the country and provide service to most parts of the country, and “regional” airlines » provide services to individual regions or a limited number of cities. . Other segments of the industry are carriers that provide freight services. Their target market is customers who provide freight. Within the airline industry, airlines can currently be divided into low-cost airlines and full-service airlines. Budget airlines target customers who want no-frills, low-cost intercity connectivity. Full-service airlines offer several add-on services such as free meals, in-flight entertainment, and communication facilities. The target market for full-service airlines is customers who are willing to spend more for the services provided by the airlines. There are other ways to segment airline customers. Airline services are divided...... middle of paper...... wires) and cost-conscious business travelers. JetBlue airlines' target market is customers who are looking for low-cost services. Services provided by JetBlue included in-flight entertainment, television in every seat, satellite radio, extra legroom, unlimited free snacks, and leather seats. JetBlue's target market is also the leisure traveler, the low-cost traveler, and the cost-conscious business traveler. JetBlue has actually posed a threat to other low-cost airlines like Southwest Airlines. Southwest Airlines' positioning is a reliable, low-cost, no-frills airline. JetBlue Airlines' positioning is that of a reliable, low-cost airline that offers additional services to its passengers. JetBlue's positioning is a low-cost airline offering several extras to passengers. These are the perceptions of airline customers in the US market.