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Question 1

Market segmentation is the process of dividing a target market of potential customers into

segments with common characteristics. The target market can be divided based on demographic,

geographical, psycholographic and behavioural. BMI airline segmented its market based on the

behaviour of the consumers. Not all customers are willing to pay higher amount for a flight,

other customers choose pay low fare for a flight. So the company decided to divide the market

based on those behaviours thats is, those willing to pay high fare for a flight and those willing

to pay low for a flight.

Question 2

Having separate branding like BMI baby each elements of its service is just one way of ensuring

brands remain strong.

Question 3

Separate business class enables or makes it easier for organisations to make policies and

decisions and also enables low income earners able to afford the flight since there are different

class. Since there are different class overcrowding and long queues since there are different.

Question 4
The reason why BMI operates from so many airports is to stimulate economic growth and

reach large audiences or many number of people. It also operate from so many airport because

expand its market.

Question 5

The purpose of BMI regional is acts as feeders for long-haul flights . On the other hand, the

purpose of BMI baby is to provide low fares to it customers so that they can be able to afford the

flight in order to get to their destination.