Chapter 7
Sharpening the Focus:
Target Marketing Strategies and Customer Relationship Management
MARKETING IN ACTION: REAL CHOICES AT JETBLUE
 Summary
JetBlue recently entered the competitive airline industry during a time when the five
largest airlines in the country were losing billion of dollars. JetBlue operates in the lowfare category of the industry, but unlike other low-fare airlines, JetBlue is not a “no-frills”
airline. The airline offers its passengers amenities such as leather seats, live satellite, TV,
and more passenger legroom. The airline also flies its planes from point to point. It does
not use the hub system of other airlines.
By using the point-to point system, JetBlue can be very selective when picking the
geographic markets where it wants to compete. Currently, only 22 cities are served,
allowing JetBlue to do a better job providing quality service in its limited markets.
With 59 percent of all airline passengers being recreational passengers and 28 percent
being business passengers, JetBlue must consider behavioral segmentation variables,
such as usage occasions, when segmenting its potential markets. JetBlue must consider
segmenting on the basis of comfort, entertainment, demographics, and so forth.
Recently, competition has enterered this low-fare market and is offering service in
JetBlue’s markets. The competition is betting their futures on providing a level of service
and amenities equal to JetBlue but with a more extensive route system. Turbulence may
be on the horizon for JetBlue and its aggressive growth pace.
 Things to Think About
1.
What is the decision facing JetBlue?
If JetBlue is to continue its growth path, choosing the right markets, targeting the right
customers to serve, and establishing the right positioning for the airline with those
customers will be important.
2.
What factors are important in understanding the decision situation?
JetBlue needs to understand its internal environment, the external environment,
competition, as well as its own customers and potential customers. Particular attention
needs to be paid to behavioral segmentation, positioning strategies, and competitive
advantage.
3.
What are the alternatives?
JetBlue has a number of alternatives. Included are:
a. Continue its existing strategy.
b. Put more effort and resources into understanding behavioral segmentation of
its target markets and potential target markets, working to maintain a
competitive advantage by correctly positioning the company and serving the
identified unique needs.
c. Predict that the airlines entering the market have such established names that
there will be no future for JetBlue and gradually leave the market.
d. Because competition is entering the market, explore other markets with
potential and ease into them.
4.
What decisions(s) do you recommend?
The decision that makes the most sense at this time is B. JetBlue needs to understand that
marketing is a dynamic process. The internal and external environment will change.
Competition will enter and leave the market. However, to maintain a competitive
advantage, JetBlue will need to understand its target market and potential target markets.
The company needs to know how consumers make decisions. It needs to establish a
competitive advantage but constantly monitor the market and shift strategies to maintain
the advantage. The firm must understand how and why customers make decisions
regarding airlines and meet those needs. It needs to tailor marketing strategies for each
target market served.
5.
What are some ways to implement your recommendation(s)?
JetBlue needs to expend significant research effort into exploring how its target market
and potential target markets make decisions and then develop positioning strategies based
on those decisions. Again, this is an ongoing, dynamic process that needs constant
attention. In addition, JetBlue must not only get customers to use the airline but to be
completely satisfied with the experience so that they will give JetBlue repeat business as
well as recommend the airline to others.