Description of high/low marketing strategy
The marketing strategy of choice, however, is simply to accentuate low costs by cutting frills and eliminating hub-based systems in favor of short nonstop hops for even the largest national carriers. This is the model followed by such successful low-cost carriers as Jet Blue and Southwest Airlines.
These airlines are able to go up against giants like United and American by slashing fares, marketing their no-frills image and flying short distances and choosing cheaper, slightly out of the way airports.
For instance, Jet Blue flies not to Miami but to Ft. Lauderdale and even though Delta might fly to Miami, Jet Blue will still get the fare because of its lower price and no-frills marketing strategy.
Airlines have to realize that this is a price-sensitive market and only spend marketing dollars on advertising low-cost fares and the fact that fliers are not being charged for peanut bags they believe they simply do not want or need. (Mercer Management Consulting, 2002)
However, they must also market to the few but extremely deep-pocketed fliers who fly in luxury regardless of price. But there, they must not offer mid-level products such as United Airlines over Jet Blue: That difference is minimal and negligible. No, rather, they must offer low-cost flying choices and then a few extremely high level products. The minimal difference between mid-level products and low-cost products in marketing has been proven useless.
Why low/high cost marketing strategy is the best
This strategy of marketing primarily to the lowest cost and highest priced markets is the most successful because it entirely galvanizes the market in a natural pattern. There are those fliers who sacrifice quality and convenience for price, regardless of how small those price differentials are, and these fliers make up the bulk of the market. Then there are those fliers who do not care at all about price and in fact choose the most luxurious options sometimes solely because of their high price.
There simply exists very little market for products that...
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