Step 1 Market segmentation means dividing the market into distinct groups that have common needs and will respond similarly to your marketing effort. Each segment must be unique, have common needs, and respond similarly to marketing efforts. The target market is the group of potential customers that has been selected by the company to focus its marketing efforts on. This is the group the company wants to sell its products/services to. Positioning refers to the image created in the customer's mind of your product or brand. It is a perception created in the consumer's mind compared to that of his competitors. Phase 2 There are several ways in which the airline industry is segmented. The first form of segmentation is the area served by airlines. "Major" airlines serve the entire country and also fly internationally, "National" airlines serve the country and provide service to most of the country, and "Regional" airlines provide service to individual regions or between a limited number of cities. Other segments of the industry include carriers that provide cargo services. Their target market is those customers who supply goods. Within the airline industry airlines can currently be divided into low-cost airlines and full-service airlines. Low-cost airlines cater to customers looking for no-frills connectivity between cities at low prices. Full-service airlines provide numerous additional services such as free meals, in-flight entertainment, and communication services. 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 airline customers are segmented. The airline's services are divided... middle of the paper... children) and cost-conscious business travelers. The target market of JetBlue airlines is the customers who, along with low-cost services, are looking for. Amenities provided by JetBlue included in-flight entertainment, TVs at every seat, satellite radio, extra legroom, free unlimited snacks, and leather seats. JetBlue's target market is also that of leisure travelers, travelers looking for low-cost tickets and cost-conscious business travelers. JetBlue has indeed posed a threat to other low-cost airlines like Southwest Airlines. Southwest Airlines' positioning is that of a reliable, low-cost, no-frills airline. The positioning of JetBlue Airlines is a reliable and low-cost airline that provides extra services to its passengers. JetBlue's positioning is as a low-cost airline with numerous extras for passengers. These are the perceptions of airline customers in the US market.