| As the quick development of the national aviation market, competition amongmajor market players has been severe in recent years, even though it seems to havebeen in a smooth status. Shandong Airline was established later than other localregional players; therefore, in order to incessantly enlarge the customer pool, toenhance the loyalty of the customers and to improve the core competitiveness,Shandong Airline has carried out a Frequent Passenger program. Thanks to thedevelopment of more than one decade, the customer pool has been tremendouslyenlarged. However, there is still a long way to go to compete with the giant airlines,particularly in the perspectives of target positioning, customer segmentation, serviceexperiencing of membership, service value driving and so on. This dissertationstudies the fields of customer segmentation, target market selection and positioningvia analyzing the existing problems and the causes of the Frequent Passengerprogram on the basis of the views of service marketing and. Based on the STP theory,this article finally proposes reasonable solutions concluding the fields of regionaldifferentiation, concentrated marketing strategy,7P portfolio, customer-facedmarketing strategy and feasible safeguard. |