Analysis of target marketing and market segments

The analysis of Focus on Marketing, Marketing Combination and its software to different market sections are incredibly much important to understand while segmenting the marketplace.

Segmentation is also quite needed for an enterprise, because gratifying all the clients with the same product is very much difficult, so to be able to have the positive market response, it is best to offer your product to the precise segment. The id and analysis of the customer behaviour also have a great impact on a small business. Qatar airways are leading airline in air industry so this report is concern with this airline.

PURPOSE, SCOPE AND LIMITATION

The reason for this survey is to investigate the prospective Marketing, Marketing mixture, its program on market segmentation of Qatar airways. Tried best to get the utmost information about these issues, but anticipated to limitation of provided time and space, it is not very much precise report.

SOURCES AND METHODS

In setting up this report, hints took from Syllabus e book of Marketing, although Internet also paid an important role in its planning. The sites went to for references are also stated in the guide list.

REPORT ORGANIZATION

This report evaluates the Qatar airways Aim for Marketing, Marketing mixture, also to understand segmentation process along with dedication of buyer behaviour importance for a business.

MARKETING ENVIRONMET

All companies work in a Marketing Environment. Environment comprise all the forces acting on the business. Now Environment is dividend into two types

MICROENVIRONMENT

MACROENVIRONMENT.

MICRO ENVIRONMENT

These are inside factors close to the company which have a direct effect on the organizations strategy. Factors of micro environment includes

Customers

Distributors

Employees

Suppliers

Shareholders

Media

Competitors

Customers

Customer's satisfaction is the key to success of an organization. This is achieved by satisfying the changing requirements of customers; inability to do so will lead to a failed business strategy.

Distributors

If there have been not any marketers to supply your products you could not have distributed your product at right time and right place. This shows that distributors play an important role.

Employees

Employees are incredibly much critical indicators of micro environment. Keeping the skilled personnel and their inspiration are essential elements of the tactical planning procedure for an organization, especially operating sector marketing.

Suppliers

Buyer's good relation provides competitive border. Way to obtain raw material on time is also very necessary for an organization successful business strategy, because in this manner organization can provide products to the client on time.

Shareholders

Shareholders investment can improve or decrease company's progress. Their part (dividend) in the earnings affects the company's cash flow a whole lot.

Media

Media support or issues affect a business quite definitely. Positive or adverse media attention by using an organizations product or service can occasionally makes or breaks a business.

Competitors

Competitor's examination and monitoring is crucial if an organization is to keep its position within the market. Really the only success technique in the market is to provide customer with the better quality product than the competition.

MACRO ENVIRONMENT

These will be the factors, which have the effect on an organization externally. These are the wide-spread factors. These are called "PEST analysis".

Political factors

Politics affects the business enterprise a lot; just because a company are required to follow certain guidelines or regulations (laws and regulations) made by the government. Creation of different laws and regulations depends after the ruling politics party. For example, the end of Cold Conflict has been a major change for weapon manufacturers.

Economic factors

The economical condition of the united states and condition has a great effect on the company progression. The various economic procedures, which impact business, are

Taxation

Interest rates

Currency rate

Public economical condition (either people are poor or rich)

Inflation rate

Social factors

Social values, beliefs, faith and culture really have an effect on the business. Business must be relating to communal aspects. For example, in Pakistan we cannot sale or purchase things such as wine, since it is against Islamic beliefs. Another example is of putting on shorts by the women. Here it is unsocial, so we cannot start the business enterprise of providing shorts to women.

Technological factors

The most challenging factor for marketing director is scientific factor, because progress of the business depends after the "innovation" and then for innovation, the use of new technology is very much important. In order to beat the challengers, an organization will need to have effective research, planning and marketing of services and for this purpose new equipment, techniques and ideas are incredibly much important.

INTRODUCTION TO QATAR AIRWAYS, PESHAWAR

Qatar Airways was launched by H. H. Sheikh Hamad-Al-Thani in DOHA in 1993.

The goal of the airline was to offer Superior Service and Lower Fares to only local routes, such as Dubai.

Qatar happens to be traveling to 70 destinations

Currently Qatar Airways is equipped with 51 Aircrafts

EFFECTS OF MICRO AND MACRO ENVIRONMENTAL FACTORS ON QATAR AIRWAYS

Environment has a great effect on the Qatar airways the primary things which impact your choice making procedure for Qatar airways are

Competitors

Social factors

Economically

Technology

Competitors

As Qatar airways have lot of opponents for example, Emirates airways, PIA and so they have to make new improvements in their airline. By keeping the competition strategies in view, they go to get started on their new jumbo aircraft specifically, A380 in '09 2009 to entice more customers. They are also going to make new airport terminal which will be the globe biggest airport, known as as DOHA INTERNATIONAL AIRPORT.

Social factors

Looking upon interpersonal culture of Pakistan Qatar Airways cannot expose such advertisements in NWFP where women are included where there is MMA administration who are totally against an involvement of women in the advertising, so Qatar Airways have to make such adverts which are acceptable for NWFP region.

Economically

The financial condition of Pakistan has a great affect on Qatar airways development. As the folks of Pakistan is not fiscally good however the ticket rates of Qatar airways are extremely expansive, so they have to offer affordable tickets so that large numbers of customer can fly with them without any hesitation which technique may bring good income for Qatar airways

Technology factors

The technology factor impact Qatar airways decisions making process because if they do not provide better technology to their customers and if indeed they keep on choosing old strategies, old aircrafts etc. then they will loss a higher number of potential clients, that why they need to introduce new aircrafts, new airports, add more locations and more advertising with their airline to lead in the airline industry.

MARKET SEGMENTATION

Kotler identified marketing segmentation as, "The subdividing of a market into distinctive subsets of customers, where any subset may conceivably be picked as a marketplace to be reached with a distinct marketing blend. "

(2OOO) Marketing, London, BPP Publishing limited.

Segmentation requirements of Qatar airways

Qatar airways have segmented their airline in Business, leisure, labour, pupil and seamen.

Fig 1, Qatar airways market segmentation

ECONOMY Category OF QATAR AIRWAYS

IN PAKISTAN

Age

People of different age groups can travel with economic class.

Sex

Both male and female can travel with Qatar airways monetary class.

Degree of interest

Ordinary people used to visit.

Place

People typically from developed metropolitan areas like Karachi, Islamabad and Lahore used to visit with them.

Price

Price is fair e. g. ticket rate of Qatar Airways from Pakistan to London is approximately 44 thousands including all taxes.

ECONOMY CLASS OF QATAR AIRWAYS

IN DOHA

Age

People with different age range can travel through them.

Sex

Both men and woman can travel through them.

Degree of interest

Professionals used to travel with them.

Place

People typically travel from Doha.

Price

Tickets are cheaper there or more to the level of people. e. g. 2500 Qatar riyal is the go back ticket of London from Doha.

BUSINESS Category OF QATAR AIRWAYS

IN PAKISTAN

Age

All ages of men and women can travel through them.

Sex

Both guy and girl can travel with them.

Degree of interest

Mostly professionals and rich course of society prefers it.

Price

Very high price of solution is charged. For example, 88 hundreds including all taxes are charged from Pakistan to London.

BUSINESS School OF QATAR AIRWAYS

IN QATAR

Age

All ages of men and women can travel through them.

Sex

Both guy and feminine can travel with them.

Degree of interest

Mostly specialists and rich class of world prefers it.

Price

The costing strategy modified in Qatar is relating with their standard.

Very high price of solution is charged. For example, 6430 Qatar Riyal is costed from Qatar to London.

Service

Excellent service is provided in airplane and the response from the crew cabin is very fast.

BUYER Behavior EFFECT

Consumer buying behavior can be explained as, "your choice process and works of individuals involved in buying and using products. "

(2OOO) Marketing, London, BPP Posting limited.

Fig 2, Stimulus response model of buyer behaviour

http://www. tutor2u. net/business/marketing/buying_stimulus_model. asp

The customer only will buy those things, which satisfy their needs. By gaining a better knowledge of the factors which influence their customers and how there customers will react, business will be better able to anticipate the effectiveness of their marketing activities.

What, when, where, how and at what price customer will choose the product?

By figuring out these areas a firm can get success in its market. This thing can be seen by following example,

A pajero wagon was presented by Japan in the market of UAE and Saudi Arabia but this is declined there because people did not feel comfortable using its drive. People there typically preferred Mercedes and Rose rise etc because we were holding according with their standard. As a result, company discontinued further launching of pajero wagon in these areas. After that land cruiser occurred of pajero wagon being comfortable made by the company keeping because the behavior of the customer of the Arabian countries. On the other hand the same pajero wagon was warmly welcomed and accepted by the folks of Pakistan since it was gifted by the business to few high class and therefore it become the status sign for the wealthy people. In this way the pajero wagon market in Pakistan remained successful and flopped at Arabian countries due to customer behaviour.

Our view

In our view customer behavior is very much indeed important for any business because the living of business will depend upon the customers, if the organization is rewarding the needs of customers and the clients are happy and satisfied with the product/service then the buyer's behavior is said to be beneficial for that one organization.

QATAR AIRWAYS

It has modified its activities corresponding to physical buyer behavior, that is

Here they offer in rupees while in Qatar they deal in Qatar riyal.

Here most of their staff consists of Men while in Qatar they are really equally hired.

Here, their products are more cheaper comparatively than in Qatar.

The Marketing Mix

The major marketing management decisions can be classified in one of the next four categories

Product

Price

Place (distribution)

Promotion

These variables are known as the marketing blend or the 4 P's of marketing. They will be the variables that marketing professionals can control to be able to best satisfy customers in the prospective market. The marketing blend is portrayed in the next diagram

Target marketing

Target marketing

Target marketing

Target marketing

Target marketing

Fig 3, The marketing Mix

Product

It can be defined as, "Something that satisfies a couple of wishes that customer have. "

(2OOO) Marketing, London, BPP Publishing limited.

Service is the proper execution of product which is provided by one party to some other, which is intangible and does not lead to the possession of anything. For instance,

When you buy set of wine beverages glasses you are buying them because you want to drink wines and you prefer not to do it directly from the bottle. You may even want to win over your dinner friends with your tastes, and choose to take action by possessing a particularly fine group of wine beverages glasses.

When you visit a magazine ad for a new car. You will see a long list of items. Some of them will be tangible, such as comfortable seats and airbags. Other will be intangible, such as acceleration or fuel current economic climate. To be significant in the sight of the client these features must be expressed as benefits. The actual fact that car uses hardly any petrol is clearly an advantage.

Product has pursuing aspects

Designs The look of a product must be proper.

Technology What cool features included in a product.

Usefulness How much the merchandise is useful?

Conveniences Availability of a product.

Value What's the demand of a product?

Quality What exactly are the features of the merchandise and it profit to a person.

Packaging Product should be accessible in an effective package.

Branding Product should of proper brand or you can say whether the product is

of good brand or bad.

Accessories What types of other things are available with product?

Warranties What is the warrantee of a product?

There is another way of examining products, which also entails three aspects

Physical aspect

Functional aspect

Symbolic aspect

We will explain these aspects by taking the exemplory case of a burger.

Physical aspect

The material found in the production of the merchandise. The physical aspect of the burger is meat, bun etc.

Functional aspect

The pertains that how the product performs. The practical aspect is that it fulfills the need of appetite.

Symbolic aspect

It represents the quality. The symbolic aspect signifies the status and standard.

An important decision for firm is the product range.

Product range

A variety of choices of the product s or services offered by a supplier. This includes two measurements, width and depth.

Width

A wide range indicates a large number of product offered by the business.

Depth

A depth includes the different variations made in product. For example, coloring, size, accessories etc.

Qatar airways product

"TAKING YOU MORE PERSONALLY" is greater than a slogan at Qatar airways. The company believes that good response retains employees satisfied, which in turn makes better staff.

As Qatar airways is customer oriented therefore they prefers the fulfillment of the needs of customers. They have a most cost-effective latest flights and world biggest aircrafts which are Airbus 300-600R aircraft, Airbus 330 aircraft, Airbus A319-133 LR aircraft, Airbus A319CJ aircraft, Boeing 777 etc. All these aircrafts are extremely comfortable and excellent services are offered atlanta divorce attorneys aircraft. Therefore a whole lot of customers are attracted to Qatar airways and this gets high income for Qatar airways. A Qatar airway is also intended to add 20 Boeing 777s and they're also going to make new airport terminal in Doha in '09 2009 so a sizable amount of customer will move towards Qatar airways.

Some customer may not be in a position to pay high rates of traveling so Qatar airways offers economy class for such customers, sometimes there are customers who would like luxury, comfort and high standard of services so Qatar airways offers Business school and VIP school for them. Because of this, this is fulfilling the needs of the Qatar airways and customer.

Distribution

It can be defined as, " A marketing function: the procedure to getting products to consumers. Even though some manufactures can and do sell immediate to consumers, practical factors require most to employ a distribution system composed of self-employed middlemen, usually Wholesalers and Merchants.

Distribution can also make reference to a measure of market penetration: the amount of shops which stocks and sell a particular product as a share of all shops that could possibly sell that product.

Chain of distribution

The process which permit the stream of goods between the producer and the consumer.

Distribution channel

The means of getting the products to the consumers. There are different point string of syndication which includes

Retailer

Wholesaler

Distributors and dealers

Agents

Franchises

Multiple stores

Direct selling

(2OOO) Marketing, London, BPP Publishing limited.

Distribution plays an important role in making a long-term romantic relationship with customers because all the customers involve some needs and demands and if almost all their needs and requirements are easily satisfied by using a certain product in market they will purchase it and can become loyal to the business. In addition, this are certain to get good earnings for a company.

By keeping this part of view Qatar airways does their circulation both in direct and indirect way that can be seen by this graph,

Direct Distributions

Internet and corporate

Qatar airways counter sales

Fig, 4 Direct Distributions

Agents

PSA, GSA

Indirect Distributions

Offices

Fig, 5 Indirect Distributions

PSA, (Traveler telemarketer)

GSA, (Basic telemarketer)

Price

Price can be explained as a way of measuring the value exchanged by the buyer for the worthiness offered by the seller.

One of the four major elements of the marketing combine is price. Costs can be an important strategic concern because it is related to product placement. Furthermore, pricing impacts other marketing mixture elements such as product features, channel decisions, and promotion. Like other marketing combine elements, pricing impacts the profit. It offers a competitive advantage to a product to differentiate from others product. Price is defined to attain the objectives of business that is revenue and leadership.

While there is absolutely no single recipe to find out pricing, the following is a general series of steps that might be followed for expanding the pricing of a new product.

Develop online marketing strategy - perform marketing evaluation, segmentation, focusing on, and positioning.

Make marketing combination decisions - determine the product, circulation, and promotional strategies.

Estimate the demand curve - understand how volume demanded varies with price.

Calculate cost - include fixed and varying costs from the product.

Understand environmental factors - evaluate likely rival actions, understand legal constraints, etc.

Set pricing goals - for example, earnings maximization, income maximization, or price stabilization (status quo).

Determine rates - using information collected in the above steps, select a costing method, develop the costing framework, and define discounts.

Qatar airways pricing strategies

First of all let us give attention to the solution rates of Qatar airways, but we will concentrate on the ticket rates of few countries that happen to be as follow,

Countries Economy class Business class

London Rs 44000/- Rs 88000/-

New York Rs 62000/- Rs 180000/-

Dubai Rs 21000/- Rs 32500/-

Zurich Rs 39000/- Rs 12000/-

Qatar airways follow the costs approach of "Value Costs" Just because a Qatar airway has a good reputation on the market.

Promotional activities

Promotion activities can be explained as, the procedure of both informing and educating users and dealers about the business and of influencing behaviour and behavior.

(2OOO) Marketing, London, BPP Posting limited.

Promotion can be involved with communication the seller and the customer.

Promotion is most visible aspect of marketing.

Promotion develops the image of something and services.

Promotion can be carried out by adverts, press, marketing, personal advertising and by internet.

Customers themselves are a good way to obtain promotion because when they become faithful to any group whose products/services match their needs and needs they recommend others to cope with that firm, which alone is a good promotional activity.

Promotional activities are extremely important for each business. Different organizations use different promotional activities to promote their products and penetrate in a market but the campaign depends on the type of the product, the market and the client.

For example, a maker of commercial goods may rely more intensely on personal advertising, whereas a consumer goods produce will use advertising and sales campaigns. A simple communication requires several elements.

A sender

A receiver

A message

A communication channel or medium

A feedback

Channel Of Communication

Message

Receiver

Sender

Feedback

Fig A straightforward model of communication

(2OOO) Marketing, London, BPP Posting limited

This amount is demonstrating that producer sender conveys his subject matter to his targeted customers by some channel or medium and adopts different promotional techniques to ensure that customer find out about his product, sometime he uses immediate methods of campaign, sometime indirect ways of promotions. After that customer receiver offers his opinions after experiencing the product/service of a organization.

Qatar airways promotional activities

As advertising is important for each organization to live in market so Qatar airways is also using different promotional activities to penetrate in airline industry. Different promotional activities used by Qatar airways are

Internet

Press The News, BBC, Sky news, Geo news etc

Bill boards

Advertisements

They conducts workshop

They execute different seminars

Catalogue

Privilege cards

CONSUMER MARKETS

FASTLY MOVING CONSUMER GOODS (FMCGs)

FMCGs will be the products, which can be induced daily basis or constantly such as Soaps and toffees for children etc.

Product

These products are usually produced at a huge level and with better quality, because of their good services.

Placing

Their Distribution system is very fast and effective, because people need these products frequently and normally the products are easily available in the market.

Pricing

Their costs is usually low to make them affordable to every customer, because the client would be abundant or poor every person needs the products.

Promotion

Advertisement of the products is more than all of those other consumer market sections and their promotion style is generally persuasive & attractive.

CONSUMER DURABLES

These will be the products, which can be bought rarely, because of their expensiveness. For instance, VIP class tickets and Business school tickets.

Product

These products have a best value, for their best services.

Placing

Their distribution calls for more time than FMCGs. They are normally sold at travel companies and airline office buildings.

Pricing

As their production cost is high, so their costs is also high. Another reason for their high costs is this, that normally the common customers do not need these products; examples of the products are VIP category of Qatar airways.

Promotion

In such type of products, generally personal contacts have a great impact, but in some cases media promotions are also adopted.

MARKETING PRODUCTS AND SERVICES TO OTHER ORGANIZATIONS

According to our study to Qatar airways the DSM (Region Sales Director) identify that Qatar airways offers no such relation/link with other organizations.

INTERNATIONAL AND DOMESTIC MARKETING

As the world has turned into a Global Town, so in order to flourish in this modern world, a business is going beyond its regional/national restrictions, to get the maximum market share and to expand the business worldwide. Qatar airways uses this phenomenon and currently they travels almost all over the world.

So to be able to know the Marketing strategy of Qatar airways, let's consider its home and international marketing.

DOMESTIC MARKETING

"QATAR"

"Home marketing is the marketing of products or services in a country/region rather than beyond the borders of country". Normally this region or country is the place where a business establishes.

Qatar airways flourished in Qatar, so that it is the Home market of Qatar airways. Local marketing enables the business enterprise to understand the local needs of the customers. So therefore Qatar airways is very much indeed familiar with the requirement of Qatar people. For home marketing blend Qatar airways utilizes local available options, such as

Products

Here Qatar airways services are more Customer Oriented than the services of other flight companies, because here people consider comfort more than money.

Distribution

Qatar airways circulation system is very much fast and efficient. In Qatar there are several travel companies and airline office buildings where people can certainly purchase the tickets for visiting.

Pricing

As Qatar airways is customer oriented so they have got placed their prices upto the amount of their public.

Promotion

Qatar airways typically advertise their flight by hiring models.

INTERNATIONAL MARKETING

"International marketing is the marketing of products/services in more than one country".

(2OOO) Marketing, London, BPP Publishing limited

As Qatar airways is a huge multinational airline therefore it has a substantial position in world or international market. Qatar airways is rolling out its Business, in line with the local culture, customs and values of each and every country, rendering it the client oriented airline in the entire world. For international marketing combine Qatar airways utilizes international available options, such as

Products

Qatar airways is very much customer oriented therefore they offers best services at international level and charged sensible fares.

Distribution

Qatar airways has an easy and strong system across the world. It has impartial distributors and air travel offices in roughly 71 countries surrounding the world.

Pricing

As the affordability of the clients pays an extremely much essential role in the pricing strategy, so prices are establish in line with the per brain income of the neighborhood customers, because Financial power of each country differs from the others.

Promotional

For this purposes, Qatar airways promote their flight through "internet", "media" that is they uses different international media programs such as CNN, BBC, Sky Reports and Geo Media and press.

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

According to our study to Qatar airways we have come to learn that Qatar airways is more developed flight, because if we take a look on the other airlines traveling on the market, Qatar airways is sitting on the 5th list in air travel industry. This is very big achievements in very small amount of time. They took begin in 1993 and taking steps with their success day by day. As we've come to know they are using most advanced technology throughout their airplane and also on there airports especially in there hub Doha. Their rates strategies are neither high nor low in this way every one can travel with them. They are also very punctual. We have also found some of the items which goes in the deficiencies of the organization, Qatar airways have no direct flights, such as from Pakistan to London, and the majority of all they don't have any relations with any other organization to that they can promote marketing products and services somewhat than consumers.

RECOMMENDATIONS

Qatar airways should expose direct air travel to appeal to their customers, which means this will save the time of the customers and they'll reach their places in best possible time.

They should make relations with the other organization to promote marketing products and services.

In Peshawar they must raise the size of the building so they would be able to offer with the large numbers of the customer.

In Peshawar they must introduce their air travel through billboards but their advertising campaign should maintain such a way which is acceptable to the public culture of the Pakistan and especially

They fly from major places like Karachi, Lahore, Islamabad, and Peshawar. So they have to add more new places to take off for more promotion.

REFERENCE LIST

BOOK

(2OOO) Marketing, London, BPP Posting limited.

WEBSITES

http://www. tutor2u. net/business/marketing/buying_stimulus_model. asp, Date accessed 18/1/2007.

http://www. qatarairways. com, Time frame accessed 21/1/2007

GLOSSARY

A

Adverse Unpleasant

Aspect Phase

Activities Actions

Accessories Part dishes

Associated Linked

B

Beneficial Valuable

C

Crucial Critical

Crew Team

Channel Guide

Concerned Worried

Communication Message

D

Decline Turn down

Dividend Bonus

Distinct Different

Dimensions Scope

Differentiate Distinguish

E

Effectiveness Usefulness

Existence Survival

Ensure Make sure

Experiencing Experience

F

Fulfilling Satisfying

Flopped Fail down

Feedback Opinion

Features Qualities

G

Geographical Geological

I

Impact, Contact

Inflation Price increase

Influence Pressure

Intangible Untouchable

Issue Subject

Innovations Development

L

Leisure Free time

Launching, Introduction

O

Ownership Rights

Oriented Tilting

P

Progression Succession

Portrayed, Portray

Penetration To get in

Purchase Buy

R

Reasonable Sensible

Revenue Income

S

Strategy Plan

Segmentation Subdividing

T

Target Aim

Tactics Policy

W

Widespread Well known

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