Marketing Segmentation
Enrique Alguacil Megias Lidia Contreras Cervera 1ยบGIAT A
A1. Steps to perform an effective segmentation. Nacionality
Lifestyle
Age
Purpose of the trip
A2. Steps of marketing segmentation To perform an effective marketing segmentation we have to use a two steps method: Step 1: SEGMENTING the Market Dividing the overall market into subgroups (“market segments”) using one or more factors.
Step 2: SELECTING Target Markets Selecting those market segments (“target markets”) that the organization is best able to serve and appeal to.
B1 Segmentation bases –Geographic segmentation. It means dividing the market into groups of customers
who share the same geographic location. –Demographic segmentation. It means dividing markets based on population statistics. –Purpose- of-trip segmentation. It means dividing hospitality and travel markets according to the primary purpose of the customer's trip. –Psychographic segmentation. It is the development of psychological profiles of customers and psychologically based measures of distinctive modes of living or lifestyles. –Behavioral segmentation. It divides customers by their use occasions, benefits, user status, usage rate, loyalty status, buyer-readiness stage, and attitudes toward the product of service. –Product-related segmentaation. It uses some aspect of the service to classify customers. –Channel-of-distribution segmentation. It is different from the six previous segmentation bases since it is a way to divide up travel trade intermediaries rather than customers.
C1 Criteria for effective segmentation. 1.Measurable. We are in need to set marketing objectives in numerical terms and to
measure the results of marketing plans.
2.Substantial. A target market must be big enough to warrant a separate investment. It must produce more in added profits than the amount required to pursue it.
3.Accessible. The essence of market segmentation is being able to select and reach specific customer groups.
4.Defensible.The marketer must feel confident that the organization’s share of each target market can be defended from competitors.
5.Durable. Some market segments are short term or medium term, meaning that they exist for less than five years. In our industry we are not interested in fads.
6.Competitive. The more precisely the service fits the needs of a particular segment, the more likely it is to succeed. On the other hand, if a service does not match the needs well, there is little point in pursuing the segment.
7.Homogeneous. The organization should make sure that the segments are as different from each other, or as heterogeneous, as possible. At the same time, the people within each segment should be as similar, or as homogeneous, as possible.
8.Compatible. When an organization selects a target market it must be sure that the market does not conflict in any way with the markets it already serves. C2. Implementing these criteria in several segment. In marketing segmentation, there are some pitfalls and to avoid them we need to make sure that they meet the eight criteria we saw before. Here we have 5 examples of this. - IMSERSO IMSERSO is a segmentation depending on the age that include a scale of people normally up to 60 years old. This type of segmentation carries with this criteria. For example is a segment which is a durable segment because there will always be people of this age. And we also can see that is homogeneous because of the similar wants and needs of the consumers.
- Large family Is another type of segment which involve families with more than five members. In this segment we can see that is accessible because it refers to an specific group of customers. We can see also the competitive criteria due to several companies must to adjust their services as similar as possible to this type of customers’ wants and needs.
- Income
With this segment we can divide customers according with their heritage and their possibilities. So we can say that is measurable because companies can set the objectivesin numerical terms and measure the results. It is also compatible because some companies adapt their services with customers’ odds.
Luxury hotel
Cheap hotel
- Interests With this segment we can separate customers according with their hobbies or things they like to do in their free time. About the criteria we can say that is durable because normally a person who like doing something is not for a short time, he will do that thing whenever he can.
- Gender This segment separates people in two groups. Men and women.
Of course this segment is durable, because these groups always will exist.
D.1 Effective segmentation. An effective segmentation in the desing of an effective comercial strategy in the tourist sector determines the acceptance that is going to have the commercial strategy. To obtain the objetives, the company must use a suitable segmentation in the tourist sector classifying to the clients and the market on demographic bases like: • POPULATION (urban-rural) • AGE • SEX • PHASES OF THE CYCLE OF THE FAMILIAR LIFE • RACE, RELIGIOUS, NATIONALITY • MONEY • WILL TO SPEND MONEY Finally, when we obtain these objetives, we obtain these benefits of the segmentation:
1. More effective use of marketing dollars. 2. Clearer understanding of the needs and wants of selected customer groups. 3. More effective positioning. 4. Greater precision in selecting promotional vehicles and techniques.
D.2 The need of an effective segmentation. The Spanish tourism can be divided in segments as: the Sun and beach, cultural, rural tourism, business tourism ... it is necessary realize an effective segmentation to answer both from the field of planning and from the promotion in the sector of the Spanish tourism. If there is no segmentation of market, the companies will be selling the same product to all the consumers, which ones has different needs. E.1 Segment of Spanish marketing. The market in the Spanish tourism is a heterogeneous market, presents groups of different consumers with attitudes and opposite values. The different segments allow to locate groups of different tourists who demand an offer to his measure and to manage to realize new products and services, this way as the disappearance or modification of already existing others. Every person will have a different motivation to realize a trip, this was concerning the type of product, service or destination. The different segments on the tourist Spanish market are: • Sun and beach: involves the destiantions for relaxation tourism can be attractive scenery or sun, sea and sand. • Cultural tourism: tourist are corious about different kinds of experiences and cultures, they travel to learn and experience the culture of a tourist destination •
Mountain and rural tourism: this tipe of tourism involves a set of activities developed in contact with nature, country life etc..
•
Sport and health tourism are similar, Nowadays this type of tourism is developing very much, every day the people take care more his health than 40 years ago for example
• Business tourism: travel for vaious purposes, business travelers would choose first-calss or business-class for their flight tickets, this a few years ago wasn`t possible to do.
E.2 Kind of products and services.
The product is the set of goods and services that shape the tourist experience of the visitor and that satisfy his needs. Sun and beach tourism offer ins spain is the most demanded because of their good climate the sea and the beaches. Mediterranean sea is the most important region in this kind of tourism . The tourist service is the set of activities perfectly differentiated between if, but related since they work in form coordinated in order to answer to the exigencias of services raised by the socio-economic composition of a tourist current, tipes of services: • Travel agency: An agency is a company dedicated to the intermediation, organization and plans and elaborates and bandages tourist products between his clients and suppliers of trips •
Tourist guide: Person that guide to the visitors in the language of his choice and it interprets the cultural and natural heritage of a zone
• Health service • Hosting service: building or building destined to serve for housing during the period of leisure that passes out of his habitual domicile • Transport service: Commercial enterprises you publish or private that possess infrastructures to move persons and baggages • Information service • Intermediation service
F.1 Main strategies.
1- Penetration strategy (investment on communication, prices must be attractive) 2- More popular product (prices not high, distribution cost higher to a bigger number of clients) 3- Comepetitors appear: (the competence is a big problem) 4- Rejuvinate: (competitors looking for customers so you have to rejuvitante your prices)
5- Decline starts( that requires a diferent marketing strategies)
G1 and H1. Trade instruments used in tourism marketing. There are four different instruments which we use in tourism marketing (marketing mix). They are the following: 1. Product: The goods and/or services offered by a company to its
customers. 2. Price: The amount of money paid by customers to purchase the product. 3. Distribution: The activities that make the product available to consumers. 4. Communication: The activities that communicate the product’s features and benefits and persuade customers to purchase the product. G2 and H2. Value of the instruments. Product Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales fall. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product moves. Price When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account. Distribution Refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix Communication Advertising covers any communication that is paid for, from cinema commercials,
radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Wordof-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations (see 'product' above)