MARKET SEGMENTATION
Silvia Ontiveros Ruano Loles Martínez Jiménez
I N D E X
- WHICH VARIABLES DO WE APPLY TO DO A MARKET SEGMENTATION? - SEGMENTATION CRITERIA - CRITERIA IN THE MAIN 3 SEGMENTS HOLIDAY & LEISURE - CRITERIA IN THE MAIN 3 SEGMENTS - IMPORTANCE OF AN EFFECTIVE SEGMENTATION -NEED OF AN EFFECTIVE SEGMENTATION - RELATE AND VALORATE THE 3 SEGMENTS - PRODUCTS AND SERVICES OFFERED TO THE SEGMENTS - MAIN ESTRATEGIES OF THE 3 SEGMENTS - COMMERCIAL INSTRUMENTS OF THE STRATEGIES - COMMERCIAL INSTRUMENTS IN EACH STRATEGY - POSITIONING COMPATIBILITY WITH THE PRODUCTS - ANALYSIS OF THE PRODUCTS DESIGNED FOR THE SEGMENTS
WHICH VARIABLES DO WE APPLY TO DO A MARKET SEGMENTATION?
Decide which variable to apply ●
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Identify the market
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We obtain segments ●
In this point we have included a.2 and b.1
We select market arrangements
We check this segments best meet the criteria for effective segmentation
PURPOSE OF TRIP: People may travel because of different purposes. Some of them are more famous than others
NATIONALITY: Tourists come to our country from a lot of different Countries. As we have seen before there are main countries who send tourists to Spain.
10.422.055 tourists 9.539.035 tourists 9.318.737 tourists
GERMANY
6
4
10.615.746 tourists 9.539.035 tourists 8.913.399 tourists
FRANCE
7 2012 2013 2014
5
15.006.744 tourists 14.333.733 tourists 14.333.733 tourists
NITED KINGDOM
0
1
2
9
7 3
In this point we have included a.2 and b.1
4
5
6
7
8
9
10
LIFESTYLE:
Depending on the lifestyle of each tourist they choose one destination or another. E.g.: green tourism, business tourism...
AGE: Variable which may be divided in many segments depending on the interests of the company.
EXPENDITURE :
The expenditure consists on the money that tourists spend in our country.
In this point we have included a.2 and b.1
SEGMENTATION CRITERIA MEASURABLE: We are in need SUBSTANTIAL:Every market has to set marketing objectives in numerical terms
a target. It has to be big enough to warrant and separate investment.
ACCESIBLE: The market
DEFENSIBLE: Each target
essence of market segmentation is being able to select and reach specific customer groups
market can be defended from competitors.
DURABLE: We shouold try to
COMPETITIVE:As much
Make a long term segmentation avoiding fads
precise is the service more likely Is it to be solved. Nowadays there are a lot of services very similar between Them. It also needs to fit the needs the best it can.
HOMOGENEOUS:The segments COMPATIBLE: When an should be different from each other
organization selects a target market it must be sure that the market does not conflict in any way with the markets it already serves
CRITERIA IN THE MAIN 3 SEGMENTS HOLIDAY & LEISURE
- There is an average of what travellers prefer. In Spain, they prefer travelling for holiday and leisure. The average is 56.230.900 - There are many purposes and all of them must warrant an investment (with this investment new hotels and new companies are open) - There are different kinds of holiday trip in order to be accesible and to reach specific groups of customers.
- It can be deffend from competitors, that is why there are many different hotels and restaurants and we can contrast our industry and holiday options with another countries. - It is not interested in fads, beach tourism started in Spain in 50s and it is still a tourism destination very demanded and it may still grow. - There is a full competition market, there are many different hotels and restaurants. It gives incomes to the industry - All tourists are searching the same, they are looking for vacations
- It does not contradict any of the other products or services that are offered by Spanish tourism market
CRITERIA IN THE MAIN 3 SEGMENTS UNITED KINGDOM
- The average of British people that come to our country. There is an average of 15.006.744 person coming to Spain - Spain is big enough in order to attract people with the different tourism kinds that are offered. - There are different kind of english people who come, youth, older, middle age... and each segment looks for an experience.
- It can be compared to another country, for example Germany, who also send a lot of tourists to Spain - It is a durable segment because English people has been coming to Spain since 1960 and the prediction is that they will still come. - This segment is competitive, it gives profits to the industry as other countries, but they give more. - All people in this segment are looking for the same although they are fom a different age segment. - It is a compatible segment because it does not contradict with any other segments and people from many countries come to Spain and they do not conflict.
CRITERIA IN THE MAIN 3 SEGMENTS FROM 55 TO 64 YEARS
- It is a compatible segment because it does not contradict with any other segments and they also can do the same thing that are done by other age segments. - The age average of people who travel to Spain and also into Spain. There is a 36,2% people who travel in this age range. - This segment is substantial, it is emasured in more than a third part of the total. - This is an specific group, a segment in which tourism industry may offer specific destinations and experiences.
- It can be compared to another age range, for example from 18 to 29 years, who also travel in and to Spain. - It is a durable segment because they have been traveling along the history. Some years more than others, but they still travel and they are supposed to continue doing it. - This segment is competitive, it gives profits to the industry as other segments, but as they are working and have incomes, they are leaving more profits to the industry. - All people in this segment are looking for the same, tourism, relaxing...
IMPORTANCE OF AN EFFECTIVE SEGMENTATION Where?
Who?
What?
These are the main points in which segmentation is based in order to have the bests results they can and to give the customer what he or she is looking for in the right moment, the right place, the right product or service, in the right way
When? How?
NEED OF AN EFFECTIVE SEGMENTATION Spanish tourism market needs a segmentation because it has seasonal problems. We have to offer summer vacations, and we have different reactions from consumers if we compare these to the winter vacations reactions. The base is the development of an effective marketing plan, we need it in order to promote our national destinations.
The better serving to the segment, the more satisfied they are, and they will come back, but we have to know what they are looking for, that is why we do a segmentation of the market. It is difficult to increase the whole market, but we can improve it step by step and there also are premium segments for customers with higher level.
RELATE AND VALORATE THE 3 SEGMENTS
- This segment is one of the most important in Spanish tourism, as it has an 86,5% of the total puroposes of trips. - This is one of the main kind of tourism that Spain has. And is one of the most demanded by foreing countries e.g.: United Kingdom, Germany....
.
- It is one of the biggests incomes in the coastal destinations. Spain is one of the warmest countries in European Union - This segment is very important in tourism because is one of the main tourists sender to Spain. - Almost all tourists from this nationality are looking for the same kind of experiences, which make Spanish tourism more homogeneous. - This is a big segment, it involves a huge age range. It makes it being not as homogeneous as can be another segments - This is a very important segment nowadays because people who grow will achieve this age and they will travel although they are travelling in an inferior age range. - It is also very important because people of this age range have more incomes than an inferior age range, and it has an indirect consequence because they have job and economic stability.
PRODUCT AND SERVICES OFFERED TO THE SEGMENTS HOLIDAY & LEISURE
UNITED KINGDOM
55-64 YEARS
MAIN ESTRATEGIES OF THE 3 SEGMENTS
TARGETING
Undifferentitated: This strategy is used for individual segments. That is why it is related to the biggests segments. In spanish marketing it is used with Sun and Beach.
Concentrated: Selct a particular market. Golf is detined to tourists and mostly to United Kingdom popularion. They are offered it in many packages and travel agencies
Multi-segment: Focus in two or more well defined segments. For example, international routes, for senior or people who want to do sightseeing
click here> TARGETING AND POSITIONING
COMMERCIAL INSTRUMENTS OF THE STRATEGIES
PLACE: Www.booking.com
PRODUCT: Hotel at beach
PROMOTION: People's opinions Offers...
PRICE
PROMOTION Online travel agency PRICE
PRICE
PLACE Www.golfspain.com
PRODUCT
PRICE
PLACE: Prado's museum PROMOTION: web Online communication
COMMERCIAL INSTRUMENTS IN EACH STRATEGY
UNDIFERENTIATED: Sun and Beach. Almost all hotels and destinations are promoted in the same way. They all sell Accommodation,restaurants, activities in the hotel and, depending on the location, they may offer some activities or anothers, for example: Tarifa may offer surf classes while in Benalmรกdena, they can offer Golf or Paddle surf.
CONCENTRATED: destined to a concrete group of people. For example, hotels in Andalusia, mostly in Malaga and Cadiz, offer golf. They are a lot and each one has a price and offer a different thing of the other to compete with them.
MULTI-SEGMENT: It destines the product to some segments. For example, international routes may be done by a lot of people, but we are talking about people from 55-64 years.
POSITIONING COMPATIBILITY WITH THE PRODUCTS Sun and Beach Hotels, there are an enormus amount of them, but each one offers a different thing, or almost tries to differentiate itself of the otheres. People who travel finally choose a hotel chain, that is positionins, because they have that hotel in mind. Otherwise, if they have not chosen a chain, they can be thinking on where they are going and what they will do there, this is another way of thinking on the hotel. So, positioning, and this tourists product are compatible.
Golf: a lot of people travel in order to practise this sport. They have in mind the golf course, the weather, and also the location. South Spain is the best place to play golf. They are waiting to come to play golf. As they are thinking on coming and playing golf, positioning is working.
International routes are a very demanded travelling offer. Most of the tourists are waiting this routes to disabled and change from their usual lifestyle. Positioning is working as they are waiting to go to their trip.
ANALYSIS OF THE PRODUCTS DESIGNED FOR THE SEGMENTS In Spain, one of the main kind of tourism is Sun and Beach. It is offered all along the world and Spain receives many tourists from a lot of different points of the world. Spain has to compete with near and similar places, for exaple Algarve. They have to compete and also have similar prices. It is a great segment of the spanish tourism market although it has a very high seasonality.
United Kingdom is one of the main tourists sender to Spain. There are differnt kind of tourists, the one who come to relax or play golf, youth people, who come to party, cultural travellers... It is a great and a continuous segment, English people has been coming for many years.
BIBLIO AND WEBGRAPHY
Google Images
TripAdvisor
Golf Ofertas
Halc贸n Viajes
International Routes
Class Documents
National Institute of Stadistics Booking
Class Notes