MKT MAGAZINE 1,75 $
TOURISTIC MARKETING AN INTRODUCTION TO TOURIST MARKET Manuel ﾃ］gel Venegas Garcﾃｭa Clara Orgaz Bernal
APRIL
C.P.I.F.P.HURTADO DE MENDOZA
2015
CONTENTS
What do we know about the segmentation of the actual touristic market? ……………………………............... 3 - 4 Steps for an effective segmentation …………… 5 – 6 Why do we choose these variables? …………… 7 Criteria for an effective segmentation………… 8 Segments that fulfill these criteria………………. 9 Reasons for MKT segmentations…………………. 10 Know more about the main segments…………… 11 Strategies used to act with these segments……. 12 – 13 The analyze of the positioning of Andalucía in the tourist market……………………………………………… 13 - 14
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MARKET SEGMENTATION What do we know about the segmentation of the actual touristic market? In the touristic market we can find different variables to do segmentation but we will see the four main used:
NATIONALITY
PURPOSE OF TRIP
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AGE
LIFESTYLE
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Steps for an effective segmentation 1. We have identified these four variables in the touristic segmentation.
2. We have chosen the most important segments in these variables. Age
NATIONALITY
LIFESTYLE
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PURPOSE OF TRIP
It is easy
It is easy to find offers
3. Then, we have found products for these segments.
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Why do we choose these variables? As you have seen, the four variables used are groups which cover a huge part of the tourists that we receive in Spain. Let´s see why they are so important! Age We divide our tourists in two main average age groups; 25 – 44: It is the biggest group of tourists, with 43, 1 %, data from the IET. The majority of them look for enjoy our climate on the beaches, doing activities on nature, etc. 45 – 64: Is the second biggest category with 32, 2 %. Unlike the previous group, they are looking for more relaxed ambient, cultural and religious activities, and another treatment.
Nationality Spain is the fourth most visited country by foreign tourists, and receives an average of 60, 7 millions of tourists. Don´t we should to give them a special treatment? British: Over than 14 millions of British tourists come to Spain every year. Most of them looking for sun and beach. German: They are almost 10 millions every year and they use to spend an average stay of 9, 7 days.
LIFESTYLE Our tourists use to spend their vacations mainly in couple (41, 7%) but also we’ve got a large quantity of single tourists (23, 6). The 67, 7% of them make purchasing, which reflect their economy. The type of accommodation shows their lifestyle and how do they enjoy their vacations, in hotels (66%), VFR (12,6%), rent houses (10, 5%), camp site (2,26%) and finally is taking place in the touristic market the rural houses (0, 82%).
PURPOSE OF TRIP This category is very influenced by the climate and features of Spain. We can make difference between internal and external tourism but they share the main first purpose of trip which is leisure, mainly sun and beach. External tourism: The main purpose of their trip is leisure (86, 6%). A huge difference with the second purpose, business, with just (6, 7). Internal tourism: The main purpose also is leisure (51, 9%). But the difference is not so huge with the second purpose of Spanish people for trip in our country, VFR (35, 9%).
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Criteria for an effective segmentation Before define your products you need to know that your potential target markets meet the following eight criteria in order to have a positive and useful segmentation;
It is really important to set marketing objectives in numerical terms, mainly to measure the results of marketing plans. You can´t guess you need to know every detail by measurements because there is where you will invest. Substantial: A target market must be big enough to warrant a separate investment. In other words, it must produce more profits than the amount required to pursue it. Accessible: We must avoid target markets that cannot be reached with precision, it does not interest to waste effort and basically money. Defensible: Give individual attention to all segments groups and make sure that it can be defended from our competitors. Durable: Some market segments are short or medium term, so they exist for less than five years. The prudent marketer should be convinced that each target market has long term potential. Competitive: We need to know that we offer something distinct or unique to these customers. The more precisely the service fits the needs of a particular segment; the more likely it is to succeed. If a service does not match the needs well, there is a little point in pursuing the segment. Homogeneous: The companies should make sure that the segments are as different from each other as possible. At the same time, the people within each segment should be as similar, or as homogeneous, as possible. Compatible: We must be sure that our new target market is compatible with the customer mix (combination of target markets that an organization serves); what does it mean is that it cannot conflict in any way with the markets it already serves.
Measurable:
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Segments that fulfill these criteria GERMAN
BRITISH
YOUTH (25-44)
We can see that our segments fulfill those criteria because we can find products. That is because the segment and product have positive increase and demand in the Spanish Tourism Market.
LEISURE (SUN AND BEACH)
BREAKS FOR COUPLES 9
Reasons for Market Segmentation The essence of good marketing is to pick out the segments that are the most interested in specific services and to aim marketing programs at them. The principal reason for segmentation, therefore, is to focus effort and marketing dollars in the most effective way and basically to have an effective positioning. For this we need to use the next questions: Which market segments should we pursue? What are they looking for in our types of services? How do we develop our marketing programs to best fit their needs and wants? Where do we promote our services? When do we promote them?
PECULIARITIES OF THE SPANISH TOURISM MARKET PRODUCTS THAT CONDITION THE SEGMENTS IN THE SPANISH TOURISM MARKET
In our touristic market we can find a special feature that belongs to it since we start to commercialize the brand “Spain”. The Spanish Tourism Market has a touristic base in which we can see a predominant segment, also affected by our geographical features and climate. This is the “sun and beach tourism”. It represents almost more than a half of our tourism market, and Spain just need to look for the tourists for this product in the past.
As we have seen in the Spanish tourism market exist different characteristics that differentiates it from others. Is the example of products that condition your target segments. In a normal procedure you look for a segment and then create your products to accomplish and fit in a proper way their needs and wants.
But nowadays Spain is developing new special products, new types of tourism and looking for new segments. We are discovering that exist more segments to which we can provide and fit their needs and wants. Is the case of the rural tourism, which is experimenting an up growth, an increasing in the Spanish tourism market. For example, the creation of new infrastructures and opportunities or mind changes to create different types of tourism.
So in the Spanish tourism market we must to have another strategy when we use the segmentation. That is what in Spain is usually done, we have the climate, the geographical features and the coastal zones for example, and then we look for segments that fit with our products.
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Know more about the main segments
British They represent the 23% of our tourists. The main purposes of this segment in order are, sun and beach (55%), cultural (25%), sport and nature (15%), and finally MICE (5%). British people use to choose 4 and 3 stars hotels and the 60% of them repeat their destinations which use to be Baleares, Canarias and Andalucía. The average stay is around 8, 8 days and spend in each day an average of 93, 1 Euros. Finally the level of satisfaction is 8, 6 over 10, a good mark for our level of market.
German The tourists from Germany represent in Spain the 16, 5%, and just in Baleares the 7, 6% of them. They are the tourists who spend more days in Spain with an average stay of 9, 7 days. Also they are who spend more money in here with an average of 101, 6 Euros per day. The main purpose of their trip is sun and beach with 35% and use to repeat their destinations around a 40% of them. Finally the level of satisfaction is 8, 2 over 10, also a good mark taking into account the level of requisites of the German people.
Youth (25-44) The youth segment is getting powerful because is one of the segments that better has resisted the economic crisis. They don’t use to have a planned trip and don’t book packs. Their stances are so varied and no seasonal. Their income is not so elevated, as their daily expenditure average but they use to spend more days than the other segments.
Leisure (sun and beach) More than the 80% of the total tourist in Spain decide to travel for sun and beach tourism. Spain has a huge dependence of these segments which are very seasonal. We receive tourist from UK (5, 6%), Germany (6,9%) and France (11, 5%). Their preferences are Cataluña (25, 6%), Canarias (11, 4 %) and Andalucía (8%). The 62, 7% decide to stay in hotels and rent houses by the 17, 3%. The 29, 7% of the total uses packages to travel to Spain.
Breaks for couples The characteristics of this segment are similar to the youth, but with the difference that it is seasonally. Is gaining power and it’s a segment to take in account when planning marketing campaigns and offers!
As we have seen in the Page 9, we can find too many different offers for the main five segments that we are studying. And that is because those segments accomplish the criteria that characterize the successful segments. We will find offers for our needs and wants in Spain.
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Strategies used to act with these segments The products we consume during our life are sensible to changes and they evolve with the pass of the time. To keep obtaining benefits, we must apply the best strategy so we can categorize the products depending on their life cycle. The four common strategies in marketing segmentation are: -
Market introduction strategies Market growth strategies Market maturity strategies Market decline strategies
Let’s analyze the strategies used to the segments chosen: British, German and Sun and Beach These segments are fully in the”maturity stage” of their life. We don’t need to prepare big campaigns to announce our beaches to these segments, just to do an advertisement or an offer on the internet occasionally. The sales growth slows, stabilizes and starts to decline. The product is already known for the tourist (he/she has heard about it), the prices are low and affordable, the distribution is easy; nowadays, we can do any reservations by internet, or going to one travel agency and the communication isn`t massive. We have to have in mind that this product is already sold.
Youth and Couples: In this case, the segments are in the “growing stage”. They are already known, but not enough to don’t have the need to be constantly creating marketing campaigns; this stage needs to be taken care of. These kinds of tourism are getting powerful and they propose an alternative to the massive sun and beach, In that stage we choose from two additional strategic alternatives: the segment expansion or the brand expansion.
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The product is growing and taking place in the market; innovates and marks the difference. The prices cannot be expensive; should be accessible because we need the customer being interested on try this new product. The distribution is similar to the maturity stage; book the services by the internet or in travel agency. The communication is different at all from when one product is in the maturity stage; they try to create tempting offers in order to “hook” clients as much as possible.
As we saw before, in each strategy four commercial instruments are used depending on the stage of the product they have different characteristics. These four commercial instruments are: The product The price The distribution The communication
The analyze of the positioning of Andalucía in the tourist’ mind
How many tourists do repeat? Are our tourists satisfied with the experience? Does our tourism gaining quality in the services, or becoming worse?
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As you can see, the quality of our tourism has increased from five years ago. Our tourists think are
more
satisfied than before with the services we provide them. 4/10 tourists repeat this tourist destination.
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