SEGMENTATIO N
2015
MÓNICA BOLÍVAR SALVADOR
INDEX
STEPS FOR THE REALIZATION OF AN EFFECTIVE SEGMENTATION
WE IDENTIFY THE MARKET
WE APPLY 5 VARIABLES TO OBTAIN SEGMENTS
PURPOSE OF TRIP
LIFESTYLE
NATIONALITY
EXPENDITURE
IN ORDER THAT IT IS AN EFFECTIVE SEGMENTATION, WE APPLY 8 REQUIREMENTS MEASURABLE SUBSTANTIAL ACCESSIBLE DEFENSIBLE DURABLE COMPETITIVE HOMOGENEOUS COMPATIBLE
AGE
PURPOSE OF TRIP
EXPENDITURE
AGE
LIFESTYLE
THE VARIABLES OF THE SEGMENTATION
In the segmentation there are 5 types of variables: ●
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Purpose of trip: The concept to purpose of trip segmentation (dividing hospitality and travel markets according to de primary purpose of the customer's trip) is widespread. Some examples are: lodging, restaurant, travel agency, cruise line and airline . Nationality: The nationality consists of subdividing the markets in segments for his location (the regions, countries, cities and towns where the people live and work). The reason is that the desires of the consumers and the use of the products are in the habit of relating to one or several of these subcategories. Lifestyle: The concept to lifestyle is the way we live. And the way we live is a function of our attitudes, interests and opinions. Our interests are things that we spend time on an that get our attention. They include our families, jobs, hobbies and other items. The interaction of attitudes, interests and opinions often shortened to the AIOs determines how we live. Expenditure: This segmentation dividing markets based on population statistics. These statistics include age, sex, household and per capita income. Age: People of the third age prove every day mas interesting for the companies, for his volume and economic stability. The major ones of 65 years assemble two exceptional conditions: good purchasing power and free time.
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Measurable: we are in need to set marketing objectives in numerical terms and to measure the result of marketing plans. For example: incremental sales, web traffic source and goal competition rate. 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 pusrsue it.
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Accessible: the essence of market segmentation is being able to to selec and reach specific customer groups. Defensible: the marketer must feel confident that the organization's share of each target market can be defended from competitiors.
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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. Competitive: the more pecisely 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. Homogeneous: the organization should make sure that the segments are as different from each ohter, or as heretogeneous, as possible. At the same time, the people within each segment should be as similar, or as homogeneous, as possible. Compatible: when an organization selec a target market it must be sure that the market does not conflict in any way with the markets it already serves.
PURPOSE OF TRIP
NATIONALITY
LIFESTYLE
AGE
EXPENDITURE
THE THREE SEGMENTS
MORE IMPORTANTS This segment of the variable of the purpose of trip accomplish with the following requirements: Measurable, substantial, accessible, defensible, durable, competitive, homogeneous and compatible.
This segment of the variable of the nationality accomplish with the following requirements: Measurable, substantial, accessible,defensible, durable, competitive, homegeneous and compatible.
This segment of the variable of the age accomplish with the following requirements: Measurable, substantial, accessible, defensible, durable, competitive, homogeneous and compatible. 7
THE IMPORTANCE OF THE SEGMENTATION
WHAT?
WHO?
Which market Segments should We pursue?
WHERE?
Where do we promote our services?
HOW?
How do we develope our marketing programs to best fit their needs and wants
What are they looking for in our types of services?
WHEN?
When do we promote them?
For example: It would be more profitable more money to become exhausted in the United Kingdom that in Chile, because in United Kingdom the tourist British infrastructure allows to choose between diverse ranges of prices to attract to a tourists' wide spectrum. 8
NEED OF AN EFFECTIVE SEGMENTATION To be able to raise a good commercial stratregy, we must bear in mind: ●
.Breaking the strong seasonality of tourist flows: The high seasonality of activity is reflected in saturation destinations in high season and it affects satisfaction levels of demand.
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The tourism of the Sun and beach is very important, but it has begun to give samples of depletion due among other things, to the competitive advantage of the low prices. To assure the major socioeconomic profitability of the destinations from the knowledge and the orientation to the tourist market.
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Spain is the top tourist destinations. Adapt systems management and marketing of tourism enterprises to needs of the new environment.
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Improve the competitive environment. To assure the major socioeconomic profitability of the destinations from the knowledge and the orientation to the tourist market. To assure the quality of the tourist experience and the comfort of the companies recipients. To stimulate the competitiveness of the destination in the development and commercialization of tourist products of great value. Depending on the arrival of Germans, Frenchmen, English men (for example) to ours to country, our market can go better or worse, (exterior independence).
VALUATION OF THREE SEGMENTS
UNITED KINGDOM
United Kingdom is the country most visited of the world, since it has a high number of tourists (15.006.744). And it has an annual percentage change (4,7).
The young people of between 18-24 years, are who more travel, already be for motives of work / study or simply for pleasure and in his free time. They reach 100 per cent. It is a competitive market.
LEISURE AND HOLIDAYS
In this segment, we can see that a high number of tourists (56.230.900) travel for motive of leisure and holidays, since they have more free time to travel. And it has an annual percentage change (6,9).
AGE 18-24 YEARS OLD
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TYPES OF PRODUCTS/SERVICES IN THE DIFFERENT SEGMENTS
UNITED KINGDOM
The young persons travel abroad for ERASMUS, or to look for work due to the high unemployment in Spain. For example; a person who live in Barcelona, travel to Italy for to learn Italian.
LEISURE AND HOLIDAYS
AGE 18-24 YEARS OLD
There are many people of Toledo who decides to spend his vacations in Canarias, because there is very good climate and to relax. Another thing for that they decide to travel, it is because in his city they do not have beach. 12
PRINCIPALS STRATEGIES There are three general strategies for selecting your target markets: â—?
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Undifferentiated Targeting: This approach views the market as one group with no individual segments, therefore using a single marketing strategy. This strategy may be useful for a business or product with little competition where you may not need to tailor strategies for different preferences. Concentrated Targeting: This approach focuses on selecting a particular market niche on which marketing efforts are targeted. Your firm is focusing on a single segment so you can concentrate on understanding the needs and wants of that particular market intimately. Small firms often benefit from this strategy as focusing on one segment enables them to compete effectively against larger firms. Multi-Segment Targeting: This approach is used if you need to focus on two or more well defined market segments and want to develop different strategies for them. Multi segment targeting offers many benefits but can be costly as it involves greater input from management, increased market research and increased promotional strategies.
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COMERCIALS
INSTRUMENTS ●
Undifferentiated Targeting
PRICE DISTRIBUTION PLACE
PRODUCT
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Concentrated Targeting:
In this one, only there is a segment, as for example: the persons of the third age, to those who likes to travel to other cities to realize some type of activities or to see monuments. They speak with travel agencies and organize the trips, and they travel in bus. The trip would be to stay one week in Sevillle, and the price would be of 80â‚Ź for pair (aproximatly), due to the offer that there is for people of third age (major of 60 years old).
SEVILLE
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â—?
Multi-Segment Targeting:
Here we can differentiate two segments: for families and students. We can see that there are offers for both. The students: The product is the amusement park. The trip is to Barcelona, to port aventura. The price is the 20â‚Ź for person. Gratuitousnesses: A free pass of 20 persons each payment. And the distribution: booking.com
The families: The product is the amusement park. The trip is to Barcelona, to port aventura. They have a rate of 110 â‚Ź, that includes entry of the parents and 6 children. Or reserving a minimum of two rooms in one of the hotels, the families can enjoy of a discount of 50 % in the second room. And the distribution: booking.com
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BIBLIOGRAPHY CLASS NOTES STATISTICS TOUR SPAIN THIRD AGE EFFECTIVE SEGMENTATION MARKETING MIX