Spanish tourism market segmentation
Daniel Almazรกn Murcia Andrea Llosรก Roger Sandra Rosales Contreras
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Contents: ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●
Six Steps for effective segmentation in the Spanish tourist marketing …...........3 The five variables of marketing segmentation ….................................................... 4 The five variables of marketing segmentarion …................................................... 5 The variables in Spain ................................................................................................6 The variables in Spain ................................................................................................7 The eight criteria for an efective segmentation …..................................................8 Marketing segmentation : 3 segments …..................................................................9 Importance of an efective segmentation ….............................................................10 Importance of an efective segmentation ….............................................................11 Segmentation inthe spanish tourism sector ….......................................................12 Importance of this three segments …......................................................................13 What do Travel Agences offer to the three segments? …......................................14 What do Travel Agences offer to the three segments? …......................................15 Talking about the strategies used to the segments …...........................................16 What commercial instruments are used in them? ….............................................17 Positioning of the principal tourists products …...................................................18 Positioning of the principal tourists products …...................................................19 Value of the different instrumets of products …...................................................20 Webgraphy ….............................................................................................................21
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Six Steps for effective segmentation in the Spanish tourist marketing
Identify the market
We obtain segments
Decide which variables to apply
We check which segments best meet the criterial for an effective segmentation
We apply these variables to the market
We select Target Markets
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The five variables of marketing segmentation: 1.- Purpose of trip
2.- Lifestyle
3.- Age
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4.- Expenditure
5.- Nationality
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The variables in Spain Most of the tourists travel for leisure and vacation. A percentage less work and business and a percentage minimum for various reasons.
PURPOSE OF TRIP
The largest tourist motive is the cultural with a 50 %.En a smaller percentage have activities and fun with a 28 % and 20 %, respectively.
AGE
LIFESTLYE
This is one of the traveler profiles every entrepreneur should kn monitor the launching his project, since it is one that provides more opportunities, designed to monitor the seniors active, defined by age 50 "using travel as a means to achieve their life goals "Among the advantages that make this profitable segment is the time factor," to have more free time 6 senior tourist puedeviajar more than once a year.
The variables in Spain Total tourism expenditure is 63094 million euros and average expenditure per person is of 971 euros. United Kingdom is the country that spends more, followed by Germany and France.
Nationality
Expenditure
We have a total of 7.166.208 million tourists a year who visit our country, of which the United Kingdom, France and Germany are more visitors.
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The eight criteria for an effective segmentation Measurable:
Durable:
Some form of data should be available to measure the size of the market segment. This is very important to be able to evaluate the overall attractiveness of each segment.
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.
Substantial:
Competitive:
A viable market segment is usually a homogenous group with clearly defined characteristics such as age group, socioeconomic background and brand perception.
The more precisely the service fits needs of a particular segment, the more likely it's to succeed. On the other hand, if a service does not match the needs well, there is little point or pursuing the segment.
Defensible:
Compatible:
The marketer must feel totally confident that the organization's share of each target market can be defended from competitor
When an organization select a target market it must be sure that the market does not conflict in any way with the markets it already serves
Accesible: The segment has to be accesible and servable for the company. That means, the costumer segments may be decided considering that they can be accesed through various targetgroup specific advertising media such as magazines or websites.
Homogeneous: This means that the consumers allocated to each segments should be similar in some relevant way. This is the basis of market segmentation, that the costumers in each segment are 8 similar in terms of needs and charasteristics.
Marketing Segmentation Attending to the eight marketing criteria we can identify the next segments: -Purpose of trip : Mainly E.U countries (Germany, France, UK...) leisure and vacacional – 56.230.900 total-86,5 % - 6,9 -Nationality: United Kingdom, France, Germany. Visit more places: Canary Islands, Catalonia, Andalusia. 15.006.744 total - 23,1 % - 4,7 -Expenditure: United Kingdom 12.746 mil euros – 5,9 % var ; 849 euros – 1,1% var : 96 euros - 0,2% var : 9 noches – 1.3 % var
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Importance of an effective segmentation 1.More effective use of marketing budget. 2. Clearer understanding of the needs and wants of selectedcustomer groups.
3.More effective positioning 4. Easier creation of a place in the minds of potencial costumers withing target markets about the product. 5. Greater precision in selecting promotional vehicles and 10 techniques.
Importance of an effective segmentation in the Spanish tourism sector: Characteristics of the Spanish tourist market: 1. It is a consolidated market. 2.Seasonality problems. 3.Great dependence on the Spanish market. 4.It's heterogeneity. 5.It's corporate structure. 6.It's economic importance within the national production. 7.It's employment generation. 8.The deficit of staff. 9.Territorial concentration of tourism.
Why is it important? - Locate new emerging groups of tourists who demand a customized offer. - Segments also experiencing signs of maturity or decline can be detected. - It's the basis for a develping targeted and effective marketing plans. - Analysis of market segments enables decisions aout intensity of marketing activities in particular segments. -It's possible to satisfy a variety of costumer needs with a limited product rang e by ussing different forms, bundles, incentives and promotional activities.
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Importance of the three segments:
Leisure & Vacational:
Nationality:
Expenditure:
We have to highlight the importance of the three segments already mentioned because they contribute more than 50.000 millions of euros to the GDP and more than 70 millions of tourists mostly from United Kingdom, Germany and France. They are europeans countries which have a very good economic situation and thanks to the spanish labor advertising their tourism products, they spend and investment their holidays here in Spain. Without them the tourism activity in Spain it's not the same because they participate it determinedly.
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What Travel Agences offer to the three segments?
Like we can observe in the image, travel agencies offers of Spain the very great weather and the lots of leisure activies you can do like the night life. La Rambla, Mediterranean Sea, always exploring and never boring.
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What Travel Agences offer to the three segments?
Like we can observe in the image, travel agencies offers of Spain the very great weather and the lots of leisure activies you can do like the night life. Gran Via, Castillan Road and the Royal Palace follow up the very complete offer of Expedia Deustchland about Madrid. 14
Talking about the strategies used to the segments: Choosen our targets, now it's time to select strategies, and no one strategy will suit all consumer groups, so being able to develop specific strategies for our own target markets is very important. We can find three different stratefies for selecting the target markets. -Undifferentiated Targeting: This approach views the market as one group with no individual segments. This strategy may be useful for a business or product with little competition where you may not need to tailor strategies for different preferences. For example the Sun&Beach tourism. -Concentrated Targeting: This approach focuses on selecting a particular market niche on which marketing efforts are targeted. It's focused on a single segment so you can concentrate on understanding the needs and wants of that particular market intimately. For example the Imserso offer for old people. -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. It's offers many benefits but can be costly as it involves greater. Here we can find a example of Disney Land, where we see two segments.
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What commercial instruments are used in these strategies? Undifferentiated Targeting: For example in the tourism of Sun and beach offer the good climate, the sea and the beaches.The offer has been characterized by the predominance of tourist packages little differentiated, marketed through tour operators and great sensitivity to the price by demand.The sun and beach tourism based on the model of mass tourism has led to a high concentration of facilities in coastal areas, as well as the concentration of buying power in the hands of a few tour operators that are part of large groups that also operate flights charter and have networks of travel agencies and more recently, portals online travel sales. On the other hand, the low cost airlines have allowed more flexible supply and facilitate increased independent tourism.
Concentrated Targeting:
For example, in IMSERSO, it's offer to the elderly can enjoy breakfast in warm climates, cultural trips to learn about the history and art of Spain, or to develop recreational and contemplative activities through nature tourism. They can access the program from seniors age 65, retirement pensioners, other pensioners from 60 years. In the month of May each year requests are distributed through the Centers for the Elderly and Social Services Offices of the Autonomous Communities and municipalities. Applications are also available on the Internet at www.imserso.es page.
Multi-Segment Targeting:
Disneyland is aimed, above all, families and study trips. The product main offering is the family fun, enjoying the rides and shows organised. Disneyland is distributed through travel agencies and online.
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Positioning of the principal tourists products:
Positioning is a form of market communication that plays a vital role in enchancing the attractiveness of a tourism destination. It's main objective is to create a distinctive place in the minds of potential costumers. A position that evokes images of a destination in the costumers mind: images that differentiate the destination from the competition and also as a place that can satisfy their needs and wants. Positioning is a communication strategy that is the natural follow-through of market segmentation and target marketing. 17
Positioning of the principal tourists products: An effective positioning is based on the marketing principles that products and services exist to solve costumers' problems. It should promise the benefit and create the expectation that it solves the costumer's problem. Under the best circumstances the solution should be different from and ''Positioning plays a vital role to better than the one offered attract tuourists''. by the competitor. Market positioning is the first step and is defined as the process of identifying and selecting markets or segments that represents business potential, to determine the criteria for competitive success. Obviously this must be based on a through knowledge of their needs, wants and perceptions.
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Value of the diferent instruments of products: ●
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-Concentrated Targeting, The imserso offer for seniors.
Undifferentiated Targeting: Sun and beach tourism: Product: beaches, hotels, tourist offers ..
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promotion: internet ads, web pages (TripAdvisor, Trivago, booking), advertising or propoganda in televesion personally. ●
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place: travel agencies, tourism fairs in positions. price: ●
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Product: offers for old people to enjoy holidays in areas of Peninsular and Costa trips Inland Tourism in its various forms. You can choose a wide variety of destinations and types of stays with or without transport included. promotion: internet ads, web pages (Bolsamania, higher travel UDP, and assistance programs offered by the state, advertising or propoganda in televesion personally. place: travel agencies,'' clubs in the pensionistas`` of each town or city, at the offices of help and information for seniors. price: between 160-390 euros depending on destination and season.
-Multi-Segment Targeting: Disneyland Product: Theme Parks, Downtown Disney, Disney Downtown Center, visit a lively way that offers unique shops and restaurants. Experiences with the characters, Guided, stay at the Disneyland Resort located in the center of spectacular natural and cultural treasures throughout Southern California, Events Season, Special Occasions .... promotion: internet ads, their own web pages Disneyland, on pages other travel as advisor, advertising or propoganda in televesion personally web travel agencies. place: travel agencies, information stands or in large supermarkets for example. 19 price: from 90 euros upwards depending on the characteristics and accessories.
Webgraphy http://www.emia.es/cgi-bin/master.pl?accion=/infomerca/info2 http://www.eoi.es/wiki/index.php/Productos_tur%C3%ADsticos_en_Turismo http://www.mundosenior.es/portal/page/portal/MundoSenior/Produccion/Viajes_IMSERSO
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