2015
Segmentation
Segmentation INDEX A1. Identify steps for the realization of an effective segmentation in the Spanish tourist market ........ 3
A2. Segments ....................................................................................................................................... 4
B1. Variables in the segmentation of tourism in Spain ......................................................................... 6
C1. Requirements to ensure effective segmentation ............................................................................ 7
C2. Identify these 8 criteria in 3 of the main segments of the Spanish tourist market ......................... 8
D1. Justify the importance of an effective segmentation ..................................................................... 9
D2. Justify the need of effective segmentation to be able to design a good commercial strategy ...... 10
E1. Relate and value the 3 major segments........................................................................................ 11
E2. Identify in the Spanish tourist market different types of products and services that are offered .. 12
F1. Identify the main strategies used in 3 segments ........................................................................... 14
G1. Identify the use of trade instruments with the positioning of the main tourist products.............. 15
G2. Verify that the identified instruments are compatible with the positioning ................................. 17
H1. Analyze the value of each of the instruments .............................................................................. 18
Segmentation
A.1 Identify steps for the realization of an effective segmentation in the Spanish tourist market 1.
2.
Identify market
Decide variable to apply Purpose of trip
o
Nationality
o o o
Lifestyle Expenditure o
3.
Apply this one to the market
4.
5.
Age
Obtain segments
Check which segments best meet criteria for an effective segmentaci贸n
6.
Selecting target market
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Segmentation
A.2 Segments 1. PURPOSE OF TRIP
2. NATIONALITY (geographic)
4
Segmentation 3. LIFESTYLE (behaviour)
4. EXPENDITURE
5. AGE
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Segmentation
B.1 Variables in the segmentation of tourism in Spain
Purpose of trip: this variable Nationality: it is based in a Lifestyle: this is base in the is important because it geographic divides
the
market
by in
reason of trip. Expenditure: this is in a numerical terms, how many expends the travellers
the
travellers
segmentation, preferences, and traveler’s nationality and
of behavior. Divide customers
principal by
their use occasions,
destiny, divided market into benefits, user status, usage groups of customers who rate, loyalty status, attitude share the same geographic location. Age: means dividing markets base on population statistic, include age, sex, household and per capita income.
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Segmentation
C.1 Requirements to ensure effective segmentation
There are 8 criteria for an effective segmentation:
Measurable: The date’s numbers must be to have an specific data to measure
Accessible: The essence is to reach a specific group
Substantial: It must be big enough to warrant a separate investment, and must produced more profits than the amount required Defensible: The marketer must feel confident that the organizations share of each target market can be defended from competitors
Durable: In our industry we are not interested in fads
Competitive: Has to be competitive in the market
Homogeneus: Make sure that the segments are as different from each other, or as heterogeneus, as possible
Compatible: It must be sure that the market does not conflict in any way with the markets it already serves
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Segmentation
C.2 Identify these 8 criteria in 3 of the main segments of the Spanish tourist market
1. Purpose of trip → (1) Leisure and Holidays (86´5%) This segment comply fulfill requirements; is measurable because is an numerical terms, it is substantial is large enough, accessible, defensible, durable; this is a long term, is competitive, homogeneous and compatible with the markets that it already serves 2. Nationality → Residence: (2) UK (23'1%) This segment comply fulfill criteria’s. Is measurable because It is presented in numbers, it is substantial because isn't short term, accessible because it is able to select a specific customer group, is defensible from its competitors, then it is competitive, it is homogenous segment and it is compatible with the market. 3. Age → (“)45-65 years (30'2%) It complies with all segments, like the previous two, Is measurable because It is presented in numbers, it is substantial because isn't short term, accessible because it is able to select a specific customer group, defensible, durable; this is a long term, is competitive, homogeneous and compatible with the markets that it already serves
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Segmentation
D.1 Justify the importance of an effective segmentation
It is necessary to define what sell and who sell, in this way it is much easier to be able to define product information that is consumer-focused, and for this, it is of course necessary to know consumers with segmentation. We can resume segmentation:
the
benefits
of
Identifies business opportunities not met adequately It helps to define the target audience It facilitates the identification of the most direct rivals It allows you to better adapt to the customer getting a more loyal customer It allows you to allocate resources more efficiently marketing. As already stated, segmentation is the basis for developing targeted and effective marketing plans. Furthermore, analysis of market segments enables decisions about intensity of marketing activities in particular segments. A segmentorientated marketing approach generally offers a range of advantages for both, businesses and customers. Market segmentation is the basis for customer orientation and differentiation.
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Segmentation
D.2 Justify the need of effective segmentation to be able to design a good commercial strategy
Characteristics of Spanish tourist market -
-
-
Internal demand: The domestic demand is the value that indicates how much is consumed goods and services within a country, both in the public sector and the private sector. The inside of a country demand tends to increase when the confidence index consumer is high and tends to decrease when the confidence index consumer decreases. Seasonality: one of the main features of tourism in Spain, is that 80% of tourism (mostly foreign), comes from holiday especially in summer (high season). The concentration of demand in a few months cause an excess of seasonal use of the infrastructures on the other hand the little use during the rest of the year difficult to amortization of the capital invested. Consolidated industry: Tourist industry Spanish this consolidated, in recent years there has been an increase in the contribution of tourism to GDP. Dependence on foreign tourism: foreign tourism is a great money contribution of the Spanish tourist industry. Competitors: Competition, involving market structure in which there are enough bidders and applicants to not influence the price at the level of the economy
An effective segmentation is required to design a good business strategy; we need to know our objective to focus on them. We need to know Spanish market characteristics to make a good commercial strategy.
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Segmentation
E.1 Relate and value the 3 major segments LEISURE AND HOLIDAYS This tourism has great importance in our country, is the largest segment in the variable of purpose of trip. At this time the people have more free time and are more willing to travel, increasingly are traveling over weekend, leisure travel. UK Tourism in Spain is characterized by the volume of demand from abroad, especially in the United Kingdom. It is an important part of tourism in Spain The reasons that attract the large number of foreigners are many and varied, but the most important are: -Climate -Prices (demand) ELDER PEOPLE The society is at a stage that is experiencing a process of Aging unprecedented. This fact is going to have an impact on the future of the offer of the national tourism. The senior are increasingly numerous and show great interest by the new opportunities provided by our tourism industry. This collective spirit young, open, accompanied by a stable economic level, represents a segment of attractive market for the tourism industry. Hotels, tour operators, real estate and other stakeholders recognize older Europeans to their most loyal customers, provided is to maintain optimal levels of satisfaction and offers appropriate to their needs. Spain has been a pioneer in conceiving as a reality independent senior tourism
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Segmentation
E.2 Identify in the Spanish tourist market different types of products and services that are offered Elder people
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Segmentation
Leisure and holidays
Foreigners
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Segmentation
F.1 Identify the main strategies used in 3 segments
-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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Segmentation
G.1 Identify the use of trade instruments with the positioning of the main tourist products 1. Undifferentiated targeting
2. Concentrated targeting
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Segmentation
3. Multi-segment targeting
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Segmentation
G.2 Verify that the identified instruments are compatible with the positioning of the main tourist products LEISURE AND HOLIDAYS These commercial instruments are compatible with the positioning of the product There are specific products for these segments, like a “sun and beach” that attract a lot of people, so is compatible
The price is appropriated to this type of customer
The place is correct to product And promotion is compatible too. UK
The product is compatible with the image that customers has . The price is accorded to this kind of tourist
The place and the promotion are correct and compatible with the positioning of this segment.
This segment is compatible with the positioning.
ELDER PEOPLE
Commercial instruments of this segment are compatible with positioning.
The product and price are orientated to these kind of tourist, is a concrete product for they, like
the “imserso” product in Spain
The promotion and place are also compatible to positioning
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Segmentation
H.1 Analyze the value of each of the instruments LEISURE AND HOLIDAYS These segments have competitive products, which arrive directly to the public object, and meet the needs and wants of consumers. There are different prices for this type of product, adapts to any public, discounts, offers, packages‌ it is important to attract tourists. Place is important because it is the avenues you come into contact with your customers, in that sense it becomes a very large group of people. The promotion will be directed to potential customers, in a perfect ways.
UK Just as in the holiday and leisure segment, UK tourists receive a concrete product, specific to them. The price is very important to attract to the foreign public, it is one of the attractions, there are economic prices and deals for they. The promotion is ideal for foreigners, and very important to focus on it.
The place where this product is sold is important to reach this type of tourist.
ELDER PEOPLE This segment has specific product for them. With a discounts that make the product more attractive. The place is focused perfectly for this kind of people. The promotion is aimed at older people, and is very easy to understand
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Segmentation
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