Marketing Segmentation

Segmentation and positioning of the tourist market

The Tourism Maketing

Segmentation and positioning of the tourist market Ana Corral Kimberly Cebrian Zamara Heredia 1ยบ GIAT-A 1

Segmentation positioning the tourist market Kimberly Cebriรกn Leyva, Ana Corral Granados y and Zamara Herediaof Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

INTRODUCTION

The tourism market is characterized by a marked heterogeneity between tourists, which implies the existence of a wide variety of needs and desires.

Therefore, tourist organizations must not only identify groups of customers seeking to attract but also to know in detail the behavior patterns of the same, thus offer a tourism product adapted to your requirements.

In light of the above, the segmentation into a key issue for marketing strategy of tourism organizations.

Moreover, in a context in which demand, besides being heterogeneous, is also more demanding, seeking the provision of services tailored to their specific needs, it tends to be treated as a single customer. This explains why in recent years has made its way relationship marketing and Customer Relationship Management (CRM), whose basic principle treatment one by one from the tourists. In short, tourist organizations must decide what types of customers select and serve and to know precisely their characteristics. This process of formation and selection of typologies of tourists leads to market segmentation, which is a strategy that aims to divide the market into groups of individuals in order to develop products and marketing programs tailored to each of these.

2

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

SEGMENTATION CRITERIA AND REQUIREMENTS OF SEGMENTS Destinations and tourism organizations should identify different criteria Segmentation that allows them to detect existing market segments. It indicates that the application of multiple criteria can lead to so-called niche markets, which represent sub-segments with very specific characteristics.

Basic segmentation criteria are: 1. Criteria for the benefit sought by the consumer. That is why a person has chosen a tourist destination or a hotel? What expected?

“Hotels with wonderful views and nature” 3

Kimberly Cebrián Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

2. Criteria relating to consumer behavior. This is, how much consume? when?

"A reward for their trust" Iberia Plus is a program designed to reward our customers with free flights and exclusive advantages.

Of the way, just to travel with us or use the services of the companies associated with the program, Iberia Plus customers accumulate points that can be redeemed for free flights, hotel stays, car rentals and more.

4

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

3 Criteria relating to the characteristics of the consumer. Here they are accommodate both socio demographic characteristics as psychographics (lifestyle and personality).

Once segments have been identified, it must: y 1 be differentiated 2 have a substantial size 3 be measurable 4 be accessible 5

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

SEGMENTATION CRITERIA ACCORDING TO THE WORLD TOURISM ORGANIZATION The market segments must be measurable in terms of both purchasing power and size. Marketers must be able to effectively promote to and serve a market segment. Market segments must be sufficiently large to be potentially profitable. The number of segments must match the firm’s capabilities.

6

Kimberly CebriĂĄn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

DEMOGRAPHIC Dividing consumer groups according to characteristics such as sex, age, income, occupation, education, household size, and stage in the family life cycle.

1 Age and lifecycle dividing a market into different groups by age and life cycle. Be careful not to fall into stereotypes.

2 By gender Dividing a market into different groups based on gender.

3 Income Dividing a market into different groups according to income

7

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

GEOGRAPHIC Division of the market in different geographic units, and national states, regions, counties, municipalities, cities or neighborhoods.

Region City size

Density area Clime

8

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

PSYCHOLOGICAL Utilization of personality and lifestyle to explain the different behavior of tourists.

Divides a population into groups that have similar psychological characteristics, values, and lifestyles

A very important Factor are also different motivations tourists which leads to differentiate the typologies of tourism in the world.

9

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

BEHAVIOR Division of the market in de different groups consumer base on specific behavioral patterns they display when making purchasing decisions

ENGELS LAWS As the income of a family increases, then demand for food products increases at slower rate.

According to Engle, as family income increases: A smaller percentage of expenditures go for food.

The percentage spent on housing and household operations and clothing remains constant.

The percentage spent on other items (such as recreation and education) increases.

10

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

SEGENTATION PROCESS Stage I: Identify Segmentation Process Stage II: Develop Relevant Profile Stage III: Forecast Market Potential Stage IV: Forecast Market Share Stage V: Select Specific Segment

11

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

HEDGING STRATEGIES MARKET SEGMENTS. When the segments have been identified and evaluated, establishing the marketing strategies, depending on the number of segments in which the organization will focus. Thus, one can distinguish:

1) Undifferentiated strategy, which addresses Tourism Organization equally to all segments equally, without distinguishing their possible differences.

2) Concentrated strategy, under which the tourist organization focuses exclusively on a single segment.

12

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado

Segmentation and positioning of the tourist market

The Tourism Maketing

3) Differentiated strategy, which provides a number of segments marketing-mix concrete.

13

Kimberly Cebriรกn Leyva, Ana Corral Granados y Zamara Heredia Maldonado