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Tourism market segmentation

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Tourism market segmentation

  1. 1. TOURISM MARKET SEGMENTATION Prepared by: Ma’am L
  2. 2. TOPICS • MARKET SEGMENTATION • WHY MARKET IS SEGMENTED • IDENTIFYING MARKET SEGMENTATION • BENEFITS OF MARKET SEGMENTATION • CRITERIA USED FOR DIVIDING MARKET SEGMENTS • WAYS TO SEGMENT MARKET • MARKET SEGMENTATION DECISION PROCESS • SPECIALIZED TOURIST SEGMENTS • MEASURES FOR TOURIST SATISFACTION
  3. 3. MARKET SEGMENTATION “identifying tourism customers and deciding on how to meet their wants and needs” “learn more about the customers” “making the heterogeneous market into a homogenous market”
  4. 4. MARKET SEGMENTATION “the process through which potential customers with similar needs and characteristics are grouped together so that a tourism organization can apply marketing strategies for the selected market segment efficiently”
  5. 5. WHY MARKET IS SEGMENTED? • Travel market is too large to reach efficiently • Travel market is to diverse to communicate • Breaking up the market will make it easier to manage
  6. 6. IDENTIFYING MARKET SEGMENTATION • WHO – who are in the market segment that we would like to have? • WHAT – what are their requirements? • WHEN –when do we promote to our market segment? • WHERE –where do we promote the product? Through which distribution channel? • HOW – how do we develop marketing strategies to reach the market?
  7. 7. BENEFITS OF MARKET SEGMENTATION • Understand the needs and wants of customers • Allocate marketing expenses efficiently • Further develop products or services • Develop marketing strategies more precisely
  8. 8. WAYS TO SEGMENT THE MARKET • Location of residence • Demographics • Equipment ownership • Important product attributes • Lifestyle attributes
  9. 9. CRITERIA USED FOR DIVIDING MARKET SEGMENTS • Geographic Segmentation – grouping potential customers based on their location; oldest and simplest basis for market segmentation • Psychographic Segmentation – grouping on how they live, their priorities, their opinions, their attitudes and their interests Personality – introvert/extrovert, cognition, innovativeness
  10. 10. CRITERIA USED FOR DIVIDING MARKET SEGMENTS • Demographic Segmentation – gender, age, ethnicity, occupation, educational level, income, household size and family situation • Socio-Cultural Segmentation – religion, social class, family lifestyle, status • Product-Related Segmentation – benefits people seek in the good or service, the amount of good or service used and degree of company loyalty
  11. 11. MARKET SEGMENTATION DECISION PROCESS 1. Select segmentation approach 2. Create detailed profile of segment 3. Forecast market potential of each segment 4. Estimate likely market share of each segment 5. Decide which segment to target and design appropriate marketing mix
  12. 12. SPECIALIZED TOURIST SEGMENTS 1. Business and Professional Travelers -backbone/bread and butter 2. Incentive Travelers 3. SMERF Groups -Social, Military, Education, Religion and Fraternal 4. Mature Travelers 5. Special-Interest Travelers
  13. 13. MEASURES FOR TOURIST SATISFACTION
  14. 14. MEASURES FOR TOURIST SATISFACTION SATISFACTION EQUATION Actual Service > Expectations = Actual Service = Expectations = Actual Service < Expectations =

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