Target Markets and Segments

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Target Markets and Segments

• The Focus of Tourism Marketing Communications

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To date

• Having examined the consumer decision making
  process and how communications can influence
• Discussed the need for planning communications
• Examined the role of branding
• Discussed some of the ethical issues
• Established the need for research to provide the
  basis for planning
• Need to evaluate the basis for directing
  marketing communications

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Market Segmentation

• Market Segmentation is the process that enables
  an organisation to rationalise scarce marketing,
  financial and human resources in order to focus
  on markets that will deliver the maximum return.
• Market Segmentation is the process of identifying
  viable groupings of consumers from a largely
  undifferentiated marketplace.

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Selection of Suitable Segments

• The viability of a segment should assessed
• according to key criteria
• The size of the segment in terms of people and
  demand levels
• The accessibility of the segment predominantly
  via the media
• The responsiveness of the segment to marketing
  effort

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Segmentation, Targeting, Positioning
Market Positioning
Market Segmentation
Market Targeting
Identify possible positioning concepts for each
segment Develop and communicate chosen
positioning concept
Evaluate attractiveness of each segment Select
target markets
Identify segmentation variables, apply size,
access responsiveness criteria Develop profiles
of segments
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Basic Segmentation

• Demographic - age, gender, socio economic
• Geographic - local, regional, national,
  international
• Psychographic, lifestyle, attitudes

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Student Lifestyle Groups

• Consider the interests and attitudes of students
  at Bournemouth University
• Divide them into interest groups and label them
  accordingly.

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Segmentation Procedure

• Step One - Survey stage, exploratory interviews,
  focus groups and possibly a survey in order to
• Identify attributes and importance
• Evaluate brand awareness
• Check product usage patterns
• Assess attitudes toward the product
• Measure demographics, geographics, media usage

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Segmentation Procedure

• Step Two Analysis stage
• Apply factor analysis in order to identify those
  factors that have proportionally greater
  importance
• For instance when considering the National Trust
  data need to identify the critical underlying
  factors interests and reason for visit

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Segmentation Procedure

• Step Three Cluster analysis
• To form mutually exclusive, homogeneous groups or
  segments.
• The result of this process conducted on the
  National Trust data provided the eight segments
  described in the case

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National Trust Visitor Types
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National Trust Visitor Types

• Each segment is described principally in terms of
  visitor interest
• For each segment other characteristics are
  examined to assess whether there are other
  characteristics which are shared by each segment
  for instance age, travelling time/distance,
  frequency of visits and so on

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NT Segments - The Romantics

• Media , The Guardian (18 of segment), The Times
  (15), The Independent (9), TV viewing less 10
  hrs per week,
• Age 35-65 (58 of segment)
• Travelled 15-35 miles (38 of segment)
• Strong interest in the myths and legends, The
  Story, lives of the people.
• High propensity to join NT (21 conversion)
• High propensity to spend in shops (23 purchased
  one item)
• Strong convictions on hunting social impact of NT
• High propensity to attend events (18 attended in
  past year)
• Low propensity to visit restuarants
• MOSAIC analysis of postcodes - AB Affluent,
  detached, urban

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Behavioural Segmentation NT

• Ongoing research to evaluate
• Occasions, friends and family visits, education,
  fun
• Benefits, Interest, education, fun, safety
• User Status/rate, non user/user, light/heavy
• Loyalty status
• Attitude toward the product

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Student Tourism Segments

• Consider the market for student travel and
  holidays.
• Describe a number of segments in terms of
  benefits sought by the student tourist.

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Business Markets

• Different segmentation criteria should be used
  for instance
• Size of operation
• Type of technology
• Situational factors, scheduled or periodic
  requirements
• Relationship building potential

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International markets

• Tourism is inherently international and
  international marketing is an issue of
  segmentation
• In addition to size, access, responsiveness
  criteria the issue of cultural compatibility in
  terms of the product and marketing communications
  should be considered.

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Positioning

• Having identified appropriate segments (clusters)
  for a product or service these can be mapped
  according to the perceptions of segment members
  with regard to competitive offerings on key
  criteria

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NT Romantics - Key criteria Enjoyment, Education
Enjoy
1
1
5
Education
Lulworth Ca
NT
Beaulieu
Bovington
Longleat
Ideal
5
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Decisions

• Change the product
• Change the way the segment perceives/experiences
  the product
• The latter is principally a communication
  decision