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Market segmentation Tourism Marketing.

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Presentation on theme: "Market segmentation Tourism Marketing."— Presentation transcript:

1 Market segmentation Tourism Marketing








9 Youth hostel

10 Discussion questions Consider what kind of hotel you will choose when you travel to Ningbo ---what are the reasons you choose a hotel --- What advertising media makes sense for the segments of your group?

11 conclusions Strictly speaking, everyone has its own needs and wants, they need different product or service to meet them. On the other hand, they can be divided into different groups according to age or income and so on, each group has some common features.

12 For companies have limited resources it is impossible to produce all possible products for all the people all the time. The best way is to provide selected offerings for selected groups of people most time.

13 Instructional objectives By the end of this lesson, you should: Be able to Identify the definition of market segmentation; Be able to grasp the bases for segmentation and apply it into practice. Market segmentation

14 Market segmentation is the division of a market into different groups of customers with similar needs. Or to express it in another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, and each has common characteristics and needs and displays similar response to marketing actions.

15 The purpose of market segmentation is to leverage scarce resources; or to ensure that the elements of marketing mix (price, distribution, products and promotion) are designed to meet specific needs of different customer groups.

16 Three phases of marketing strategy Phase 3 Product/brand positioning Phase 2 Target market and marketing mix selection Phase 1 Market segmentation

17 Segmentation studies Discover the needs and wants of groups of consumers to develop specialized products to satisfy group needs ---- identify gaps in the market Used to identify the most appropriate media for advertising

18 Customer segmentation

19 Bases for segmentation Geographic Usage-situation Demographic Benefit sought Psychological Psychographic Sociocultural

20 Geographic segmentation The division of a total potential market into smaller subgroups on the basis of geographic variables (e.g.,region,city,area)

21 Geographic segmentation Region: central, wangfujing street(Beijing),Nanjing road (Shanghai ) marginal City size: Major metropolitan areas, small cities, towns Density of area: Urban, suburban, exurban, rural Climate: Temperate, hot, humid, rainy

22 Demographic segmentation Age: Under 12, 12-17,18-34,35-49,50-64,65-74,75- 99,100+ Gender: Male,female Marital status: Single,married,divorced,living together,widowed Income: Under$25,000,25000-34999,35000- 49999,50000-74999,75000-99999,100000and over Education: Some high school,high school graduate,some college,college graduate,postgraduate Occupation: Professional,blue-collar,white- collar,agricultural,military,government

23 Psychological segmentation Motivations ----Intrinsic needs personality ----Introvert/Extrovert perceptions ---- Individual frame of reference Learning ---- Learning stytles: visual, audio, etc Attitudes Positive attitude,negative attitude

24 Psychographic segmentation All known as lifestyle analysis Psychographic variables include: --- activities --- interests,and --- opinions


26 Sociocultural segmentation cultures American,Italian, Chinese,Mexican,French,Pakistani religion Catholic,protestant,jewish,moslem,other Subcultures(race/ethnic) African American,Caucasian,Asian, Hispanic Social class Lower,middle, upper Family life cycle Bachelors, young married, full nesters, empty nesters

27 Family life cycle advertising Disneylan d Hong Kong is often visited by couples with children.

28 After watching the video, what first in your mind?

29 Usage-Situation Segmentation Segmenting on the basis of special occasions or situations. Example statements: --- whenever our daughter gets a raise, we always take her out to dinner. --- when Im away on business, I try to stay at a suites hotel. --- I always take my wife for a dinner in a famous restaurant on Valentines Day.

30 Benefit Segmentation Segmenting on the basis of the most important and meaningful benefit: -- Functional quality -- Value for money -- Social benefit -- Emotional benefit (positive or negative) -- Lifestyle benefit Used to position various brands within the same product category What is a companys core strength? Why/How will the consumer benefit?

31 Brain storming: What benefits does this Radisson Hotel advertising conveyconvey VEDIO

32 Brain storming: What benefits does this Radisson Hotel advertising convey?

33 Market segmentation Segmentation baseSelected segmentation variables Geographic segmentation region Central, tsim sha tsui, mong kok, City sizeMajor metropolitan areas, small cities,towns Density of areaUrban, suburban, exurban,rural climateTemperate, hot,humid,rainy Demographic segmentation age Under 12, 12-17,18-34,35-49,50-64,65-74,75-99,100+ genderMale,female Marital statusSingle,married,divorced,living together,widowed income Under$25,000,25000-34999,35000-49999,50000-74999,75000- 99999,100000and over educationSome high school,high school graduate,some college,college graduate,postgraduate occupationProfessional,blue-collar,white- collar,agricultural,military,government

34 continued Segmentation baseSelected segmentation variables Psychological segmentation Needs-motivationShelter,safety,security,affection, sense of self-worth personalityExtroverts,novelty seeker,aggressive,innovators perceptionLow-risk,moderate-risk,high-risk Learning-involvementLow–involvement, high-involvement attitudesPositive attitude,negative attitude Psychographic (lifestyle)segmentationEconomy-minded, couch potatoes, outdoors enthusiasts,status seekers Sociocultural segmentation culturesAmerican,Italian, Chinese,Mexican,French,Pakistani religionCatholic,protestant,jewish,moslem,other Subcultures(race/ethnic)African american,caucasian,asian, hispanic Social classLower,middle, upper Family life cycleBachelors, young married, full nesters, empty nesters

35 continued Segmentation baseSelected segmentation variables Use-related segmentation Usage rate Heavy users,medium users,light users,non users Awareness status Unaware, aware,interested, enthusiastic Brand loyaltyNone, some,strong Use-situation segmentation timeLeisure,work,rush,morning, night objectivePersonal, gift, snack, fun, achievement locationHome,work,friends home, in-store personSelf,family members, friends,boss, peers Sociocultural segmentation Convenience, social acceptance,long lasting, economy,value-for-the- money Hybrid segmentation Demographic/ psychographics Combination of demographic and psychographic profiles of consumer segments profiles Prizm ne geodemographicsmovers& empty nests,boomtown singles, bedrock america Sri vals Innovators,thinkers, believer,achievers,strivers,experiencer,makers, survivors

36 Market segmentation Two-step process Market segments---deciding how to group all potential visitors Target market----selecting specific groups from among these to pursue

37 group task : matching A.Young couple with children of 2 to 5 years old B.Single college student C.Middle-aged couple D.The old E.Young and wealthy couple F.Football team travelling in school 1)Holiday skimming in Austria 2)Hostels in several towns 3)Caravan accommodation at seaside holiday villages 4)2 or 3 star hotels and coach journey 5)Quiet and luxurious apartment houses at tourist spots 6)Interactive train tickets plus hostels or tourist camps

38 Revision questions What are the bases for marketing segmentation? What are the three phases of marketing strategy? What is the most significant thing youve learned today?


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