TOURISM

MARKET
SEGMENTATION
Prepared by: Maam L

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

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

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

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

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?

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

WAYS TO SEGMENT
THE MARKET
Location of residence
Demographics
Equipment ownership
Important product attributes
Lifestyle attributes

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

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

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

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

MEASURES FOR TOURIST

SATISFACTION

MEASURES FOR TOURIST

SATISFACTION
SATISFACTION EQUATION
Actual Service > Expectations =
Actual Service = Expectations =
Actual Service < Expectations =