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TOURISM MARKETING

MARKET
SEGMENTATION,
TARGETING, AND
POSITIONING

MARKET SEGMENTATION

Market segmentation can be defined

as the process through which
tourists with similar needs, wants
and characteristics are grouped
together or the total market is
divided into smaller parts that share
common characteristics.
It is also defined as the process to
group existing and potential
customers/travelers with similar
preferences into groups referred to
as market segments; and to design
market mixes which satisfy the
special needs, desires and behaviour
of target market.

REASONS FOR MARKET

SEGMENTATION

Approach of Firm differentiated or

concentrated approach require segmentation.
Market Compulsions- well developed market
with large variety of offers compels a marketer
to go for differentiation and segmentation.
Firms Resources- Undifferentiated or
differentiated market coverage demands large
resources. A small firm limits itself to few
selected segments even if there are many
good segments.
Profitability- The decision to segment
markets is dominated by the returns generated
post- segmentation.

BASES OF MARKET SEGMENTATION

Demographic Segmentation

Geographic Segmentation

Age, Sex, Economic status , Nationality,

Occupation , Religion, Family size and
life cycle,
Regions, Zones, Countries, States,
Districts and Cities , Climate ,
topography, Political Boundries.

Psychographics and life style

segmentation

activities, interests and opinions

BASES OF MARKET SEGMENTATION

Plogs Classification :based on personality

Allocentric and near allocentric: Open spectrum
of life, enjoy discovery and new experience and
are more versatile.Above average income group
Mid centric: Value comfort and familarity in its
travel experience.
Psychocentric and near psychocentric: who tends
to concentrate on lifes small problems, is bound
to a specific location , has generalized anxieties
and a sense of powerlessness.

Grays Classification-on motives for pleasure

travel. Sunlust and Wanderlust.
Sunlust: seek different or better amenities
Wanderlust: discover different cultures and
destinations.

Behavioural Segmentation
on basis of consumption rates and
patterns for tourism purchases

level of involvement in the activities, usage rate,

loyalty status

On the level of involvement:

Learners:
Enthusiasts:Organizers
Dabblers: Occasionally take part
Corporate groups: team building etc.

Usage rate:
Frequent user
Less frequent user
Users
Non users

Loyalty status: Hardcore loyals

Softcore loyals
Shifting loyals
Switchers

Cohens Classification

Organized mass tourists

Explorers
Drifters: Do not take services of tour
operators

BASES OF MARKET SEGMENTATION

Benefit segmentation/ Segmentation

by Purpose of Travel

Leisure markets-. people who travel for pleasure.

Business tourism people travelling for business
Adventure Tourism-travel for thrill and ready to
face risk.
Farm Tourism - travel to rural areas to stay at
farm houses to feel the nature and rural lifestyle.
Rural Tourism-travel to villages and stay there for
a complete exposure to village life.
Eco-Tourism Travel to nature areas and be an
active participant in its protection.
Voluntary Tourism
Nature Tourism Tourists travel to experience
natural beauty of certain places.
Religious Tourism Health and Medical Tourism .

FEATURES OF GOOD
SEGMENT

Distinct and Group Identity

Attractive
Accessibility and Targetable
Self containment Focused
Systematic Behaviour to Marketing
mix responses
Stability

MARKET TARGETING

It is the process of selection of

segments and approaching selected
markets/segments with suitable
marketing mixes.
Selection of Segments depends upon

Market structure analysis

Market opportunity analysis
Product portfolio analysis,
Resource capabilities analysis
Competitive analysis

Developing marketing mix for the

chosen segments by converting
needs into products and services.

Market structure analysis

Competition
Changing preference of tourists
Technological advancements
Government regulations

Market opportunity
analysis

Current and future profits and market

growth
BCG matrix
Potential market growth and probable
relative market position
Dog, cash cow, Question mark and stars

Product Portfolio analysis

Competitive analysis

It can offer innovative and unique benefit

It can offer same benefit with additional
advantage

PRODUCT POSITIONING

The image of the offer in tourists

minds relative to competitive
offerings is product position and its
development by the marketer is
positioning.
Positioning Strategies in Tourism

on attributes
on Accessibility
with respect to use/application
according to users
on the basis of services
on the basis of Image

On attributes

Natural tourism appeal

On the basis of man made appeal
Position on price

On the basis of services

Quality customer support

Timeliness, accuracy and reliability

POSITIONING PROCESS

Identify the attributes

Evaluate Attributes
Select Attributes
Communicate

Evaluate

Unique
Superior
Better value for money

Repositioning

Positioning errors

Under positioning: vague idea

Over positioning: narrow idea
Confused positioning
Doubtful positioning