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Segmentation &
Targeting
- Aritro Dasgupta
Segmentation &
Targeting
No destination can be sought after universally
Positioning
Targeting
Segmentatio
n
STP
Segmentation
Sub-division of heterogeneous market in to
Segment Identification
Different sets of criteria used including
Segmentation Techniques
Factor analysis
Cluster analysis
Discriminant analysis
Multiple regression
Chi-square analysis
Tree analysis
Levels of Market
Segmentation
Mass marketing
Segment marketing
Niche marketing
Mass Marketing
Serve broad range of tourists
Price differentiation pursued
Mass promotion of one package for all
Low profit margins
Segment Marketing
Large identifiable group within market with
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Niche Marketing
Niche is narrowly defined group
Marketers identify niches by dividing segment
Advantages of Niche
Marketing
Customers distinct set of needs met
Unlikely to attract many rivals
Nichers gain economies through specialization
Size, profit & growth potential
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Clustered Preferences
Position in centre to appeal to all groups
Position in the largest market segment-
concentrated marketing
Develop several products positioned in a
different segment
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Geographic
Region
Climate
Culture
Economic environment
Political conditions
18
Demographic
Age & lifecycle
Family structure
Gender
Income
Education
Occupation
Religion
19
Psychographic
Social class
LifestylePersonality
20
Behavioural
Occasions
Benefits sought quality, convenience, value
for money
User status- non-user, ex-user, first time,
regular, potential
Usage rate- light user, medium, heavy
Loyalty status- strong, weak, non-loyal
Mode / place of purchase
Readiness & attitude
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complementary activities
Group 2: do not expect much in term of
complementary activities or quietness of
location
Group 3: low expectations on complementary
activities but high on area quietness
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Targeting
Once segmentation done, targeting plans
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Evaluation of Segments
Overall attractiveness
Organization / destination objectives &
resource competencies
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Overall Attractiveness
Size
Growth rate
Accessibility
Profitability
Scale economics
Risk
26
Organization / Destination
Objectives & Resource
Competencies
Organizations short & longterm objectives to
be kept in mind
Check compatibility with resources available
at disposal & their capabilities
27
Selection of Segments
After segmentation rate them on pre-
determined scale
Segments may be ranked based on scores
obtained
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Alternative Coverage
Strategies
Undifferentiated marketing
Differentiated/ targeted marketing
Concentrated marketing
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Coverage of Segments
Coverage
Strategy
Undifferentiated Targeted
Concentrated
Segmentation
Zero
Substanti
al
Selective
Type of
Marketing
Mass marketing
Example
Hotels in
Mahipalpur /
Paharganj
Radisson
Blue,
Ginger
Taj Safaris
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Undifferentiated Marketing
Basic essential services provided
One size fits all policy
Limited differentiation
Lower levels of customer loyalty
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separate segments
Substantial segmentation
Typically for comfort travel
Greater costs but higher profitability per unit
spent
Greater level of customer loyalty
Price less important service quality more so
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Concentrated Marketing
Concentrated towards one small niche
segment
Selective segmentation
Typically for luxury or comfort segments
High customer loyalty
Service quality only important variable
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Company
resources
Moderate
Large
Limited
Service
variability
Less
More
Less
Lifecycle stage
Introduction
Growth
Introduction /
Maturity
High
High
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Single Segment
Concentration
S1
S2
S3
P1
P2
P3
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Selective Specialization
S1
S2
S3
P1
P2
P3
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Product Specialization
S1
S2
S3
P1
P2
P3
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Market Specialization
S1
S2
S3
P1
P2
P3
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S2
S3
P1
P2
P3
40
Positioning
Act of designing companys offering & image
Differentiation
Process of distinguishing a product or service
42
Sources of Differentiation
Differences in quality, resulting in differences
in price
Differences in functional features
Sales promotion activities of sellers especially
advertising
Differences in availability
Ignorance of buyers regarding the essential
characteristics & qualities of goods / services
they are purchasing
43
Stages in Differentiation
Defining customer value
Building customer value hierarchy
Deciding on customer value package
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Approaches to Tourism
Differentiation
Consumer- oriented approach
Competitor - oriented approach
Trade- oriented approach
46
Perceptual Map
Good Connectivity
Goa
Shimla
Pleasant Weather
Extreme Weather
Pondicherr
y
Arunachal
Pradesh
Poor
Connectivity
47
Perceptual Map
Good Connectivity
France
Canada
Pleasant Weather
Extreme Weather
coastal
Namibi
a
Tahiti
Poor
Connectivity
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Positioning Process
Defining market in which product / brand will
Positioning Process
Determining target markets preferred
Positioning
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consumers mind
Grab an occupied position
Exclusive club strategy
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Which Positioning to
Promote
Best quality
Best service
Best value
Lowest price
Safest
Fastest
Most customized
Most convenient
Most advanced technology
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Positioning Errors
Under positioning
Over positioning
Confused positioning
Doubtful positioning
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Thank You
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