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TARGETING
POSITIONING
Market segmentation
The word market refers not to a place but rather to all possible
consumers who might conceivably purchase the product. The
market is the largest number of consumers that could potentially be
reached with a promotional message.
Market refers to the people or organization that have the ability to
purchase a product/ service.
A market segment refers to a group of consumers in the market
who all share at least one and usually more characteristics. These
segments can be based on either external or internal characteristics.
A market segment consists of a large identifiable group within a
market, with similar wants, purchasing power, geographical location,
buying attitudes, or buying habits.
Psychographic Segmentation
In Psychographic Segmentation, segments are defined on
the basis of social class, lifestyle and personality
characteristics.
Afternoon tea at some restaurants is targeted at the
upper-middle and upper classes (i.e. the markets are
segmented based on social class).
Requirements / Characteristic /
Criteria for Effective
Segmentation
A segment must fulfil the following requirements if it is to be successfully
exploited:
Measurable, it must be measured in terms of size and purchasing power other
variables
Accessible, it must be reached through promotion with existing or potential
distribution channels.
Substantial or large enough or profitable enough to serve as a target market
Durable in terms of continuing over time, sustainable. Segment should not have
frequent changes attribute in it.
Competitive in terms of providing an advantage over the competition by serving
this segment.
Appropriate, the segment must appropriate with company resources and policy
Advantages of segmentation
Customer analysis, by segmenting, the firm can get to understand its best
customers better.
Competitor analysis, it is much easier to recognize and combat
competition when concentrating on one small part of the overall market.
Effective resource allocation, Companies scarce resources can be
concentrated more effectively on a few consumers, rather than spread
thinly across the masses.
Strategic marketing Planning, Planning becomes easier once the firm
has a clear picture of its best customers.
Expanding the market, Good segmentation can increase the overall size
of the market by bringing in new customers who fit the profile of the typical
customer, but were previously unaware of the product
Limitation of market
segmentation
The costs of carrying out marketing research
The additional costs of developing and communicating
separate offers for different
target markets
The complexity of constantly changing consumer
behavior
Marketing targeting
After the market has been divided into segments, the tourism marketer
then chooses the one or more segments most likely to enjoy a visit and
then aims the promotional message to these groups.
The word targeting refers to this process of choosing the segment or
segments to which the firm decides to communicate its message.
Targeting is defined as The process of evaluating segments and
focusing marketing efforts on a country, region, or group of people that
has significant potential to respond.
Target market (also called the served market) group of people a firm
believes is most likely to buy its goods and services
Product Positioning
Product Positioning is the process whereby tourism and
hospitality companies try to develop a distinctive and
favorable position in the minds of target markets, compared
to competitors.
Product Positioning is the development of a service and
marketing mix to occupy a specific place in the minds of
customers within target markets.
The purpose of positioning is to ensure that target markets
clearly understand what the product, service or brand stands
for in the marketplace.
Product position
Is the image of the offer in tourists minds relative to
competitive offerings, and its development by the
marketer..
A products position is the place the product has in
consumers minds relative to competing products.
Positioning Strategies in
Tourism.
The following positioning strategies in hospitality companies have been identified:
Product feature or special attributes. This strategy focuses on a tangible-dominant
feature for example, the largest function suite in the area might position a company in
terms of space, grandeur and style.
Price/quality. This positioning strategy for a luxury property might focus on the high
quality, high price, and exclusive image; for a budget property, the focus might be a standard
quality at a lower price, implying better value for money in the economy product class.
Customer benefit. This type of positioning proposes solutions to solve customers problems
for example, Seouls Hotel Shilla advertising campaign emphasizes the quality, choice of
menu, convenience and efficiency of their 24-hour room service to international business
travelers.
Use or usage. This is a positioning strategy that focuses on the reasons why consumers use
a product, and is often targeted at specific markets for example, a resort hotel with a
championship golf course targets executives who enjoy mixing business with sport.