Professional Documents
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2 The Tourist Market and Segmentation
2 The Tourist Market and Segmentation
References
Badilla, Maricel G. (2015).Tourism Marketing. Rex Bookstore
What is Market?
MARKET SEGMENTATION
-is dividing the market into distinct groups who might require separate products and/or marketing mixes.
Market segment- is a subgroup of the total consumer market who share similar characteristics and needs relevant to the
purchase of product , service, or experience.
1| Course Learning Guide in THC- 8 Tourism and Hospitality Marketing Prepared by:
Gina Q. Baylon
Variables to Segment Consumer Markets
Geographic Demographic
Nations Age
States Life cycle
Regions Gender
Countries Income
Cities Occupation
Neighborhoods Education
Barangays Towns Religion
Race
Psychographic Behavioral
Social class Special occasions
Lifestyle Benefits sought
Personality Usage rate
User status
Loyalty status
Buyer readiness
Technographic
Variables to Segmentation
Geographic
Geographic segmentation divides the market into different geographic units such as nations, states, regions, countries,
cities, neighborhoods, barangays, towns, etc. ( Kotler et. al. 2010). Some companies make a decision to strengthen a foothold on a
certain geographic region, concentrating their resources in ensuring deep penetration of specific geographic location.
Demographic
Demographic segmentation refers to segmenting the market based on variables such as age, life cycle, gender,
income, occupation, education, religion, and race. It is good idea to segment the market based on demographic variables because
consumers would have similar likes and possible consumption patterns and behavior.
Psychographic
Psychographic segmentation divides consumers based on different psychographic profiles such as social class,
lifestyle, and personality characteristics. Different social classes will have different tastes and preferences on what they buy. In
the Philippines, we categorize socio-economic classes through the ABCDE categories, with class A being the most affluent.
Lifestyle has an influence on what and how consumers buy products and services. Restaurant and bars tap different
markets based on lifestyle. Personality is seen as an indicator of the type of products people buy. Products take on image or a
personality (outgoing, private, adventurous, etc.) and people also have personality traits. Studies have shown that consumers
tend to buy products that reflect a personality similar to themselves.
Behavioral
Behavioral segmentation refers to dividing groups based on their knowledge, attitude, use of or response to a
product or service. Kotler identify behavioral variables to include special occasion segmentation, benefits sought, user status, user
rate, loyalty status, and buyer readiness.
Special occasion segmentation purchases made based on occasions such as Mother’s Day, Valentine’s Day,
honeymoon, anniversary, or birthday. Buyers may also be grouped according to benefits they seek such as quality, ambiance,
menu variety, and price. User status refers to markets segmented based on usage of product such as first time, regular users, non-
users, potential users, etc. Usage rate refers to frequency of use categorized as light, medium, and heavy users. Loyalty status
segmentation refers to the degree by which customers are loyal to the brand. Buyer readiness pertains to the different stages
buyers become ready to purchase a product. These stages from being unaware, slightly aware, want to buy, and intend to buy.
Technographic
MARKET SEGMENTATION
-is evaluating each segment’s attractiveness and selecting one or more of these market segments in which to operate one’s
business.
MARKET POSITIONING
-is developing competitive positioning for the product and an appropriate marketing mix. 3
positioning concepts:
1. Unique selling proposition- is a term used to identify what makes the product or service different from others. It may
occur due to the product’s physical attributes, added services, personnel, location, or image.
2. Competitive advantage – is the products advantage over competitors, which is gained by offering greater value either by
offering lower prices or providing more benefits to justify higher prices.
3. Top of mind – is the highest level of recall that a brand receives. It means that the brand occupies the top spot in a consumer’s
mind. Example, Xerox is actually a brand of a photocopying machine but the way Filipinos use the word is as if it were the act
of the photocopying. We would use the term, “pa-xerox” when we actually mean “pa- photocopy.”
TYPES OF MARKET
-family market
-the senior market
-the youth market
- the Meetings, Incentives, Conferences (Conventions), and Exhibitions (MICE)
Conference tourism-refers to all activities associated with planning, travel to and participation in conferences and meetings,
both domestic and international.
Incentive travel- most lucrative of the MICE market. It comes in the form of a reward for employees or business partners; hence,
luxury is a natural consequence. Most of the travel requirements are paid for by the giver of the incentive.