THE TOURIST MARKET

AND SEGMENTATION
CHAPTER 2
 1. DEFINE WHAT IS A MARKET;
2. STATE THE THREE STEPS TO
TARGET MARKETING;

Objectives: 3. IDENTIFY THE

CHARACTERISTICS OF A GOOD
MARKET SEGMENT;
4. DISCUSS THE MARKET
COVERAGE STRATEGIES AND
POSITIONING;
5. DISTINGUISH THE NEW
EMERGING MARKETS IN THE
PHILIPPINES.
Definition of a Market
A market is a set of actual and potential buyers
of a product. These buyers share a particular
need or want that can be satisfied through
exchange relationships (Kotler et al. 2016).

20XX
Market Segmentation
- A market is comprised of varied profiles and
characteristics that can be further segregated.
Characteristics of a Market Segmentation:
1.Identifiable
2.Cohesive
3.Measurable
4.Accessible
5.Substantial
6.Actionable
 Table 2.1 Variables to Segment Consumer Markets
Geographic Demographic
Nations Age
States Life cycle
Regions Gender
Countries Income
Cities Occupation
Neighborhoods Education
Barangays Religion
Towns Race
Psychographic Behavioral
Special occasions
Benefits
Social class
Sought usage
Lifestyle
Rate user status
Personality
Loyalty status
Buyer readiness

20XX 5
 Market Targeting
• Shows the various market segment opportunities
available for a company. A careful assessment of these
specific market segments will help the firm identify which
ones it should target.

Factors to consider in evaluating which segments should be

targeted:
1. Segment size
2. Attractiveness
3. Company objectives and availability of resources

20XX presentation title 6

 MARKET COVERAGE STRATEGIES

In the selection of specific market segments, a company

decides on a market coverage strategy that is in line with its
objects and resources.
Three Market Coverage Strategy:
(1)undifferentiated marketing,
(2)differentiated marketing, and
(3) concentrated marketing.

20XX 7
UNDIFFERENTIATED MARKETING
• A COMPANY IGNORES MARKET SEGMENTATION AND GOES AFTER THE ENTIRE
MARKET WITH ONLY ONE MARKET OFFER

DIFFERENTIATED MARKETING
o APPROACHES THE MARKET BY TARGETING SEVERAL MARKET SEGMENTS USING
SEPARATE OFFERS PER SEGMENT.

CONCENTRATED MARKETING
• PRACTICED BY COMPANIES WITH LIMITED RESOURCES. IT PURSUES GETTING A
BIG SHARE OF A SMALL MARKET RATHER THAN A SMALL SARE OF A LARGE
MARKET

20XX 8
 FACTORS TO BE CONSIDERED WHEN CHOOSING MARKET COVERAGE STRATEGY

1. COMPANY’S RESOURCES – refers to how much money and resources the company has which can
be allocated to marketing.
2. DEGREE OF PRODUCT HOMOGENEITY – if products are standardized and identical, it is more
advisable to go for undifferentiated or concentrated marketing.
3. MARKET HOMOGENEITY – if there is a diverse market, differentiated marketing is advisable.
4. COMPETITOR’S STRATEGY – it is important to assess the strategy competitors are using so that
the correct strategy can be implemented to counter their marketing efforts.

20XX presentation title 9

 MARKET POSITIONING
Market positioning is developing competitive positioning for the product and
an appropriate marketing mix (Kotler et al. 2017). These three positioning
concepts will help reinforce the idea of market position: (1) unique selling
preposition, (2) competitive advantage, and (3) top-of-mind awareness.

Unique selling preposition (USP) is a term used to identify what makes the
product or service different from others.

Competitive advantage is the product’ advantage over its competitors, which

gained by offering greater value either by offering lower prices or providing
more benefits to justify higher prices(Kotler2016).

Top-of-mind awareness is the highest level of recall that a brand receives. It

means that the brand occupies the top spot in a consumer’s mind.

20XX 10
 New and Emerging Markets
Tourism markets have evolved in recent years. The study of new and emerging markets in
tourism is vital in the growth of destination.
These are the factors that identified the growth of tourism on the demand side:
1. Economic growth in major source markets
2. Increase in disposable leisure time and a longer life expectancy with sound health to travel.
3. Changes in living conditions, especially city dwellers becoming more inclined to engage in
tourism.
4. Rising education levels and increased access to information, stimulating curiosity.
5. Increase international integration of life.
Furthermore on the supply side growing through:
1. The development of and investment in infrastructure;
2. Continuous tourism product development; and
3. The elimination of legal limitations on and practical obstacles to travel.
 Types of Markets
• The Family Market
• The Senior Market
• The Youth Market
• The Solo Travel Market
• The LGBTQ+ Market
• The Bleisure Market ( business and leisure)
• Wellness Tourism

20XX presentation title 12