Module 2

The Tourist Market and

Segmentation
Learning Objectives

At the end of the discussion, the student should…

• Define what a market is;
• State the three steps to target marketing;
• Identify the characteristics of a good market segment;
• Discuss the market coverage strategies and positioning; and
• Distinguish the new and emerging markets in the
Philippines.

The Tourist Market and Segmentation

Market
• It is a set of actual and potential buyers of a product.
• A niche market is the subset of the market on which a
specific product is focused.

The Tourist Market and Segmentation

“DEFINITION OF A MARKET”
3 steps to target marketing
• Market Segmentation
• Market Targeting
• Market Positioning

The Tourist Market and Segmentation

“DEFINITION OF A MARKET”
Market Segmentation
• It is the process of grouping buyer’s common desires or
needs, having into different categories.
• It is the process of identifying the groups of buyers on the
basis of differences in their desires or requirements.
• A market segment is a subgroup of the total consumer
market who share similar characteristics.

The Tourist Market and Segmentation

“MARKET SEGMENTATION”
 MARKET Vegans

Fruits Vegetables
MARKET
SEGMENTATION

MARKET
SEGMENTS

Banana Apple Lettuce Potatoes

The Tourist Market and Segmentation
“MARKET SEGMENTATION”
Characteristics of a Market Segment

The Tourist Market and Segmentation

“MARKET SEGMENTATION”
Market Targeting
• It is the process of evaluating each segment’s attractiveness
and selecting one or more of these market segments in
which to operate one’s business (Kotler et al, 2017).

The Tourist Market and Segmentation

“MARKET TARGETING”
Factors to consider in evaluating which segment
should be
1. Segment Size – refers to the volumes, growth rate, and
high profit margin.
2. Attractiveness – refers to the potential impact of the
segment to the company. One that is not saturated and has
few aggressive competitors would be structurally
attractive.
3. Company objectives and availability of resources – refers
to the main reason for its decision making and the
available resources the company will use to make its
objectives a reality.

The Tourist Market and Segmentation

“MARKET TARGETING”
Market Coverage Strategies
1. Undifferentiated Marketing – a strategy that ignores
market segmentation and goes after the entire market with
only one market offer.

The Tourist Market and Segmentation

“MARKET TARGETING”
Market Coverage Strategies
2. Differentiated Marketing – a strategy that approaches the
market by targeting several market segments using
separate offers per segment.

The Tourist Market and Segmentation

“MARKET TARGETING”
Market Coverage Strategies
3. Concentrated Marketing – a strategy practiced by
companies with limited resources.

The Tourist Market and Segmentation

“MARKET TARGETING”
Factors to consider in choosing market coverage
strategy
1. Company’s resources
2. Degree of Product Homogeneity
3. Market Homogeneity
4. Competitor’s Strategy

The Tourist Market and Segmentation

“MARKET TARGETING”
Market Positioning
• It is the developing competitive positioning for the product
and an appropriate marketing mix.

The Tourist Market and Segmentation

“MARKET POSITIONING”
3 Market Positioning Concepts
• Unique Selling Promotion – is a term used to identify what
makes the product or service different from others. Ex.
Specifications, materials used, etc.
• Competitive Advantage – is the product’s advantage over
it’s competitors. Ex. Stores that offering great value and
lower prices at the same time.
• Top-of-mind Awareness – is a term means that the brand
occupies the top spot in a consumer’s mind. Ex. Colgate,
Xerox.

The Tourist Market and Segmentation

“MARKET POSITIONING”
 The Tourist Market and Segmentation
“GENERATIONAL TRAVEL MARKETS”
 The Tourist Market and Segmentation
“GENERATIONAL TRAVEL MARKETS”
 The Tourist Market and Segmentation
“GENERATIONAL TRAVEL MARKETS”
 Family
Marke
t
The Senior
Bleisure Marke
Market t
New and
Emergin
LGBTQ g Youth
+ Markets Marke
Market t

Solo The MICE

and
Travel Business
Market Market

The Tourist Market and Segmentation

“NEW AND EMERGING MARKETS”