Tourism Marketing Principles

Lecture – Week 2 Evening 1

Market Segmentation

Teaching Materials Prepared by

Fabliha Hride
 Classroom Rules

Keep your mobile phone Always bring a laptop

Dress appropriately switched off or in a with you for all
silent mode lectures and tutorials

Do not interrupt the

Respect Each Other Ask only relevant questions
lecturer or session when
during teaching time
you arrive late

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Class Attendance Reminder:
❑ Evening classes finish at 9 pm
❑ Daytime classes finish at 2.15 pm

✓ Leaving class early will result in your Register Status being updated to ‘left early’
✓ Consistently poor attendance = poor performance and potential impact on student finance
funding

20 mins early per

class x 2 classes per week
= 40 mins per week

200 minutes
x =
5 weeks per module
(3 hours & 20mins = nearly one
whole lesson)!!!
 Assessments:

• Individual Presentation* (15 minutes

including 10 minutes presentation plus 5
minutes question & answer session)
Assessment 1: (Equivalent to 2,000 words)
• 50% weightage
• Deadline: Monday, 15 April 2024 by 2.00
P.M.

• Business Report (2,000 words)

• 50% weightage
Assessment 2:
• Deadline: Friday, 19 April 2024 by 2.00 P.M.
 Important Information
10 marks will be deducted for
assessments with a word count
that is 10% over the allotted word
count.
 Learning Outcomes:
LO 2: Understand the concept of market segmentation/target marketing and describe
decisions associated with these key activities within the marketing planning stages of
a tourism organization

LO 4: Apply acquired knowledge of marketing and relevant skills to a range of real-

world cases and examples within the tourism industry.

LO 5: Demonstrate appropriate academic writing skills, referencing and good

academic practice and make decisions on organising material in a logical and coherent
way with an audience in mind in.
 What is Market
Segmentation?
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What is Market Segmentation:
❑ Market segmentation is to divide a market into smaller
groups of buyers with distinct needs, characteristics, or
behaviours who might require separate products or
marketing mixes.” (Charles W. Lamb 2003).

❑ Market segmentation involves dividing a market into distinct

groups of buyers who have different needs, characteristics, or
behaviours and who might require separate marketing
strategies or mixes (Kotler, et al., 2019)

❑ It needs to have a 'definable' segment - a mass of people

who can be identified and targeted with reasonable effort,
cost and time (The Economic Times, 2022).
 Understanding Market Segmentation:
Companies can generally use three criteria to identify different market segments:

Homogeneity, or common needs within a segment

Distinction, or being unique from other groups

Reaction, or a similar response to the market

(Tarver, 2023)
Market Segmentation:

An Introduction to Market Segmentation - YouTube

Class Activity(10 minutes):

1. What is Market segmentation?

2. Identify the benefits of Market
Segmentation.
3. Share your findings with the class.
Advantages of Market Segmentation:
❑ Create stronger marketing
messages
❑ Find the ideal marketing
strategies
❑ Design-targeted advertising
❑ Attract potential customers
❑ Differentiate your brand from
the competition
❑ Identify your niche market
❑ Focus your efforts
❑ Create a customer connection
(Villegas, 2023)
 Types of
Market
Segmentation:
13

(Source: QuestionPro)
Geographic Segmentation:
❑ Geographic segmentation calls for dividing
the market into different geographical units,
such as nations, regions, states, counties,
cities, or even neighbourhoods.

❑ A company may decide to operate in one or a

few geographical areas or operate in all
areas but pay attention to geographical
differences in needs and wants.

❑ Moreover, many companies today are

localizing their products, services,
advertising, promotion, and sales efforts to fit
the needs of individual regions, cities, and
other localities.
(Kotler, et al., 2019)
Demographic segmentation:

❑ Demographic segmentation divides the market

into segments based on variables such as age,
life-cycle stage, gender, income, occupation,
education, ethnicity, and generation. (Kotler, et
al., 2019)

❑ Demographic segmentation is one of the most

widely used forms of market segmentation since
it is based on knowing how customers use your
products and services and how much they are
willing to pay for them (Tarver, 2023).
Typical attributes to consider
during demographic
segmentation include:

❑ Age
❑ Gender identity
❑ Ethnicity
❑ Sexual orientation
❑ Income level
❑ Household size
❑ Education level
❑ Geographical location

(Coursera, 2023)
 Gender segmentation: In line with the “athleisure” trend that has more women
wearing workout gear as everyday fashion, Dick’s Sporting Goods recently launched
its first-ever ads aimed directly at fitness-minded women. (Mccarthy, 2023)
Choices: Who Will You Be by DICK'S Sporting Goods (youtube.com)
 ❑ Psychographic segmentation divides buyers into different segments based on
lifestyle or personality characteristics. People in the same demographic group
can have very different psychographic characteristics (Kotler, et al., 2019)
Psychographic
❑ Often the most difficult market segmentation approach, psychographic
Segmentation segmentation strives to classify consumers based on their lifestyle, personality,
opinions, and interests (Tarver, 2023).

❑ This may be more difficult to achieve, as these traits (1) may change easily and
(2) may not have readily available objective data.
Common psychological characteristics
and traits to consider:

❑Personal values
❑Religious beliefs
❑Opinions
❑Attitudes
❑Aspirations
❑Political leanings
❑Lifestyle
(Coursera, 2023)
 Class Activity: (10 minutes)

❑ Watch the video on the following slide

❑ Take notes

❑ Identify what market segmenting they

use and why.
20

❑ Share your ideas with the class.

The Gazelle
Arroyo C5
Lifestyle segmentation: Gazelle caters to a
range of lifestyle segments, from daily users to
the Dutch royal family
FOW - Combo - You've Really Gotta Stop Selling (youtube.com)
 Behavioural Segmentation:
❑ Behavioural segmentation divides buyers into segments based on
their knowledge, attitudes, uses, or responses to a product (Kotler,
et al., 2019)

❑ Behavioural segmentation focuses on specific reactions,

i.e. consumer behaviours, patterns, and how customers go through
their decision-making and purchasing processes.

❑ The public’s attitudes towards your brand, how they use it, and
their awareness are examples of behavioural segmentation.
Collecting behavioural segmentation data is similar to how you
would find psychographic data. This allows marketers to develop a
more targeted approach. (Villegas, 2023)
Common areas of consideration for behavioural segmentation include:

(Souce: Sulcas, 2021)

Useful Link: Ultimate Guide to Behavioural Segmentation in 2023 | Your ultimate guide
to behavioural segmentation in marketing (qualtrics.com)
Benefit segmentation: Within Fitbit’s family of health and fitness tracking
products, no matter what bundle of benefits one seeks, “There’s a Fitbit for
Everyone.” (FitBit News, 2021)
 Firmographic Segmentation:
❑ Firmographic segmentation is the classification of
business-to-business customers based on shared
company or organisation attributes.
❑ Firmographics are descriptive attributes of
organisations, companies, non-profits,
governmental entities, corporations, or any other
type of firm.
❑ This data is to organizations, as demographic data is
to individuals — both used to segment and target
potential prospects.

(Coursera, 2023)
 Common attributes to consider for
firmographic segmentation include:

❑Industry

❑Location

❑Size
❑Status or Structure

❑Performance

(Coursera, 2023)
 In a group of four to five, discuss the following:

Class Activity: • What other types of market segmentation were

not covered earlier?
(15 Minutes) • List as many as you can, giving examples of each,
and then share your responses with the class.
Different Types of Market Segmentation.
The Steps of Segmentation:

Step 1: Select A Step 2: Choose A

Step 3: Selecting
Market or Product Basis or Bases for
Segmentation
Category For the Segmenting the
Descriptors.
Study. Market.

Step 4: Profile and Step 5: Select

Analyse Segments. Target Markets.

(Source: Charles W. Lamb and Carl McDaniel, 2003)

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 Assignment Draft Review (30 minutes)

❑ Show your lecturer a draft of your Individual Presentation for

personalised feedback.
❑ This will allow you to receive constructive criticism and suggestions
for improvement before your final presentation.
❑ Taking advantage of this opportunity can help you refine your
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ideas and ensure a successful delivery on the day of your
presentation.
Supplementary Slides
The Secret Behind
Coca-Cola
Marketing Strategy
33

The Secret Behind Coca-Cola Marketing Strategy - YouTube

 Case Study: Mountain Dew: “Doin’
the Dew” with Brand Superfans.
❑ Download the week 2 - case study on
“Doin’ the Dew” from Moodle.
❑ Read the case study and find out how
Mountain Dew impulsively engages brand
superfans to encourage customer loyalty.
 References:
• Goyat, Sulekha. “The Basis of Market Segmentation: A Critical Review of Literature.” European Journal of
Business and Management, vol. 3, no. 9, 2011, pp. 45–55.

• Kotler, P. and Armstrong, G. (2020) Principles of Marketing, Global Edition. 18th edition. Harlow: Pearson
Education Limited

• Liu, Y. and Shan, H. (2021). Fresh Fruit Time based on STP analysis and statistics method (Changchun) Word-of-
mouth marketing strategy research. E3S Web of Conferences, 233, p.02055.
doi:https://doi.org/10.1051/e3sconf/202123302055.

• Ma, L. and Kuang, J. (2022). Research on Tourism Short Video Marketing Strategy Based on STP Theory.
Advances in Economics and Management Research, 2(1), p.20. doi:https://doi.org/10.56028/aemr.2.1.20.
 References:

• Quliyev, O. and Ayyubzada, A. (2019). THE PLACE AND IMPORTANCE OF DOMESTIC TOURISTS’ PERCEPTUAL
MAPS IN TOURISM MARKETING. In: 37th International Scientific Conference on Economic and Social
Development. Varazdin Development and Entrepreneurship Agency in Cooperation with Azerbaijan State
University of Economics (UNEC) University North Faculty of Management University of Warsaw Faculty of Law,
Economics and Social Sciences Sale - Mohammed V University in Rabat, pp.1098–1106.

• Tarver, Evan. “Market Segmentation: Definition, Example, Types, Benefits.” Investopedia, 30 Mar. 2023,
www.investopedia.com/terms/m/marketsegmentation.asp.

• Villegas, Fabyio. “Market Segmentation: What It Is, Types & Examples.” QuestionPro, 9 Sept. 2021,
www.questionpro.com/blog/what-is-market-segmentation/.
Any Questions

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