MARKET SEGMENTATION

AS APPLIED IN TOURISM & HOSPITALITY

MARKET SEGMENTATION

• A STRATEGY USED TO DIVIDE THE MARKET FOR

EASIER PRODUCT PENETRATION. THE MARKET
IS DIVIDED INTO DIFFERENT SECTIONS BASED
ON CERTAIN CHARACTERISTICS THAT MATCH
THE PROFILE OF THE PROSPECTIVE
CUSTOMERS.
• the process of dividing a target market into
smaller, more defined categories. It segments
customers and audiences into groups that share
similar characteristics such as demographics,
interests, needs, or location.
WHY SEGMENT THE
MARKET ?

• Facilitates the RIGHT CHOICE of the TARGET MARKET

• Facilitates EFFECTIVE TAPPING of the CHOSEN
MARKET
• Makes the marketing effort MORE EFFICIENT &
ECONOMIC
BENEFITS OF MARKET
SEGMENTATION
• 1. Create stronger marketing messages
When you know whom you’re talking to, you can
develop stronger marketing messages. You can
avoid generic, vague language that speaks to a
broad audience. Instead, you can use direct
messaging that speaks to the needs, wants, and
unique characteristics of your target audience.
• 2. Identify the most effective marketing
tactics
With dozens of marketing tactics available, it
can be difficult to know what will attract your
ideal audience. Using different types of market
segmentation guides you toward the marketing
strategies that will work best. When you know
the audience you are targeting, you can
determine the best solutions and methods for
reaching them.
 BENEFITS OF MARKET
SEGMENTATION
• 3. Design hyper-targeted ads
On digital ad services, you can target audiences by
their age, location, purchasing habits, interests, and
more. When you use market segmentation to define
your audience, you know these detailed characteristics
and can use them to create more effective, targeted
digital ad campaigns.
• 4. Attract (and convert) quality leads
When your marketing messages are clear, direct, and
targeted they attract the right people. You draw in
ideal prospects and are more likely to convert potential
customers into buyers.
 BENEFITS OF MARKET
SEGMENTATION
• 5. Differentiate your brand from competitors
Being more specific about your value propositions
and messaging also allows you to stand out from
competitors. Instead of blending in with other brands,
you can differentiate your brand by focusing on
specific customer needs and characteristics.
• 6. Build deeper customer affinity
When you know what your customers want and need,
you can deliver and communicate offerings that
uniquely serve and resonate with them. This distinct
value and messaging leads to stronger bonds
between brands and customers and creates lasting
brand affinity.
BENEFITS OF MARKET
SEGMENTATION
• 7. Identify niche market opportunities
Niche marketing is the process of identifying segments of
industries and verticals that have a large audience that can
be served in new ways. When you segment your target
market, you can find underserved niche markets that you
can develop new products and services for.
• 8. Stay focused
Targeting in marketing keeps your messaging
and marketing objectives on track. It helps you identify new
marketing opportunities and avoid distractions that will lead
you away from your target market.
VARIABLES FOR • Geographic Segmentation
• Divides the market into geographic units
SEGMENTATION such as country, states, region, cities,
neighborhood, barangays, town, etc.
 VARIABLES FOR
SEGMENTATION

• Demographic Segmentation
• The segmenting of market based on variables
such as age, sex, income, occupation, etc.
• Ex. By Age Group; Baby Boomers: Born 1946-
1964 (54-72 years old)
• Generation X: Born 1965-1980 (38-53 years old)
• Millennials: Born 1981-1996 (22-37 years old)
• Post-Millennials: Born 1997-Present (0-21 years
old)
VARIABLES FOR SEGMENTATION

• Psychographic Segmentation
• Divides consumer based on psychographic profiles such as social class,
lifestyle, and personality characteristics. Type of tourism that would best
serve psychographic segments are adventure tourism, cultural tourism and
eco-tourism.
• Behavioral Segmentation (Buying Behavior)
• Dividing groups based on their knowledge, attitude, use or response to a
product or service. Example is special occasion, benefit seeking, user
status, usage rate, loyalty status)
 Technogrophic
• categorize consumers based on
VARIABLES FOR their ownership, use patterns, and
SEGMENTATION attitudes toward information,
communication and entertainment
technologies.
Cultural and Social
Differences
 OBJECTIVE

•The needs and wants of consumers needs to

be assessed using the different variables for
segmentation and socio cultural identities to
ensure that tour or food service packages is
suited to their expectation.