Transcript Ⅰ. Concept of Market Segmentation

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Chapter 4 Tourism Market segmentation and Market
Targeting
Learning Objectives ：
1. To grasp the concept, principle, standard, and way of tourism
market segmentation
2. To grasp the choice and related strategy of Tourism Target
Market
3. To grasp the concept and method of Market Location of the
Product of Tourism
4. To be familiar with the three essential factors and the steps
of Market Location of the Product of Tourism
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Discussion: Why to subdivide the market and
choose target market?
●Finiteness of business resources (restrictive
Conditions)
●Enterprise’s Business according to qualification
(the pursue goal ）
●Difference of market demand (feasible condition)
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market segmentation
Ⅰ、Make
Market targeting
Market Location
Ⅲ、Decide
Ⅴ .Decide
possible
location idea
for each target
market
segmentation .
sure the base of
market
segmentation
the measuring
standard of
market
segmentation
Ⅱ、Draw the
attraction
outline of
market
segmentation
Ⅳ、Choose
Ⅵ. Choose,
develop and
communicate
with the
location idea
that was chosen.
target
segmentation
market
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Section 1 Tourism Market Segmentation
Ⅰ. Concept of Market Segmentation
The market segmentation is a behavior process that
divides a market into certain different buyer
community according to buyer’s need and desire,
purchase manner, purchase behavior characteristic
and other different factors.
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Ⅱ. Effective Segmentation
Measurable
Requirements
for
Effective
Segmentation
Actionable
Accessible
Substantial
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Ⅲ. Segmenting Consumer Markets
Bases for
Segmentation
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Geographic
Demographic
Psychographic
Behavioral
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Nation or country
State or region
City or metro size
Density
Climate
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Ⅲ. Segmenting Consumer Markets

Bases for
Segmentation

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Geographic
Demographic
Psychographic
Behavioral
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Age, race, gender
Income, education
Family size
Family life cycle
Occupation
Religion, nationality
Generation
Social class
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Ⅲ. Segmenting Consumer Markets
Bases for
Segmentation

Lifestyle
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Geographic
Demographic
Psychographic
Behavioral
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Activities
Interests
Opinions
Personality
Core values
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Ⅲ. Segmenting Consumer Markets
Bases for
Segmentation







Geographic
Demographic
Psychographic
Behavioral
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Occasions
Benefits
User status
Usage rate
Loyalty status
Buyer-readiness
Attitude
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Section 2 Tourism Target Market
Ⅰ、The definition of tourism target market ： It refers to the
part of
specific customer community which mainly served by enterprise
according to their own resources superiority , and in the foundation of
market segmentation.
Scale of market
segmentation
Attraction of
market
segmentation
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Choose target
market
Company's goal
and resources
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Ⅱ. Evaluating Market Segments
Size and
Growth
Structural
Attractiveness
Company
Objectives and
Resources
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Ⅲ. Choice Strategy of Target Market
Scope

Product - market
centralization

Product specialization
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Market specialization

Selective specialization

Total market
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M1
M1
M2
M2
M3
P1
M3
P2
P1
P3
P2
P3
Product - market
centralization
M1
M2
Product
specialization
M3
P1
P2
P3
Market
specialization
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M1
M2
M1
M3
P1
P1
P2
P2
P3
P3
Selective
specialization
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M2
M3
Total market
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Case
discussion：
Market
targeting
Shanghai and Beijing will continue attract the foreign tourists that travel to China at
the first time.
People who need to travel to China at the second time and hope to know more detail
about China.
If investigates and studies demonstrated that the majority western tourist are
attracted by the Chinese magnificent scenery and the animal and plant, then Chinese
target customer should be the naturalist. They can endure hardship and get used to
Chinese traveling condition. In order to attract these tourists, Chinese representatives
should make lectures in world wildlife association and other conferences that
organized by natural conservation organization.
Tourist who travel for the purpose of religious belief are also many. They travel to
Rome, Israel, Mecca, Indian and Tibet's origin place of religious and worship.
Nevertheless, as Qufu is the origin place of Chinese Ru culture, it is strange that not
many tourists go there.
People who have good education background all know Confucius. If the Qufu
traveling authority propagandizes Confucius and the Confucianism to the Western
religious organization and the church organization, the Western tourist will make
active respond and travel to Qufu .People who take the religious belief as the highest
spiritual value are the target customers of religious tourism.
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Case discussion ：Tourism of the Philadelphia
education
Philadelphia is located in the east of US, it is the signature place of American
Declaration of Independence, and also the American fourth big city. The
Philadelphia and the nearby regions altogether have more than 50 universities and
institutes. According to the population proportion computation, the Philadelphia
has the most universities and institutes in American , people who at least has the
undergraduate degree account for 51%, it is 7 percentage points higher than
American average level, the full-time employment rate is 74%, it is 9 percentage
points higher than American average level. It is not exaggerated to said that,
Philadelphia is one of the most knowledgeable cities in American. Nevertheless,
before 1999, the brand image of Philadelphia as US education city did not obtain
the promotion, not only the foreign tourist but also the American domestic tourists
did not familiar with the Philadelphia. Compared to its peripheral Baltimore,
Boston, Chicago, New York, Washington D.C. and other cities, Philadelphia's
traveling competitive power is not good.
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At the end of 1999, joined with the University of
Pennsylvania, Philadelphia tourism bureau launched a
“Campus Visit Program” which publicized with a slogan of
“One Big Campus” after a year-long marketing investigation.
The purpose of the initial three-year program is to attract
students ,parents and educators to visit Philadelphia. This
program can not only promote tourism in Philadelphia, but
be able to bring far-reaching impact on education sector.
when the program was launched , many people in the tourism
sector can not understand why Philadelphia focus on
publicizing “the concept of education” instead of “its ancient
history”, as before the program was launched ,Philadelphia
was always introduced as “the most ancient city” in the
United States .
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It is discovered in the market survey that in people’s mind ,the
main impression of Philadelphia is indeed its history. However,
except the Congress Office and the Liberty Bell , Philadelphia
can not attract them to other places. But the deeper meaning of
history should be the culture. Through investing the target
audience, we know that Philadelphia's main competitive
advantage are :1.On behalf of the U.S. history. 2.a large number
of well-known universities and museums ,a Strong cultural
heritage. 3.the scenery of the city is natural and enchanting. The
Campus Visit Program is to tour Philadelphia's history and
education together, to regard Philadelphia as “a big campus”, to
create a new, more competitive brand image of Philadelphia.
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1.Tourism program is specially designed for students and
parents, and there is a “Philadelphia University Day” hold
yearly in Philadelphia
2.The official website of Philadelphia Tourism Marketing – One
big campus. com. which can link with major U.S. university
sites and world-renowned university sites .Through the threedimension animation in the website ,potential consumers even
can interact to achieve “trial visit”.
Founding the "Guide for Campus" magazine which is quarterly
,mainly delivered to the target market such as each university’s
entertainment place , students can also apply free reading
online. One can describe his personal experience, and add their
tour photographs.
The immediate tourism revenue has been surpassed 90 million
U.S. dollars every year, and the prospects of Philadelphia
tourism are extremely good .
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Ⅳ. Market Coverage Strategies
Company
Marketing
Mix
Market
A. Undifferentiated Marketing
Company Mix 1
Segment 1
Company Mix 2
Segment 2
Company Mix 3
Segment 3
B. Differentiated Marketing
Segment 1
Company
Marketing
Mix
Segment 2
Segment 3
C. Concentrated Marketing
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Ⅴ. Distinguishes and connections among three target marketing
strategies

Both undifferentiated marketing strategy and differentiated
marketing strategy try to cover the entire market ,but the
difference is that the former didn’t subdivide the market, only
face the entire market with a product ,a marketing mix, thus the
latter produced a variety of products on the basis of market
segmentation, then use a variety of marketing group strategy to
explore the various market segments. The differentiated
marketing strategy and the concentrated marketing strategy are
based on the market segmentation, but what is different is the
former should be broken down into many sub-markets, while the
latter a few, or even a breakdown of the market as a target market.
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undifferentiated
marketing strategy
differentiated
marketing strategy
concentrated
marketing strategy
Strength of
enterprises
strength & resource
abundant
strength & resource
abundant
poor strength of &
small scale
Features of
products
The same product
Heterogeneous
products
Heterogeneous
products
Market
Features
Weak competition
Intense competition
Intense competition
Product life
cycle
Input period, growth
Competitors
strategy
undifferentiated
differentiated
concentrated
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Maturity, the period Maturity, the period
of recession
of recession
differentiated
concentrated
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Section 3 the Marketing Positioning of
Tourism Products
Ⅰ. The connotation of Marketing positioning
Marketing positioning——aimed at making their own
enterprises or their products in the eyes of target customers
create unique, impressive distinctive image.
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Ⅱ. Positioning Method
Products Feature Positioning
Price / quality positioning
Use of targeted products Positioning
Products targeted users Positioning
Products Category Positioning
With competitors positioning
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Ⅲ. Implementation of Positioning
• Seek differences——The act of designing their own
products and marketing mix.
High-quality A
F
Low prices
High prices
E
D
C
B
Low-quality
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