Transcript Target_Marketx

Target Markets
Identifying a Market
• Markets are identified in numerous ways:
• Looking at existing products
• Listening to consumer complaints/suggestions
• Demographic trends
• Direct consumer solicitation
Market Segmentation
• Once a market is identified, the market is then divided into segments
• This division leads to an identification of subgroups of the larger
market as being made up of clusters of people with like qualities.
Target Marketing
• Once segments are identified and labeled, products can be
marketed at a particular segment. This is called target
marketing.
Target Market and Guest Mix
• A target market is the market segment on which a lodging
business focuses on.
• Many lodging businesses seek to attract more than one
segment
• The guest mix is the percentage of each market segment
that is staying at a lodging property.
• Business travelers
• Pleasure travelers
Target Market and Customer
Market Segmentation
geographics
demographics
buying
characteristics
psychographics
Demographics & Psychographics
Demographics--quantifiable characteristics of a particular
population--are often critical for marketers. In order to sell your market
on a product, you have to know the market (is it growing or falling, is it
wealthy or poor, is it geographically centered or dispersed?)
Psychographics--characteristics which a particular population
shares that are primarily a state of mind/psychological. How likely
are people who just bought a house to buy a major consumer appliance
within six weeks of closing on their home? If a person likes to dine out
of the house at least once per week, what other purchases are they
likely to make?
Demographic Segmentation
• Dividing the market into groups based on
variables such as:
• Age
• Gender
• Family size or life cycle
• Income
• Occupation
• Education
• Religion
• Race
• Generation
• Nationality
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Demographics
also called socioeconomic segmentation.
• Primary source of data is U.S. Census Bureau.
SEGMENTING BY GENDER
• Lines blurring in recent years.
• Working women who regularly use the Internet make most of the decisions
about retail items, healthcare goods and services, and fitness products.
Demographics
SEGMENTING BY AGE
• School-age children—have significant influence over family purchases.
• Tweens and teens—spend $159 billion annually and influence billions of dollars of family purchases.
•Generation Y- Self-expression is more important than self-control, Marketing and branding self is
important. (Born between 1980-1994)
Generation X- family-oriented, well educated, and optimistic. (Born between 1965-1980)
• Baby boomers—lucrative, diverse segment that generally tends to value health and quality of life.
(Born between 1946-1964)
• Seniors—heads of households more than 55 years old control about three-quarters of the country’s
total assets.
Age Segmentation in the U.S.
12-17: 25 million (7.8%)
18-24: 31.2 million (9.7%)
25-34: 44.1 million (13.7%)
35-44: 40.6 million (12.6%)
45-54: 43.2 million (13.4%)
55-64: 40.9 million (12.7%)
65-74: 27.6 million (8.6%)
75+: 20.2 million (6.3%)
American Fact Finder
• US Census bureau
https://www.census.gov/data.html
Demographics
SEGMENTING BY ETHNIC GROUP
• Three fastest-growing ethnic groups in U.S. are Hispanics, African Americans and Asian Americans.
• Hispanics and African Americans—largest ethnic/minority groups in the United States.
• Hispanic population growing more quickly than African American.
• African Americans make more than $1 trillion in purchases each year.
• Asian Americans—second-fastest growing segment of the U.S. population.
• Concentrated in fewer geographic areas than other ethnic groups.
• Native Americans—population growing at double the rate of the national population.
• Native American businesses have revenue of $34 billion annually.
Demographics
SEGMENTING BY FAMILY LIFE CYCLE STAGES
• Family life cycle—the process of family formation and dissolution.
• Life stage, not age, is primary concern of marketer.
SEGMENTING BY HOUSEHOLD TYPE
• Average household size in U.S. has decreased from 5.8 in 1790 to less than three today.
• Households vary by life stage and the presence or absence of children.
• Growing number of same-sex couples who share households.
Demographics
SEGMENTING BY INCOME AND EXPENDITURE PATTERNS
• Target consumers at all income levels.
As household income increases,
• Spending on housing, household operations, and clothing remains constant.
• The percentage spent on other items increases.
DEMOGRAPHIC SEGMENTATION ABROAD
• Demographic data can be more difficult to get than in the U.S.
• International Programs Center provides some international demographic data, as does the United
Nations.
Geographic segmentation: groups based on their
locations.
• Pay close attention to areas with overall large population and quickly growing
populations.
• Worldwide, China and India have the world’s largest populations, followed by the U.S.
• Businesses must also consider economic variables and may combine their marketing
efforts in countries that share similar characteristics.
Psychographic Segmentation
Divides Buyers Into Different Groups Based on:
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Behavioral Segmentation
• Dividing the market into groups
based on variables such as:
• Occasions
• Benefits
• User status
• Usage rate
• Loyalty status
• Readiness stage
• Attitude toward product
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens
©2003 Pearson Education, Inc.
Upper Saddle River, NJ 07458
Select the Type of Market Research
There are three types of market research
exploratory research
market research
the collection and analysis of
information aimed at
understanding the behavior of
consumers in a certain market
descriptive research
historical research
Select the Type of Market Research
exploratory research
the initial collection and analysis
of information used when very
little is known about a subject; it
forms a foundation for later
research
descriptive research
the collection of information to
determine the status of
something, such as in developing
a customer profile
historical research
the study of the past to explain
present circumstances and predict
future trends
Start the Research Process
The most common
methods of gathering
primary data about
customers are:
• observation
• interviews
• surveys
• focus group
primary data
information that is collected for the
first time, is current, and relates
directly to the collector’s study
Researching the Industry
Look at trends and patterns of change.
Understand industry forces that affect your business.
Study industry demographics.
Analyze the competition.
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Researching the Target Customer
Create a customer profile.
Evaluate customers’ needs.
Forecast research to forecast demand.
Conduct
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Evaluating Customers’ Needs
In order to
provide what the
customer wants,
you should
prepare a
customer needs
analysis.
customer needs analysis
a study that pinpoints the features
and benefits of goods or services
that customers value