MARKETINGSEGMENTATION

JUAN LOPEZ ZORAIDA ARRABAL

A1Step 1: Segmenting the Market

1 Dividing the overall market intosubgroups(market segment)using oneor maore factors2 Determine the variable purpose of trip, life styles nationalitiesexpenditures age.3 The aboce variables were appied onthe market.

Step 2 selecting targetmarket

6 we pick up the best segment

4 The outcome was the differentsegmentation.5 Check that the segments meet the 8 criteriamensurable substantialaccesibledefensibledurablecompetitivehomogeneouscompatible

A2

B1

1. Geographic Segmentation. This is the most widely used segmentation base inthe hospitality and travel industry. Geographic segmentation means dividingthe market into groups of customers who share the same geographic location.

2. Demographic Segmentation. Demographic segmentation means dividingmarkets based on population statistics. These statistics—primarily generatedfrom census information—include age, sex, household and per capita income.family size and composition, occupation, educational level, religion,race/ethnic origin, housing type, and other factors.

3. Purpose-of-Trip Segmentation. The concept of purpose-of-trip segmentation(dividing hospitality and travel markets according to the primary purpose of thecustomer’s trip) is widespread. Lodging, restaurant, travel agency, cruise line,airline and destination marketing organizations traditionally apply it as at leastpart of their segmentation approach.

4. Lifestyles. 5. Behavioral Segmentation, expense.

Once mentioned the most used segmentation variables is Spain .It covers a wider audience for a first segmentation regardless of other variables,Geographic Segmentation. Demographic segmentation is divided into several groupsdepending on market age, sex ... which we quremos lead to introduce our product /Service to offer. The demographic variables are mas easy to measure because of itthey are very used, have the advantage of cataloguing easily and rapidly the needs ofthe consumers, Spain offers products according to the age, I generate, marital status,education, religion, nationality In conclusion the segmentation of the markets revealsthe segments where it was possible to have opportunities not always I segment it masbig they are the favorable mas, we must choose the segments that go in agreement toour resources and aims.

C1 The criteria for effective segmentation are 8:

Measurable: We are inneed to set marketingobjectives in numericalterms and to measure theresults of marketing plans.

Substantial: A targetmarket must be big enoughto warrant a separateinvestment. It mustproduce more in addedprofits than the amountrequired to pursue it.

Durable: Some marketsegments are short term ormedium term, meaning thatthey exist for less than fiveyears. In our industry weare not interested in fads.

Competitive: The moreprecisely the service fitsthe needs of a particularsegment, the more likely itis to succeed. On the otherhand, if a service does notmatch the needs well, thereis little point in pursuingthe segment.

Accessible: The essenceof market segmentation isbeing able to select andreach specific customergroups.

Defensible: The marketermust feel confident that theorganization’s share

of each target market canbe defended fromcompetitors.

Homogeneous: Theorganization should makesure that the segments areas different from eachother, or as heterogeneous,as possible.At the sametime, the people withineach segment should be assimilar, or ashomogeneous, as possible.

Compatible: When anorganization selects a targetmarket it must be sure thatthe market does notconflict in any way withthe markets it alreadyserves.

C2

The britihs people:

Have these variables fulfill 8 criteria, itis a big market satisfied with ourproduct, accessible and that repeat asdestination of vacations our country.The British people have a purpose oftrip of leisure and holidays

Family tourism:

This segment is accessible,

durable andcompatiblly

with many products of the

Spanish market

and is a wide segment.

Incerso:

It is a segment every time major, loyaland they all have the same characteristics.

D1

A good segmentation of market is the division of the overall market for a service intogroups with common characteristics.

WHO? Which market segments should we purpose?

WHAT? What are they looking for in our types of service?

HOW? How we develope our marketing program to best fit

their needs and wants?

WHERE? Where do we promote our service?

WHEN? When do we promote them?

D2

The three characteristics of the Spanish

tourist market are: seasonality, dependence

on international tourism and the Spain

brand is already established .

According to these three characteristics

market segmentation , focusing on that

market becomes more interested .

Foreign tourists : those nationalities who

visit us and benefit us in our economy , the

estragia to follow is to promote our brand in

international exhibition , internet,

advertisements in various media and

agreements with travel agencies in the

receiving country .

Seasonality: One drawback to our tourism

market,

which tries to suppress different promotions

launched by tourism enterprises in low

season , focusing on market segments with

greater willingness to suppress IMSERSO

as seasonality.

ore emphasis on the frequent traveler.

More attention to fitness and health needs.

More attention to luxury/executive travelers.

Increased emphasis on longer-stay travelers.

Greater variety of ethnic food offerings.

E1 Once analyzed and researched the Spanish tourist market has valued the most

beneficial to our economy segments , resulting in three market segments , Britishtourists , imserso families. These meet the criteria for effective segmentation and

measurable, substantial , durable , competitive , consistent and defensible .

E2British tourists: It is a segment that does not go out of fashion since this Spain veryvalued by them. They are faithful to our products of the Sun and beach, gastronomy,

culturally, customs, I boast etc. Being a big segment with an economic high level,contributing to the gross domestic product with his expenses.

Incerso: It is a wide segment and durable since the population every time is older inthe developed countries, of easy access helped by the government, with similar tastes.

Familia: this type of segment is very important in Spain for which it spends muchmoney in his vacation period, being assiduous to the theme parks, tourism of the Sun

and beach. This segment this one guided by the tastes of his children doing that ishomogeneous.

F

After segmenting the market based on the different groups and classes, you will needto choose your targets. No one strategy will suit all consumer groups, so being able todevelop specific strategies for your target markets is very important.

There are three general strategies for selecting your target markets:

1. Undifferentiated Targeting

2. Concentrated Targeting

3. Multi-Segment Targeting

In the first strategy responds to market segments which using a single marketingestrategy. This segment is homogeneous because have the same preferent and theclosed package tour for example incerso.

The second strategy is focusing on a single segment so you can concentrate onunderstanding the needs and wants of that particular market intimately the familieschoosen the litle company because they are looking segurity and personalityaffective.

The third strategy the focus is two or more market segments and want to developdifferent strategies for them.To the segment British we can offers diferent strategieslike products , price, channel of distribution.

G1

The instruments used by marketers are the same (price, promotion, product andplace). Although they are not been used in the same way. The purpose in usingmarketing tools is to bring tourists to our country no matter the life cicle of allprodruts. Marketers fuction is to maintain as long as possible the product alive,attractive and profitable.

The instruments used in the examples above are mostly the exame. We have a highquality product, reasonable prices, a reaching channel of distribution and a solidpromotion where the goverment is committed and ivolved in promoting the tourismwhile the private sector offers the product. The channel of distribution is the one thatcould change depending on the segment.

G2

Positioning is developing a product and brand image in the minds of consumers.Business should aim to define themselves in the eyes of their customers in regards totheir competition.

For it the British tourism positions us in a good place, for our product and price. Theinsertion is a segment disputed by three Spanish agencies World senior, Logitraveland Mundoplan this contest finally was awarded to World senior going more than 20years on the market, doing that his clients position her as a leading company. Thefamily tourism helped by the intermediary companies they do that is positioned in themind of the consumers by means of, the distribution and communication.

H1

Once analyzed the values of the instruments in every segment we observe:

Inserso: they want a product with guarantee and in group offering them culture,health, gastronomy emphasizing the religious tourism. His prices are low for adiscount of clients' volume and the seasonal variation. Place normally travels in bus,the travel agencies distribute his promotion by means of letters that inform theconsumers of major age about his offers, also they can go to this sector by means ofsales representatives.

Families: They demand a qualit product, safety and guarantee look for thesatisfaction especially of the children with which the agencies offer a product focusedon the infantile public as for example theme parks, hotels with animation etc. Theprices change according to the select destination and it is in the habit of being a highplace since it is in vacation period (high season). The distribution these stocks inintermediary companies the access to the places chosen for his vacations is changedbeing the used mas the own vehicle and air transport, the promotion to come to thissegment is both for Internet and for advertising and they trust especially inprofessionals with they are the agencies d and travel to enjoy a few vacations ofquality and guarantee.

The british: they choose for our product of quality, style and safety, they began fora tourism of masses in the 60s of the Sun and beach since then they continuerepeating for discovering a rich country in history and customs. Our prices changedepending on the destination (the price of Marbella is not equal to the priceAlmuñecar) and for the launch of the offer the place is basically pro air transport, thepromotion is realized by means of Internet and issuing agencies.