Alicia Padial Rodriguez 1GIAT B

Sonia Ortega Almendros 1GIATB

SPANISH TOURISMMARKET

SEGMENTATION

STEPS TOCONDUCTING AN

EFFECTIVESEGMENTATION

STEP 1: DIVIDING the overall market into subgroups using one or more factors. 1.Identify all market international2.Choose the variable for segmentation.

• Purpose of trip• Nationality• Age• Lifestyle• Expenditure

3.The above variables were upplied on the market. 4.The outcoming was the different segments.5.Check that the segments comply/ meet 8 criterial factors.

STEP 2: Selecting those market segments that the organitations is best able to serve appeal to.

6.We pick out the best segments.

CLASSIFICATION OF EXISTING MARKETSAGE

NATIONALITY

LIFE-STYLE

LIFE-STYLE

PURPOSE OF TRIP

EXPENDITURE

LIFE-STYLE

PURPOSE

What are the variables most used in theSpanish tourism market?

Nationality: This is the most widely used segmentation based inthe hospitality and travel industry.Nationality means dividing the market into groups of costumers who share the same geographic location.Geographic markets can be easily mesured and usually there are numerous demographic travel andothers statistics available for these markets.Another reason that this type of segmentation is so popular that most media vehicles serve specific geographic areas.Organizations with markets in one or more countries feel that behaviour patterns vary with thecountry or regions or residents.

Purpose-of-Trip Segmentation:

The concept of purpose-of-trip segmentation (dividing,hospitality and travel markets according to the primary purpose of the customer’s trip) is widespread. Lodging, restaurant, travel agency, cruise line, airline and destination marketing organizations traditionally apply it as at least part of their segmentation approach.Splitting the hospitality and travel marketing into two main groups- the bussines travel markets and the pleasure and travel market.It is generally agreed that the needs and wants of business pleasure or personal travelers are quite different.

Expenditure:

Behavioral segmentation divides customers by theiruse occasions, benefits, user status, usage rate, loyalty status, buyer-readiness stage, and attitudes toward the product or service.

These statistics primarily generated from census information – include age,sex, household per capitaincome, family size and composition, educational level, religion, race/ethnic origin, housing type, andothers factors.

a. Use Frequency. Use-frequency segmentation means dividing the overall market based on the number of times a service is purchased or on each segment’s share of the total demand.b. Usage Status and Potential. Customers can be grouped according to their usage status. Examples of this approach include splitting the market into nonusers and former, regular, and potential users.

LIFE-STYLE:

Lifestyle: Psychographic segmentation has recentlygained popularity. Psychographics is the development of psychological profiles of customers and psychologically based measures of distinctive modes of living or lifestyles.

If you mix these factors you will have your lifestyle.

Lifestyle is as a personal factor that influences customer behavior. It also describes the VALSTM (Values and Lifestyles) and PRIZM programs developed by professional research firms as psychographic segmentation techniques that many marketers favor.

AGE:

The age segment is one of the most important because it can cover more tourism because depending on the type of age are different tastes and different activities so they can get more out of each and every one of the tourist resources there in Spain.each tourist has a different behavior at the Spanish market should study and analyze the needs and desires of each group of tourists of different ages to meet all the activities that fit each group. Eg programs aimed at older as IMSERSO or younger and study tours tourists.

REQUIREMENTS FOR SEGMENTATIONCompetitive.

The more precisely the service fits the needs of aparticular segment, the more likely it is to succeed.On the other hand, if a service does not match the

needs well, there is little point in pursuing thesegment.

Substantial.

A target market must be bigenough to warrant aseparate investment. It must produce more in

added profits than the amount required to pursueit.

Defensible.

The marketer must feel confident that theorganization’s share of each target market can be

defended from competitors.

Durable. Some market segments are short term or

medium term, meaning that they exist for lessthan five years. In our industry we are not

interested in fads.

Accessible.

The essence of market segmentation is being able toselect and reach specific customer groups.

Measurable.

We are in need to set marketing objectives innumerical terms and to measure the results

of marketing plans.

Homogeneous.

The organization should make sure that thesegments are as different from each other, or as

heterogeneous, as possible.At the same time, thepeople within each segment should be as similar, or

as homogeneous, as possible.

Compatible.

When an organization selects a target market itmust be sure that the market does notconflict in any way with the markets it

already serves.

Nationality: German touristThe segment of german tourist coming to Spain can be mesuaredtrought statistics existing in the Spanish tourism market objectives in numerical terms and to measure

the results of marketing plans. For example: http://www.estadisticas.tourspain.es

it is substantial because Spain produce more in added profits than the amount required to pursue it.

Accesible: Spanish tourism market has analyzed the tastes of german tourist groups for profit.

Durable for tourists to German nationals back during your next vacation.

Competitive: We must focus on the tastes and needs of tourists who are satisfied and run a good way ofsegmentation.

Germans turists segment is homogeneous because they are of the same nationality but at the sametime each person has different tastes.

German tourists access our tourism throught how our country is promoted through advertising.The Germans choose Spain because it is a good competitor to international tourist level . Because it has

a lower bid that no other markets.Although we focus on an object, in this case Germans tourists, wealso have to know how to compatible with another segment of tourists: Germans, English …

Age: 18-35

Through data from travel agencies, we can measure the number of tourists from this segment thattravels throughout the year. 18-35 segment is large enough to obtain sufficient benefits.

This market segment must be durable to occur again in subsequent years.You must conform to theneeds and tastes of this segment 18-35 so you can be competitive with other market segments.

This segment is heterogeneous by age, but homogeneous in appearance who want to travel more, andcheaper.

Young people enter the tourism of Spain with Travel as CONTIKY 'S HOLIDAYS in offering low-cost travelto all kinds of services for tourism.

Spain is the site chosen by the young for tourism night life, where Spain has a good defense againstother countries.

Purpose of trip: Sun and beach tourism

Through data statistics http://www.estadisticas.tourspain.es/FRONTUR

we can measure the purpose of this segment.

This segment is large enough to obtain benefits of spending of these tourists in our country.

This segment is durable enough to continue making profits for subsequent years.

This segment must be adapted to the needs of tourists in this case of sun and sand, to be competitivewith other segments of this variable.

This segment has the homogeneity purpose of travel; in this case, sun and beach.Spain can defend well internationally Through his beaches, which are the main resource of Spain , they

are a favorite of Europe.

.

REASOS FOR MARKETING SEGMENTATIONOnce target market have been selected other decision and alternatives come into better focus.Through research we can then identify the needs and wants of these groups. What follows is similar to operating a camera. Oncethe operator selects the subject, he or she adjusts the enviroment (lighting, speed, arragement and position) and focuses. Clear, sharp photographs require good subjects, proper equipment and accessories, the right envriment, careful prepalinning and precise timing. Effective market segmentation is much like photography. The marketer must know how, where and when to appeal to selected target market. When de camera operator uses de wrong equipment or enviroment, or hurriedly snaps a picture, the result is predictable.Likewise, the marketer who fails to take adekuate time to plan how, where and when to best appeal to target markets will have a out of fcus marketing program and will waste precious dollars.

The need for segmentation has never been greater than it is today.

• WHO? Which market segments should we pursue?

• WHAT? What are they looking for in our types of services?

• HOW? How do we develope our marketing programs to best fit their needs and wants?

• WHERE? Where do we promote our services?

• WHEN? When do we promote them?

Marketing segmentation is an important basis of many successful marketing strategys. Carefully, chosen segments allow tailoring the marketing mixto more individual customer needs. Thus they help to invest marketing spending more effectively.As already states, segmentation is the basis for developing targeted and effective marketing plans. Furthermore, analysis of market segments enables decisions about intensity of marketing activities in particular segments. A segment - orientated marketing approach generally offers a range of advantages for both businesses and customers.

The main features of the Spanish market are three very defined :-Sesionality

-Excessive dependence on foreign market-Well established tourism market

Spain has products that are available according to

your seasonal either summer or winter, it has a

dependency on foreign markets , for example, in

Mallorca its economy depends almost the turisto

sector in the winter season , tourism strongly , this

causes Spain has a well established with loyal

segments of tourists seguiram retaking market

holiday in Spain.

HOW WE VALUED MARKET SEGMENTS ?Spain remains the destination for German tourists

to spend their holidays that figure at 8.9 million

visitors to Spain . The more consolidated among

German tourists in relation to Spains segment are

the young people of 18-35 years.

Travel agencies offer them come to Spain with low

cost travel and the porpuse of trip is sun and beach

tourism.

Unlike his country , Spain has lower cost , and not

only in the price of flying , but also on all products

and services(hotel, restaurants, beaches.. etc)

offered by the Spanish tourism market .

The union of these three segments has

consolidated the Balearic Islands with choice for

the Germans with a total of 4.4 million visitors in

2015 destination.

Nationality: German tourist

For German tourists products and services offered

are our tourist resources such as heritage sites of

humanity as well as the culture and history of each

site .Another motivation for coming to Spain on

vacation is for example the Spanish gastronomy.

AGE: 18-35

Young people mostly come to enjoy the

nightlife.PACHA is the most famous product in

nightlife. Spain is famous for its festivals like the

festival of San Fermin.

Purpose of trip:

Sun and beach tourism.

For tourists with their travel propisto the sun and

beach tourism Spain has many virgin beaches and

quality . Another important aspect for tourists is

the Mediterranean climate , followed by family

holiday and a relaxing trip .

STRATEGIES OF SPANISH TOURISTMARKET COVERAGE

The main strategies of the Spanish tourism market

are as follows:

Indiscriminated/indiferentiated

The Spanish tourism market tourism products we

offer are available based on seasonality. (Summer ,

winter ..) for example the case of Marbella , where

in the summer months gets its winter tourism

boom and the influx of tourists is reduced.

Concentrated

To increase the number of tourists in winter should

promote activities such as golfing , shopping ,

dining , etc ..

Young tourists groups are attracted by the hotels

which is much cheaper than in the summer

months.

Multisegment.

Spain offers products with different segments for

differents types of products, such a theme parks

that it can be to familys, study trip

INSTRUMENTS IN EVERY BUSINESSSTRATEGY OF THE TOURIST MARKET

To carry out these strategies is necessary to have a marketing mix (4p): -PRODUCT

-PLACE-PRICE

-PROMOTIONSpain offer products with the lowest prices, offer various activities on offer in summer.

Thus giving more oportunities to expand their tourism in all seasons. Spain hasregulated distribution channels for these products are consumed troughout the year. To

promote their product has travel agencies, internet, apps...

The Balearic Island are still the favourite destination of german with 40% more than in 2010 because the

positioning of the main tourist products is that prices are lower, good distribution and promotion that

has the product throught internet web, travel agencies...

VALUATION OF THE DIFFERENT SEGMENTS IN THE SPANISH TOURISM MARKET

These days a high tourist demand in Spain appear

as the third most visited country ahead of China

shows.

Preferred months for german are the peak season,

in from June to September.

In 2013 the places with the most notable growth in

Spain where :

The Balearic Island, The Canary Islands and

Andalucia.

Are all products and services by means of

distribution channels ( travel agencies and internet)

make tourism and meeting the needs of demand

possible.

Some of the most popular resorts in Spain is the

sun and beach, as we have already mentioned

Spain has virgines beaches and quality.

56 % of Germans choose Spain as a destination for

recommendations from friends, family or web

sites. In the internet age more than half the trip

organized by this means.

In 2013 they reached 93% of German tourist by

plane with a low cost airline.

65% of these tourist are aged between 18-35 to

enjoy the nightlife, festivals, and beautiful beaches

that have Spain.

Tourism in Mallorca is concentrated, in addition to

the supply of sun and beach, sports tourism,

namely in water sports, wich are highly demanded

by young tourist. The average expenditure of a

German tourist is 100€ per day, because prices are

much lower than those of their country of origin.