| Choosing appropriate market segments
Within
this section our main priority will be to bring you guidance
on
a range of different markets so you can decide which are
most appropriate for you. Segmentation methods are changing
all the
time and becoming more sophisticated. You can learn more about
how to use new ways to find new markets by coming along to our
next practical training workshops
The total market
for tourism products is huge. It is made up of
people
looking
for
budget
accommodation
and
rooms
in exclusive
country house hotels, of sun-worshippers and culture-vultures,
of couch potatoes and ardent adventurers. You can’t hope
to satisfy all of the people all of the time. Nor should you
try to target all of them at once. Broadcast marketing, or trying
a ‘something for everyone’ approach is expensive
and rarely successful.
It is far more productive and cost-effective to identify several
smaller groups of people or market segments. Segmentation means
breaking markets down into a more manageable size, and gaining
a precise understanding of different groups of people. Once you
understand what each group needs and expects you can then choose
which segments you are most likely to satisfy.
When choosing market segments you will need to ensure that they
are:
• easily
identifiable and distinct from the mass market;
• large enough to make targeting them worthwhile - you should
also consider whether or not they are growth markets;
• easy to reach - either because they are geographically close
to you or there are obvious and established channels of distributions
and media through which you can target them;
Segments can be identified through numerous methods:
• age - people choose different products according to their age and
activities. However, this should not be the only
criteria - see below;
• economic status - for example budget accommodation providers
will target people who are traveling on a restricted income;
• purpose of travel - reason for travel and any special needs.
For example, a business traveller will look for efficiency
and prompt service whereas a family are more likely to look
for fun activities;
• nationality - as the section about overseas marketing indicates,
some nationalities have a greater propensity to travel or indulge
in certain activities than others. Once you have chosen specific
nationalities or countries to target you will still need to
define segments within that group;
•
geographic location/origin - for example, visitor attractions
usually find that most visitors come from within one hours’ travelling
time from the place where they live or are staying;
•
lifestyle, consumer attitudes and behavior - there are numerous
studies and reports which break populations down into smaller
sub-groups according to aspirations, attitudes and general
lifestyles. You may find it useful to use an existing classification
or to develop one of your own. A relatively easy lifestyle
analysis which helps you picture a segment more clearly is
to imagine ‘a day in the life of...’
Segmentation usually involves combining the above methods so
you can develop a complete profile for different market segments.
The more detail you can add about different segments the better.
The total market for any product is likely to be quite wide,
but by describing the differences between segments, it becomes
possible to create focused and cost-effective strategies for
each one.
Beware
of using any of the above methods in isolation, such as simply
identifying a segment such as ‘old
people’.
Just because they are within a similar age group, people are
not all similar. Within the general grouping of ‘old people’ there
are many variations. For example:
• how
old is old? Perceptions vary - a ten year old would suggest
that thirty is already ancient!
•
income also varies - some “old” people exist on
state pensions, others are still working;
•
how active are they? There is a world of difference between
house-bound senior citizens and the village ‘busy-body’ who
is at the heart of the community.
New segmentation methods are much more sophisticated and therefore
more likely to be successful. The Tourism Network has been
pioneering the idea of "mood marketing" to take account of
not just different mindsets but different frames of mind at
different times.
When prioritising market segments, there are three main questions
to ask:
• How
attractive is the segment?
You
will need to decide what ‘attractive’ means.
This usually means that the segment is sizable, prepared to pay
the market price for the product on offer, and fairly aware of
the product.
• How
easy is the segment to reach?
Segments which are easy to reach are usually clearly defined,
can be persuaded to not choose competing products, and can be
reached through established and affordable media and distribution
channels.
• How
much will it cost to reach the segment?
The
deciding factor will often be the marketing budget. It isn’t
possible to address every segment so it is essential to determine
which ones will cost most money to reach and how accessible they
really are. A sensible approach is to identify short and long
term markets.
For guidance on a range of specific market segments click here
Susan
Briggs |
