Tourists carry different images of their destinations, and their motives to go there vary. They are heterogeneous. Market segmentation is the strategic tool to tap all these groups of tourists. Modern tourism industry uses market segmentation to study opportunities for competitive advantage in the marketplace. This helps you concentrate on the segment your organisation wants to cater. Market segmentation has big role to play in your marketing strategy, product design and distribution. It helps an organisation to determine buyers or prospective buyers, and make strategy to tap as many of them as possible. The organisation chooses a segment it can serve most effectively and focuses on service.
Segmentation Theory
Market segmentation segregates the market into groups having similar wants. Victor TC Middleton defines it as the process whereby producers organize their knowledge of customer groups and select for particular attention whose needs and wants they are best able to supply with their products. It lays stress on the sale of product in a particular group. An organisation can take any of the three approaches while operating in a market.
1. Mass Marketing: An organisation makes efforts to sell it sproduct to every eligible buyer. Goods or services are mass-produced and mass-distributed.
2. Product Differentiated Marketing: The business organisation produces several products for the entire market. These products are not designed for any particular group though they may have different characteristics.
3. Target Marketing: An organisation focuses on particular market segments and designs the product to satisfy the needs of the target market.
Target marketing, based on market segmentation, brings several benefits. It focuses on suitable markets, so a business can tap the opportunities better. Strategies can be formulated in better way. A product is customized according to the needs of a specific segment, helping to win over customer loyalties
Approaches
Concept of market segmentation can be used effectively in tourism marketing. It is employed to segment the markets generating tourists. It also helps to segment the prospective tourists on basis of their lifestyles, social and economic status and preferences. Right segmentation results in reduction of costs. It helps the organisation as well as the prospective buyers of services.
A Practical Definition of Market Segmentation Everyone knows that consumers tend to have certain buying habits. The definition of market segmentation is understanding and targeting those habits of the specific group of consumers that you want to reach. Matching the language and habits of your desired......
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