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Chapter 4 Tourism Market segmentation and Market
Targeting

   Learning Objectives :
 1. To grasp the concept, principle, standard, and way of tourism
   market segmentation
 2. To grasp the choice and related strategy of Tourism Target
  Market
 3. To grasp the concept and method of Market Location of the
  Product of Tourism
 4. To be familiar with the three essential factors and the steps
   of Market Location of the Product of Tourism


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Discussion: Why to subdivide the market and
choose target market?

 ●Finiteness of business resources (restrictive
   Conditions)
 ●Enterprise’s Business according to qualification
   (the pursue goal )
 ●Difference of market demand (feasible condition)




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market segmentation       Market targeting           Market Location

                                                     Ⅴ .Decide
 Ⅰ、Make                   Ⅲ、Decide                   possible
                          the measuring
 sure the base of                                    location idea
                          standard of
 market                                              for each target
                          market
 segmentation                                        market
                          segmentation
                                                     segmentation .
 Ⅱ、Draw the               attraction
                                                     Ⅵ. Choose,
 outline of
                          Ⅳ、Choose                   develop and
 market
                          target                     communicate
 segmentation
                          segmentation               with the
                          market                     location idea
                                                     that was chosen.




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Section 1 Tourism Market Segmentation


Ⅰ. Concept of Market Segmentation
The market segmentation is a behavior process that
  divides a market into certain different buyer
  community according to buyer’s need and desire,
  purchase manner, purchase behavior characteristic
  and other different factors.



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     Ⅱ. Effective Segmentation
                 Measurable



                 Requirements
Actionable            for                     Accessible
                   Effective
                 Segmentation



                 Substantial


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    Ⅲ. Segmenting Consumer Markets

        Bases for                   Nation or country
       Segmentation                 State or region
                                    City or metro size
    Geographic                     Density
    Demographic                    Climate
    Psychographic
    Behavioral




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Ⅲ. Segmenting Consumer Markets

                                   Age, race, gender
       Bases for
                                   Income, education
      Segmentation
                                   Family size
   Geographic                     Family life cycle
   Demographic                    Occupation
                                   Religion, nationality
   Psychographic
                                   Generation
   Behavioral
                                   Social class




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Ⅲ. Segmenting Consumer Markets

       Bases for                   Lifestyle
      Segmentation                     Activities
                                       Interests
   Geographic                         Opinions
   Demographic                    Personality
   Psychographic
                                   Core values
   Behavioral




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Ⅲ. Segmenting Consumer Markets

       Bases for                   Occasions
      Segmentation                 Benefits
                                   User status
   Geographic                     Usage rate
   Demographic                    Loyalty status
   Psychographic                  Buyer-readiness
   Behavioral                     Attitude




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      Section 2 Tourism Target Market


  Ⅰ、The definition of tourism target market : It refers to the       part of
      specific customer community which mainly served by enterprise
      according to their own resources superiority , and in the foundation of
      market segmentation.


                                                                          Choose target
                         Attraction of
Scale of market                                  Company's goal             market
                            market
 segmentation                                     and resources
                         segmentation




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Ⅱ. Evaluating Market Segments


   Size and                Structural
   Growth                 Attractiveness

          Company
        Objectives and
         Resources


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Ⅲ. Choice Strategy of Target Market
              Scope
         Product - market
          centralization
         Product specialization
         Market specialization
         Selective specialization
         Total market

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                                              M1        M2       M3

                                         P1
     M1   M2     M3
                                         P2
P1
                                         P3
P2
P3                                                        Product
     Product - market        M1      M2       M3       specialization
      centralization
                        P1
                        P2
                        P3

                                    Market
                                 specialization
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                                              M1      M2       M3
     M1     M2      M3
P1                                       P1
P2                                       P2
P3                                       P3

            Selective
          specialization                           Total market




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Case discussion: Market targeting
Shanghai and Beijing will continue attract the foreign tourists that travel to China at
the first time.
People who need to travel to China at the second time and hope to know more detail
about China.
If investigates and studies demonstrated that the majority western tourist are
attracted by the Chinese magnificent scenery and the animal and plant, then Chinese
target customer should be the naturalist. They can endure hardship and get used to
Chinese traveling condition. In order to attract these tourists, Chinese representatives
should make lectures in world wildlife association and other conferences that
organized by natural conservation organization.
Tourist who travel for the purpose of religious belief are also many. They travel to
Rome, Israel, Mecca, Indian and Tibet's origin place of religious and worship.
Nevertheless, as Qufu is the origin place of Chinese Ru culture, it is strange that not
many tourists go there.
People who have good education background all know Confucius. If the Qufu
traveling authority propagandizes Confucius and the Confucianism to the Western
religious organization and the church organization, the Western tourist will make
active respond and travel to Qufu .People who take the religious belief as the highest
spiritual value are the target customers of religious tourism.



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   Case discussion :Tourism of the Philadelphia
                    education


Philadelphia is located in the east of US, it is the signature place of American
Declaration of Independence, and also the American fourth big city. The
Philadelphia and the nearby regions altogether have more than 50 universities and
institutes. According to the population proportion computation, the Philadelphia
has the most universities and institutes in American , people who at least has the
undergraduate degree account for 51%, it is 7 percentage points higher than
American average level, the full-time employment rate is 74%, it is 9 percentage
points higher than American average level. It is not exaggerated to said that,
Philadelphia is one of the most knowledgeable cities in American. Nevertheless,
before 1999, the brand image of Philadelphia as US education city did not obtain
the promotion, not only the foreign tourist but also the American domestic tourists
did not familiar with the Philadelphia. Compared to its peripheral Baltimore,
Boston, Chicago, New York, Washington D.C. and other cities, Philadelphia's
traveling competitive power is not good.



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At the end of 1999, joined with the University of
Pennsylvania, Philadelphia tourism bureau launched a
“Campus Visit Program” which publicized with a slogan of
“One Big Campus” after a year-long marketing investigation.
The purpose of the initial three-year program is to attract
students ,parents and educators to visit Philadelphia. This
program can not only promote tourism in Philadelphia, but
be able to bring far-reaching impact on education sector.
when the program was launched , many people in the tourism
sector can not understand why Philadelphia focus on
publicizing “the concept of education” instead of “its ancient
history”, as before the program was launched ,Philadelphia
was always introduced as “the most ancient city” in the
United States .


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It is discovered in the market survey that in people’s mind ,the
main impression of Philadelphia is indeed its history. However,
except the Congress Office and the Liberty Bell , Philadelphia
can not attract them to other places. But the deeper meaning of
history should be the culture. Through investing the target
audience, we know that Philadelphia's main competitive
advantage are :1.On behalf of the U.S. history. 2.a large number
of well-known universities and museums ,a Strong cultural
heritage. 3.the scenery of the city is natural and enchanting. The
Campus Visit Program is to tour Philadelphia's history and
education together, to regard Philadelphia as “a big campus”, to
create a new, more competitive brand image of Philadelphia.




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1.Tourism program is specially designed for students and
parents, and there is a “Philadelphia University Day” hold
yearly in Philadelphia
2.The official website of Philadelphia Tourism Marketing – One
big campus. com. which can link with major U.S. university
sites and world-renowned university sites .Through the three-
dimension animation in the website ,potential consumers even
can interact to achieve “trial visit”.
Founding the "Guide for Campus" magazine which is quarterly
,mainly delivered to the target market such as each university’s
entertainment place , students can also apply free reading
online. One can describe his personal experience, and add their
tour photographs.
The immediate tourism revenue has been surpassed 90 million
U.S. dollars every year, and the prospects of Philadelphia
tourism are extremely good .

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Ⅳ. Market Coverage Strategies
 Company
 Marketing                                         Market
   Mix

             A. Undifferentiated Marketing

Company Mix 1                                      Segment 1
Company Mix 2                                      Segment 2
Company Mix 3                                      Segment 3

             B. Differentiated Marketing

 Company                                           Segment 1
 Marketing                                         Segment 2
   Mix
                                                   Segment 3
             C. Concentrated Marketing

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    Ⅴ. Distinguishes and connections among three target marketing
    strategies



   Both undifferentiated marketing strategy and differentiated
    marketing strategy try to cover the entire market ,but the
    difference is that the former didn’t subdivide the market, only
    face the entire market with a product ,a marketing mix, thus the
    latter produced a variety of products on the basis of market
    segmentation, then use a variety of marketing group strategy to
    explore the various market segments. The differentiated
    marketing strategy and the concentrated marketing strategy are
    based on the market segmentation, but what is different is the
    former should be broken down into many sub-markets, while the
    latter a few, or even a breakdown of the market as a target market.

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                 undifferentiated             differentiated            concentrated
                marketing strategy          marketing strategy        marketing strategy


Strength of    strength & resource      strength & resource          poor strength of &
enterprises         abundant                 abundant                   small scale


Features of                                  Heterogeneous             Heterogeneous
                The same product
 products                                      products                  products
 Market
                Weak competition        Intense competition          Intense competition
 Features


Product life                            Maturity, the period Maturity, the period
               Input period, growth
   cycle                                   of recession         of recession


                 undifferentiated             differentiated
Competitors                                                               concentrated
                  differentiated              concentrated
 strategy
                  concentrated
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      Section 3 the Marketing Positioning of
                Tourism Products



Ⅰ. The connotation of Marketing positioning
   Marketing positioning——aimed at making their own
 enterprises or their products in the eyes of target customers
 create unique, impressive distinctive image.




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Ⅱ. Positioning Method

   Products Feature Positioning
   Price / quality positioning
   Use of targeted products Positioning
   Products targeted users Positioning
   Products Category Positioning
   With competitors positioning



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     Ⅲ. Implementation of Positioning

• Seek differences——The act of designing their own
  products and marketing mix.


                            High-quality A
                    F
     Low prices                         E           High prices
                            D
                    C

                                    B
                            Low-quality


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