Tourism Market Segmentation, Targeting, and Positioning

Comprehensive vocabulary flashcards covering the core concepts of tourism marketing: target marketing steps, market segmentation variables, segment evaluation criteria, market coverage strategies, market positioning, and forms of Unique Selling Propositions (USP).

Market

A group of actual and potential buyers of a product or service who share particular needs or wants that can be satisfied through an exchange.

Market Segmentation

The process of dividing a total market into distinct groups that have similar needs, characteristics, or behaviors and may require different products or marketing approaches.

Market Targeting

The process of evaluating different market segments and selecting one or more specific segments in which the business will operate.

Market Positioning

The development of a competitive position for a product together with an appropriate marketing mix to deliberately place the product in the consciousness or mind of prospective customers compared with competitors.

Identifiable

A characteristic of a good market segment requiring that the business can easily determine who belongs to the segment and locate these potential customers.

Cohesive

A characteristic of a good market segment where the members share common characteristics, qualities, or interests.

Measurable

A characteristic of a good market segment requiring that a business can estimate the size and potential spending capability of the segment.

Accessible

A characteristic of a good market segment requiring that the segment can be effectively reached through communication, promotional, and marketing channels.

Substantial

A characteristic of a good market segment meaning it is large enough to make a meaningful contribution to the business, or consists of customers with high spending capability.

Actionable

A characteristic of a good market segment requiring that the business has enough resources, employees, budget, facilities, and commitment to serve the segment effectively.

Geographic Segmentation

Dividing a market into groups based on location ('where'), such as country, region, province, city, town, barangay, or neighborhood.

Demographic Segmentation

Dividing a market into groups based on personal characteristics ('who'), including age, life cycle, gender, income, occupation, education, religion, and race.

Psychographic Segmentation

Dividing a market into groups based on social class, lifestyle, and personality traits ('how they live').

Behavioral Segmentation

Dividing a market into groups based on consumer knowledge, attitude, use of, or response to a product or service ('what they do'), such as special occasions, benefits sought, user status, usage rate, loyalty status, and buyer readiness.

Technographic Segmentation

Dividing a market based on how customers use technology to search for information and plan or book their travel ('how they use technology').

Market Coverage Strategies

Strategic approaches chosen after segment evaluation to decide how a company covers its target markets, comprising undifferentiated marketing, differentiated marketing, and concentrated marketing.

Undifferentiated Marketing

A market coverage strategy where a company largely ignores differences between market segments and uses one general offer for the whole market (One Offer → Whole Market).

Differentiated Marketing

A market coverage strategy where a company targets several market segments and creates different offers tailored to each segment (Several Segments → Several Offers).

Concentrated Marketing

A market coverage strategy where a company focuses strongly on one specific market segment or a small number of segments (Specific Segment → Strong Focus), useful for businesses with limited resources.

Product Homogeneity

A factor influencing market coverage strategy that considers whether the products offered are standardized and similar, or differentiated.

Market Homogeneity

A factor influencing market coverage strategy that considers whether buyers across the market have similar tastes, desires, and reactions, or have very diverse needs.

Unique Selling Proposition (USP)

A distinct feature or attribute that answers 'What makes our product different?' by identifying an important characteristic distinguishing a business from competitors.

USP Through Physical Attributes

Differentiating a product based on its tangible physical characteristics, such as private villas, beachfront rooms, large room sizes, or unique architectural designs.

USP Through Added Services

Differentiating a product by providing additional or supplemental services, such as airport transfers, 24-hour assistance, business support, and complimentary breakfast.

USP Through Personnel

Differentiating a product through employees who interact directly with customers, such as highly knowledgeable local guides who explain history, culture, and traditions.

USP Through Location

Differentiating a tourism or hospitality product based on geographic advantages, such as proximity to an airport, convention center, major tourist attraction, beach, or business district.

USP Through Image

Differentiating a product through consistent branding and positioning that shapes customer associations, such as luxury, relaxation, adventure, or a peaceful escape from the busy city.