market segmentation, targeting, and positioning

market segmentation

groups consumers w similar needs and common buying behaviors into segments

market segmentation criteria

• distinct

• identifiable

• reachable

• suitable in size

geographic segmentation

based on location in order to better tailor the marketing efforts of business

city, countyr, state, region

demographic segmentation

age, gender, income

backpackers and solo travelers

usually want to spend more time travelling around city than time at hotel

couples

romantic partners search for quiet premises, dimly lit restaurants

families

have very definite needs

need kid-friendly, low priced rastaurants, on site play areas, entertainments

social class

strong influence on tastes and preferences for cars, clothes, home furnishings, reading habits, and even recreational activities

psychographic segmentation

lifestyle and personality

lifestyle

focus on someone’s daily routine

work, hobbies, social events, vacation, entertainment, community, club membership, social events

interests

reveal concepts and ideals that drive ppls passions

include family, home job, community, fashion, food and recreation

opinions

involve social issues, political, business, economic, education, product, and themselves

belongers

indivs who value social connection, community, and tradition

loyalty, conformity, preference for familiar brands

• emphasize community, heritage, and social values

achievers

ambitious indivs driven by success and status

goal oriented, brand conscious, premium product preference

• highlight success, prestige, exclusivity

emulators

indivs who aspire to attain status of achievers

trend followers, img conscious, often younger consumers

• leverage social proof, influencers, and aspirational branding

saviors

consumers motivated by altruism, compassion, and social responsibility

ethical, environmentally conscious, supportive of charitable causes

• promote sustainability, social causes, and ethical practices

doomsdayers

indivs who are pessimistic about future and focus on preparedness

survival focused, conservative, inclined to stockpiling

• emphasize security, self reliance, preparation products

integrators

indivs who seek balance, harmony, and integration in their lives

holistic, lifestyle focused, interested in well being

• promote wellness, balanced living, and holistic products

survivalists

pragmatic indivs focused on practicality, self sufficiency, survival

independent, resourceful, frugal

• highlight durability, practicality, and essential utilities

behavioral segmentation

user status, purchase occasion, loyalty

non-users

indivs who have never used to product or service

lack of awareness or interest, potential untapped market

• awareness compaigns, educational content, introductory offers

prospects

indivs who are aware of the product but have not yet made a purchase

interest in product, might be considering a purchase

• targeted advertising, free trials, persuasive messaging

first time buyers

consumers who have recently made their first purchasae

high potential for loyalty, need for reassurance

• onboarding processes, satisfaction surveys, welcome discounts

regular users

consumers who frequently use the product or service

brand loyalty, familiarity w product

• loyalty programs, personalized offers, engagement campaigns

defectors

former customers who have stopped using products or service

dissatisfaction, potential to return w right incentives

• win-back campaigns, feedback collection, competitive offers

business travelers

indivs traveling primarily for work related purposes

time-sensitive, preference for convenience and efficiency

• offer business services, fast check in/out, loyalty programs for frequent travelers

groups of travelers

families, friends, or colleagues traveling tgt

need for group friendly accommodations, value deals

• group discounts, larger accommodation options, bundled services

leisure travelers

indivs traveling for relaxation and pleasure

focus on experiences, interested in amenities and entertainment

• highlight leisure amenities, offer vacay packs, and promote local attractions

hotel packages and specials

customized deals for specific occasions or needs

appeal to cost-conscious or deal-seeking travelers

• create seasonal promotions, offer pack deals, advertise special rates

heavy users

consumers who frequently purchase and engage w product or service

high brand loyalty, significant contribution to sales, brand advocates

• reward programs, exclusive offers, VIP treatment, maintain high engagement

medium users

consumers who regularly purchase the product but less frequency than heavy users

moderate loyalty, potential for increased engagement

• encourage increased usage through upselling, personalized recommendations, and loyalty incentives

light users

consumers who occasionally purchase/use the product

low brand loyalty, high potential for churn, cost sensitive

• targeted promotions, educational content to increase product usage, reminder campaigns

target market

market segment selected by a travel and hospitality organization for marketing attention

undifferentiated

ignores market segment differences and targets the entire market w a single offering

undifferentiated pros

cost effective due to economies of scale

simple to implement

undifferentiated cons

risk of note meeting specific customer needs

vulnerability to competitors targeting niche segments

differentiated

targets multiple segments w different offerings tailored to each segment

differentiated pros

increased market coverage

ability to cater to specific needs, leading to higher customer satisfaction

differentiated cons

higher costs due to multiple marketing campaigns

potential for cannibalization between segments

focused

targets a single market segment or a small # of segments w a specialized offering

focused pros

strong brand loyalty w/in the niche

clear differentiation from competitors

focused cons

limited market size

higher risk if niche market declines

customized

tailors marketing efforts to indiv customers or very small segments, often using data-driven approaches

customized pros

high relevance to the customer, leading to strong engagement

potential for higher margins due to personalized offerings

customized cons

high cost and complexity in implementation

requires robust data management and analytics capabilities