week 2- market segmentation to make effective marketing decisions

customer profile:

tells you everything about the ppl you wnat on ur custumer lift. they are all importnat bcs you wnat to know who your marketing ur product to and who ur customers are

market segmentation:

  • demographical

  • geographic

  • behavioural

  • pyschographic

  • Segmentation can be achieved using one or more criteria

  • splits the whole market into sub groups more similar characteristics

segmentation by lifecycle stage:

  • e.g single: living away from parents- travel summer

  • single income no kids- travel anytime

  • double income, no kids- travel anytime

  • full nest- youngest child- travel anytime

  • full nest- two younger children- can travel on holidays, e.g. half term

  • full nest three dependent children- can travel anytime

  • Solitary survivor 1- older working single- they will want to travel on non-busy destinations, may be on a budget bcs of less budget

  • empty nest- older working couple, no dependent kids- they can go whenever, kids are out of the house

You have to be able to tailor to all these family situations

Socio-economic profile:

white collar workers- higher class

blue collar workers- lower workers

behavioural characteristics:

  • first time or repeat customer

  • channel prferrence, are you booking through the website, coming in, or on the phone?

  • party size

  • frequency of booking

  • value of sale

  • lead time for booking

Psychographic characteristics:

  • values

  • beliefs

  • attitudes

  • interests

  • lifestyles

  • personality traits 

Segments must be…

  • measurable in terms of size, purchasing power, and characteristics 

  • accessible through distribution/ promotion 

  • substantial enough to be worth targeting 

  • differentiable in terms of how they respond to marketing programmes 

  • actionable by the organisation within the limits of its budget and resources

Segmentation theory to include in assessment: 

  • reic 2016 

using segmentation in the marketing mix (STP) 

  • segmentation-  dividing a total market into groups with relatively similar  characteristics

  • targeting - tailoring marketing to the needs of specific clusters or segments

  • positioning-- designing marketing mix to create an image among the target market relative to competitors

Consumer behaviour:  B2C- Business to consumer:

When looking for a holiday ppl expect: 

  • tranqulity

  • You want to feel authentic

  • having a good overall high expectation 

  • ppl want their money’s worst

The classic consumer decision-making process: (Tuten 2019) 

advocacy- talking about it positively, e.g. social media, you posting about ur hotel is advocating the place you went to influence others 

The marketing funnel: Tuten (2019)

  • AWARNESS- make the consumer aware, you are advertising on their phone, keep popping up into their mind 

  • DISCOVERY- you would want to get the consumer to sign up for their email and their information, so you can keep on getting their attention 

  • CONSIDERATION- coupons/ discounts 

  • PURCHASE- mobile app, make it easier for the customer, like having their bank details and names saved 

  • RELATIONSHIP MANAGEMENT- you will want to create loyal customers, someone who

    will come back, you should send offers, and surveys, like’ how did we do?’, or loyalty cards e.g., Tesco clubcard

B2B Buyer Behaviour: 

Buyer personas/ pen portraits: 

  • a semi-fictional representation of the ideal customer with a specific segment

  • to determine where to focus time and resources 

  • •inform product development, comms channels & messages, and create alignment across the organization

    •Based on market research (& actual  data about existing customers if appropriate)

    •Including demographic data, behaviour patterns, motivations, and goals

    •Communicated in a pen portrait

A pen portrait includes: