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Market Segmentation
Bases of Market segmentation
Geographic
Nations, states, regions or cities
Demographic
Age, gender, family size and life cycle, or income
Psychographic
Social class, lifestyle, or personality
Behavioural
Occasions, benefits sought, user status, usage rate, loyalty
Geographic Segmentation
Divide markets into different geographic units. Examples:
World Region or Country: North America, Western Europe, European Union, Pacific Rim, Mexico, etc. Country Region: Pacific, Mountain, East Coast, etc. City or Metro Size: New York, San Francisco Population Density: rural, suburban, urban Climate: northern, southern, tropical, semitropical
Demographic Segmentation
Dividing the market into groups based on variables such as: Age Gender Family size or life cycle Income Occupation Education Religion Race Generation Nationality
2003 Pearson Education, 8 Upper Saddle River, NJ 07458
Marketing for Hospitality and Tourism, 3e Inc. Philip Kotler, John Bowen, James Makens
Examples: No segmentation
Behavioral Segmentation
Dividing the market into groups based on variables such as: Occasions Benefits User status Usage rate Loyalty status Readiness stage Attitude toward product
Marketing for Hospitality and Tourism, 3e Inc. Philip Kotler, John Bowen, James Makens 2003 Pearson Education, 12 Upper Saddle River, NJ 07458
Psychographic Segmentation
Psychographic segmentation divides a market into different groups based on social class, lifestyle, or personality characteristics.
People in the same demographic classification often have very different lifestyles and
Substantial Substantial
Differential Differential
Segments must respond differently to different marketing mix elements & programs. Effective programs can be designed to attract and serve the segments.
Actionable Actionable
Marketing for Hospitality and Tourism, 3e 2003 Pearson Education, Inc. Philip Kotler, John Bowen,
15
Segment Marketing Segment Marketing Niche Marketing Niche Marketing Micromarketing Micromarketing
Local Marketing
Tailoring brands/ promotions to local customer groups
Individual Marketing
Tailoring products/ programs to individual customers
Market Market
Company Company Marketing Mix 1 Marketing Mix 1 Company Company Marketing Mix 2 Marketing Mix 2 Company Company Marketing Mix 3 Marketing Mix 3
B. Differentiated Marketing