MARKET SEGMENTATION

Gracia Mª García MatasBea Gallego Colombo

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It is the process of dividing or segmenting a market in uniform groups smaller that they have characteristics and similar needs, the segmentation of a market can divide in agreement to his characteristics or variables that could influence his behavior of purchase. The following types of segments that we are going to see later: These segments are homogeneous groups (for example, the persons in a segment are similar in his attitudes on certain variables).

The segmentation serves to determine the basic and general features that the consumer of the product will have, bearing in mind that the same one is not directed for every public, but for the objective public identified as consumer portrait.

SEGMENTATION

VARIABLES & SEGMENTATIONS

Nationality About 60,7 million tourists who visited Spain in the year 2013, more than the half they came from three issuing markets: United Kingdom, Germany and France. Six autonomous communities - Catalonia, Balearics, Canaries, Andalusia, the Valencian Community and the Community of Madrid - concentrate the major number of tourists. Catalonia is the community most visited, with 15,6 million tourists. The degree of tourist specialization of the different Spanish communities is very unlike: 10 of 17 autonomous communities the million tourists do not overcome, whereas the Community of Madrid, the least tourist of the six first ones, it receives 4,2 million tourists a year.

AGEAbout 60,7 million tourists who visited Spain in the year 2013, more than the half they came from three issuing markets: United Kingdom, Germany and France. Six autonomous communities - Catalonia, Balearics, Canaries, Andalusia, the Valencian Community and the Community of Madrid - concentrate the major number of tourists. Catalonia is the community most visited, with 15,6 million tourists. The degree of tourist specialization of the different Spanish communities is very unlike: 10 of 17 autonomous communities the million tourists do not overcome, whereas the Community of Madrid, the least tourist of the six first ones, it receives 4,2 million tourists a year.

PURPOSE OF TRIP

The leisure and the vacations are the principal motive of visit of the foreign tourists, with more than 86 % of the arrivals. It follows to great distance the segment of work and business, which scarcely 7 % reaches.

Even it does relatively little, the predominance of the tour operators and of the tourist packages was the predominant note in the organization of the trips, nevertheless, the situation has changed radically in the last years. In spite of it, this form of organization still is significant in the tourists who visit both archipelagoes, especially in the canary, with a weight of 65 %.

In relation to the motive of the trips of the residents in Spain, the leisure places like more important, so he monopolizes 51,9 % of the total. This percentage is very lower than the registered one for the international tourists who visit us, that is 86,6 %. To more distance the visits place to relatives and friends and the work, with weight of 35,9 % and 6,3 %, respectively.

LIFESTYLE

The majority of the non resident tourists realize during his stay in Spain some activity, between that the purchases and the cultural activities stand out, realized respectively by 67,6 % and 53,9 % of the received tourists. The activities of amusement like discotheques, clubs, etc. They are chosen by 20 % of the tourists, while the sports activities, gastronomic activities, you visit to theme parks and visits to relatives also occupy out-standing positions, but to more distance. Finally, it is necessary to indicate that they do not realize any activity 25 % of the tourists who visit Spain.

Process of segmentation1.Definition of the market that want to segment.

2.Choice of the criteria of segmentation: criteria -> responsible Reasons heterogeneity in tourist consumers (investigation bought).

3.Determination of the segments of market: To evaluate resultant segments depending on his attraction.

Potential size growth Order of priority

Target market

Attraction of the segment on market (Porter) Resources of the company

VARIABLESAge:Consumer needs and wants change with age. The marketing mix may

therefore need to be adapted depending on which age segment or segments are being targeted. People of different age groups have different needs and desires. Children, teens, young adults, older adults, retirees, all may be assumed to have particularly characteristics.

Purpose of trip: practical market segmentation in the travel and travel

industry often begins with careful analysis of the purposes for which customers travel and use products and services. Traditionally the travel and tourism market is divided into business, pleasure/personal, and visiting friends and relatives travel markets. The purpose of the trip in the pleasure/personal travel market could be vacation, outdoor vacation, sea vacation, leisure trip, active trip (playing golf or bird watching) and so forth.

Lifestyle: Separating consumers into groups, based on their hobbies, interests and other aspects of their lifestyles.

Nationality: The country where you were born can be a useful

indicator of culture and the associated attitudes. Nationality also indicates language and perhaps country where the customer lives. Marketing to people in other countries and who speak other languages can be very complex and require support from local agencies.

REQUISITESMeasurable: The potential of the segments as well as the effect of a specific marketing mix on them should be measurable. Examples include the size, purchasing power, and profiles of the segmentsSubstantial:The market segment should be large enough, in terms of sales and profitability, to warrant the firm’s possible attention Accessible:The segments must be reachable through communication and distribution channels.Defensible: The market segment must have practical value – its characteristics must provide supporting data for a marketing position or sales approach, and this in turn must have outcomes that are easily quantified, ideally in relation to the existing measurements of the market segment as defined by initial market research.

Durable: The segments should be relatively stable to minimize the cost of frequent changes.Competitive: Marketers need to take a long, hard look at wether what they offer provides something distinct or unique for these customers. Homogeneous: This means that the consumers allocated to each segment should be similar in some relevant way. An ideal market segment should be internally homogeneous (i.e. all customers within the segment have similar preferences and characteristics), but externally heterogeneous. Differences between market segments should be clearly defined, so that the campaigns, products and marketing tools applied to them can be implemented without overlap. Compatible: Segments must be compatible with firm's resources and capabilities. It has to be possible to approach each segment with a particular marketing program and to draw advantages from that.

USING THIS REQUISITESLEISURE AND CULTURAL TOURISM

★ Measurable:The results of the activity can be measurable

★ Substantial:It can produce more benefits

★ Accessible: There are differents attractions depending on the person

★ Defensible: They can be defended from the competitors

★ Durable: Exists for many years★ Competitive: Feeds the needs of

the people who like this segments★ Homogeneous:This segment is

different from the other, but the people who likes that is similar

★ Compatible:It’s compatible with the markets served

GASTRONOMY TOURISM

★ Measurable:The results of the activity can be measurable

★ Substantial:It can produce more benefits

★ Accessible: There are a lot of dishes for all type of people

★ Defensible: They can be defended from the competitors

★ Durable: Exists for many years★ Competitive: Feeds the needs of

the people who like this segments★ Homogeneous:This segment is

different from the other, but the people who likes that is similar

★ Compatible:It’s compatible with the markets served

SENIOR TOURISM

★ Measurable:The results of the activity can be measurable

★ Substantial:It can produce more benefits★ Accessible: There are differents trips for every

person★ Defensible: They can be defended from the

competitors

★ Durable: Exists for many years★ Competitive: Feeds the needs of the people who like

this segments★ Homogeneous:This segment is different from the

other, but the people who likes that is similar★ Compatible:It’s compatible with the markets served

IMPORTANCE OF EFFECTIVE SEGMENTATION

We need to answer this questions for a better segmentation:

Who? Which market segments should be pursue?What? What are they looking for in our types of services?How? How do we develop our marketing programs to best fit their needs and wants?Where? Where do we promote our services?when? When do we promote them?

Market segmentation pertains to the division of a set of consumers into persons with similar needs and wants. It allows for a better allocation of a firm's finite resources.

Benefits :● More effective use of marketing

euros● Clearer understanding of needs &

wants● More effective positioning● Greater precision in promotional

techniques

FEATURES OF THE TOURISM SPAINThe foreign demand comes in the main from Britishers, Germans, Frenchmen, Italians, northern, Dutchess, Belgians and Portuguese. The foreign tourism is predominant summer and centers in the zones of the Sun and of beach of Catalonia, Balearics and Canaries, followed of Andalusia and the Valencian Community.

It resorts often to the tourist package. The national demand or internal tourism comes in the main from Madrid, Catalonia, Andalusia and the Valencian Community, provided that also it moves in The Holy Week, the weekends and bridges.People usually prefer the coasts of the South of Spain but also the North coasts. In general, they travel unreservedly or contracts directly the tourist services, and one lodges more in establishments as housings of relatives and friends, the second residences or apartments.

The excessive seasonal variation of the demand is one of the principal problems of the Spanish tourism. The primary demand coincides with the summer vacations, except in the ski resorts, and in Canaries, where low season does not exist really. Nevertheless, in the last years it is possible to estimate a certain smoothing of the seasonal variation, for the trend to distribute more the vacations throughout the year and the development of the social tourism or of the third age, which they support to many tourist services in low season.

In Andalusia the tourism is already consolidated as the region where more the tourist expense is generated, as for example Torremolinos, the hotel lines already are constructed for what certain segments have to adapt.

The variable that we have taken to be able to relate and value the segments of market of the Spanish tourism to been way of life and on the basis of this one we have put five examples of segments related to this one.

We can observe in these offers of trips:

spa, But on the contrary what you want is activities outdoors or to know more things you can make hiking for beautiful fields and simultaneously be able to visit the cultural monuments.

If you need tranquility and easing completes nothing better as a hotel withI

If you prefer cold weather and sports like sky or snowboard you can choose a trip to the mountain. However, If you look for music you can go to a festival.

We can see different segments inside the same variable.

Strategies for segmentations When a company is before the decision of what market share to include, it can apply four types of strategies:● Intensive coverage● Selective Coverage● Exclusive Coverage● Multiple Segments

Intensive coverageKnown as undifferentiated marketing. Here it is considered to the market as a set of very similar segments and one offers them the same product with uniform characteristics: the this competition centred on the prices. They have several points of distribution and it tries to come to all the clients.

Selective CoverageThis strategy is indicated for products of reflexive purchase, where the buyer realizes the prudent shoppings and characteristics of the products. It is allowed differentiate and to segment the market.

Exclusive CoverageOne is chosen only I segment and the product adapts totally to the needs of the chosen segment. It is very common when it is a question of products or expensive or elitist services. They are more exclusive places.

Multiples SegmentsOne seeks to come to public several, developing versions of the product for every segment.

The tourist developments develop following a process composed by a series of phases that determine his success and his longevity, the tourist development is clear of several stages that they are the following ones:

Initially the phase of exploration, this phase is when few tourists visit the destination, that is to say that you upset know it.Implication: here it is when the place starts being visited by numerous groups of tourists. Development: it is when the zone recognizes variety of attractions the royal benefits of the Tourism, they believe new constructions, to satisfy the needs of the tourist, good infrastructure and economic assessment. Growth: the tourism reaches his maximum participation in the place and in the market. Consolidation: it is the phase where strategies appear to give him a major utilization to the destination. Maturity: the tourism starts stabilizing or being declined. Stabilization: if the necessary measurements of prevention are not taken, the tourist product or the attraction will go away to the destruction or the loss.Rejuvenation: to improve the destination, to project new things to attract new markets.

It is important to recognize in what type of this stage our product or tourist destination, because if it enters the stage of maturity or decline we it can lose, is important to develop things and to attract new markets.Small tourists' arrival, minor expense for tourist, insecurity in the tourism, bankruptcy of companies, little interest of the touristthey are one of the symptoms of the decline of a destination.

It is a development of products it is important in order that the destination adapts to the changes of the market and is kept in a phase of consolidation, or to develop new destinations and products conceived to attract to new markets.

Commercial Instruments

Product - In the world of the Marketing, product will be everything tangible (personal property or objects) as intangible (services) that offers on the market to satisfy needs or desires. The product is a package of characteristics and benefits that the client receives on having acquired the product. This product or service must have characteristics established well like it are colors, size, duration of the product or service, etc. The product has a life cycle as any alive being, but in this particular case this depends on the consumer and on the competition. This life cycle expires for 4 phases, which are: Launch, Growth, Maturity and Decline.

Price - to elaborate the price we must determine the total cost that the product represents for the client included the distribution, discounts/sales, guarantees, reductions, etc.To define the price of our products, they will allow us to realize the suitable strategies, since with it also we will be able to define to that public of the market we go. It is necessary to to bear in mind that the price also will reflect the value that has the product for the consumer.

Distribution - We must define in this case: where there will be commercialized the product or the service that is offering? In case of a product will it be distributed wholesale or to the minor or? These details must be studied carefully, since on having defined the square, we will determine that so easy it is to acquire the product or the service for the client. The distribution is also important, because he will speak to us about the moment and the conditions in which the product will come to hands of the client.

The distribution get to be a very important factor of the sale of a product, since it was demonstrated a lot of time ago by the first chain of Pizzerias that offered delivery service, turning to the distribution in a differential advantage opposite to the competition. This strategy was so successful that was copied by the companies of the competition on having identified this as a decisive factor for the increase of the sales.

Promotion - To report, to report and to persuade the client on the company, product and his offers are the basic props of the promotion. For the promotion we can use of different tools, since: the advertising, the promotion of sales, sales force, public relations and interactive communication (means like Internet).

The table 3 shows the averages obtained for every factor in the degree of experienced satisfaction and of granted importance, distinguishing nationality between Britishers, Germans and others. Bearing in mind that this information corresponds to the winter sample (more limited than that of summer) it is necessary to interpret warily the Germans' results for the limited thing, in this case of the sample size. Nevertheless, there is detected in general a level of satisfaction lower than the developing by the Britishers, whereas for the importances they value more than the Britishers the beaches, the sports facilities, the leisure and the culture and the thoroughfares and the urban and natural environment.

Webgraphy:http://fama2.us.es:8080/turismo/turismonet1/economia%20del%20turismo/calidad%20y%20turismo/evaluacion%20de%20la%20calidad%20del%20turismo%20en%20andalucia%20Costa%20del%20Sol.pdf

http://pixel-creativo.blogspot.com.es/2011/10/marketing-mix-las-4-p-del-marketing.html

http://www.europarl.europa.eu/ftu/pdf/es/FTU_5.5.2.pdfhttp://www.europarl.europa.eu/aboutparliament/es/displayFtu.html?ftuId=FTU_5.5.2.htmlhttp://www.finyear.com/Las-estrategias-de-riesgos-y-politicas-de-credito_a25827.html

http://robertoespinosa.es/2015/01/16/estrategias-de-marketing-concepto-tipos/http://www.crecenegocios.com/concepto-y-ejemplos-de-estrategias-de-marketing/http://www.smartupmarketing.com/tips-de-estrategias-de-marketing

I also and used besides Internet pages the notes provided and a book of marketing.