Reaching New Heights . . .Reaching New Heights . . . Reaching New Heights . . .Reaching New Heights . . .

Target Market ApproachesTarget Market ApproachesChapter VIIChapter VII

Target Market ApproachesTarget Market ApproachesChapter VIIChapter VII

Integrating Marketing in the Leisure IndustryIntegrating Marketing in the Leisure Industry

Target Market DefinitionTarget Market DefinitionTarget Market DefinitionTarget Market DefinitionA target market is the identification of groups of people that have

common characteristics that an agency’s marketing efforts are geared.

Steps in establishing the agency target markets:• Separate the current consumers into distinct market

segments.• Separate the overall market into distinct market segments.• Select the market segments that the agency wants to target.• Identify if these potential target markets are worthy of

becoming the agencies target markets.

• The agency develops an analysis of the existing market and identifies the various consumer types within that market.

• The process by which agencies separate a mass market of people into common characteristics.

Market SegmentationMarket SegmentationMarket SegmentationMarket Segmentation

The Market Segmentation ProcessThe Market Segmentation ProcessThe Market Segmentation ProcessThe Market Segmentation Process

• Market assessment

• Market identification

• Market selection

Variables Used in SegmentationVariables Used in SegmentationNote Table 7.1 on p.161Note Table 7.1 on p.161

Variables Used in SegmentationVariables Used in SegmentationNote Table 7.1 on p.161Note Table 7.1 on p.161

• Geographic Variables

• Demographic variables

• Psychographics variables

• Benefit variables (needs and interests)

• Behavioral variables

• Syncographic variables (season, time)

Types of SegmentationTypes of SegmentationTypes of SegmentationTypes of Segmentation

• Benefit based segmentation

• Demographic segmentation

• Psychographic segmentation

• Multi-dimensional Segmentation

Note text pp. 169 -170: Note text pp. 169 -170: Segment ProfilesSegment ProfilesNote text pp. 169 -170: Note text pp. 169 -170: Segment ProfilesSegment Profiles• Lodging guests

• Boaters

• Skiers

• Outdoor enthusiast

• Movie theaters

• Nude recreation

• Which target markets are sustainable? Are they fragmented?

• Which target markets have the highest probability of success and the least competition?

• Which target markets have the greatest need for our expertise? Which target markets can we most effectively serve based on existing resources?

• Which target markets are reachable?• Which target markets can we allocate resources?• Which target markets most effectively assist in reaching

our overall agency goals? Which target markets support our mission?

Identifying the Market Segment Identifying the Market Segment Potential Potential

Identifying the Market Segment Identifying the Market Segment Potential Potential

Market FragmentationMarket FragmentationMarket FragmentationMarket Fragmentation

Market fragmentation occurs when a market is divided so many times that, not only would it be difficult to

find the group of people that fit this description, there

may only be a few that actually fit the description.

Leisure Service Agency Market Leisure Service Agency Market SegmentsSegments

Leisure Service Agency Market Leisure Service Agency Market SegmentsSegments

• Baby Boomers• Seniors• Women• Gay, lesbian and transgender• Single parents• Teens• Persons with disabilities

Value of Target MarketingValue of Target MarketingValue of Target MarketingValue of Target Marketing

• More specific and effective use of marketing resources (e.g. budget, time expertise)

• Greater impact on overall agency effectiveness

• Clearer understanding of markets needs, wants and desires

• Enhanced ability to identify competitive advantages, establish positioning

• More strategic approach to agency development

Limitations of Market SegmentationLimitations of Market SegmentationLimitations of Market SegmentationLimitations of Market Segmentation

• It is difficult to segment markets correctly• It is difficult to identify the most appropriate

variables to use to segment the group• Agencies can select a market segment that is not

viable• It is difficult to define the size of the market• There is an expense to analyzing segments and

fear that an agency may not be doing it correctly• Agencies do not gain full leadership support for

developing a segmented versus mass market approach

• Agencies do not fully understand the concept