Essay About Segment Of The Market And Broad Consumer Market

Introduction to Market Segmentation
Introduction to Market SegmentationGaining and maintaining a competitive advantage in the broad consumer market for hospitality and travel products is a very difficult task.Competitive AdvantageAn advantage over competitors obtained through lowering prices or including additional benefits that justify the higher prices. The End result for either technique offers consumer greater valueIt is much easier  to be successful if a firm tries to carve out smaller niche or segment of the market, in which firm can establish a competitive uniqueness; hence, the development of market segmentation.Market Segmentation is pursuing a marketing strategy whereby the total potential market is divided into homogeneous subsets of customers, each of which responds differently to the  marketing mix of the organizationWrong Concept of SegmentationOwners and managers of hospitality organizations believe that:If they segment  the market and target their marketing and promotional efforts to just a few selected segments, their sales  volume will fall.2.They believe that they have to appeal to all potential customers, and that by segmenting the market they will weaken their competitive position and profits.Nature of Market SegmentationWhy need to segment market?1. To improve the sales and profit because it allows the organization to target specific market segments that are more likely to patronize the organizations facilities2. Through segmentation , companies could identify those target markets that are heavy users of their products and services.3. . Segments that holds little potential for using a company’s product receive little attention.4.Different product – service mixes can be promoted to meet the needs of the different segmentsCriteria of Effective Segmentationa. SubstantialityA criterion used to evaluate the effectiveness of market segmentation. The size of the segment must be the large enough to warrant special attention to meet the needs of the segment and achieve the marketing objectives of the firmSo it ask the questionWhether the market is large enough?b. MeasurabilityThe criterion used to evaluate the effectiveness of market segmentation. The measurability should be assessed from two perspectivesTwo (2) Perspectives measurability is assessedThe overall size of the target market segment and the projected total demand or purchasing power of the target market.c. Accessibility A criterion used to evaluate the effectiveness of segmentation. The large target markets must be reachable, or accessible  through a variety of marketing communication efforts.So it ask the questionIs It possible to reach the large target market segments through variety of marketing communication efforts?Marketing Communication        – can include a wide variety of approaches, including but not limited to advertising, promotion, direct marketing, Telemarketing, and personal sellingd. ActionabilityA criterion is used to evaluate the effectiveness of market segmentation. Consumer in the same market segment similarly react to the marketing program used to target them. in other words, customer within a particular market segment should share similar characteristics, while those in different segments should vary in terms of their characteristicsSEGMENTATION VariablesInvolves finding out what kinds of consumers with different need exist.Indentifying meaningfully different groups of customers in selecting which segments to serve in order to implement chosen image and appeal to chosen segment  considering the price, product, promotion and distribution.Calls for some tough choices thus need to identify the  kinds of variables.Segmentation Basis[pic 1]Segmentation Framewrok[pic 2]Variables in SegmentationCan be used alone or in combination with others depending on the level of segmentation desired.