Segmentation in the Holiday Market Essay Example | Topics and Well Written Essays - 2250 words

Segmentation in the Holiday Market - Essay Example illustrate the importance of market segmentation in holiday market, this paper will cite examples on how different companies segment their market through different methods and offer a specialized product for each segment. An empirical example of this is Tourism Victoria which aims to market Victoria to international travelers. In order to properly address the needs of its differing market and deliver maximum customer value to each customer, it has used market segmentation. The whole market of Tourism Victoria ranges from local Australian residents to international travelers. However, to identify the most lucrative groups and sub-groups in the market it had to classify customers into different sub-groups according to their unique characteristics and target only those profitable niches. Afterwards, the company was able to come up with three major target market segments. Methods of Market Segmentation In its market segmentation process, the company utilized three market segmentation techniques-Roy Morgan Value Segments, MOSAIC, and life cycle. Roy Morgan Value Segments Roy Morgan Value Segments is developed by Colin Benjamin in partnership with Roy Morgan Research Center. This technique is a proprietary methodology which divides the holiday market in terms of customer preferences, needs and motivations. This methodology largely relies in the employment of psychographic data which supplies information on the "deeper drivers of choice" through an evaluation of behaviors in addition to demographics data such as age, income, etc (Domestic Market Segmentation 3). The rationale of using Roy Morgan Value segments is for the company to "distinguish the market segment with highest yield potential and identify their value needs (Domestic Market Segmentation 4)." The wide... This paper stresses that the holiday market is comprised of vast and diverse consumer groups. To further illustrate the importance of market segmentation in holiday market, this paper will cite examples on how different companies segment their market through different methods and offer a specialized product for each segment. The author talks tyhat the whole market of Tourism Victoria ranges from local Australian residents to international travelers. However, to identify the most lucrative groups and sub-groups in the market it had to classify customers into different sub-groups according to their unique characteristics and target only those profitable niches. Afterwards, the company was able to come up with three major target market segments. The use of relevant marketing models in ensuring an efficient marketing plan for the company is practiced by almost all companies worldwide. These marketing models become an effective tool in diagnosing the marketing needs of a firm at the same time that they also convey the marketing needs of a particular product or product line. This report makes a conclusion that an effective marketing strategy is often the key to the profitability and marketability of a product. In this past faced world, the key is in knowing your customers and efficiently serving them according to their needs. An analysis of the consumers’ lifestyle, attitude, preference, and behavior is very essential in crafting an effective marketing strategy not just in the holiday market but in other industries. Likewise, it is also important to consider the life cycle of a product in making right marketing mix.