Target Marketing

Reaching New Heights . . .
Target Market Approaches
Chapter VII
Integrating Marketing in the Leisure Industry
Target Market Definition
A 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
Separate the overall market into distinct market
Select the market segments that the agency wants to
Identify if these potential target markets are worthy of
becoming the agencies target markets.
Market Segmentation
• 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.
The Market Segmentation Process
• Market assessment
• Market identification
• Market selection
Variables Used in Segmentation
Note 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 Segmentation
• Benefit based segmentation
• Demographic segmentation
• Psychographic segmentation
• Multi-dimensional Segmentation
Note text pp. 169 -170:
Segment Profiles
• Lodging guests
• Boaters
• Skiers
• Outdoor enthusiast
• Movie theaters
• Nude recreation
Identifying the Market Segment
Which target markets are sustainable? Are they
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?
Market 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
Baby Boomers
Gay, lesbian and transgender
Single parents
Persons with disabilities
Value 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 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
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
Agencies do not fully understand the concept