30-Jun-25
MARKET
SEGMENTATION,
TARGETING AND
POSITIONING
Lecturer: Thu Tran
LEARNING OBJECTIVES
• To appreciate the benefits of segmentation, targeting
and positioning in tourism and hospitality
• To apply the theories of segmentation, targeting and
positioning strategies in tourism and hospitality
industries
• To identify typical consumer behaviour of specific
market segments in tourism and hospitality industries
CAN APPLE AND SAMSUNG APPEAL TO
ALL BUYERS IN THE MARKETPLACE?
1
30-Jun-25
CUSTOMER-DRIVEN
MARKETING STRATEGY
Buyers in any market differ in their wants,
resources, locations, buying attitudes and
buying practices.
Adopt target marketing:
• Identify groups of consumers that share
similar needs
• Select one or more of them to target
• Develop products and marketing mixes
tailored to each
CUSTOMER-DRIVEN
MARKETING STRATEGY
• Identify bases for • Develop a measure of
segmenting the market segment attractiveness
• Develop segment profiles • Select target segments
• Deciding a value proposition • Develop a marketing mix
for each segment
CUSTOMER-DRIVEN
MARKETING STRATEGY
2
30-Jun-25
BENEFITS OF SEGMENTATION
• Effective use of resources
• Gain a focus
• Create Value for a target
market
• Positioning
MASS MARKETING TARGET MARKETING
Same product to all consumers Dividing a market into direct
(no segmentation) groups of buyers who might
require separate products or
marketing mixes
Geographic Psychographic
Demographic Behavioral
3
30-Jun-25
DO PEOPLE WHO LIVE IN THE SAME
AREA SHARE SIMILAR
CHARACTERISTICS?
10
GEOGRAPHIC
SEGMENTATION
• Dividing a market into different
geographical units, such as nations,
regions, states, local government
areas, cities or neighbourhoods
• International → National → Region/City
11
12
4
30-Jun-25
What are some
characteristics of
Chinese customers?
13
14
DEMOGRAPHIC
SEGMENTATION
Dividing the market into groups based on variables such as:
• Age
• Family size or life cycle
• Gender
• Income
• Occupation
• Education
• Religion
• Race
• Generation
• Nationality
15
5
30-Jun-25
PSYCHOGRAPHIC
SEGMENTATION
Divides Buyers Into Different Groups Based on:
• Social Class
• Lifestyle
• Personality
16
The Regent
Phu Quoc
17
18
6
30-Jun-25
LIFESTYLE
CLASSIFICATION
• Upwardly mobile, ambitious
⚬ Seeking a better and more affluent lifestyle,
principally through better-paid and more
interesting work and a higher material standard
of living
• Traditional and sociable
⚬ Compliance and conformity to group norms bring
social approval and reassurance to the individual
• Security and Status seeking
⚬ Stressing safety and ego-defensive needs.
• Hedonistic Preference
⚬ Emphasis on enjoying life now and immediate
satisfaction of wants or needs
19
20
21
7
30-Jun-25
22
BEHAVIORAL
SEGMENTATION
Dividing the market into groups based on variables such as:
• Occasion
• Benefits
• User status
• Usage rate
• Loyalty status
• Readiness stage
• Attitude toward product
23
SEGMENTATION TABLE EXAMPLE
24
8
30-Jun-25
REQUIREMENTS FOR
EFFECTIVE SEGMENTATION
Size, purchasing power, profiles of segments
MEASURABLE can be measured.
Segments can be effectively reached and
ACCESSIBLE served.
Segments are large or profitable enough to
SUBSTANTIAL serve.
Effective programs can be designed to attract
ACTIONABLE and serve the segments.
25
MARKET TARGETING
EVALUATING MARKET SEGMENTS:
• Segment size and growth
• Segment structural attractiveness
• Company objectives and resources
26
MARKET TARGETING
SELECTING TARGET MARKET SEGMENTS:
• Undifferentiated Marketing
• Differentiated Marketing
• Concentrated Marketing (Niche)
• Micromarketing
27
9
30-Jun-25
MARKET TARGETING
CHOOSING A MARKET_COVERAGE STRATEGY:
• Company resources
• Degree of product homogeneity
• Market homogeneity
• Competitors’ strategies
28
MARKET DIFFERENTIATION
• Positioning by specific product attributes
• Positioning by benefits
• Positioning for the user category
• Positioning for usage occasion
• Positioning against another competitor
• Positioning against another product class
29
MARKET DIFFERENTIATION
Product can be differentiated by:
• Physical attributes
• Service differentiation
• Personnel differentiation
• Location
• Image differentiation
30
10
30-Jun-25
MARKET DIFFERENTIATION
31
MARKET DIFFERENTIATION
What differentiates?
• Level of importance to customers
• Distinctiveness
• Superiority
• Communicable to customers
• Preemptive
• Affordability
• Profitability
32
MARKET POSITIONING
• Product’s Position - the way the product is defined by
consumers on important attributes - the place the product
occupies in consumers’ minds relative to competing
products.
• Marketers must plan positions to give their products the
greatest advantage in selected target markets
33
11
30-Jun-25
POSITIONING STRATEGY PROCESS
1.Identifying Possible Competitive Advantages: Competitive
Differentiation.
2.Selecting the Right Competitive Advantage: Unique Selling
Proposition (USP).
3.Communicating and Delivering the Chosen Position.
34
POSITIONING MAP
35
36
12
