The Holiday Market
Segmentation comes naturally to human beings. Segmentation helps focus on the specific market and service its needs accordingly. The market has to be defined in terms of the end users of the products or services. Sales and marketing is not about getting any customer but to select a homogenous group of customers. This helps devise the right marketing mix strategy as market segmentation is a proactive process involving several analytical techniques (Goller, Hogg and Kalafatis, 2002). This paper evaluates the different bases that marketers use to select their target market. It also examines the segment that is likely to increase or decrease in the next decade. Based on this analysis, the paper recommends how holiday marketers can monitor and devise their marketing strategy. What bases for segmentation might be appropriate in the holiday business? The holiday market is highly competitive and fragmented and hence the segmentation is based on different factors. In fact segmentation in the holiday market could differ for different products. For instance segmentation in transportation could differ from segmentation strategy adopted by the hotels. Segmentation can be based on factors such as demographic, socio-economic, geographical, or psychographic.
On review of the above discussion and research it can be concluded that holiday marketers would have to segment their customers based on demographics even if it is considered an outdated method of segmentation. The older customers’ is a high potential segment which prefers package holidays as they seek convenience, comfort, security and safety. ...Show more