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TMI CONSULTANCY

TMI CONSULTANCY. Segmentation- A Targeted & Cost Effective approach To Tourism Promotion. MOSCOW 2007. TABLE OF CONTENTS. What is Segmentation How do you Segment a market Identity requirements of Segments: Tourism Product Media & Promotional requirements

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TMI CONSULTANCY

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  1. TMI CONSULTANCY Segmentation- A Targeted & Cost Effective approach To Tourism Promotion MOSCOW 2007

  2. TABLE OF CONTENTS • What is Segmentation • How do you Segment a market • Identity requirements of Segments: • Tourism Product • Media & Promotional requirements • The communications Lifecycle (CLC)

  3. Be a Market –led Organisation • Product Led Organisation- Product is unquestioned & will sell itself • Sales Led Organisation-Capacity exceeds demand –aims to increase production without changing product • Market-led- Determines Customer needs & then adapts the product to their needs at the right Price via Communication with client

  4. Segmentation Steps • Market Research forms the basis of all our business planning expertise. • Define your markets • Segment the Markets • Select Segments • Develop marketing mix for each Segment • Build & implement business plan

  5. What is a Segment ? • A segment is a group of People in a market with similar characteristics • The smaller & more defined the segment- the better • They should not be products eg theatre goers but consumer-led eg Golden Youth • Segmentation describes differences – Creation of focused, cost effective market strategy can be formed.

  6. Segmentation Characteristics • Determine Segmentation Parameters: Income, civil status, age, geographic location, car owner, home owner, social class, reading habits • Select segments can you can best Serve & easily attract with your given budget • Identify customers needs- common interests • Create marketing strategy for each segment

  7. Case Study of Russian Outbound market • Who is the Russian Outbound traveller ? • Emerging Middle Class • Funky Young Professionals • Upper Income • Golden Youth • Filthy Rich By TMI consultancy

  8. Maturity of Market • Selection of market based on Maturity and knowledge of destination eg Italy has a higher knowledge of Russia than Japanese • Based on position on Communication Life cycle will determine activities • Immature markets stage 1-2 are larger, less defined and therefore promotion focus is more general • Mature markets- develops more segments – more targeted approach required

  9. Communication Life Cycle • Unaware • Aware • Understanding • Conviction • RESPONSE (visit the country) • Do not try to move customers from Unaware to response in one go. • 3 years to go from 1 stage to another

  10. SUCCESS STORY-UK internet users British Internet Users Segment Promotion of St Petersburg in Winter: White Days The Challenge: Hotels with low occupancy and weather cold and not attractive The Solution: TMI created a Press conference around Caviar tasting to attract key media. TMI engaged another TMI client Expedia who then Promoted St Petersburg-White days on their site, visited by 40 Million people per month. & their UK newsletter send to 2 million E mails. The Result: Both St Petersburg & Expedia received a large increase in Winter bookings.

  11. Focusing Resources • Never sufficient resources to focus on all segments • Select most perspective Segments, immature markets require long term investment. • Use the Directional Policy Matrix technique for deciding allocation of resources. • Distinguish which markets are Attractive & What makes them easy to promote to eg. Culture vulture- St Petersburg • Don’t spread yourselves too THIN

  12. Budget Allocation • Define all Segments on the Directional Policy Matrix • In Mature markets- segments – small, • New market-less defined • Focus on the Segment & provide resources or get out • of Segment altogether. • Do not try to cover all Segments- Be Selective • Plan How to Move each Segment along the • “Communication Life Cycle”

  13. Out-Sourcing Segmentation • Many NTO’s Out-source market research & Segmentation, especially in less Mature Markets. • TMI has carried out market segmentation for the following NTO’s: Hong Kong, Singapore, Mexico, Jordan, Korea and Romania. • Out-sourcing is Key to Good use of resources- Eg Jordan – All representations are out-sourced • Tendencies for Tourism promotion to private sector organisations- Russia’s possible next move?

  14. Segmentation QUESTIONS ??

  15. CONTACT US Moscow Representative Office: Millennium Business Centre Trubnaya St. 12 Moscow 107045 Russia Tel: +7 495 787 2753 info@tmiconsultancy.com London Office: 51 Brondesbury Road Queen‘s Park London NW6 6BP Tel: +44 7808 727075 europe@tmiconsultancy.com www.tmiconsultancy.com

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