ABSTRACT

This chapter identifies the components of a marketing strategy. It defines market segmentation and identify the reasons for its application in tourism marketing. The chapter reviews the consumer and product characteristics used to form tourism market segments. It discusses the special-interest tourism concept and describe some of the component market segments. The chapter explains the steps and procedures in market segmentation analysis. The characteristics most often employed to form tourist market segments are reviewed. These are: geographic source market segmentation, trip purpose market segmentation, demographic and socio-economic market segmentation, psychographic market segmentation, behavioural market segmentation, product-based market segmentation, channel of distribution market segmentation, and channel of communication market segmentation. In a market segmentation analysis, a destination or tourism business forms these groups and then, based on criteria established by the organisation, selects its target markets from among the available market segments.