Question

Define Market Segmentation. Explain any one variables of market segmentation in detail.

31 Jul 2026
Answer :
Word Count : 477
Market segmentation is the process of dividing a broad and heterogeneous market into smaller, clearly identifiable groups of consumers who have similar needs, characteristics, preferences, or purchasing behaviour. In tourism marketing, market segmentation is particularly important because tourists differ greatly in terms of their motivations, income, age, lifestyle, travel preferences, destination choices, and spending patterns. Instead of adopting a single marketing strategy for all tourists, tourism organisations can identify specific segments and develop suitable products, prices, promotional messages, and distribution channels for each segment. Market segmentation enables tourism businesses such as hotels, airlines, travel agencies, tour operators, resorts, and destination management organisations to understand their customers more effectively. It helps them concentrate their marketing resources on profitable groups, design customised tourism packages, improve customer satisfaction, and gain a competitive advantage. Common variables used for market segmentation include geographic, demographic, psychographic, and behavioural variables. One important variable of market segmentation is demographic segmentation. It divides the tourism market according to measurable population characteristics such as age, gender, income, occupation, education, marital status, family size, and life-cycle stage. Demographic characteristics strongly influence tourists’ travel motivations, purchasing power, choice
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