This lesson provides an overview of the types of target markets.
By the end of this lesson, you should be able to:
- Understand how to identify and select target markets
- Identify the key target markets for your tourism business.
What is a Target Market?
A target market is a group of consumers or organizations most likely to buy a company's products or services.
In the tourism industry, target marketing means identifying and marketing to the people whose needs and wants are the best match for what we're offering, whether that offering be a bed for the night, an hour of surf instruction, or the tastiest egg hoppers on the East Coast.
Why do target markets matter?
Because your target market is made up of the people who most want or need or are likely to be attracted to what you're offering, it makes the most sense for you to focus your marketing efforts on reaching them. Marketing to these people is simply the most effective and efficient approach.
The alternative - marketing to everyone - is inefficient and expensive. It's nearly as expensive as doing no marketing at all.
How do I find our target market?
To determine who your best target market for your tourism business, start by answering three basic questions that will help you determine what marketers refer to as 'pain points':1. What problem does my product or service solve?
Does it give people a relaxing place to stay so that they can destress? Does it give them a quick, easy-to-afford overnight stop en route to a key tourist attraction? Does it give them the equipment and advice to start a whole new hobby, such as surfing?2. Who is most likely to have this problem?
This is where you start breaking down who you should be focusing on. Is it individuals? Groups? Families? And let's be specific. Is it stressed-out people from big cities with limited time but more money? Is it people with lots of time but little money, such as backpackers? Is it Sri Lankan families who have young children to care for while travelling?3. Are there different groups or different needs?
You may have more than one target market, or market segment, based on how they use a product or service. For example, possibly your accommodation is good for self-catering groups: so your target markets are both families and groups of backpackers. But think about this a bit further: the one group wants to go to bed early while the other wants to stay up late and party noisily. So, though they have much in common, they're actually very different target markets. On the other hand, if your tourism business provides surfing lessons and equipment, you might appeal both to hip and cool Colombian young men as well as to middle-aged foreign women. Turns out, these two very different-looking groups, might be the same target market: active holiday-makers keen to learn a new skill.Now get specific
Once you are clear about who is most likely to need or want your product or service, and what pain or problem they are avoiding by signing up for your service, it's time to get even more specific about this group, or groups, of people. There are several different ways to define your target market, based on different characteristics. You should decide which approach comes closest to exactly describing your perfect customer:
Start by clarifying if you have a B2B (business-to-business) or a B2C (business-to-consumer) offering. Are your customers the actual tourists themselves, or the businesses that sell to the tourists?
Are you aiming to attract Sri Lankans from your district? From your province? City slickers from Colombo? Foreigners from southern Asia, such as India? Foreigners from long-haul destinations such as Australia or Austria?
Describing your best customer demographically means that you define your target market in terms of their gender, age, income level, education level, marital status, or other aspects of their life. Note we said 'best customer' - this means the person that would be the best match for what you offer.
Sometimes customers don't fit into a particular group based on outward characteristics, but more based on mindsets or internal attitudes and values. These are psychographic characteristics.
Many companies today define their target market based on which generation they were born in, such as 'baby boomers' or 'millennials'.
Other target markets are more alike because of the stage of life they are in, whether it's gap year backpackers, retiree nomads, honeymooners, or parents of young children, for example.
Another approach is simply based on the frequency of use, or behaviour - for example, annual holidaymakers, or long weekenders or sports enthusiasts...
Armed with a clear understanding of your target market(s), you can now begin to craft marketing messages that appeal to that particular group's pain points and preferences. You will do this by making it clear how your tourism business is different to the other tourism businesses around you.
Source: The content above is based on the good advice provided here by Shopify, the online market place pros - they are in the business of setting up small online stores for everyday people. Who better to go to for advice on target marketing?