Segmentation refers to the process of dividing the market of consumers into groups based on one or more shared internal or external characteristics. After the segmentation process is complete, the next step is targeting, which involves the tourism marketer's choosing a segment or segments to which to communicate the promotional message. There are three different targeting strategies that a tourism marketer can implement. The tourism marketer must make the important decision as to whether he or she wishes to use an undifferentiated, concentrated, or differentiated targeting strategy (Table 5.1).
Strategy
Description
Example
Undifferentiated
Sending the same promotional message to everyone
Promoting the city as a historic destination by placing ads in widely read newspapers
Concentrated
Designing a promotional message that communicates the benefits desired by a single specific segment
Promoting the city as historic by targeting elderly members of historical societies by placing ads in their newsletters
Differentiated
Designing more than one promotional message, with each communicating different benefits
Also targeting families by communicating a promotional message about the importance of children learning history
Differentiated Marketing Strategy
A differentiated marketing strategy is when a company creates campaigns that appeal to at least two market segments or target groups. For example, a store can promote a sale that appeals to people in at least two cities or locations, or a company can market a product that appeals to women in at least two age groups. Differentiated marketing strategies can target many more than two segments; shoe companies often create campaigns that appeal to both men and women in a variety of age groups. Differentiated marketing strategies can also use different messages in the same campaign for different segments. For example, a retailer might market low cost to