Developing a service marketing strategy for wellness tourism company

(Kotler & Armstrong, 2010)There is no need to pick only one segmentation variable, rather it is recommended touse more than only one. When companied choose the multiple segmentation criteria’sthey normally have better chances to succeed as they can target their product to theones who are the cream of the cream in the sense of buying their products.In addition to these four segmentation criteria, in international markets companies havestarted to use the approach called intermarket segmentation. As generally manycompanies still use geographic factors as one of the approaches of segmentation,intermarket segmentation ignores totally the geographical factors. Intermarketsegmentation forms groups based on their needs and buying behaviour, regardless ofwhich part of the world they are living in. (Kotler and Armstrong, 2010)7.2 TargetingAfter segmentation, company must evaluate the segments and choose the one/onesmost attractive for its business. This is when the company decides its target market,which is a set of potential buyers which share the same needs and/or characteristics. Inan ideal world company could target every buyer individually with a specified offering,which is practically impossible. Thus, company can choose the level of targeting whichwould suit for the best. The types of targeting strategies:Undifferentiated marketing: Company ignores the differences between the segmentsand focusing more on the common needs of the customers, therefore it has a sameoffering for whole market. Referred also as mass-marketing.Differentiated marketing: Company choose to market to specific segments and has adifferent offer for each of them. They goal is to achieve a better sales with modifiedofferings than going to target for whole market with general offer. However makingdifferent offerings to each market and each product is obviously more costly than justhaving one. Also called as segment marketing.Concentrated marketing: company chooses to market for only one or few smallsegments and try go after large share of that segment. This is often appealing forsmaller firms, who have limited resources. Generally there is less competition andsmaller companies in the niche market as many larger one are ignoring them as thereis not enough purchase power to them. Concentrated marketing is also referred asniche marketing, which some companied can use when starting is a business and starttargeting more and larger segments after their growth.22