product, target audience and market segments

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It’s important to know your product and understand your customers needs in order to target the right audience. Define your product experience To determine what sets your business apart from the competition, or the unique selling proposition, it’s important to remember that in the tourism industry, the products we sell are experiences. Instead of focusing on the actual product in your marketing, focus on the experience that it provides. Your accommodation, boat, tour bus, cafe or any piece of infrastructure is not the product in itself. Tourism experiences are mainly created through service and through the people who deliver that service - you and your staff. It is the service, the experiences and the people who helped to create them that visitors remember. Understand your target market Understanding your target market is important as visitors from different markets travel in different ways and have different needs. When selecting your target market you will need to consider not only the country visitors are coming from, but also their travel style and market behaviours. Market research and analysis can help you understand: A backpacker from Germany, a luxury visitor from the USA, or a family from China will all make very different choices about destinations or products and will require different services. Understanding how these visitors travel and what they like to do is very important. It’s crucial to research the cultural needs and requirements of your target market so that you can tailor your experience to the right audience. Research your target market Extensive research is available on both domestic and international visitors to WA, their travel styles and desired experiences. This will help you build a profile of consumers that may be interested in your product and help you identify which key markets your business should target. GOVERNMENT OF WESTERN AUSTRALIA Department of Jobs, Tourism, Science and Innovation PRODUCT, TARGET AUDIENCE AND MARKET SEGMENTS FACT SHEET WHICH MARKETS ARE ALREADY VISITING YOUR REGION? ON AVERAGE, HOW LONG DO THESE VISITORS STAY? WHAT DO THEY LIKE TO DO? WHO DO THEY TRAVEL WITH? HUTT LAGOON, PORT GREGORY

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Page 1: PRODUCT, TARGET AUDIENCE AND MARKET SEGMENTS

I t ’s i m p o r ta n t to k n ow yo u r p ro d u c t a n d u n d e rs ta n d yo u r c u s to m e rs n e e d s i n o rd e r to ta rg e t t h e r i g h t a u d i e n ce .

Define your product experience

To determine what sets your business apart from the competition, or the unique selling proposition, it’s important to remember that in the tourism industry, the products we sell are experiences. Instead of focusing on the actual product in your marketing, focus on the experience that it provides.

Your accommodation, boat, tour bus, cafe or any piece of infrastructure is not the product in itself. Tourism experiences are mainly created through service and through the people who deliver that service - you and your staff. It is the service, the experiences and the people who helped to create them that visitors remember.

Understand your target market

Understanding your target market is important as visitors from different markets travel in different ways and have different needs.

When selecting your target market you will need to consider not only the country visitors are coming from, but also their travel style and market behaviours.

Market research and analysis can help you understand:

A backpacker from Germany, a luxury visitor from the USA, or a family from China will all make very different choices about destinations or products and will require different services.

Understanding how these visitors travel and what they like to do is very important. It’s crucial to research the cultural needs and requirements of your target market so that you can tailor your experience to the right audience.

Research your target market

Extensive research is available on both domestic and international visitors to WA, their travel styles and desired experiences. This will help you build a profile of consumers that may be interested in your product and help you identify which key markets your business should target.

GOVERNMENT OFWESTERN AUSTRALIA

Department of Jobs, Tourism, Science and Innovation

P R O D U C T , T A R G E T A U D I E N C E A N D M A R K E T S E G M E N T SF A C T S H E E T

W H I C H M A R K E T S

A R E A L R E A D Y V I S I T I N G

Y O U R R E G I O N ?

O N A V E R A G E , H O W L O N G D O T H E S E V I S I T O R S

S T A Y ?

W H A T D O T H E Y L I K E T O

D O ?

W H O D O T H E Y

T R A V E L W I T H ?

H U T T L A G O O N , P O R T G R E G O R Y

Page 2: PRODUCT, TARGET AUDIENCE AND MARKET SEGMENTS

GOVERNMENT OFWESTERN AUSTRALIA

Department of Jobs, Tourism, Science and Innovation

Tourism WA has undertaken research and developed useful materials to help you better understand domestic and international visitors.

Visit Markets and research available at tourism.wa.gov.au to view the following:

• Latest visitor facts and figures

• Domestic market profiles

• International market profiles

• Key cultural considerations

• International market videos

Other sources of useful information include: Tourism Australia (tourism.australia.com) Tourism Research Australia (tra.gov.au) Australian Bureau of Statistics (abs.gov.au).

Understand different market segments

Within each market there is a range of consumer segments, travel styles or visitor types. Each segment has different needs and requirements. It’s important to understand which segments your product will appeal to within each market.

One segment Tourism WA focuses on, is the High Value Travellers (HVTs), and we have developed a summary of HVTs for each of our key international markets.

In the domestic market, Tourism WA focuses on six key consumer segments based on psychographics, demographics, technology usage, media behaviours and attitudes.

Visit Markets and research available at tourism.wa.gov.au for more information.

Refine your product

Your research should give you a clear idea of which markets your product might appeal to and what visitors from those markets are looking for. Understanding this will help you deliver a great experience and better appeal to the visitors you want to target.

What you should know?

• Market segment

• Average length of stay

• Travel expectations and cultural nuances

• Experiences they are seeking

Once you have identified your target audience, review your product by considering:

• Product presentation: First impressions count and visitors are often well-travelled with high standards. How does your product compare?

• Experience delivery: How can you make your product more immersive, experiential, adventurous and educational for all visitors?

• Customer service: At every touch point from initial booking to pre-arrival, welcome on arrival and post visit follow up, what is your customer service level?

High Value Travellers (HVT)

Group Inclusive Travellers (GIT)

Partially Packaged Special interest

Free Independent Travellers (FIT)

Luxury Couples/Honeymooners Self-drive

Semi-FIT or assisted FIT

Business travellers Visiting Friends and Relatives (VFR)

Incentives

Families International students Over 55’s Youth travel

Some other segments that we focus on are:

M O U N T A U G U S T U S N A T I O N A L P A R K , G A S C O Y N E

Page 3: PRODUCT, TARGET AUDIENCE AND MARKET SEGMENTS

GOVERNMENT OFWESTERN AUSTRALIA

Department of Jobs, Tourism, Science and Innovation

Bundle your product

‘Bundling’ refers to aligning and marketing complementary products together to form compelling and unique experiences for travellers, giving them more reasons to visit a region.

International visitors in particular often have very limited regional knowledge. By working with other local tourism operators to bundle products, it will make your product more enticing, help increase visitors to the area, grow tourist spend and offer a stronger commissionable proposition for distribution partners.

Review your product to address COVID-19

It is important that businesses adhere to COVID-19 rules and regulations and refine their product to address consumer health and safety needs, in preparation of international visitors being able to enter Australia again.

A few points to consider:

• Adjust the delivery of product and customer service e.g. maximum numbers on cruises, table only service for wineries?

• Additional health and safety requirements e.g. Will temperature checks be implemented? Will face masks be required?

• Communicate any COVID-19 changes to customers through all your channels. This can be implemented through direct marketing (EDMs), websites and social media.

• Clearly communicate all cancellation and refund policies prior to accepting bookings.

• How are you communicating safety to customers to attract them and make them feel safe? e.g. promote COVID-19 safety plan, training and certification.

The Australian Tourism Export Council has aligned with the World Travel and Tourism Council (WTTC) to become a lead agency with authority to issue Australian tourism businesses with the ‘Safe Travels’ stamp.

The ‘Safe Travels’ stamp is globally recognised and provides a level of confidence for both the domestic/international tourism trade and consumers that Australia has COVID-19 safety practices in place.

A R K L O W T R A I L N E T W O R K , C O L L I E