Marketing Segment

1. Purpose of marketing report

The purpose of writing a marketing report is to allow us to get to reach out to our targeted customers by utilizing the 4Ps, mainly product, price, promotion and place. It assist Travel Artiste the products to be sold, how should the prices be set on every product by using pricing strategies, the types of promotional techniques to be adopted to ensure our target customers get our advertising message and its effectiveness, and the location of the business to ensure there is a direct touch point between us and the customers. By positioning ourselves against our direct and indirect competitors also gives us an overview of our standing point of our products and how it is perceived by others.

2. Market segmentation and targeting

As a travel agency with both physical store and online website, we do not segment our target market geographically; instead, we segment it by demographic, psychographic and behavioral to identify our specific group of people we are targeting.

2.1 Demographic

Although people of all ages can go on tours, Travel Artiste mainly target at people of both genders ages 18 and above who are able to come down to the physical store for personal tour booking or are literate enough to go to our online store. We selected people of ages 18 and above as they will be more likely to book tour packages for themselves as well for those below 18. Within this age group, we target people of all marital statuses as well as religions, and with a minimum income of $1000 per month, mainly classified as the solitary survivor I in the life-cycle stages (Refer to table 1), which meant people who are in the labor force currently as the minimum price for our tour packages is estimated to be around $800. In addition, our target market is people with at least secondary school education as we believe these people acquire more education knowledge and are IT savvy, and hence will be able to use the internet to get to our website.

2.2 Psychographic

As a travel agency, Travel Artiste must target people who loves travelling and at least classified grade D according to the socio-economic scale, who are semi and unskilled manual workers (Refer to table 2). They must also have an explorer attitude within as travelling to different countries exposes each of our customer a different experience from Singapore. They will purchase products or services based on the price of the product, but are willing to pay for more if it is worth the value. As Travel Artiste will be launching an internet website, launching Facebook page and creating a mobile application in near future, they should also have a high usage of mobile devices, electronic gadgets and accessing mobile apps; spending most of their time browsing the internet and also on social networks.

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