Marketing Segmentation implemented by Australian Tourist Commission (ATC)

This article discusses the marketing segmentation implemented by Australian Tourist Commission (ATC) and its effect on long term faithfulness of consumers in various organisations. It also covers the strategies used for marketing and the importance of marketing management. The article provides insights into the STP model and its application in Australia.

Marketing
Management
1

Contents
Contents...........................................................................................................................................2
Marketing Segmentation implemented by Australian Tourist Commission (ATC)........................3
Strategies used for Marketing:.........................................................................................................6
CONCLUSION................................................................................................................................8
References........................................................................................................................................9
Books & Journals........................................................................................................................9
2

INTRODUCTION
The science and art of selecting target segment and retaining, acquiring, and expanding
consumers by providing, generating and expressing greater customer values is referred to as
marketing management. In order to survive in such a competitive industry, a market manager
must develop marketing strategic plans. Marketing management is an organisation's function of
study related to the actual development of marketing strategies, attitudes, and processes within
business entity and organisations, as well as the administration of a businesses' marketing assets
and operating activities. The actions and factors involved in the delivery of products and services
are facilitated by marketing management. Marketing offers a competitive advantage, which
makes for better goods and consumer satisfaction, as well as product development. This file is all
about the targeting the segment of a market for Australia as a holiday destination. This file will
cover the identification of efficient target market through the market segmentation and its effect
on long term faithfulness of consumers in various organisations.
Marketing Segmentation implemented by Australian Tourist Commission
(ATC)
Marketers may be more efficient and reliable, finance and other resources by
demographic study and segmenting their data. Market segmentation helps a business to have
improved understandability of their prospects and clients. They attain a greater information of
their customers' needs, requirements and desires, helping them to customise campaigns to the
customers who are most dominant to purchase items (Schiavone and Simoni, 2019).
A model which is used to decide the segmentation for the market is by using STP model.
Using the STP model to establish marketing strategy by focusing on consumers, finding, and
optimising marketing for a target demographic and segment is referred to as STP marketing. The
STP model has proven to be one of the most crucial marketing models that marketers utilises in
order to improve their marketing penetration, study, planning, strategy, and outcomes since its
introduction for Australia. In the selected country, the STP model assists to apply marketing
concepts, along-with marketing mix, and creating best marketing plans. Let's start by delving
more into what the STP Model in marketing entails (Rather, 2020). Second, we'll break down
each component of the STP model, look at its function in digital marketing, and see how to use it
to make smarter marketing plans in the Australia.
3

This model is also useful as STP model is used to create marketing segments that provide
Australia a competitive advantage in their marketing strategy.
The model helps in identification of the most futile and appropriate target audience and customer
sections, determining which consumer prospects are the most beneficial and positioning
the selected country to those segments (Solimun and Fernandes, 2018).
Segmentation:
In the STP model, segmenting relates to the approaches and procedures which is taken to
break down a larger market potential into smaller segments, whether through investigation or
statistics. To understand selling the commodities, there is a better opportunity of acquiring
competitiveness through goods or from a strictly marketing standpoint. While process of
segmentation is useful for identifying the essential features of a chosen segment, the manner we
build segments might limit our potential market when mixing them too much. In case of ATC,
market segmentation is the process of dividing potential buyers into different categories on the
basis of criteria such as demography, taste and preference, behaviour, and other factors (Melewar
and Alwi, 2017). Market segmentation aids Australia in better understandability and marketing
to different groups of customers that enjoy each other's firm, requirements, and behaviours. The
goal of market analysis is to simplify various segments within target audience so that they can
send them more relevant and useful messages.
In case of ATC, it is totally related to the young adults, ATC has increased the
effectiveness of its advertising strategies by segmenting the tourism industry into specific
customer groups, including: independent explorers aged 25-34, independent travellers aged 35-
44, Young independent travellers (YITs) between the ages of 18 and 24 (secondary market)
Independent adventurers between the ages of 45 and 65. It will concentrate on young
independent travellers for the purposes of the research.
It is very important for ATC as Marketers may be more efficient and effective, cost, and
other resources by segmenting their data (Fuentes and Fuentes, 2017). Market segmentation
enables organisation to have a improved understanding of their prospective customers. They
acquire a better idea of their customers' necessities and wants, allowing them to introduce custom
campaigns to the customer groups who are most likely to purchase those items.
Targeting:
4

The act of choosing the target location from the overall market is said as market
targeting. The targeting is a grouping of purchasers that the firm desires to serve or for whom a
commodity is developed, a cost is based, advertising efforts are undertaken, and a delivery
service is established. After creating the segments of market, there is a need to decide which ones
will work best. In the STP model of Australia, targeting refers to the selection of the correct
segments of market to target and plan marketing actions. Purpose of targeting is to investigate
each segment's organisation's potent and select the best fit to their objectives for Australia. While
it is enticing to develop in many areas, at the same time it may never achievable. As a result,
there should be the first identify the best sector. It may construct more enumerative ways to
establish whether the section produced the outcomes they expected by focusing on one segment
at a time. Because web marketing advances at such a fast pace, they can immediately target new
sectors for ATC.
In context to ATC, A good marketing mix focuses on certain categories and then creates
a unique product for each one. YITs, for example, are generally single students who plan their
own trips (Cheung and McColl-Kennedy, 2019). Many are taking a 'gap year,' and are travelling
alone or with company. YITs describe themselves as tourists seeking experiences more than
visiting sites, preferring low-cost items such as bus passes, hostel accommodations, sporting
activities, excitement, and absorption in the "fun" Australian society and culture.
It is very important to identify the target market for ATC in which Marketing targeting benefits
both brands and customers. It enhances marketing tactics and customer interactions; increases
brand awareness and customer loyalty, and even results in better goods and services.
Furthermore, target marketing allows firms to approach customers in a more genuine, relevant,
and intimate way.
Positioning:
Market positioning is a important component of marketing strategy as it influences how
customers perceives that is being given to them. Market positioning is a strategic tool that is
deployed to develop a brand's or product's impression in the hearts of consumers. The four Ps
can be used to achieve this: pricing, location, promotion, and product. In more
specifically defining the Ps in the positioning plan, the more optimistic it will be. In relation to
ATC, this model which has a position is all about generating items and selling them to meet a
marketing segment formed. It's also the last phase in the model's development. It's also the most
5

important phase because it's the final. Because we won't be able to succeed with the marketing
plan don't know how to position the product to the targeted groups.
In case of ATC, when situating a product in a certain market sector, positioning entails
employing the marketing mix in a way that considers the ideas and perceptions of customers.
The product in this case is Australia, and the market is all of the travel experiences and
possibilities available to YITs. They were traditionally thought to have less money for travel and
would arrange their accommodations in Australia. This is starting to change, with big tour
operator partners in the UK persuading YITs to book before they depart (Nunan, Malhotra and
Birks, 2020). The positioning statement for Australia in the United Kingdom aims to provide the
Australian experience a distinct place in a well-defined market. Its goal is to provide messages
and events that reflect the belief that "a holiday in Australia gives the emancipation of an open
outdoor lifestyle and a positive outlook on life." It is a place rich in natural beauties and vast
stretches of unspoiled terrain.
1. It is very important for ATC as a company's placement will assist its performance amid a
sea of many competitors. Users can reach by communicating the target market more
efficiently and optimistically if you have a reputed and well defined Brand image and
Positioning. The Company and its products are more seen and inducing to buyers when
they have a defined market positioning.
Strategies used for Marketing:
A marketing strategy is a business's entire plan for reaching out to new prospects and convert
them into the buyers for its goods or services. The company's unique selling point, statistics on
target consumer demographics, important brand message, and other high-level aspects are all
partners in a marketing plan. ATC of Australia use trade marketing and consumer marketing
strategies for the travellers to expand the market and to earn more profit and production in the
travelling sector of tourism.
Trade marketing is a strategy that targets distributors, merchants, and distributors rather than
consumers, with the purpose of creating demand among supply chain partners and bringing items
in front of customers of ATC. Going to trade exhibitions and giving promotions to potential
partners are two common trade marketing practises. Trade marketing is a broader marketing
discipline aimed at increasing demand among supply chain partners including wholesalers,
retailers, and distributors, rather than only with the travellers of ATC.
6

Consumer markets are crucial in the marketing ecosystem since they are where the majority of a
customer's purchases are made (Fidel, Schlesinger and Emilo, 2018). In consumer markets of
ATC, the type of travellers has a significant impact on marketing. Consumers are classified
according to their qualities. Consumer marketing refers to the sale of goods or services to people
for private use, as well as the promotion of these goods and services through various marketing
tactics, such as the use of consumer data for tailored experiences of ATC.
According to the scenario given in case study, ATC collaborates closely with tour operators (e.g.
STA, USIT, Trailfinders), airlines (e.g. Qantas and Singapore Airlines), and other businesses
located in the UK that want to get into the Australian market. In order to promote these
opportunities, the ATC provides a few major consumer publications that serve as the primary
source of information for consumers. These are the yearly Travellers Guide and australia.com, a
consumer website. The ATC also attends trade shows and sends out publications to business
partners on a regular basis (Lee, 2018). Much of this communications is now done through their
corporate website, which is centred on web-based activities.
Also, a marketing communicator begins by identifying a specific target audience. It was critical
to craft a message that generated an adequate reaction after targeting the youth demographic. The
goal of the communication strategy was to inspire young people to not just consider going to
Australia, but to actually travel there. Working holiday maker programmes in Australia attempt
to increase international awareness by letting young people to immerse themselves in another
country's culture. It helps young working vacationers to extend their vacations by augmenting
their earnings through work (Camilleri, 2019). Applicants must be between the ages of 18 and
30, without children, and demonstrate that their primary reason for visiting Australia is for a
social and cultural holiday that promotes mutual understanding between Australia and other
countries, with the intention of supplementing their funds with temporary work.
7

CONCLUSION
It is concluded from the above report is that Marketing is the support pillar of each successful
company. At all levels and at every place, it is continuously evolving in reaction to the inflow of
information, the growth of technology, and the ferocity of competitiveness. Marketing
management is important, since it helps businesses to stand strong in today's market. This also is
important for the development of strategies to increase profits and lower production costs.
Marketing management has emerged as the primary means of exchanging and transferring
products. There has been a sharp increment in the number of Europeans arriving in Australia,
growing Australia's international tourism market share; at the very same time, total visitor
expenditure by overseas visitors within Australia has increased, increasing tourism export
earnings and the number of people working in the sector.
8

References
Books & Journals
Schiavone, F. and Simoni, M., 2019. Strategic marketing approaches for the diffusion of
innovation in highly regulated industrial markets: the value of market access. Journal of
Business & Industrial Marketing.
Solimun, S. and Fernandes, A. A. R., 2018. The mediation effect of customer satisfaction in the
relationship between service quality, service orientation, and marketing mix strategy to
customer loyalty. Journal of Management Development.
Fuentes, C. and Fuentes, M., 2017. Making a market for alternatives: Marketing devices and the
qualification of a vegan milk substitute. Journal of Marketing Management, 33(7-8).
pp.529-555.
Cheung, L. and McColl-Kennedy, J. R., 2019. Addressing vulnerability: what role does
marketing play?. Journal of Services Marketing.
Nunan, D., Malhotra, N. K. and Birks, D. F., 2020. Marketing Research: Applied Insight.
Pearson UK.
Fidel, P., Schlesinger, W. and Emilo, E., 2018. Effects of customer knowledge management and
customer orientation on innovation capacity and marketing results in SMES: the
mediating role of innovation orientation. International Journal of Innovation
Management, 22(07). p.1850055.
Lee, I. ed., 2018. Diverse Methods in Customer Relationship Marketing and Management. IGI
Global.
Camilleri, M.A. ed., 2019. Tourism planning and destination marketing. Bingley: Emerald
Publishing.
Rather, R.A., 2020. Customer experience and engagement in tourism destinations: the
experiential marketing perspective. Journal of Travel & Tourism Marketing, 37(1).
pp.15-32.
Melewar, T.C. and Alwi, S.S. eds., 2017. Islamic marketing and branding: Theory and practice.
Routledge.
9