Foundation 4: Market segmentation is not an independent strategic issue. Market segmentation is only one aspect of a tourist destination’s strategy. This conclusion was already drawn by Smith (1956) when he first introduced market segmentation by stating that “Success in planning marketing activities requires precise utilization of both product differentiation and market segmentation as components of marketing strategy.” Although the need to integrate segmentation into the total strategy of a tourist destination, most of the published data-driven segmentation studies in tourism treat segmentation as a separate issue and do not relate the results derived from segmentation to the positioning of the tourism destination or its competitive situation, although it is essential for successful implementation. Only if the destination can actually provide (positioning) for what the segment is seeking and this offering is distinctly different (differentiation) from competitors will market segmentation be more than an academic exercise and lead to a competitive advantage of a tourism destination. A method that automatically accounts for segmentation, positioning and competition is perceptual based market segmentation (PBMS, Mazanec and Strasser 2000; Buchta, Dolnicar, and Reutterer 2000). PBMS is based on tourists’ evaluations of multiple destinations and preference information and enables the simultaneous analysis of segments, image positions and the extent of perceptual competition destinations face.
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Foundation 4: Market segmentation is not an independent strategic issue. Market segmentation is only one aspect of a tourist destination’s strategy. This conclusion was already drawn by Smith (1956) when he first introduced market segmentation by stating that “Success in planning marketing activities requires precise utilization of both product differentiation and market segmentation as components of marketing strategy.” Although the need to integrate segmentation into the total strategy of a tourist destination, most of the published data-driven segmentation studies in tourism treat segmentation as a separate issue and do not relate the results derived from segmentation to the positioning of the tourism destination or its competitive situation, although it is essential for successful implementation. Only if the destination can actually provide (positioning) for what the segment is seeking and this offering is distinctly different (differentiation) from competitors will market segmentation be more than an academic exercise and lead to a competitive advantage of a tourism destination. A method that automatically accounts for segmentation, positioning and competition is perceptual based market segmentation (PBMS, Mazanec and Strasser 2000; Buchta, Dolnicar, and Reutterer 2000). PBMS is based on tourists’ evaluations of multiple destinations and preference information and enables the simultaneous analysis of segments, image positions and the extent of perceptual competition destinations face.11
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