Exploring Market Segmentation And Its Impact On Tourism Events In Adelaide

Background of the Study

In the modern era, the marketing and the management of the tourist events has been recognized as an aspect of assessment and have gained extreme significance to the event practitioners and the researchers. In the modern time, tourism has played a key role in the development of the economy and rise in profit for a country (pdfs.semanticscholar.org 2017). Every country and their government have been constructing effective marketing as well as tourism plans and packages with the help of which the number of tourists in the country can increase.

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Tourists even visit a country during any mega events that have been organised by the country. After the event of globalisation, everyone has sufficient information about the events that are taking place all over the globe. Just like that Australia is an attractive tourist spot where large number of tourists visit for entertainment and relaxation. Therefore, there is a requirement to segment the events and the tourist attractions in order to have an idea about the events that are taking place that enhancing a local region and is helpful for the development of business in that region (epublications.uef.fi/pub/urn_isbn_2017).

There are various events that are taking place in the current time period as it is the time for Christmas, but the most happening event that would be taking place is the live Justin Bieber show in Adelaide. The impact of the show on the tourists and the segmentation of the tourism market and how it enhances the local business of the city would be assessed with the help of this research assessment.

The events that take place in any country provide financial as well as social benefits and thereby can bring the local society vital development with respect to the diversity and the number or events. Tourisminsights.info (2017) has debated that an event can raise the demand in the local tourism, enhance the identity of the local society and even increases tourism in the off-seasons. There has been an observation that events have been considered as a tourist attraction with the change in time where the tourists as well as the local residents love to attend.

Adelaide is one of the renowned tourist spots in Australia which is located in South Australia. The area is the ring of parkland on the River Torrens and there are various art galleries located in the region. The area is a cultural hub and therefore cultural events are of great demand in the region. The event managers in the region therefore have the role of constructing a profile for the attendees that can course the managerial and marketing decision making.

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Statement of the Problem

The market segmentation is marketing and a management strategy that has been exploited widely in order to profile the attendees. The process of segmentation involves examining a market that is heterogeneous in nature as various smaller and increasingly homogeneous markets (Citeseerx.ist.psu.edu 2017). These markets can be differentiated by various demands and needs of the consumers, behaviour and characterises, which permits the event managers to explain the needs of the tourists and the wants effectively. The process of segmentation also permits the managers to increase their return on investment by focusing in the attendees who are the most profitable (Dergipark.gov.tr 2017). Hence, this paper has tried to identify the various modes of segmentation of the market and how the development of such events in Adelaide can enhance the growth of business in the region and the society.       

The problem statement explains the problems that are pertinent in the region with respect to the construction and organization of the events. The undertaking of these events involves the recognition of the management decision problems and the marketing research issues. The management decision issues are associated with the understanding the society where the events would be taking place and the tastes and preferences of the tourists and the local residents so that effective decision making process can be undertaken and such events can take place. The marketing research issues involves the understanding the local environment and assessing the tourists and the local residents on the basis of the demographic, behavioural and psychographic aspects and thereby construct plans that would develop the tourism business and even enhance business in the region that has been selected.

The aim of the research has been that having being appointed by the local government personnel for the undertaking of the research for the purpose of holding an event and thereby design the event in such a manner that would enhance the tourism to the local region and improve the growth of the business. The objectives have been as follows:

  • Recognition of the target markets
  • Recognition of the kind of event that is ideal for the market that has been identified
  • Have knowledge about the connections that local people have in the locality
  • Understanding the complementary and the competing events in the area and their unique selling proposition

The research questions comprises of the aspects that would be highlighted in this paper and thereby solve the issues that are in relation to the objectives of the research. The research questions are given as follows:

Q1. What are the management issues that can have an impact on their decision making process?

Q2. What are the most common ways to segment the market for the purpose of undertaking an event in tourism?

Research Objectives

Q3. How can tourism events improve the business growth of the region?

The paper is in requirement for information that can enhance the level of research and in that manner aid the researcher and the reader to have an idea about the fact that how these events improve the tourism business in Adelaide and thereby enhance their business growth. 

The literature review is constructed with the help of various academic and industrial sources with the help of which the identification of the numerous ways of market segmentation and the assessment of the region where the event would be undertaken. The strength, weakness, opportunity and threats of the region would be undertaken in order to have an idea about the kind of event that can take place in the region and how these events can improve the business and the lifestyle of the local community (Comp.nus.edu.sg 2017). The literature review highlights the recommendations and the ideas that have been put forth by the past researchers who have undertaken similar researches in the past. Their ideas and results would provide a guideline that can be followed in this paper in order to have an idea market segmentation for tourism industry and which one of these segmentations would be ideal for the region that has been taken into consideration by this paper.

There has been an observation that every tourist is different. The tourists of various kinds have their interest towards various tourist spots and thereby engage themselves to these places for fun, vacation and entertainment. Shodhganga.inflibnet.ac.in (2017) has therefore explained the Process Of Market Segmentation as a strategy in order to understand the market and thereby create strategies with the help of which events can be undertaken. The advantage of market segmentation is dependent on the tourist destination which is being able to expertise in the needs of a specific group and being the best in looking after the group. There has been an observation that the segment should be precise that explains that the members of one section should be similar to each other and variable as much as possible from each other. The segmentation should be similar to the strengths of the destination of the tourist. The segmentation should be recognisable and the segment should be reachable in order to help the destination management to interact in an effective manner. The segmentation should be suitable in size (Epubs.scu.edu.au 2017). The tourism destination may select a target like a small segment like niche that would be a representative of a larger market for the specific destination and has the benefit of having very specific requirement. The researchers have identified three distinct kinds of market segmentation that is suitable for the tourism industry and each one of them has their own characteristics and thereby it is on the perspective of the researcher to select the segmentation that is ideal for the region. The various segmentations are as follows:

Research Questions

In the area of common sense segmentation, the destination management provides the data analyst information regarding the personal features that has been believed to be the most precise for dividing the tourists into segments. The selection of the personal features can be moved ahead by the expertise with the domestic market. Most of the tourist destinations make use of the country of foundation and construction of marketing strategies that are customised in nature (Epubs.scu.edu.au 2017). This process is not the most innovative kind but the country of origin segmentation offers key practical benefits of the undertaking of the approach. The step that is in relation to the common sense segmentation involves the selection of the segmentation criteria that includes the age, income, gender etc. The next step invokes the grouping of the participants into segments by allocating each participant to the respective segments (Ajhtl.com 2017). The next step involves the profiling of the segments by recognising the personal traits that are different. The last step is the managerial evaluation of the helpfulness of the market segments.

This kind of segmentation is relatively a new one. Prd.uth.gr (2017) has explained that data-driven market segmentation to the area of marketing. While acknowledging the socio-demographic and the geographic data about the consumers, Rmci.ase.ro (2017) has critiqued the approach of common sense as it has been mainly descriptive in nature rather being based on the actual factor of the difference in the consumers and thereby suggested that the use of the data about the benefits given to the consumers. This method asks the groups of consumers to be established on the basis of the more than one features and thereby needing various statistical equipment. All these approaches associate the ratings of every participant to those of every other participants and then look for the clusters of the individuals with patterns that are similar (Handbook on Tourism Market Segmentation 2017). The steps associated with the data-driven segmentation involve the selection of the segmentation base and grouping of the participants with the help of selection of the segmentation algorithm, stability assessment and computation of the final segmentation solution. The profiling involves the segments of recognising in which personal traits segments differ significantly.

This kind of segmentation involves the segmentation of the consumers with respect to their age, gender, income of the consumers. In this manner the market is segmented and thereby aids the researcher to understand the market and thereby construct plans that would be helpful for the development of the events that can improve the tourist attraction (Katsoni et al., 2017).

Information Needs

This kind of segmentation is done on the basis of the personal values and the lifestyle of the consumers. This kind of segmentation aids the researchers to understand the minds of the consumers in various ways that the demographic segmentation has not been able to meet (Kuriki et al., 2017). Like for instance, the lifestyle segregation can provide information about the consumers with respect to their leisure activities, media usage and travelling behaviour. The personal values are another process with the help of which information can be attained on the profile of the consumers as these has been regarded to help individuals to form their behaviour and attitude and ultimately create communicating relationship.

This paper has tried to highlight that how any kind of event can change the level of tourist attraction in a region. There are various types of events that can take place in a locality like a cultural event, a musical event, an art event or even a sports and a theoretical event. Each one of the events has their own audience and have their own unique selling proposition with the help of which they can attract the local crowd. However, the understanding of where these events can bring forth their full potential depends on the organisers and the event managers (Market Segmentation in the Tourism Industry and Consumers’ Spending 2017). The area that has been taken into consideration in this paper has been Adelaide and this area is a cosmopolitan city where the city remains awake 24/7. The city has been known as the art capital of the country due to the presence of many art museums and halls where there has been display of various artefacts and figures that mesmerises audience. There have been various musical events in this region where renowned artists from various parts of the world have arrived and have showcased their performance in front of the people of Adelaide. These events have attracted tourists from New Zealand and even from various parts of Australia as they could miss the chance to meet their stars upfront live. Various sports events have even taken place in Adelaide and mega events like the World Cup Cricket was even organised in the city of Adelaide where tourists from various parts of the world came in union to witness the action.

The heart of Adelaide is a culture lover and therefore welcomes any form of cultural events. With the advent of time there has been a transformation in the taste of the individuals and therefore individuals from this region prefer to hard rock and hip hop music as well (Najmi et al., 2017). Therefore, as the New Year as well Christmas is arriving, a musical event is being organised with the help of which the tourist attraction can be increased. Therefore, the local authorities have taken a decision to bring in Justin Bieber for a live concert in Adelaide where he would be performing along with other local artists. The domestic artists would be starting the sow and the show stopper would be Justin Bieber where he would be performing for more than an hour. There is even a rumour that in this show, Justin may even release his new album. This can create a huge demand for the concert and the local authorities are of the idea of undertaking the show either on Christmas Day or on the New Years Eve. Hence, a SWOT analysis is essential in order to understand that whether the region is suitable for the events or not and the benefits that are seen from the current tourism practices. The SWOT analysis is as follows:

Literature Review

Strength

labour force – highly skilled with a relatively high

proportion working in managerial and professional

occupations and with incomes increasingly skewed

towards the highest income groups

 employment – very low levels of unemployment when

compared with the rest of the State

economy – the main sectors which differentiate this

economy are horticulture (mainly apples and pears

and cherries), viticulture (and downstream wine

Production) and tourism.

digital economy/broadband – high speed broadband

is a strategic asset for modern economies. The Hills

are relatively well served with copper-wire-based

broadband, a strong local appetite for internet usage

suggests that improved broadband and mobile

communication technology would have a significant

take-up

Weakness

A community where

population and

economic growth is

constrained by the Mt

Lofty Ranges water

catchment area, water

allocation planning and

its topography leading

to risks associated with

natural events like

Bushfire.

 A community with a high

proportion of

commuters to the

Adelaide Metropolitan

Area by road but where

intra-regional travel is

limited by a lack of

scheduled public

transport

 A community that is

particularly susceptible

to bushfire risk with

potential for increased

risk due to climate

change

Opportunities

Global growth – Answers reveal

that Asia, in particular China, will

sustain to underpin global

Economic development. With Australia and

South Australia becoming

increasingly integrated economically

with this region and the growth in

premium food trade, Adelaide Hills

agriculture has potential for further

growth in the long term

 Patterns of settlement – For the

Adelaide Hills generally, future

population, housing and

employment growth in the region

will be accommodated.

Policy context State Government

policy has the most significant

impact on the region directly

through the South Australian

Planning Strategy and in the range of

economic development plans and

Industry plans (such as tourism).

Threats

Population – numbers have

been relatively stable over

the past decade and is

likely to remain that way

given the limited scope for

further development

Climate change – whether

man-made or naturally

occurring the agricultural

sector recognises that

Change is occurring. They

also recognise the need for

natural resource

stewardship to ensure

industry sustainability,

which is the focus of State

Government via its natural

resource management

Plans.

This section of the paper tries to highlight the data gathering technique that would be used in order to collect the data with respect to this research. The research design would be undertaken in order to find out the design that is suitable for this paper. The primary data that would be collected from the online theories and the surveys for the collection of the data and thereby interviews would be undertaken with the help of which the research results would be precise.

The research design tries to explain the overall strategy and the plan that would be selected in order to assimilate the various components of the paper in a logical and coherent manner and thereby making sure that the researcher can effectively highlight the research issues and hence it comprises of the blueprint for the measurement, collection and the assessment of the collected data.

The role of the research design is to make sure that the evidence gathered enables the researchers to highlight in a precise manner the research issues as ambiguously as possible. In the research design the gathering of the information that is precise to the research issues generally entails explaining the kind of evidence that is required to examine a theory, to assess a program or to precisely explain and evaluating the meaning associated to a phenomenon that is observable (Journals.sagepub.com 2017). There are various research designs that are available to the researcher and they are descriptive, exploratory and explanatory research design. However, by looking at the current paper, exploratory research design would be undertaken as the paper looks to assess the primary data that would be collected from the online surveys that would be undertaken from the selected participants and thereby answers related to the market segmentation with respect to new events can be known (Julkaisut.metsa.fi 2017). The exploratory research design would explore the ideas and the concepts that are associated to the research problem and thereby would collect the data in order to complete the paper. The paper could have used the descriptive research design but as this paper would make use of data with the help of interviews and questionnaires, it is best to make use of exploratory research design and thereby precise results would be gathered.

The most precise results that can conclude the research results can be with the help of the process of data collection. There are various kinds of strategies that are available to the researchers but the most effective one is used that is suitable for the paper. There has been an observation that the researcher has looked to collect the data with the help of online focus group (Business.expertjournals.com 2017).

The Online Focus group refers to a group of less or equal to 10 individuals. The group mainly consists of the volunteers collected to have a discussion on a specific idea or a product. In this section, a series of questions are constructed or provided with statements with the help of which they can share their opinions freely (Lincoln.ac.nz 2017). They may be asked to provide opinion with respect to the market segmentation and the events that would be taking place and all the answers would be examined and studied in order to assess the reaction of the market population (Rebe.rau.ro 2017). The focus group are generally the tools that are utilised by the tourism industries in order to compute the prospective impact of the event that would be taking place.

The advantages of focus group includes easy measurement about the reaction of the customers and thereby understand what the customers want and their reactions towards the decisions that have been taken with respect to the market segmentation and the initiation of the event in Adelaide (Dgt.uns.ac.rs 2017).

The disadvantage of this process has been that this process is not in-depth in nature. In comparison to the individual interviews the focus groups are not as effective in covering the maximum depth on a specific issue (Kaynak, & Yavas 2017). A specific disadvantage of a focus group is the probability that the individuals may not express their personal and loyal suggestions about the topic that has been taken into consideration. They can be hesitant to give out their opinion especially when their thoughts are in opposition to the views of the other respondents. The cost has been another disadvantage for the focus group and thereby this method can be expensive for the researcher.

The surveys on the other hand are very easy to construct with the help of various electronic software. There has been an observation that online surveys look to be the most cost effective one for the survey research but there can be instances when it may not even reach the respondents that can answer with the help of any other modes (Destinationnsw.com.au 2017). The results of online survey can be different and may have an impact if the respondents leave the research. The benefits of such researches have been given below:

  • Relatively easy to manage
  • Can be constructed in less time (compared to other data-collection methods)
  • Cost-effective, but cost depends on mode of survey
  • Can be managed remotely via online, mobile devices, mail, email, kiosk, or telephone.
  • Conducted remotely can reduce or prevent geographical dependence
  • Capable of collecting data from a large number of respondents

The dependability of the data taken for the survey is dependent on the following factors:

  • Respondents may not feel motivated to provide honest and accurate answers
  • Respondents may not feel comfortable with respect to give out answers that present themselves in a unfavourable way.
  • Respondents may not be fully conscious of their reasons for any answer because of shortage of memory on the subject, or even boredom.
  • Surveys with closed-ended questions may have a lower effectiveness rate than other question types.
  • Data errors due to question non-responses may exist. The number of respondents who choose to respond to a survey question may be different from those who chose not to respond, thus creating bias.

The online survey would be undertaken with the help of questionnaire that would be constructed and forwarded to the respondents so that precise answers can be gathered.

For this purpose a question would be prepared and thereafter the question would be forwarded to everyone in the cohort. Each and everyone have the opportunity to share a question and answer the other questions. These questions would be useful for the encouragement of discussion with respect to the research topic. 

The research ethics of this paper tries to answer that the data that would be collected for the completion of the paper has been done in an ethical manner and the ethical codes that have been constructed have been maintained and thereby all the data are true and does not have any false information. With the help of this, the results that can be obtained can be useful for answering the research problems and the statements that have been constructed earlier in this paper. 

Conclusion

The research methodology therefore has answered the data collection process and the gathering of the qualitative data that can be useful for the completion of the paper, The questionnaire that would be used for this paper has been provided in the appendix of this report and Google Form has been used for the purpose of forwarding the questions to the respondents.  

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