1. Copyright ©Arkenford 2007 Practical Application of Value Segmentation or …How to Get Your Man, Woman and Child

2. Copyright ©Arkenford 2007 What a Marketing Segmentation Does A segmentation helps get inside the mind of customers It should identify distinct customer groups in terms of: –what each segment is looking for –how they pioritise This is likely to be reflected in: –different holiday and leisure behaviour –different purchase drivers –the use of different information channels –their response to different marketing messages It allows you to target: –your product, –your resources –and your marketing

3. Copyright ©Arkenford 2007 4 Types of Segmentation 1.Socio-demographic - segments based on age, sex and class easy to create easy to apply but poor predictor of leisure interests and holiday behaviour 2.Behavioural - segments based on actual behaviour requires activity data - purchase, brand choice can be good predictor of same activity unstable if key brand or activity changes segmentation no longer valid 3.Psycho-metric - based on personality statements designed to understand the type of person you are can be excellent aid to sales strategies indicating the approach to take can be taken to far and ignore life circumstances

4. Copyright ©Arkenford 2007 The Value Based Segmentation 4.A Hybrid Based on concept that delivering appropriate quality is the key to success –similar to psychometric approaches as based on people’s core values –but based on two components the values that will influence the style and type of experience people prefer the aspects of a service or product people value –i.e. it is grounded in how people really make their choices Benefits –Good predictor of activity –Longevity – people’s core values do not change quickly –Increasingly easy to incorporate into CRM systems

5. Copyright ©Arkenford 2007 Making Use of a Value Based Segmentation –Who wants self catering and who would be likely to prefer an independent hotel? Good value based segmentation should be predictive: –Allowing you to develop segment based itineraries e.g. City breaks for Style Hounds Gardens and villages for Traditionals

6. Copyright ©Arkenford 2007 Making Use of a Value Based Segmentation Communicating the benefits of your attractions in appropriate ways –Identifying how to sell product to each segment – e.g. Leeds Castle as a Romantic day out – (just happens to be in a garden) –Market testing of campaigns aimed at specific segments – e.g. three treatments sent to 3 sets of 100 Discoverers on CRM database to see which gets the best response

7. Copyright ©Arkenford 2007 What if your existing CRM data base is missing some key segments Use a DM list that can target the demographic segments you want Create literature that will create direct response or drive business to your web site If you are seeking to base your appeal on customers aspirations then you need to match the DM list to the groups you are targeting. Life stage/style can help ArkZone is additional benefit

8. Copyright ©Arkenford 2007 Supporting Materials

9. Copyright ©Arkenford 2007 Style Hounds Style Hounds are very brand/ fashion conscious, they see fashion as delivering style. not keen to be seen as old fashioned. early adopters, will go for things that are new/ ‘out of the ordinary’, believing that they are setting the fashion. risk takers who like to try new and different things, they live a full and active life. They like to be part of the latest trends are strongly influenced by others, with the spending power to do what they want. if they have money they are ready to spend it. will pay for better service – which to them means ‘more to do’ more fun. haven’t much interest in more ‘sophisticated’ arts, or cerebral activities. Peace and relaxation in the traditional sense is not what they look for; fun and excitement is what defines a good time.

10. Copyright ©Arkenford 2007 Style Hounds Newspapers Heavy watchers of TV Television Magazines Interests Shopping Cinema Attending sports events Video games Demographics 10% of the GB population A young group; 60% under 34. Very high internet access; 79% 58% have no children at home 50% married, 35% single 60% ABC1 55% working full time 76% have taken an overseas holiday in the last 3 years

11. Copyright ©Arkenford 2007 For more information please contact: Crawford Christie or Ben Moxon at Arkenford Ltd The Old Coach House Wharf Road Guildford GU1 4RP O1483 510 310 www.arkenford.co.uk