Rate this article

Before you buy the first chair for your restaurant, or the first piece of linen for your guesthouse, ensure that you have a clear picture of the person who will use it. Market research will bring you much closer to success. 

How well do you really know your customers? Regardless of how small (or big) your business is, the better you know your patrons the more able you will be to meet their specific needs.

For example, if you set your sights on the rich and famous, nothing less than Egyptian cotton sheets will do. Backpackers, on the other hand, are happy with a bed that is clean, warm and comfortable. Similarly, if you want to attract Jewish guests, kosher cooking – and therefore your kitchen design – becomes critical. If you want to increase your corner of the business travel market, Internet access and a telephone in each room are non-negotiable.

The “average” tourist is a long-extinct species, and whether you are a tour operator, souvenir shop or accommodation establishment, you cannot expect to satisfy everybody’s needs. Today’s travellers demand tailor-made products. The typical beach holiday, for example, is not a mass market offering any more, but has fragmented into specialised versions such as “Club 18-30”, quieter resorts and family-oriented holidays.

Your job is to find that section of the tourist trade for whom your offering is just perfect. Not only will it simplify and focus your marketing efforts, but it will also save you time, effort and money when setting up a new business or adding a new service or product to your existing offering.

Start by asking yourself three questions:

1. What market need does my business address? Use the answer to define your business idea as clearly as possible.
2. How is my guesthouse/restaurant/travel service different from other, similar businesses in the town, area or country?
3. What is the competition up to? What makes my competitors strong or weak?

The next step is to refine your market segmentation using primary and secondary research methods:
Primary research is knowledge you gain directly from the marketplace, eg, by interviewing groups and individuals about their travel needs and expectations, and observing other players in the industry. Secondary research is when you access existing information, eg, by reading tourism-related publications and attending workshops. SA Tourism publishes a quarterly tourism index that provides a wealth of information about tourists visiting South Africa, ranging from country of origin through to how much time and money they spend and even what they like and don’t like about our country. SA Tourism also publishes reports that analyse domestic tourism and market segments. For free copies log onto www.southafrica.net and explore the “Research” link.

Six research mistakes to avoid:

1. Assuming research will cost too much: Professional assistance will pay for itself in the long run. Don’t try to do it by yourself without first exploring all the costs and options.
2. Using secondary research only: Primary research allows you to target your efforts and understand customers’ attitudes in real time.
3. Relying on web research: Internet research can save time and money, but remember that search engines only mine a portion of the web. The most valuable info is often buried in hard-to-find places or can only be found on a paid search facility like Lexis Nexis. Supplement your Internet research by also visiting local libraries, business centres or colleges.
4. Running out of steam: The more research you do, the more complex it becomes and the harder it is to stay motivated. Don’t get too bogged down with secondary research – get into the field and talk to potential guests as soon as possible.
5. Relying on family focus groups: A common mistake is only asking friends and family for feedback. They are great for support, but not for research. You need to talk to real customers about the pros and cons of your offer.
6. Overestimating your experience: Don’t assume that loads of experience negates the need for research. You might have preconceived notions of guests’ needs. Test your assumptions on the market for genuine insight into customer attitudes and behaviours.

Remember this!
Be sure that your market is accessible to the business. Don’t target Chinese housewives interested in cooking holidays if you do not speak Chinese.
Avoid being so specialised that you cannot attract enough guests to balance the books. Married couples over the age of 75 and who are interested in mountain biking might not be a viable market segment.

Each segment requires a separate marketing plan. Once you have identified your market, all your communication with them has to reflect their interests. 

• Get our newsletter
• Free Member Sign-Up
• Get sms quick tips
• Tell a friend
• Join Business directory free

Email this page to a friend/s