Viva Las Vegas Case

Subject: Viva Las Vegas Case 3

1) What bases does the LVCVA use for segmenting its target market?

Being Las Vegas one important destination in the travel industry, in 2003 more than 35.5 million travelers made Las Vegas their choice of destination and in 2000 was the largest volume of visitors lagging more than 35.8 million travelers.

Many types of visitors go to Las Vegas showing that Las Vegas has a Marketing plan and promotions strategy in a high level.

* Geographic Segmentation:

Containing in the organization's promotional mix national TV advertisings, grassroots marketing and relationship building with many organizations the LVCVA promotes Las Vegas in US and the whole world planning strategically where and how to put their adds.

* Demographic segmentation:

The LVCVA promotes this destination using a variety of segmenting markets by gender, age, ethnic background and family life cycle.

One example is using tag lines and spots like "What happens in Vegas, stays in Vegas" and "Vegas stories" campaign include an older Asian woman trying to alter her life.

Elderly couples, and young professional males are influenced by some LVCVA commercials. Also The LVCVA started producing recorded commercials in Spanish.

* Psychographic segmentation:

Promoting Las Vegas with different kind of advertisements for different kinds of personalities, motives, lifestyles, and demographics The LVCVA uses commercials directed to the entire market commercials for businesswoman and professional males and all different markets. The LVCVA bought billboards in each city to expand their media marketing.

* Benefit Segmentation:

In these type of segmentation the process of grouping customers into market segments according to the benefits they seek from the product. One example of these is when it noticed significant drops in the visitor's volume from Canada the LVCVA sent and official delegation to Toronto. The group canvassed Toronto's Canadian Meeting and Incentive Travel Symposium and Trade Show. Representatives also met with private convention and leisure travel planners and attended events in Montreal and Vancouver to promote their cause.

2) Does the LUCVA use an undifferentiated, a concentrated, or multisegment targeting strategy? Why? Should the LUCVA be concerned with cannibalization?

The LUCVA assumes that individual customers, or visitors, have different needs and wants; in addition, it selects various segments for targeting visitors, which means the LUCVA uses a multisegment targeting strategy instead of using an undifferentiated and a concentrated targeting strategy.

The evidences that the LUCVA uses a multisegment targeting strategy are the following:

High costs for marketing research and advertising

The LVCVA spends a lot of money for reaching a variety of reasons why many visitors go to Las Vegas and what they go there for. As well, the LVCVA researches about regional markets specifically, such as incomings and outgoings in each home, possibility of flying to Las Vegas, and the personality of the citizens to gamble. Then, the LVCVA starts to advertise its promotional marketing by using billboards and TV commercials.

More than two market segments

After the LVCVA found out what many visitors want and need during traveling and what types of people come to Las Vegas, it begins using a distinct marketing mix for each market segment. For example, it targets not only Americans but also foreign visitors, such as Asians, Hispanics, and Canadians.

Using different promotional appeals to different age or group of people

Because the LVCVA knows that each group of visitors has a different desire and purpose for their trip, it uses different kinds of strategies to give them satisfaction. To appeal to Hispanics, for example, the LVCVA used their historical preference in its advertisement. However, for Americans, it offered more the entertainment options than their historical preference. Therefore, each group of people who has been in Las Vegas might think about their travel in different ways.

The LVCVA should be concerned with cannibalization because it is an international marketing. It is very clear that many visitors from different countries or different provinces in America have different types of purposes and satisfaction. In addition, those are changing very quickly as time