Hotel Market Segments

Document Sample
Hotel Market Segments Powered By Docstoc
					Market Segmentation, Targeting
and Positioning




                                 1
                                        Decide on a value proposition
Select customer to serve

 Segmentation                           Differentiation
 Divide the total market                Differentiate   the     market
 into smaller segments.      Create     offering to create     superior
                            value for   customer value.
                            targeted
                           customers
 Targeting                              Positioning
 Select the segment or                  position the market offering in
 segments to enter                      the minds of target customers




                                                                          2
     Steps in Market Segmentation,
     Targeting, and Positioning

 Market Segmentation
1. Identify bases for
   segmenting the market
2. Develop segment profiles

                       Market Targeting
                       3. Develop measure of
                          segment attractiveness
                       4. Select target segments

                                        Market Positioning
                                        5. Develop positioning for
                                           target segments
                                        6. Develop a marketing
                                          mix for each segment
                                                                     3
  Step 1. Market Segmentation
  Levels of Market Segmentation
Through Market Segmentation, Companies Divide Large, Heterogeneous
Markets into Smaller Segments that Can be Reached More Efficiently And
 Effectively With Products and Services That Match Their Unique Needs.

                     Mass Marketing
              Same product to all consumers
          (no segmentation, i. e. a commodity)

                    Segment Marketing
        Different products to one or more segments
             (some segmentation, i.e. Marriott)


                                                               Source: Internet
The major variables that might be used in segmenting
customer market

•   Geographic segmentation
•   Demographic segmentation
•   Psychographic segmentation
•   Behavioral segmentation




                                                       5
Geographic Segmentation
Dividing a market into different geographical units such as
nations, state, region, countries, cities or neighborhoods



                   International
                        Accor

                        National


                     Regional/City



                                                              6
                                                    Source: Internet
Demographic Segmentation
              Dividing the market into groups
               based on variables such as:

                Age
                Gender
                Family size or life cycle
                Income
                Occupation
                Education
                Religion
                Race
                Generation
                Nationality




                                                 7
Psychographic Segmentation

  Divides Buyers Into Different Groups Based on:




                                                   8
 Behavioral Segmentation

 Dividing the market into groups
  based on variables such as:
   Occasions
   Benefits
   User status
   Usage rate
   Loyalty status
   Readiness stage
   Attitude toward product
Using Multiple Segmentation Bases

Segmenting International Market

Intermarket Segmentation ( also called Cross-Market
Segmentation)

Forming segments of consumers who have similar needs
and buying behavior even though they are located in
different countries.

     Example: Lexus ------- “global elite”
              Coca-Cola---- “ Teenagers”
                                                  10
Segments must respond differently to different marketing mix
                 elements & programs
   Requirements for effective segmentation



           Measurable              • Size, purchasing power, profiles
                                    of segments can be measured.


           Accessible               • Segments can be effectively
                                     reached and served.


          Substantial               • Segments are large or profitable
                                    enough to serve.

                                   The segments are conceptually
          Differentiable           distinguishable       and     respond
                                   differently to different marketing mix
                                   elements and programs.
                                                                     11
           Actionable               • Effective programs can be
                                    designed to attract and serve
                                              the segments.
Evaluating Market Segments


 Segment size and growth
 Segment structural attractiveness
 Company objectives and resources




                                      12
Step 2. Market Targeting

A set of buyers sharing common needs or
characteristics that the company decides to serve.




                                                     13
      Marketing Targeting Strategies



Undifferen-
              Differentiated   Concentrated   Micromarketing
  tiated
              (segmented )       (niche)         (local or
  (mass)
               marketing        marketing       individual
marketing
                                                marketing)


 Targeting                                     Targeting
  Broadly                                      Narrowly


                                                           14
Market Targeting
Market Coverage Strategies
                  A. Undifferentiated Marketing
     Company
     Marketing                                     Market
       Mix

                  B. Differentiated Marketing
     Company
   Marketing Mix 1                                Segment 1
     Company
                                                  Segment 2
   Marketing Mix 2
      Company
                                                  Segment 3
   Marketing Mix 3

                     C. Concentrated Marketing

      Company                                     Segment 1
      Marketing                                   Segment 2
        Mix
                                                  Segment 3
                                                              15
A.Undifferentiated (mass) Marketing

  a market-coverage strategy in which a firm
  decides to ignore market segment differences
  and go after the whole market with one offer

B.Differentiated Marketing

  A market-coverage strategy in which a firm
  decides to target several market segments
  and designs separate offers for each.

C. Concentrated Marketing

  A market-coverage strategy in which a firm
  goes after a large share of one or few
  segments or niches                             16
Micromarketing
The practice of totaling products and marketing programs
to the needs and wants of specific individuals and local
customer group – includes local marketing and individual
marketing .

Local Marketing

Tailoring brands and promotions it the needs and wants of
local custom group –cities, neighborhoods, and even
specific stores.

Individual marketing

Tailoring products and marketing programs to the needs
and preference of individual customers – also labeled “
one-to-one marketing” “customized marketing” and
“markets-of- one marketing”.
                                                      17
Choosing a market-coverage strategy

 Company resources

 Degree of product variability

 Product’s life-cycle stage

 Market variability

 Competitors’ marketing strategies
                                  18
Step 3: Positioning for
Competitive Advantage
 Product’s Position - the way the product is
  defined by consumers on important attributes -
 the place the product occupies in consumers’
 minds relative to competing products.

 Marketers must:
   Plan positions to give their products the greatest
    advantage in selected target markets


                                                         19
Product Differentiation

   Physical attributes
   Service differentiation
   Personnel differentiation
   Location
   Image differentiation



                                20
   Steps to Choosing and Implementing
   a Positioning Strategy
 Step 1. Identifying Possible Competitive
 Advantages: Competitive Differentiation.

 Step 2. Selecting the Right Competitive
 Advantage: Unique Selling Proposition
 (USP).

 Step 3. Communicating and Delivering the
 Chosen Position.

                                             21
Positioning Strategies

 Positioning by specific product attributes
 Positioning by benefits
 Positioning for user category
 Positioning for usage occasion
 Positioning against another competitors
 Positioning against another product class



                                               22
Choose the right competitive advantages

How many differences to promote

Which differences to promote

•       Important
•       Distinctive
•       superior
•       Communicable
•       Preemptive
•       Affordable
•       Profitable
                                          23
                             Price

                  more        The same     less

                  More for    More for   More for
           more               the same
                   more                   less
Benefits




            The                          The same
           same                           for less

                                          Less for
           Less
                                         much less

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:24
posted:10/1/2012
language:Unknown
pages:24