Hotel target market and positioning strategy
They are considering some guided tours to locations just outside of Barcelona. Difficulties arise when there has not been enough examination of the market segmentation, market positioning, target market, and product augmentation.
Types of market segmentation
MacKay and Fesenmaier segment the getaway market into five segments: precontemplators, contemplators, ready for action, active and maintainers. Beri , p also mentioned that brand positioning is about how the brand perceived by the target consumer in related to other brands. What is a hotel target market? Myers argued that market segmentation is the most important strategic concept in marketing and has aided the survival and growth of many firms. An easy way to get consumer feedback, surveys offer a glimpse into the psyche of current guests. The most common demographics include attributes such as age, gender, level of education, household income, area of residence, and so on. Lombard, M. It also presents a visual to help sales and marketing get a better idea of who they should be aiming to please. Step 2: Target your best customers. The hotel provides a way of meeting this need on site with fun and recreation, nightclubs, discos, swimming, sports facilities, spas, and fitness centers. Unlike most other industries, hotels are defined by each of the following segmentation types. Accessible — can the segment be reached via distribution and marketing communication channels?
Bowen categorizes the positioning task into three steps identifying a set of possible competitive advantages on which to build a position; selecting the right competitive advantages; and effectively communicating and delivering the chosen position to a carefully selected target market.
But industry research and historical sales data are also great ways to discover target audience profiles that are unique to your business.
Hotel target market segments
One of the things that makes usage rate segmentation so popular is that many companies can use it. It is really a combination of the psychographic and behaviouristic aspects of the consumer. Segmentation improves profitability by maximizing customer satisfaction, and generating repeat and recommended sales. Bowie and Buttle listed some difficulties for effective segmentation in hospitality firms: the costs of carrying out marketing research; the lack of flexibility in hospitality products; the additional costs of developing and communicating separate offers for different target markets; the complexity of constantly changing consumer behavior; and finally the problem of targeting different and often incompatible target markets who use the premises at the same time. Bowie and Buttle segmented hospitality variables into purpose of visit; geo-demographics; buyer, user and lifestyle characteristics; price — poor and rich lodgers; and time. Segmentation begins by identifying a constellation of metrics that will be used as the basis for determining how to group consumers. You can become the market leader in this new category. Using this strategy, you can breathe new life into a mature product by reinventing a category. Competitiveness — does the position result in benefits to the customers that are demonstrably superior to those provided by its competitors?
Every hotel offers a unique combination of characteristics. The tools you already use every day can help you better understand your target audience.
Understanding of positioning can help marketers manage their market and product. Bowie and Buttle listed some difficulties for effective segmentation in hospitality firms: the costs of carrying out marketing research; the lack of flexibility in hospitality products; the additional costs of developing and communicating separate offers for different target markets; the complexity of constantly changing consumer behavior; and finally the problem of targeting different and often incompatible target markets who use the premises at the same time.
Equally, it may be the case that the cost of segmenting the market and producing a set of different marketing mixes is not commercially justifiable for the organization.
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