Hospitality industry news, articles, publications, trends, tips, ideas, strategies and best practices … Hotel Market Segmentation One of the components needed to apply hotel revenue management is market segmentation. It allows you to target and market to a variety of consumer groups with different behavior with an offer that matches their needs and budget level. Your hotel market segmentation shall help to identify the purpose of the trip:
The objective is to establish a single thing to be known as in the mind of the consumer. A clear understanding of the market includes target demographics, strength of the competitors' products, how you give value, and your own strengths and weaknesses.
After you have a thorough understanding of the landscape of your market, you can decide which positioning strategy will be the most successful for your products.
Target Demographics A product cannot be all things to all people. Products are designed to appeal to a specific demographic group. Several characteristics of a demographic are age, gender, education, language and income level.
For example, Telemundo is a Spanish language television network that offers programming to Latino and Hispanic customers.
A strategy that does a good job of targeting a market segment delivers more value to the consumer, establishes a stronger position against competitors, has more compelling communications and has a higher probability of keeping its customers. Low-Price Strategy Pricing is a major consideration for most consumers.
If a company can convince consumers that they are receiving more value for their money, they will buy the product.
A lower price strategy may require compromises in product quality or to reduce the range of offerings. For example, a car manufacturer might offer a lower price in exchange for a smaller engine and fabric upholstery instead of leather.
Consumers that have limited budgets will buy these lower-priced offerings because they believe that the 99 cent items represent good value for the price. High-Price Strategy Consumers perceive products with higher prices as having superior quality and are worth the price.
However, to create this perception in the mind of the consumer, the company must focus its advertising on how its features and benefits are superior to those of its competitors. The Five Guys hamburger chain has created the impression that their hamburgers and fries are higher quality than McDonald's and Burger King.
As a result, Five Guys is able to charge higher prices, and people will stand in line to pay. Distribution Companies can create the perception of better value by restricting the distribution of their products.
Golf equipment manufacturers have certain clubs and balls that are only available in pro shops and are sold at higher prices The golfer believes that the products must be of higher quality because they're not available in Target or Walmart.
Competitive Comparisons The objective of competitive comparisons is to reposition a competitor's products in the minds of consumers. This strategy is helpful when a market has two strong competitors. One company focuses its advertising on showing how its products differ from its competition. Marketers must determine where and how to position their products in the marketplace.
They need to know who is going to buy their products, and why. How significant is the price? Do consumers perceive that the product has sufficient value to justify paying a higher price -- or do they simply want the lowest price possible?
These are all questions that a marketer must answer to have a successful positioning strategy.Hilton Hotels segmentation, targeting and positioning refers to ways in which the company chooses individuals to sell its services to and positions the services to appeal to the needs and aspirations of these individuals in the best possible manner.
The process of market segmentation involves. Calvin currently serves as the Senior Vice President and Chief of Revenue Optimization for RLH Corp. overseeing customer acquisition through revenue strategy, performance media, data management platforms, field marketing and .
MARKET SEGMENTATION STRATEGY: HILTON HOTEL MARKET SEGMENTATION STRATEGY: HILTON HOTEL Executive Summary The hotels industry in any part of the world operates in a delicate yet profitable environment.
the service provider can successfully determine the needs, preferences and position of the target market (Liu, ). Hilton Hotels have. Guinness World Records, known from its inception in until as The Guinness Book of Records and in previous United States editions as The Guinness Book of World Records, is a reference book published annually, listing world records both of human achievements and the extremes of the natural world.
The brainchild of Sir Hugh . by the STP strategy—that is, segmentation, targeting, and positioning. This approach suggests that the mass market consists of some number of relatively homogeneous groups, . Oct 23, · Hotel Market Segmentation One of the components needed to apply hotel revenue management is market segmentation.
It allows you to target and market to a variety of consumer groups with different behavior with an offer that matches their needs and budget level/5().