Customer-Driven Marketing Strategy: Creating Value for ...

HMGT 2405 Hospitality Marketing Ch 8 Segmenting, Targeting & Positioning a Market

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Customer-Driven Marketing Strategy: Creating Value

for Target Customers

- Chapter 8 -

HMGT 2405│Hospitality Marketing

Outline

■Define the major steps in designing a customer-driven marketing strategy: market segmentation, targeting, and positioning.

■List and distinguish among the requirements for effective segmentation.

■Explain how companies identify attractive market segments and choose a market-targeting strategy.

■Illustrate the concept of positioning for competitive advantage.


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Market

� It is a place where….

� potential buyers and sellers meet

� to exchange goods and services.

Target Marketing

Market Segmentation

Market Targeting

Market Positioning


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Market SegmentationGroup A

Group B

Group C

Market Segmentation Variables

• country, region, state, zip codeGeographic

• age, income, occupation, family sizeDemographic

• AIO (attitudes-interests-opinions), lifestyle, hobbies, knowledge,Psychographic

• occasion, benefits sought, user status, usage rate, loyalty statusBehavioral


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Market Profile Based on Demographics –A Case of Philadelphian Attractions (2012)

Franklin Longwood ArtInstitute Gardens Museum

GenderMale 51.7% 45.2% 29.7%Female 48.3% 54.8% 70.3%

Age18-24 10.1 8.2 11.425-44 44.5 28.6 56.045-64 32.6 37.2 28.265+ 12.8 26.1 4.4

EthnicityWhite 74.4 88.2 61.8African-American 21.8 8.7 33.9Hispanic 6.8 3.4 9.6Asian 1.6 1.1 3.9

Source: GPTMC, 2013


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Market Segmentation using Lifestyle

qVALS (Values, Attitudes, Lifestyles) framework (psychographic segmentation)qThe 8 types of lifestyle are identified based on:qprimary motivation qresources

qPRIZM & PRIZM NE (geodemographicsegmentation)


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Vales Framework

VALS 2 (Continued)


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PRIZM & PRIZM NE

• PRIZM NE: It divides the U.S. consumers into 14 different groups and 66 different segments.

• Each zip code is assigned one or several of 66 clusters based on the shared socioeconomic characteristics of the area. • Urbanization measures • Household characteristics - i.e., affluence, age, family

composition• Neighborhood characteristics - i.e., housing stock and

home ownership

Segmentation D

etailshttps://segm

entationsolutions.nielsen.com/m

ybestsegments/D

efault.jsp?ID

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ome


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Requirements for Effective Market Segmentation

Segments are large or profitable enough to serve.

Effective programs can be designed to attract & serve the segments.

Segments can be effectively reached & served through marketing communication efforts.

Size, purchasing power & profiles of segments can be measured.

2. Sustainability:

4. Actionability: 3. Accessibility:

1. Measurability:

Evaluating Market Segments

Size & Growth

StructuralAttractive-

ness

CompanyObjectives &Resources


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Micromarketing

Concentrated

Selecting Market Segments

Undifferentiated DifferentiatedMarketing Strategies

Niche Market


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Positioning Strategy

Identifying Competitive Advantages

Selecting Competitive Advantages

Effectively Communicate

Chosen Position

Differentiating Competitive Advantages

ManagementOrientations


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Positioning, Segmentation & Differentiation

Hotel Brands

� Four seasons � Hilton � Marriott International � Sheraton � Holiday Inn� Hampton Inn� Days Inn� Econolodgy� Motel 6


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Positioning Map of Perceived Quality vs. Price

High

Perceived Price Four Seasons

Hilton

Sheraton Marriott

Holiday Inn Low High

Perceived Quality Hampton Inn Days Inn

Econolodge

Motel 6

Low

Figure 4.4 Perceptual Map for Hotel Service

Perceived Price

Perceived Quality

Quadrant 1(high, high)

Quadrant 2(low, high)

Quadrant 4 (high, low)

Quadrant 3(low, low)

Perceptual mapping

Position / reposition

Important Attributes for Hospitality & Tourism Firms

Type of Firm List of AttributesRestaurant Price, value, quality of food, type of food, service quality, menu

variety, employee friendliness, location, atmosphere, speed of service, cleanliness, parking

Hotel Price, value, room quality, restaurant quality, location, number and types of restaurants, other facilities (e.g., pool and fitness center), cleanliness, atmosphere, employee friendliness, speed of check-in and check-out, amenities (e.g., valet parking and room service), service quality

Airline Price, value, service quality, employee friendliness, on-time performance, baggage handling, direct routes, cities served, scheduled flights, frequent flyer programs

Rental Car Company

Price. value, service quality, convenience, location, types of cars, condition of cars, speed of service, pick-up and drop-off policies

1. Price

2. Service quality

3. Value for money


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Positioning Errors

Underpositioning

Over-Positioning

ConfusedPositioning

Customer-Driven Marketing Strategy: Creating Value for ...

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