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Demographics ; Target Market Market segmentation is the science of dividing an overall market into customer subsets or segments, whose in segment sharing similar characteristics and needs. Segmentation typically involves significant market research and can thus be costly.
It is practiced especially in major companies with highly differentiated product lines or serving large markets. The small business tends to discover the segment it serves best by the trial and error of dealing with customers and stocking products more and more suitable to its particular clientele.
Segmentation lies somewhere near the middle of a continuum of marketing strategies that range from mass marketing—in which a single product is offered to all customers in a market—to one-to-one marketing—in which a different product is specifically designed for each individual customer e.
Most businesses realize that since no two people are exactly alike, it is unlikely that they will be able to please all customers in a market with a single product.
They also realize that it is rarely feasible to create a distinct product for every customer. Instead, most businesses attempt to improve their odds of attracting a significant base of customers by dividing the overall market into segments, then trying to match their product and marketing mix more closely to the needs of one or more segments.
A number of customer characteristics, known as segmentation bases, can be used to define market segments. Some commonly used bases include age, gender, income, geographical area, and buying behavior.
SEGMENTATION InterContinental Hotels InterContinental Hotels Market Segmentation Market segmentation is the science that pertains to the division of the overall market into various subsets of customers or segments, for that matter. Marriott Marketing Strategy Situational Analysis 1. Corporate Growth 2. Corporate Diversification First Hotel = Twin Bridges Motor Hotel - Since then Marriott has grown to: 3,+ properties 72 countries 18 different brands Core Values Diversify the employee base LGBT Female business owners Diversify the customer base. Hotel Revenue Management is about becoming the architect of your own fortune. A hotel room is a perishable product, since the number of hotel rooms is limited. As a result, customer satisfaction and pricing remain the most important dynamic variables, which are subject to Hotel Revenue Management.
It is commonly used in the marketing of standardized goods and services—including sugar, gasoline, rubber bands, or dry cleaning services—when large numbers of people have similar needs and they perceive the product or service as largely the same regardless of the provider.
Mass marketing offers some advantages to businesses, such as reduced production and marketing costs. Due to the efficiency of large production runs and a single marketing program, businesses that mass market their goods or services may be able to provide consumers with more value for their money.
Some producers of mass market goods employ a marketing strategy known as product differentiation to make their offering seem distinct from that of competitors, even though the products are largely the same. For example, a producer of bath towels might embroider its brand name on its towels and sell them only through upscale department stores as a form of product differentiation.
Consumers might tend to perceive these towels as somehow better than other brands, and thus worthy of a premium price. But changing consumer perceptions in this way can be very expensive in terms of promotion and packaging.
A product differentiation strategy is most likely to be effective when consumers care about the product and there are identifiable differences between brands. Despite the cost advantages mass marketing offers to businesses, this strategy has drawbacks.
A single product offering cannot fully satisfy the diverse needs of all consumers in a market, and consumers with unsatisfied needs expose businesses to challenges by competitors who are able to identify and fulfill consumer needs more precisely.
In fact, markets for new products typically begin with one competitor offering a single product, then gradually splinter into segments as competitors enter the market with products and marketing messages targeted at groups of consumers the original producer may have missed.
These new competitors are able to enter a market ostensibly controlled by an established competitor because they can identify and meet the needs of unsatisfied customer segments.
In recent times, the proliferation of computerized customer databases has worked to drive marketing toward ever-more-narrowly focused market segments. Applying a market segmentation strategy is most effective when an overall market consists of many smaller segments whose members have certain characteristics or needs in common.
Through segmentation, businesses can divide such a market into several homogeneous groups and develop a separate product and marketing program to more exactly fit the needs of one or more segments. Though this approach can provide significant benefits to consumers and a profitable sales volume rather than a maximum sales volume to businesses, it can be costly to implement.
For example, identifying homogeneous market segments requires significant amounts of market research, which can be expensive. Also, businesses may experience a rise in production costs as they forfeit the efficiency of mass production in favor of smaller production runs that meet the needs of a subset of the market.
Finally, a company may find that sales of a product developed for one segment encroach upon the sales of another product intended for another segment. Nonetheless, market segmentation is vital to success in many industries where consumers have diverse and specific needs, such as homebuilding, furniture upholstery, and tailoring.
Ideally, customer preferences will fall into distinct clusters based upon identifiable population characteristics. This means that if customer requirements were plotted on a graph using certain characteristics, or segmentation bases, along the axes, the points would tend to form clusters.
In marketing jargon, customer segments must be measurable by clear characteristics; they must be large enough to constitute a market; reaching them should be predictably easy they all watch American Idol, for example, or subscribe to one of four magazines ; they must be predictably responsive to marketing; the segment must be stable over time and not a one-time aggregation.
Determining how to segment a market is one of the most important questions a marketer must face. Creative and effective market segmentation can lead to the development of popular new products; unsuccessful segmentation can consume a lot of dollars and yield nothing.
There are three main types of segmentation bases for businesses to consider—descriptive, behavioral, and benefit bases—each of which breaks down into numerous potential customer traits. Descriptive bases for market segmentation include a variety of factors that describe the demographic and geographic situations of the customers in a market.
They are the most commonly used segmentation bases because they are easy to measure, and because they often serve as strong indicators of consumer needs and preferences.In , Marriott Hotels, Resorts, and Suites was a domestic (U.S.) mid- to large-size hotel chain, managing 67, rooms at properties.
Marriott decided to enhance traveler value by segmenting the market, then targeting selected segments each with a different brand.
2 Content 1. Twinstone introduction 2. Assignment 3. Method 4. New BSS market segmentation 5. Part I Market segmentation Market segmentation (general). Market Segmentation and Branding in the Hotel Industry - With Special References to Hilton Cooperation - Nora Burkard - Seminar Paper - Tourism - Publish your bachelor's or master's thesis, dissertation, term paper or essay 4 Market Segmentation and Branding within Hilton Hotels Corporation The Company Using niche-marketing.
market has negatively impacted hotel room revenue. oT identify the causal impact of Airbnb on hotel revenue, we employ a di erence in dif- ferences (DD) empirical strategy. Download-Theses Mercredi 10 juin Marriott International is one of the world's leading hoteliers.
The company has some 6, operated or franchised hotel, residential, and timeshare properties worldwide. Its hotels include such full-service brands as Renaissance Hotels and its flagship Marriott Hotels & Resorts, as well as select-service and extended-stay brands Courtyard and.