Segmentation, targeting, and positioning of hotels Assignment

Segmentation, targeting, and positioning of hotels - Assignment Example Market segmentation therefore relies on the principle that individual customers have need for a variety of products or services (OUP). Any market segmentation endeavour initially needs the identification and selection of the most suitable variables on the basis of which the potential customers are grouped. The identified variables form the platform for the segmentation basis. Whether the market is targeted at consumers or if it is a business to business organization decides the selection of the appropriate variables which however cannot be consistent and be decided in a single stroke on the basis of an identified factor. Appropriate market segmentation therefore requires research and analysis by considering a range of data from different sources (OUP). After a proper market segmentation has been achieved, the next step is the targeting the identified market segment with the product line which the consumers need. Targeting is the focussing of attention on identified segments, directing resources in that direction and taking business decisions accordingly. There has to be an optimum relationship between the resources/capabilities against the attractiveness of an identified segment on the basis of which targeting strategy can either be differentiated, undifferentiated or concentrated (OUP). Targeting is therefore the selection of one or more of the marketing segments which the company intends and decides to enter. After the targeting strategy has been developed, the next step is the positioning of the product by creating marketing offers that serve the targeted customer in the best possible manner. This is achieved by establishing, highlighting and communicating the key factors and the distinctive advantages of a company’s pro duct in relation to the competition. The hotel industry is one of the largest hospitality industries in the world which has thrived due to the large scale movement of