Segmenting, targeting, and positioning for Marriott Hotels

Segmenting, Targeting, And Positiong for Marriott Hotels

Marriott Hotels

Segmentation

The market segment is formed of several individuals who express similar needs and have similar expectations from the seller. In this case, the seller is Marriott Hotels who presents clients with hosting services. As their customer palette is formed of individuals who have similar, but not identical, desires and expectations, the strategies implemented should be structured on the same basis, but should also be flexible as to allow the satisfaction of numerous customers.

There are four levels of market segmentations Marriott Hotels should analyse to identify their target segment. First, there is the segment marketing, applicable to the Hotels as it reveals the potential customers as a unified group of individuals who share similar requests. This segment could be formed of travellers who desire a comfortable stay and who have reasonable expectations. The second level is the niche, designed for an exclusive group of people. In this case, Marriott' niche could be formed of extremely rich individuals who share the same need for privacy, beautiful views and exquisite foods. The third segmentation level regards the local communities. This could be formed of the inhabitants living in the vicinity of the hotel, who do not need accommodations, but a different set of services. These potential customers look for locations to organize and host their business and social events. The last level is that of customerization, including clients with particular needs and the seller's desire to meet those needs.

The criteria used for market segmentation generally include geography (only suitable for the local community, as the other clients can easily come from any part of the world), demography (applicable to all customers), psycographics (a combination of psychology and demographics) and customers' behavior.

2. Targeting

Before being able to point out the target market, the marketing department at Marriott Hotels has to identify the criteria that define the market targeted. The criteria used have to be measurable, substantial, accessible, differentiable and actionable. Among the criteria used to identify Marriott Hotels' target market are: geographical locations, demographic characteristics and personal characteristics, such as revenues registered, age or lifestyle.

Based on the geographical criterion, Marriott Hotels' potential customers can be classified into two particular groups: the local community that requires the services of the hotel's restaurant to host several events, such as business meetings, weddings or even baptisms. The other category of customers that can be identified throughout geographic establishments is the market formed of travellers, national or international citizens who at some time find themselves in the vicinity of the hotel and require accommodation services.

Based on the demographics and personal features of the individuals, potential customers are being differentiated by age, income and lifestyle. As such, age differentiates potential customers into three categories: young consumers of ages up to 20, potential clients of ages between 21 and 56, and clients older that 57. The first group of consumers is not the ideal target market, as young people rarely have sufficient money to travel and stay in luxurious hotels. The greater emphasis will be placed on the second group as its members travel and require the largest amount of accommodations. These individuals travel for both social and business purposes. The third group is less desirable than the second, but more desirable than the first. Consisting of people older than 57 years, this target market is generally represented by social trips and leads to decreased incomes as compared to the segment of people aged between 21 and 56.

The income criterion also divides the market onto three segments: the target market formed of individuals that register below medium incomes, the target market of individuals that register medium incomes and the target market of individuals who register above medium incomes. Marriott Hotels is interested in the second and third target markets.

In a nutshell, Marriott Hotels' target market is formed of people of ages between 21 and 56, and even beyond 57, who register medium and above medium incomes.