Analyzing Market Segments

The aim is to pick out the segments that are most interested in specific services and to target marketing programs at them. Once targets have been identified, other decisions and alternatives come into better focus.  Through research, we can then further identify the needs and wants of these groups.

The question to think about is then:

• WHO? - Which market segments should we pursue?
• WHAT? - What are they looking for in our types of services? 

Benefits of Market Segmentation

The benefits are 

• More effective use of marketing dollars
• Clearer understanding  to the needs and wants of selected guest group.
• More effective POSITIONING - developing a service and marketing mix to occupy a specific place in the minds of potential guests within the targets.
• Greater precision in selecting promotional methods and techniques e.g. advertising media or sales promotion methods.

Seven Core Principles of Marketing (planning)

The Marketing Concept

When you adopt the concept, it means that you will act on the belief that satisfying guests needs and wants if first priority. 

Guest Orientation 

Having a guest orientation implies that the manager has accepted and acted according to the Marketing Concept.

Satisfying Guest Needs And Wants 

To ensure long term survival in business, the manager must always be ready to anticipate emerging guest needs.

Market Segmentation 

All guests are different. Therefore, segmentation describes the concept of identifying specific groups of people and market only to them.  Managers 'take aim' at specific targets to ensure the highest returns.

Value And The Exchange Process 

'Value' and 'value for money' are terms often used in today's business and in our daily lives. VALUE represents a mental estimate the guests perceive of a product or service's ability to satisfy their needs and wants. Although some guests do equate value closely with price, PRICE however, in not the only indicator of value.

Product Life Cycle  

The product life cycle idea suggests all hospitality services pass through four predictable stages - introduction, growth, maturity, and decline.  Marketing approaches need to be modified with each stage so as to avoid a decline - the key to long-term survival. 

Marketing Mix   

Every organization has a marketing mix.  It includes the controllable factors that are used to satisfy the needs of specific targets. Traditionally, these are identified as the 4Ps - Product, Place, Promotion, and Price.