Customer-Driven Marketing Strategy: Creating Value for ...
Transcript of 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.
HMGT 2405 Hospitality Marketing Ch 8 Segmenting, Targeting & Positioning a Market
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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
=0&menuO
ption=home&pageN
ame=H
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