Hospitality Marketing

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Evaluating Market Segments 6-2-2

Evaluating Market Segments review three factors

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Segment size and growth

Segment sales Growth rates Expected profitability

Evaluating Market Segments

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Segment structural Attractiveness

Are there many stronger competitors

Company Objectives must consider its own objectives and resources in relation to that segment

Evaluating Market Segments

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The company should enter segments only where it can offer superior value and gain advantages over competitors.

Selecting Market segments

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Disney stays away from Gaming because of image. Marriott stays out of Las Vegas and Atlantic City After evaluating different segments, the company must now decide which and how many segments to serve.

Three strategies are available:

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Undifferentiated marketing Go after an entire market with one market strategy. Dont market differences
Market what is common in the needs of the consumers mass marketing and distribution.

Three strategies are available

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When you aim at the broad market you are going to face heavy competition.
Example of Coors, Miller, and Budweiser. Microbreweries exist for special niche markets

Selecting market segments

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Differentiated marketing- A firm targets several market areas and designs separate offers for each.
Three different types of hotel brands in one city. Increase your share of the market.

Selecting market segments

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Concentrated marketing seeks to gain a large share in one or more small markets.
Motel 6 concentrates on the low-end hotel market. Can be problematic if you operate in only one market. Victoria Station, when red meats popularity declines they had no other markets to carry them.

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