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Homework
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Customer-Driven Marketing Strategy: Creating Value for Target Customers
HMGT 2405│Hospitality Marketing
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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.
Market
� It is a place where….
� potential buyers and sellers meet
� to exchange goods and services.
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Market Segmentation
� Market Segmentation is pursuing a marketing strategy whereby the total potential market is divided into homogeneous subsets of customers, each of which responds differently to the marketing mix of the organization.
Target Marketing
Market Segmentation
Market Targeting
Market Positioning
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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
Criteria for Effective Market Segmentation
� Substantiality – large enough to warrant attention� Measurability – potential demand and purchasing
power� Accessibility – can reach segments with a variety
of communications� Actionability – consumers in same segment should
react similarly to marketing program
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Market Segmentation Decision Process
� Identify segmentation bases� Develop profiles for each segment� Forecast potential demand� Select specific target market segments
Market Segmentation Strategies
� Mass-market strategy – one product-services mix for all potential customers
� Differentiated strategy – more than one market segment with a separate marketing program for each
� Concentrated strategy – one (or a few) market segments with limited changes in the marketing program
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Evaluating Market Segments
Size & Growth
StructuralAttractive-
ness
CompanyObjectives &Resources
Micromarketing: Local & Niche MKT.
Concentrated
Selecting Market Segments
Undifferentiated DifferentiatedMarketing Strategies
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Niche Market
What is Positioning?
� The term ‘positioning’ refers to the consumer’s perception of a product or service in relation to its competitors. You need to ask yourself, what is the position of the product in the mind of the consumer?
� The process of determining how to differentiate a firm’s product offerings from those of its competitors in the minds of consumers
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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
The Positioning Process
Four Steps in the Positioning ProcesswDetermine the ideal mix for consumerswMeasure consumer perceptions of available
serviceswLook for gaps in coverage and select a desired
positionwDevelop a strategy for obtaining the desired
position
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Step 1 -Determine the ideal mix for consumers
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
Step 2 -Measure consumer perceptions
Potential benefits Our Operation Competitor A Competitor BValue for price
Quality of food
Quality of service
Atmosphere
Location
Menu variety
� Perceptual mapping - A technique used to construct a graphic representation of how consumers in a market perceive a competing set of products relative to each other
Table 4.3 Competitive Benefit Matrix
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Step 3 -Look for gaps in coverage and select a desired position
� Positioning statement - Results from consumer research and perceptual mapping enable firms to develop a positioning statement. The positioning statement should differentiate the organization’s product–service mix from that of the competition
� Unique selling proposition (USP) - Promoting a unique element of the product–service mix
Step 4 -Develop a strategy for obtaining the desired position
Guidelines for Developing Positioning Strategies
wWhat position do you own?wWhat position do you want?wWho must you outgun?wDo you have enough money?wCan you stick it out?wDo you match your position?
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Positioning Strategy
Identifying Competitive Advantages
Selecting Competitive Advantages
Effectively Communicate
Chosen Position
Differentiating Competitive Advantages
ManagementOrientations
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