Market Segmentation by Business Organizations
In an organizational setting marketing segmentation is particularly essential in positioning and targeting a given product. Segmentation is also, in some cases referred to as STP (segmentation, targeting, and positioning). Market segmentation is also crucial as it enables a company to identify the key areas that they should focus on based on demographics, geography, and social factors among many more (Liu 45). The concept of Segmentation, Targeting, And Positioning (STP) After carrying out complete segmentation, the management is then required to ensure that they can undertake the next process which is targeting. This involves the act of identifying the various interests and needs if the targeted group of consumers to enable the company in question to meet them more effectively. As such, it is quite normal to experience a scenario where a producer may not be able to meet the entire needs of the different customers available (Molina 78).
Owing to this case, companies that tend to base their products with the needs of a given segment of the market may be in a position of making more profit as compared to a company with no market segmentation. The reason for the latter mostly lies behind the fact that the company fails to meet the overall needs of a given customer group making it difficult for consumers to buy the products available. In a segmented market, on the other hand, a given number of consumers may be willing to purchase the product in question because they have been satisfied with the features of the product. In general, three strategies of marketing exist today. Case Analysis In an attempt to discuss the dynamics in consumer segmentation, this assignment wishes to highlight on a company in the hotel and hospitality industry that is based within New Zealand.
As such, this paper wishes to do so by analyzing Hackthorne Gardens Luxury Accommodationwhich happens to be one of the fastest growing companies in Australia. With its branches currently being set up in New Zealand, the company has been identified to be among the leaders in the hotel industry based on the improved quality of the products it produces. With is endeavors of setting up new outlets in New Zealand, this paper focusses on coming up with relevant ways that may enable the company to compete with some of the leading brands that are already in existence in the country today. As such, it is essential for the company to be highly prepared for increased competition that is likely to face it in a foreign and new market environment (Kim 79).
Customer satisfaction may also prove to be of importance to the company as this may allow the company to increase its consumer base as a result of consumers referring their friends into buying the various products being offered by the company. Also, the company should also be willing to offer a variety of product from which customer is likely to choose from hence increasing the chances for their satisfaction (Liu 98). Meeting Customer Needs The company would be required towards ensuring that it is capable of coming up with favorable conditions for ensuring that all consumer needs have been adequately met. For instance, the company could choose to issue special offers and discounts to its loyal customers to ensure that it can enhance its reputation to the customers.
This move may prove to be of significance to the company because this allows for increased consumer base. This move is essential as it is likely to enable the company to stay ahead of the competition at all times. Segment Viability and Attractiveness Hackthorne Gardens Luxury Accommodation company is mostly focused on meeting the needs of consumers who are in the middle and high-income classes. This, therefore, means that it may not be willing to consider consumers from low income classes. This makes it particularly simpler for the company to come up with a narrower consumer segment hence making it easier to tailor its various services in a manner that they are adequately satisfied at all times. As one of its main strategies, the company bears distinct services for its customers.
The hotel has been able to provide adequate services that enable it to be among the leading hotels in New Zealand at the moment. For instance, the hotel makes use of different amenities such as the availability of conference area for business travelers to host their meetings and adequate Wi-Fi services to enable the consumers can connect with other people from across the world. Also, the guest rooms in the hotel have adequate lighting to enable the guests to work with ease after which they may be able to enjoy separate sleeping and living areas (Wolfe 34). Hackthorne Gardens Luxury Accommodation also focusses on hosting families on vacation visits. The hotel bears a range of facilities that enable family members to enjoy their stay at the hotel effectively.
The hotel has enabled its consumers to make plans before holding the necessary events. This notifies the hotel to enable it to come up with relevant strategies of enabling its consumers to have a good time with friends and family. Also, the hotel offers additional services that may enable the consumers to enjoy a good time while planning for a forthcoming life event. The hotel issues the customers to choose the specifications of their choosing so as they may be able to enjoy on their special day (Cross 45). Geographic Segmentation Although located in Auckland, Hackthorne Gardens Luxury Accommodation plays host to all kinds of visitors who are either local or international. To effectively identify and define a segment, one may undertake the following steps.
To begin a company may choose to create a list of different target segments based on a specific niche of customers. After doing so, the company may go further and come up with a narrow search of targets from the initial selection. At this point, the market of the product has been strictly specified. Thirdly the company should then elect a target customer that is likely to offer the greatest potential amongst those available. Product Usage and Potential Among one of the biggest consumers at Marriott international includes business travelers and local consumers. These two groups have been identified as the most frequent groups to visit the hotel. To the company to increase its potential, the company could choose to offer discounted offers to regular customers.
This is more likely to enable more consumers to seek similar services from the hotel hence increase the overall consumer base (Liu 279). Segment Size The segment size for Marriot International is narrow because the company focuses on targeting high-income and medium-income earners. This technique was of particular importance because the two key segmentations for Auckland JW Marriott Hotel includes high-income consumers and Mid-income consumers. Although not the most expensive, the map showcases Auckland JW Marriott Hotel as the second most expensive economic organization compared with the other two. The George Christchurch is the most expensive and the least expensive economic organization is Abbey Motor Lodge (Liu 279). Business Product Attributes To assess the various consumer prices for each hotel, the main focus lies behind the various services being issued.
To begin with, The George Christchurch offers luxurious room accommodation and lodging services that enable consumers to experience serein and peace within a single roof. As such, this order also represents the nature of the services as well as products being sold by the various hotels. As such, the higher the quality of the product, the higher the price and the higher its class is. This, therefore, means that The George Christchurch bears the products that are of the highest class compared both Auckland JW Marriott Hotel and Abbey Motor Lodge. Auckland JW Marriott Hotel, however, bears the second best quality products hence acting as one of the major competitors for a majority of hotels in the country. Consumer Needs and Benefits Since consumer satisfaction is the main driver of the success of any organizations, most businesses often tend to ensure that they can come up with relative means of ensuring that all consumers are satisfied at all times.
For instance, Abbey Motor Lodge mainly targets on dealing with all types of consumers which means it does not bar any individual from accessing its services owing to its increased affordability. The George Christchurch on the other and is a high-end luxury hotel which targets on high-income consumers for the various products and services being offered. The latter can be said to be in a similar position as Auckland JW Marriott Hotel because they both target the same consumer segment (Venter 68). Lifestyle factor The George Christchurch and Auckland JW Marriott Hotel both target high-end lifestyles which makes them relatively expensive than conventional hotels. Abbey Motor Lodge, on the other hand, offers a normal lifestyle which means that it may not be luxurious as the former two.
People Strategy The company has been able to hire a highly qualified team of staff who are responsible for guaranteeing quality services to the hotel’s esteemed customers. As a result of its high quality service provision, the appearance of the company has been identified as highly professional hence making it a dream destination for most consumers (Cross 102). QUESTION 6 Importance of Monitoring and Marketing Control Process Mentoring Mechanism Auckland JW Marriott Hotel employs a monitoring mechanism that involves obtaining consumer feedback about the services and issued to them. The company avails an online website as well as customer care hotline that allows consumers to interact with the hotel about their requirements actively. Also, the hotel enables consumers to rate the service obtained while in the hotel to enable the management to understand which areas should be rectified and by what means.
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