Market Targeting The process of evaluating the attractiveness of each identified segments, and then selecting one of more segments to enter. A) Factors when evaluating different segments 1) Segment size & grounding the relative right size, 1st collect and analyze data on current segment sales, growth rates and expected profitability. 2) Segment’s structural attractiveness’s less competitors, less power of buyers, sees powerful suppliers. 3) Company objectives and resources should enter segment only in which it can offer superior value and gain advantages over competitors. (B) Selecting suitable market segments with different Market -Coverage Strategies 1)Undifferentiated Marketing offer for the whole market.
E. G. Coke. It may be less profitable due to heavy competition. 2) Differentiated Marketing Different marketing mixes for different segments. E. G. Nikkei shoes. However, company must weigh increased sales against costs. 3) Concentrated Marketing One marketing mix for several segments, specially appealing when company resources are limited. Mercedes cars for high income class. Which strategy is best depends on company resources. Stage Three – Market Positioning competing products in the minds of target consumers.
Formulating competitive positioning for a product and a detailed marketing mix. E. G. Toyota is positioned on economy, Mercedes on luxury, Porch on performance & Volvo on safety. (A)Some positioning strategies 1)Product attributes E. G. Disney Land as a theme park. 2)Benefits sought E. G. Dell Computer, customer can order their own configuration. No extra penny is paid for parts not needed. 3)Usage occasions. G. Storage as a beverage for replacing athletics’ body fluids. 4)Classes of users. G. Johnson & Johnny’s baby shampoo for babies. 5)Against a competitors. . CT’ to HOOK Telecoms 6)Away from competitors E. G. 7-up, “UN-cola” to Coke 7)Different product classes. G. Barberry, a fashion wearing rather than solely raincoat. (B)Choosing and implementing a positioning strategy l)lettering a set of possible competitive advantages on which to build a position. 2)Selecting the right competitive advantages )Effectively communicating and delivering the chosen position to the market. Once the company has established its product positioning strategy, it is then in a position to go on to plan the details of its marketing mix.
Segmentation Approach Apply on Hotel Chain Century International Hotel is a hotel and resort management company established in 1989, operating international standard hotels and resorts in the Asia-Pacific region from its corporate base in Hong Kong. The group currently manages 20 hotels and resorts in six geographical entities in the Asia-Pacific, namely Hong Kong, China, The company placed itself in the mid-market hotel category and by providing value- of-money accommodation at carefully selected strategic locations.
Each property has selected different kind of segmentation approach according to its own resources and distinctive competencies. They are generally use the Behavioral, Demographic, Cryptographic and Geographic as its segmentation approach. Behavioral Segmentation Base on the purpose for Traveling, the hotel distinguish their customer into two major markets – business and pleasure Business Travel Satisfying business travelers may not only convince them to return for the same cuisines purpose, but may also convince them to bring their spouses or even to revisit the property with their families during their next vacation.
Therefore, you could found that most of Century’s hotels were located in the business district or commercial area. Those hotels were features of meeting facilities, in-room fax line, plus business centre. (For example) One of the fastest-growing segments of regular business travel is the traveling businesswoman whose needs may often differ from those of male business travelers. Therefore, the Century Koala Lump Hotel features a special rooms for dad executives floor. (exclusive for business women) Pleasure Travel Pleasure Travel is probably among the more changeable of the travel industry market segments.
They are generally price sensitive and the volume of pleasure travelers is highly related with general economic conditions. The specific segmentation of the pleasure travel market often depends on the attractions, products and service offered by the hotel. Insular Century hotel, Diva, Philippines, is quietly located along the Gulf of Diva and is five minutes from the airport. The guestrooms overlook lush gardens, beach, winning pool and coconut groves. Resort facilities include tennis and basketball courts, putting greens, a beach and a Jetty for ferry to nearby islands.
Demographic is one of the most common bases for distinguishing among customer groups. It is because there are easy to measure and often relate with consumer wants, preferences and usage rates. A report said that 35 to 44 year age group shows a very high propensity to travel and to stay at hotel facilities when they do travel. A lot of well know corporate and worldwide company were hired a group of overseas employee in Magmata, the heart of the business center of Manila. This group of people seeking for a place which provide a condominium service as they will stay long.
Therefore, Promotion Century Tower, Magmata provide a full-service condominium hotel complex combining the convenience of living in a hotel with modern residential comfort. Offers studio bedroom suites, all with living, dining and kitchen facilities. Geographic Segmentation The occupancy of hotel is drawn from what kind of business sources. Normally, the business sources are classified geographically as well as by other characteristics. It is important of a hotel to choose the location to operate their business. Century Hong Kong Hotel business come from one particular market – Convention & Exhibition.
It is because of his location is nearby the Hong Kong Convention and Exhibition Center, therefore, the customers seek this particular benefit when they choose their accommodation. Cryptographic Segmentation Cryptographic information is very useful in identifying the customers seek in their activities and interests. Such as the lifestyle segmentation is extremely useful in understanding the roles that potential customers actually define for themselves. Nowadays, when people travel, they tend to travel to a unknown destination with some new experiences or unusual.
The hotels in city may let them feel that it is not too much different from those in their own country. Therefore, the Pearl Farm beach resort, is unique located in a secluded cove on Assam island in exotic Diva of Southern Philippines. The hotel only had 85 rooms fringed by white sand beach and deep crystal waters, the resort features charming cottages on stilts in the sea. This becomes more people arrival or more commercialese and standardized. Segmentation Approach Apply on Personal Computer Dell Computer Corporation Effective use of market segmentation can improve profit contribution of a company.
Personal computer adopt Benefit Segmentation approach. This segment requires finding the major benefits that people looking for such as lower price, high quality, and convenience. Now, lets Dell Computer Corporation as an example for further elaborate. Dell Computer Corporation is the No. 2 and fastest growing among all major computer systems companies worldwide. In the States, it ranks No. 2 as leading supplier of PC’s to business customers, government agencies, educational institutions and consumers. What’s the secret to Dell’s stunning success?
Dell could best understand customer needs based on right market segmentation, positioning and targeting. After all, the positioning task consists of three steps: For Dell, it provides different ranges for different benefit segments through Direct Marketing. Such as: Productivities Poinsettia’s customariness level Dimensionless technologically business & home squishier Paterfamiliases stonework’s surmised Ultracentrifugation with stable system and superior patronymic querulous Misinterpretation with latest technology’s willing to pay more High
Procrastination’s handles complex application inconsiderableness Paperweight end network systematic end squishier Powerful Straight storage’s need high storage I)lettering a set of possible competitive advantages on which to build a position Most of customers require good performance and lowest price for choosing PC. Dell offers it customers powerful, richly configured systems at competitive prices. Dell system is built to order. Dell charged low prices to attract high volume. The high volume resulted in lower costs which, in turn, let Dell keep prices low. )Selecting the right competitive advantages In direct side, customer requires convenience. Dell revolutionized its industry by selling personal computers by mail order rather than through retail stores. A customer can talk by phone with a Dell representative on Monday morning to order a fully customized, state-of-the-art PC suit their special needs, and have the machine delivered to his/her doorstep by Wednesday. Iii)Effectively communicating and delivering the chosen possible to the market With built-to-order policy, Dell is characterized as a highly flexibility company on its reduces.
Thus, Dell could serve co-operations from different fields with their unique needs by providing tailor made configuration PC or system. Besides, similar even better, performance with lower price is always a sound reason for Dell occupying a larger sale values in business sector. As good will and image is built, this invisible asset further enhances Dell’s market penetration in both business and personal sector. Conclusion Overall, Market Segmentation offers several benefits to a business. The company can market more efficiently, targeting its products or services, channels and miscommunication program toward only consumers that it can serve best.
