Table of Contents

1. Introduction. 2
2. Segmentation of consumer Markets. 3

2.1.     Geographic Segmentation. 4

2.2.     Demographic Segmentation. 4

2.3.     Psychographic segmentation. 5

2.4.     Behavioral Segmentation. 5

3. Market Segmentation Strategy. 5
4. Conclusion. 8

References. 8

Marketing Segmentations in Marriot

1.      Introduction

Markets are composed of consumers, and the buyers vary in a number of ways. They vary in what they need, the resources, places, purchasing approach and tendencies. In marketing segmentation, firms bisect the markets into smaller and much simpler portions which are simpler to approach with goods and services that are in line with what they desire. Firms currently are trying to focus on smaller markets segments considering that markets are big and are composed of many consumers with varied needs. This segments the firms feel are much efficient to work with as they can offer them more profit and are easy to manage.

Marriott is a global company that operates in hotel and resort activities. Its main objective is to provide quality and dependable service to its clients and becoming the leading company in its industry. The company has been able to acquire the needs of its clients using the wide range of segments. This has been made possible through the help of its clients, who the company aims to serve, in offering quality service (Beane, and Ennis, 1987). The company has currently grown and extended to be leading service provider in the place that it has taken control.

Marriott is one such company that decides to focus on a number of segments like business travelers and families aimed at meeting a particular consumer need (Marriott, 2012). Initially the company was a Marriott Hotel that focused on commercial individuals, luxury and travelers. Currently, the company is divided into major sections: Marriott Suites, Courtyards and Fairfield Inns. The company is hence able promote its operations in a better way, focusing on goods or services mediums and interaction models to clients. The company similarly markets in a better way its goods and platforms so as to be in line with the needs of the clients in the varied segments.

2.      Segmentation of consumer Markets

There are varied ways to segment a market. This involves attempting varied strategies and integrating the most viable ones. Marriott segments its market into four varied ways: geographic, demographic psychographic and behavioral aspects.

2.1.   Geographic Segmentation

This form of segmentation aims at dividing the market into varied geographical sections like cities and areas. This is taken in regard to the desires of the client. Localization of goods, promotional methods and sales are done so as to acquire the essentials of a region. The biggest market segment that the Marriott does its business is the United States. Additionally, a number of reservation points are found in the located in the United States and is composed of a multibrand and modes that allow clients to have access to rooms that fit their taste (Temporal, 2002). For instance, the reservation operation allows the client to search and acquire the most affordable room in a hotel in a specific region; travellers that in the surrounding location of a hotel are possible clients to the hotels.

2.2.   Demographic Segmentation

In this form of segmentation, the market is bisected into sections on the basis of attributes like age, gender, wages and social unit among others. These are commonly applied to contrast the varied sections clients are based. This is since the desires and speed of application are connected to the population aspects. Individuals contrast in their personality and values.

Marriott hotels are priced at varied ranges that can be accessed with regard to the income a client has. Expensive hotels are found to be more luxurious and can be accessed by clients that earn higher wages, a good example are the Fairfield Inns. In regard to lifestyle, a customer is bound to acquire a hotel based on the how they are used to living, for instance spacious hotel.

2.3.   Psychographic segmentation

In this form of segmentation, there is the division of the market into varied groups with regard to the social aspect, lifestyle and personality. The individuals that that appear in a demographic set may portray varied psychographic attributes. The lifestyle and personality are applicable in the segmentation of the client markets. The goods applied are connected to this attributes. The Marriott Luxury Hotels meet the needs of the clients in the upper class hotels whose desires are more oriented to attractive architectural basis. The Marriott Hotels and Resort offers clients internet access, swimming pools and presents while the Courtyard offers fitness sections, food access and library to its clients.

2.4.   Behavioral Segmentation

This is composed of the bisection of the market in regard to client knowledge, tendency, application or reaction to a good. Marketers are of the thought that the tendency of a client is starting base of creating market segments. Marriott hotels at the Residence Inn are keen on acquiring the extended stay market which six to twelve months. Travelers are accorded rooms in time of need while newlyweds are accorded rooms in mountain areas. The Marriott hotel offers its clients rewards system and credit cards as applied in JW Marriott hotels.

3.      Market Segmentation Strategy

The form of marketing strategy applied by a firm shows the opportunities that are available. The firm’s strategy is based on the size and advancement of the segment in regard to the resources and skills available. The other aspect is the attractiveness of the segment in regard to the presence of aggressive purchasers. Lastly there are the goals that the company aims to acquire using its available resources. This is the base on which the segments operate. A number of organizations model their goods and services so as to be able to acquire the desires and wants of clients in varied segments. Considering that companies do not have all of their operations oriented in a single aspect, they are less susceptible to competition.

The multisegment strategy that Marriott uses is undertaken in a number of segments in the hotel division, upscale and mid-scale. The company accords luxury hotels in brand names such as Ritz, JW among others. The mid and upper scale is average segments that are composed of brands like the Courtyard, SpringHill and Fairfield Inn (Temporal, 2002). The organization has quality segments that compose of the hotels and Resorts as well as renaissance centers. In the extended segment, Marriott undertakes brands like the TownePlace Suites, and Executive luxurious rooms as well as the ExecStay.

This segment applied by Marriott is an assorted one with a wide range of goods and services that are acquired at an affordable price. It aims to attend to clients in varied segments and develop the organization’s manageable market. Marriott applies a multisegment strategy to acquire client needs. The organization is composed of fifteen varied models to acquire these essentials among them being:

Marriott Courtyard which is aimed at travelers that are over-the-road; The middle-level manager that are engaged in a lot of traveling and desire some form of comfort, there is the Courtyard which is based near commercial bases and has a comforting setting.

There is also the Ritz-Carlton Hotel that is aimed at meeting the needs of the luxury travelers,

Marriott Conference points that are focused at businesses that host meetings

Marriott ExecuStay is focused at executives that require reservations in the hotel that go for a month long.

There are also the Marriott Vacation Clubs that are aimed at travelers who are more interested in purchasing timeshares.

Fairfield Inn acquires the needs of tourists and families. In the “travel and leisure” segment of the hotel market, the Marriot Fairfield Inn is based closer to tourist sites; it is well affordable and meets the needs of families.

Every Marriott brand has been allocated a special personality and flair, the clients are aware of what they are to find at every hotel. The company is engaged in stringent efforts in passing information on the significance and ability of every brand. There is an aspect of client crossover, however ever brand is keen on a stated market segment. The inner competition is limited.

Marriott has acquired a significant outcome from this form of segmentation strategy. The Courtyard operates more rooms compared to how the firm did in the early 80s. The entire rooms operated has gown drastically from 1985. The revenue of the company grew from 1994 to 2006 by 7 billion (Croft, 1984). The market value grew by $16 billion.

Marriott applies a multisegment market strategy that makes it possible for one to react to the population among other changes in the market, for instance the increasing size of individuals who are old have the choice of heading to into Marriot’s “Senior Living Services”, here services offered involve taking good care of the old who require special care. This strategy is similarly important to manage economic fall through giving the clients the opportunity to trade in the brands and goods offered (Capon, 2007). If a person acquires a pay cut and is not able to pay for Marriott’s Ritz-Carlton hotel, there is a room located at JW Marriott that is accessible one. The hotel has the attributes of being luxurious as well as affordable when compared to Ritz. This strategy is similarly useful in managing the lifecycle of matters is there is a good that is falling out of favor with the consumers, there are others that the company is able to make use of.

4.      Conclusion

Market segmentation is an important strategy. More to this is that the clients in the market have varied desires with varied considerations in mind. No matter the method that the company applies, the intention is to accord the client a precise cluster so that every cluster is comparatively common in what their desires are.

A precisely modeled market will be able to meet the needs of the client cluster which has a common need. The other cluster of clients with a contrasting desire will desire another market provision. Such market clusters are the segments that are vital for every company. The company looking to meet the needs of a bigger market will be forced to acquire the desires of the several clients. One provision by a firm will not be able to meet the needs of a particular set of clients. This has hence made market segmentation a successful strategy that is being applied by a wide range of companies.

References

Beane, and Ennis, D. (1987) “Market Segmentation: A Review”, European Journal of Marketing, Vol. 21      Iss: 5, pp.20 – 42.

Capon, N. et al (2007). Managing Marketing in the 21st Century: Developing and Implementing          the Market Strategy. New York: Wessex Publishing.

Croft, M. J. (1984).Market Segmentation: A Step-By-Step Guide to Profitable New Business.         New York: Routledge.

Marriott (2012). Retrieved from: http://www.marriott.com/default.mi

Temporal, P. (2002). “Advanced Brand Management” (Hardcover), Edit. John Wiley & sons    Singapore,2002, p. 60–98.