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Marketing Strategy: Segmentation And Targeting

1393 Words6 Pages

4.0 Marketing Strategy 4.0.1 Concept of STP STP (Segmentation, Targeting, and Positioning) can be defined a process that determine how a company chooses to compete in that market against the overall market. The goal of the Segmentation, Targeting and Positioning process is to provide a direction to the company in order to develop a well suited marketing mix which is explained in Figure 4.2. 4.1 Realities of STP As there is a high supply than the demand in most market segments, the hospitality sector is placed in a competitive and a dynamic business environment. The specific characteristics involved in the service nature of the hospitality service providers, those companies face with some challenges regarding the management of those companies. …show more content…

This is known as “Targeting” which will facilitate Hotel Dolphin to focus on satisfying the right customer in the right manner. 4.2 Integrated Strategy In the case of demographic segment, Hotel Dolphin may possibly look mainly at occupation, income, family life cycle and socio economic group. Eg: Leisure requirement for single are different to the families with young children. Further the food choices, attitude towards travel will be influenced by the cultural background, ethnicity, etc. Hotel Dolphin will be able to better serve the client by charging a premium price for the services offered if it focus on the right segment as focusing on these segments and satisfying their needs can uplift the profitability of the company. In terms of geographic segment, it will need to segment the market into broader categories such as local, Asian, European, etc. who have different spending capacity and the patterns (e.g. European side is considered as the high income …show more content…

It should enter to the segments only if it can offer superior value and gain advantages over competitors. Accordingly, the possible segments for the Hotel Dolphin can be identified as geographic segments and behavioural segments. As the prices of the hotel’s services are comparatively high, it is advisable for the company to target high income level group who look for the luxury and the art of living. Therefore the hotel needs to choose differentiated marketing strategy with a sound marketing mix. Once the company id decided upon which segment (s) to be catered, the next step is to decide on what positions it wants to occupy in those segments. As the positioning is all about acquiring a consumer’s mind share, all attempts should be put in order to ensure that it is positioned in a manner that a set of feeling is generated for the service compared with competing service providers. Marketing communication should be strengthen in a manner that a strong positioning statement is presented in the slogans. Hotel Dolphin may think of a positioning statement such as "Assures your comfortable

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