Importance of Segmentation, Targeting and Positioning in a Business: A Case Study of Marriott

This report discusses the importance of segmentation, targeting, and positioning (STP) in a business, using Marriott as a case study. It explores the influence of STP on company performance, the significance of STP for company growth, and the challenges faced while using STP as a marketing strategy. The report includes a questionnaire and provides limitations and recommendations.

Assessment

Table of Contents
Research topic for the project..........................................................................................................1
INTRODUCTION...........................................................................................................................1
Reviewing the relevant articles for the literature support ...............................................................1
Setting the aims and objectives of the research...............................................................................4
Designing the questionnaires ..........................................................................................................4
Circulating the Questionnaire .........................................................................................................5
Finding the outcomes ......................................................................................................................6
Providing the final results with limitations and recommendations .................................................9
REFERENCES..............................................................................................................................11

Research topic for the project
Topic: To determine the importance of segmentation, targeting and positioning in a business. A
case study of Marriott.
INTRODUCTION
STP is one of the most important form of marketing approach that allows an organisation
to ensure its long term sustainability and growth as this approach help entity to find right
customers for right products and services (Yanti and Saraswati, 2020). This approach allows
organisation to maximise its sales by evaluating particular set of target market. In addition to
this, it has been evaluated that it also enable brand to effectively position their products their
services in target markets. Present report has been conducted on Marriott, company operates its
business services in hospitality segment and offers different types of high quality services to
customers. In this report formative discussions has been made on the concept, influence and
importance of STP upon company long term sustainability and growth. Along with this, aims and
objectives is also being included in this report. Along with this report also include questionnaire
and formative limitations and recommendations.
Reviewing the relevant articles for the literature support
Influence of STP over the company performance
According to the view point of Islam, 2020 STP is playing most important role for an
organisation higher growth as well profitability as it lead them towards selecting right candidates
for right products as well as services. With the help of this approach entity can effectively ensure
long term sustainability as well as growth in a well define and effective manner. In addition to
this, it has been evaluated that with the help of this tool entity can reduce risk of failure in
business. Furthermore, it has been underlined that by taking assistance of this approach business
organisation can attract rights customers by delivering them right message. It will aid entity to
effectively select targeted audiences in an efficient manner. With the help of this approach
organisation to effectively develop digital strategy and can attract large base of audience towards
organisational offerings. In addition to this, it has been evaluated that by taking assistance of this
process organisation can systematically select customers by making market analysis on the basis
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of geographic, demographic, psycho graphic and behavioural (Saputra, 2020). With the help of
all these factors entity can effectively segregate customers on the basis of income level,
nationality, gender, occupation, personality type, price sensitivity and more. In addition to this, it
has been underlined that STP is having significant influence upon company growth and
operations as it allows organisation to formulate a well effective marketing plan.
According to the analysis it has been evaluated that by undertaking use of STP analysis
company can safeguard themselves to repeat the marketing activities that further assist entity to
save their unnecessary wastage cost and funds. STP majorly influence upon company growth as
well as profitability as with the assistance of this entity can effectively conduct situational
analysis which is one of the most important segment of company through which they can offer
their services and products in more effectively manner within marketplace. In addition to this, it
has been evaluated that with the help of STP analysis evaluation of competitors can also been
done through which company can assure more growth and profitability in a well define and
effective manner. Thus, according to the above mentioned analysis it has been determined that
STP is having most important significance upon company performance as it allows entity to
determine various opportunities for higher growth and profitability.
Significance of STP for company growth
According to the view point of Chen and et. al, 2020 segmentation means dividing
market palace or target market into a smaller and more definable,accessible,actionable,profitable
categories which have growth potential. Its provides more precise form of market- company will
have a clear understanding of consumer and adequately about the market which helps them to
formulate and implement strategy successfully. Along with this it also facilitate effective
marketing strategy that offers an opportunities to understand consumer need and wants of
different categories or segments which help them to make more appropriate strategies. Along
with this it also provide company with the advantage of modern marketing- If the company
wants to satisfy its valued customers then the market segmentation is the only option. It is the
essential of modern market practices (Yanti and Saraswati, 2020). While on the other hand if it is
talked about targeting it is the process through which company identify its targeted customers
instead of trying to reach an entire market, brand uses target marketing to put there energy into
connecting a specific and defined group in a market. They can also reach the right audience –
targeting helps company to reach the right customers which provides them profitability and
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market share. Cost effective strategy is also most important options in which once company
know who they are targeting, its become much easier to make strategies as well as the decisions
on resource allocation. It also facilitate entity to focus on potential – organisation don't have
resources and time to reach everyone with the product and message. Targeting market allow
them to focus on those who likely to purchase goods or product.
Lastly, positioning defines where product stands in compare to other companies offering
same product and services in a market palace as well in the mind of customer. It shows position
of a company in a market and in a mind of customer (Hasbi and Muis, 2020). It allow company
to promote consumer goodwill and loyalty – systematic product positioning reinforces the
company name its product and its image , it will make the brand popular and company can create
the goodwill and win the customers loyalty. It also facilitate company to attract different type of
customers – customers are different in terms of their expectation from a product. A company by
promoting different type of comparative advantages can attract different type of customers.
Challenges that company can face while using STP as a market strategy
STP divides market into the segments in which customer are limited so it is not possible
to produce product in a large scale for every segment , company cannot take the advantage of
large scale production which makes there production as well as product costly and affect
adversely to sales (DIXIT, 2020). STP is expensive in both production and marketing to satisfy
every group and segment company has to produce in different size,colour,model etc. which result
into a more production cost and producer have to maintain large inventories in each
model,size,colour of product which leads to waste sometimes. Due to the different segments and
groups company has to consider every group in terms of
need,interest,habits,attitudes,preferences and has to formulate and implement several strategies
which makes there marketing expensive. STP needs an heavy investment as they have to satisfy
every segment (Wahyuni, 2020). Company has to produce variety of product line and product
item for which company requires to invest more on technology and other inputs that may deemed
heavy investment. It also creates promotional problems and multiples promotional difficulties as
they to focus on every different groups which needs an different type of advertising and
promotional activities.
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Setting the aims and objectives of the research
Research aim: To determine the importance of segmentation, targeting and positioning in a
business. A case study of Marriott.
Research Objectives
 To identify the influence of STP over the company performance
 To determine the significance of STP for company growth
 To analyse the challenges the company can face while using STP as a marketing strategy
Research Questions
 What is the influence of STP over the company performance?
 What is the significance of STP for company growth?
 What are the challenges that company can face while using STP as a market strategy?
Designing the questionnaires
Questionnaire
Q1) Are you aware with the concept of STP in organisational premises? Frequency
a) Yes 20
b) No 10
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Q2) As per your opinion does STP approach aid an organisation in
accomplishing higher performance?
Frequency
a) Agree 25
b) Disagree 5
Q3) Are you aware of the importance of STP in organisational
workplace?
Frequency
a) Yes 15
b) No 15
Q4) What are the benefits of STP ? Frequency
a) Positioning of product or service to target audience 10
b) Improved Organisation Performance 10
c) Competitor analysis 10
Q5) As per your view can the organisational performance be maximised
with the help of STP?
Frequency
a) Yes 20
b) No 10
Q6) Underline the challenges that can be face by Marriott hotel
management while using STP?
Frequency
a) Ignoring Potential Audience 18
b) Forgetting About Individuality 6
c) Training and Development 6
Circulating the Questionnaire
Q1) Are you aware with the concept of STP in organisational premises? Frequency
a) Yes 20
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b) No 10
Q2) As per your opinion does STP approach aid an organisation in
accomplishing higher performance?
Frequency
a) Agree 25
b) Disagree 5
Q3) Are you aware of the importance of STP in organisational
workplace?
Frequency
a) Yes 20
b) No 10
Q4) What are the benefits of STP ? Frequency
a) Positioning of product or service to target audience 10
b) Improved Organisation Performance 10
c) Competitor analysis 10
Q5) As per your view can the organisational performance be maximised
with the help of STP?
Frequency
a) Yes 20
b) No 10
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Q6) Underline the challenges that can be face by Marriott hotel
management while using STP?
Frequency
a) Ignoring Potential Audience 18
b) Forgetting About Individuality 6
c) Sending wrong message 6
Finding the outcomes
Theme 1: The concept of STP in organisational premises
Interpretation:
According to the above mentioned report it has been evaluated that STP process acts as
an one the most important aspect for an organisation through which they can effectively target
right audience base of right customers. According to the analysis of above mentioned graph, it
has been evaluated that 20 out of 30 respondents are aware with the concept of STP within
organisational premises. They believes that with the implementation of this approach
organisation can ensure accomplishment of their business objectives with more effectiveness and
efficiency. In addition to this, it has been determined that this concept allow entity to increase
organisation profitability at great extent. While on the other hand, it has been evaluated that
remaining 10 respondents out of 30 states that they are not aware with the concept of this
approach as they did not have any understanding related to this topic.
Theme 2: STP approach aid an organisation in accomplishing higher performance
Interpretation:
With the help of STP approach company can gain long term sustainability as well as
growth as with the help of this approach organisation can gain advantage of make critical
evaluation of market situations through which they can perform their roles and responsibilities
with more effectiveness. According to the above mentioned graph it has been evaluated that, 25
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out of 30 respondents believes that by STP approach significantly aid an entity to accomplish
high level of performance as it allow them to target right base of audience for their products and
services. In addition to this, they also believes that company can conduct effective market
analysis through which company can find more opportunities for growth and success. While on
the other, it has been underlined that remaining 5 respondents disagree with this fact that
organisation can fulfil higher performance objectives with the use of STP approach as they are
not much aware with this concept of STP.
Theme 3: Importance of STP in organisational workplace
Interpretation:
STP is having significant importance upon organisation workplace profitability as well as
growth, as it has been underlined that with the help of this analysis entity can conduct effective
customer and market segmentation through which they can place their products and services in
marketplace in a well define and effective manner. Furthermore, it has been evaluated that with
the help of STP analysis company can attract right base of customers and can offer them right
products and services. According to the above mentioned analysis it has been evaluated that 20
out of 30 respondents agree with the fact that they are well aware with the importance of STP in
organisational workplace structure as they believes that, with the assistance of this entity can
effectively reduce risk related to failure of business product and can further make significant
increase in the marketing efficiency. While on the other hand, it has been underlined that
remaining 10 respondents did not believes that STP is having importance in company workplace
structure as they thinks other factors to be important for company.
Theme 4:
Interpretation: Benefits of STP
STP have numerous range of advantages and benefits through which organisation can
assure long term growth and sustainability. In addition to this it has been evaluated that with the
use of this approach company can gain significant advantages in terms of higher growth as well
as profitability. According to the above mentioned graph it has been evaluated that 10
respondents said that STP provide company with the advantage of effective positioning of
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products and services to target audience. While on the other hand, remaining 10 respondents
believes that company can gain advantage from STP in terms of improved organisational
performance. Lastly, according to the graph it has been evaluated that 10 respondents out of 30
believes that STP benefits company in terms of having proper competitor analysis through which
they can assure higher growth and profitability in an effective manner.
Theme 5: STP approach aid an organisation in accomplishing higher performance
Interpretation:
STP facilitate organisation to make significant increase in their business performance as
it has been underlined that this approach facilitate company to undertake effectively market as
well a competitor analysis through which company can assure more opportunities. According to
the above mentioned analysis it has been evaluated that 20 out of 30 respondents believes that
with the help of STP entity can measure significant increase in its overall level of performance.
While on the other hand remaining 10 respondents believes that company needs other factors or
elements to measure significant increase in their performance margin.
Theme 6: Challenges that can be face by Marriott hotel management while using STP
Interpretation:
There are different type of challenges that an organisation can face while implementing
STP that can further impact upon their growth as well as profitability. All these challenges can
negative affect company in terms of lower level of productivity, decrease in growth and more.
According to the above mentioned graph, it has been evaluated that 18 out of 30 respondent said
that while using STP company can face challenging related to ignoring potential audience. While
on the other hand, other 6 respondents said that by using STP approach entity can forget about
individuality that can affect entity long term sustainability in market. Lastly, remaining 6
respondents said that sometime organisation by undertaking use of STP can send wrong
message.
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Providing the final results with limitations and recommendations
By conducting proper evaluation of this research topic it has been determined that there
are number of limitations being faced by me that affected smooth operations of research
activities. In this it has been determined by me that, I face limitations in terms of evaluating and
undertaking view point of respondents. As it has been evaluated that in this some of the
respondents did not responded in an effective manner. In addition to this, it has been underlined
by me that major limitation that I faced is related to management of time in order to conduct all
the activities of research in a well defined and effective manner. All these limitation significantly
affected smooth operations of research topic that caused delay in accomplishment of research
outcomes.
Along with this, it is being recommended to Marriott hotel to undertake use of STP in
their workplace structure while considering all the aspects. As it will allow them to ensure more
growth and profitability in an effective manner. In addition to this it has been recommended to
company to undertake use of effective marketing plan and develop a road map in order to
implement STP in a well define and effective manner.
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REFERENCES
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