Segmentation, Targeting, and Positioning in Travel and Tourism Marketing

This article discusses the concepts of segmentation, targeting, and positioning in the context of travel and tourism marketing. It explores how organizations like Hyatt hotel segment their customer base based on demographics, psychographics, and behavior. It also examines different target marketing strategies, such as mass marketing, differentiated marketing, niche marketing, and micro marketing. Additionally, it delves into the positioning strategies used by organizations to create a distinct image in the minds of their target customers. The article concludes by emphasizing the importance of selecting the right marketing approach to achieve long-term success in the travel and tourism industry.

Travel and Tourism
Marketing

Table of Contents
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
How the organisation segments its customer base......................................................................1
Types of target marketing strategy adopted by the Organisations..............................................2
positioning strategy used by your organisation...........................................................................3
Conclusion.......................................................................................................................................4
REFERENCES................................................................................................................................5

Introduction
Tourism, can basically be regarded as an activity that can be stated as short term
movement of people to places to be away from their actual residence. Travel and Tourism
(Sofronov, B., 2018Leung, ., Au, and Law). It is one of the biggest as well as fastest growing
industry in the world. This comprises of various activities including lodging operations, transport
services and retail store. Hyatt hotel, is one of the top companies in the hospitality industry and
highly value their talented people in order to become best performing company and get a edge of
their immediate competitors.
Main Body
How the organisation segments its customer base
Market segmentations can be defined as a process of dividing their target market into
small quantity. It segments the people on the basis of group that have quite similar interests that
can include demographics, interest, needs or locations (Camilleri, 2018.). Each of the different
segmentations have divided into needs and expectations. The company can get a better
understanding on it and getting details about the different types of market segmentations. This
can be discussed in detail below:
 Demographic segmentations: This is one of the most common type of market
segmentations. This is referred to as segmentations on the basis of demographics of the
people that can includes age, gender, income, location, family, annual income, education
and ethnicity. This information is primarily based on facts and it can be easily be
researched on various sites of market research. In order to undertake this segment, it is
must for Hyatt has to undertake intensive research and segmented their market based on
income level. This has aided their customers to be have a flexibility to choose they want
three star, four star or five star experience.
 Psycho-graphic segmentations: This type of segmentation is mainly based on the
customer's personality and interest. The company can segment their customer's on
various aspects that include personality trait, life goals, values, benefits and life style. It
might not be easy for the management to determine as it isn't each to identify as they are
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based on very personal level. It can be done segment can be done on various ways that
can include personality traits, hobbies, life goals and life styles.
 Behavioural segmentations; It is one of the most useful segment among all. Here, the
company can group their customers by analysing their behaviour that can include
spending habits, purchasing habits, previous rating of their hotel and the loyalty towards
their specific brands (Xiang and et. al.., 2015). In today's changing times, this can be
mainly be derived from the latest social media channels where there are more engaged in.
 Geographic segmentations: This segment is quite easier to identify and this mainly
groups the customers on the basis of their physical locations. These groups can be
defined by number of ways that includes Country, region and city. If the company utilizes
this segment for them to create engaging content by providing them facilities that can
help them celebrate the diverse culture they following mainly depending on their
religions.
Types of target marketing strategy adopted by the Organisations
Once the marketing team of the company is able to segment the customer's based on the
basis of different segments. Then, they are choose their target market. This will enable the
marketing manager to customize their messages and will reach of their focussed group of people
(Font, and McCabe ., 2017). This will help the company to reach the right set of customers in
order to devise right offers concentrated their focussed customers. Target market strategies is
mainly divided into four types that can be stated below in detail;
 Mass Marketing: This type of marketing is also known as un-differentiated marketing
and involves marketing to the whole market. The company utilizing this strategy mainly
avoid the need of segmentation and generates a single offer for a large number of
populations. This might be very similar sellers to are engaged in similar type of services.
The Management of Hyatt need to conduct a thorough research on whether it is possible
to generate single offer to everyone. This items are most considered as staple or
commodity types and are undifferentiated. It might not be viable for the company to
adopt this strategy as they are mainly recognized for tourism and hospitality services.
 Differentiated Marketing: This strategy is used in those companies, that are engaged in
separate offers to each of their different market. This can further be referred as each
segment targets their customer's in a specific ways and provide unique benefits to each of
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their different segments. Companies can get success in this strategy if they are able to
create a strong market presence that is way difficult their competitors to offer similar
offerings. But, since Hyatt is one of the most popular companies so it might be worth for
the company to incur higher expenses in order to diverse and enhance their brand
presence further by focussing on diversing their services by customizing and enriching
the experience of all their valuable customers.
 Niche Marketing: This type of marketing is undertaken by those that is engaged in
targeting only some of the defined group of customers. The aim of this strategy to
achieve higher penetration among their defined customer segments (Albuquerque and et.
al. , 2018). If the company adopt this strategy can be favourable as they are differentiate
itself from their competitors. Thereby, there is no chance of their customers to get
attracted and switch to other services. The only disadvantage, the company may face if
the demand of their small segment decrease then their financial performance as well as
revenue will decrease.
 Micro Marketing: This type of market strategy is even more narrow than Niche
marketing. It mainly focuses on the needs of the individual or a very small segments
based on geography. If the company utilizes this strategy if they are exactly clear about
their customer's wants (Murphy, Gretzel, and Pesonen, 2019.). Still, it is must for the
management needs to device new ways to be able to meet the needs of the individuals in
a efficient ways that aids to generate higher profitability.
The company should switch their differentiation strategy to niche. They should have a thorough
understanding on their market and apply this market on those target customer that doesn't
fluctuates much.
positioning strategy used by your organisation
Position can mainly be referred to as creating a distinct image in the minds of their target
customers. It simply states the unique position or brand by providing distinct benefits of their
valuable customers. The businesses throughout the world emphasizes on marketing in order to
effectively communicate their position in market in order to influence their perception towards
their brand ( Sever, and Kuhzady, , 2015). It is must for the company tu undertake segmentation
as well as targeting before moving ahead to their brand positioning. This can be done my them,
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by making their brand as attractive as possible in order to witness higher customer traffic. Some
of the strategies the company can undertake can be detailed below:
 Positioning based on product: This is utilized by that provides the unique benefits of the
product that enables the customer's to be satisfied with their distinct product (Rather,
2020.). As the company comes under hospitality sector they can undertake position their
product by enhance the experience of their customers which sets them apart from other
hotel companies.
 Positioning based on price: This sates position the product or services mainly based on
competitive pricing. The main aim of the company utilizing this strategy is to make their
offering cheapest in order to enhance their value in the market. As the the company
provides their users for entertaining by enriching their quality of services offered so this
might not be viable strategy for the company.
 Positioning based on luxury: Mainly the higher price charged may imply higher quality.
The company doesn't communicate their price instead their the display their product
quality that create the prices in the minds of consumer.
 Position based on competitions; It can be referred as differentiate the company's product
as compared to their competitors. This is done by the companies that as a large market
share and it much for them to be in a very attractive position in the industry (Bigné and
Decrop, 2019). By applying this strategy, company will be at a favourable position in
terms of other rivals in the industry.
As the company is recognized as a top company in the hospitality sector in U.K, it
should devise strong positioning strategy to become the leader in their industry.
Conclusion
This can be concluded for the above mentioned report, it is important for the company to
undertake right approach for marketing their activities. For doing this, it is must for Hyatt to
evaluate the different segmentation strategy described above and select the most appropriate
strategy in order to witness maximum engagement of their target customers. This will enable the
management to select the most appropriate target market and position themselves that is most
profitable to them . This will further be beneficial for them to sustain their position by getting
ahead of their immediate competitors and get successful in long term.
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REFERENCES
Books and Journal
Sofronov, B., 2018. The Development of the Travel and Tourism Industry in the World. Annals
of Spiru Haret University. Economic Series. 18(4). pp. 123-137.
Leung, R., Au, N. and Law, R., 2015. The recent Asian wave in tourism research: The case of the
Journal of Travel & Tourism Marketing. Asia Pacific Journal of Tourism Research.
20(1). pp. 1-28.
Camilleri, M. A., 2018. Travel marketing, tourism economics and the airline product: An
introduction to theory and practice. Springer International Publishing.
Xiang and et. al.., 2015. Information technology and consumer behaviour in travel and tourism:
Insights from travel planning using the internet. Journal of retailing and consumer
services. 22. pp. 244-249.
Font, X. and McCabe, S., 2017. Sustainability and marketing in tourism: Its contexts, paradoxes,
approaches, challenges and potential. Journal of Sustainable Tourism. 25(7), pp. 869-
883.
Albuquerque and et. al. , 2018. The use of geographical information systems for tourism
marketing purposes in Aveiro region (Portugal). Tourism Management Perspectives. 26.
pp. 172-178.
Murphy, J., Gretzel, U. and Pesonen, J., 2019. Marketing robot services in hospitality and
tourism: the role of anthropomorphism. Journal of Travel & Tourism Marketing. 36(7).
pp.784-795.
Sever, N. S., Sever, G. N. and Kuhzady, S., 2015. The evaluation of potentials of gamification in
tourism marketing communication. International Journal of Academic Research in
Business and Social Sciences. 5(10). pp. 188-202.
Rather, R. A., 2020. Customer experience and engagement in tourism destinations: the
experiential marketing perspective. Journal of Travel & Tourism Marketing. 37(1).
pp.15-32.
Bigné, E. and Decrop, A., 2019. Paradoxes of postmodern tourists and innovation in tourism
marketing. In The Future of Tourism (pp. 131-154). Springer, Cham.
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