Segmentation, Targeting, and Positioning Strategies in Marketing: A Case Study of Hyatt Hotel

This document discusses the segmentation, targeting, and positioning strategies used by Hyatt Hotel in their marketing efforts. It explores how these strategies help the hotel gain a competitive advantage in the hospitality industry. The document also provides a case study of Hyatt Hotel's marketing strategies.

Travel and Tourism
Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Segmentation Marketing Strategy................................................................................................1
Target Marketing Strategy...........................................................................................................2
Positioning Marketing Strategy...................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Hyatt Hotel, Birmingham. It is one of the popular hotels in the Birmingham which is a
part of American hospitality company Hyatt Hotels Corporation. It is situated in the
Birmingham's city centre. Currently this hotel has 24 floors and 319 number of rooms. Bar
facility also has provided by hotel. There is marketing plays very big role in this company,
because it is the main way for hotel to promote its services at the large scale.
MAIN BODY
Segmentation Marketing Strategy
Segmentation strategy is the first strategy under STP (Segmentation, Targeting and
Positioning) model. This strategy help to business or companies to divide their all customers in
small customer segments on the basis of their background. Customer segmentation is very
important task to the marketing team of Hyatt hotel, because team is always responsible to divide
all customers into different segments (Paurova, Gogolova and Kliestikova, 2019). According to
top-level management, segmentation of customer is base is too necessary task to fulfil actual
needs of customers in hospitality industry. Basically segmentation is most productive tool which
inform hotel about what kind of services should serve to the customers in market. Currently
different types of segmentations are used by this hotel which has been discussed below;
TYPE OF SEGMENTATION
Geographic Segment
Geographic segment is the first customer segment which is currently using by hotel.
Marketing team of company is able to divide their all customers on the basis of their location
through geographic segment tool. Hyatt hotel has large customer base in hospitality industry.
These all customers of hotel are not comes from same location, because it has some customers
from its own city and region, like Birmingham, England, some from other regions and some
from other countries, like Wales, Scotland. Ireland, US, Australia etc. That's why marketing team
has divided all customers on basis of their different locations. This step of team is help to hotel
for fulfilling all needs and demands of customers which comes from different locations.
Demographic Segment
This is another type of segmentation which uses this travel and tourism company (Li,
2017). Demographic segment help to company for dividing people on the basis of their
characteristics. For example; hotel has large customer base which comes from different age
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group, income group, ethnicity, religion and education standard etc. There is people who come
from high income groups are main customers of this hotel, because low income groups are not
able to afford rooms price of Hyatt hotel. In this situation, marketing team target their customers
on the basis of these characteristics. Many times these characteristics are enough to company for
understanding needs of customers. Team always prepare their marketing plan on the basis of
customers' background and characteristics, because this step of team mostly achieve effective
return for the company.
Behavioural Segment
Many times' hotel use this customer segment also to divide customers on the basis of
their behaviour. Marketing team highly need to analyse consumer behaviour to gain excellent
results from this behaviour customer segment. There are all customers have their own thoughts,
motivation, mindset and mentality, so hotel always try to serve those services which are
favourable according motivation and mentality of customers. Attitude of customers is also a big
factor under this segment, so hotel always try to develop services according this factor as well.
Hyatt hotel, Birmingham uses almost all types of segmentation. The main aim of hotel is
to gain large customer base in hospitality industry, so it is the most appropriate strategy to
achieve this aim. Marketing team mainly uses geographic and demographic customer segments,
because these types of segmentation are most effective in comparison of other types. Currently
most customers which comes from different background are very satisfied with company,
because company can easily fulfil all needs of customers through market segmentation strategy
(Putra, 2018). Hotel is fulfil needs of high income groups by providing them luxury rooms. In
short, company is able to fulfil all needs of customers through this strategy.
Target Marketing Strategy
Target market strategy or targeting is the second marketing strategy under STP model
which mainly uses by hotel for targeting their customers. After market segmentation, marketing
team of hotel start their task of target customers on the basis of different segments. Targeting is
the step under marketing functions where marketing team need top aware their customers about
hotel's services by targeting them. Currently team of Hyatt hotel is successfully implemented this
strategy in their operations. In targeting stage, team is able to run different advertisements for
different customer segments. For example; currently youth is highly influenced by fancy ads, so
marketing team always try show them such fancy ads only. On the other side, old people are
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highly influenced by traditional ads, so team try to show them traditional ads. These are really
productive steps of marketing team. Hotel uses various types of market targeting which has been
discussed below;
TYPE OF TARGETING
Undifferentiated Targeting
In undifferentiated target marketing, team need to target people or customers for
informing them about services of the hotel. Many times customers does note visits in hotel,
because they have no proper knowledge of hotel (Schlegelmilch, 2016). In this case, marketing
team of Hyatt hotel need to target customers for informing them about all services which hotel is
providing to customers.
Differentiate Targeting
In differentiate targeting, marketing team always takes various steps to gain huge people
attention towards brand. In this stage targeting, team should run various activities in different
market segments for positively affecting people or customers. For example: promotional
activities, serve activities etc. Marketing manager is responsible to choose those option in this
targeting which reduce cost of marketing functions and increase productivity.
Focus Targeting
Focus targeting is the most appropriate targeting type for the marketing team, because
team can easily find those customers which really like to stay in hotel through this type. In focus
targeting, whole marketing team is responsible to deep focus on each market segment. With the
support of focus targetting, hotel is able to attract those customers towards own brand which are
currently choosing other hotel companies to stay.
Customized Targeting
Customized targeting provides facility to marketing team for building effective
relationship with customers in the market (HERNANDEZ and ÇENGEL, 2019). According to
this type of targeting, members of marketing should interact with people in different segments to
make effective relations with them. Hotel can easily understand 'what people expecting from
hospitality industry' through customized targeting. That's why this strategy is too necessary for
Hyatt hotel.
Targeting strategy uses by company is very productive manner, because currently it takes
huge advantages from this strategy. Marketing team of hotel can easily target different customer
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segments through this strategy. Hotel is able to build effective relationship with their customers
through this strategy, because marketing team highly interact with different customers during
implementation of this strategy. Targeting strategy really plays great role to this hotel.
Positioning Marketing Strategy
Market positioning is the third and last strategy under STP model, where marketing team
of the hotel is able to set perfect position to serve their services in respective market segment.
After completing market segmentation and targeting, team always need implement this
positioning strategy. This is the strategy which attracts lots of customers towards brand. Under
this strategy, team need to run various marketing campaigns in different market segments which
positively influence customers (Weinstein, 2018). Some major types of positioning which
company uses in their marketing functions has been discussed below;
Functional Positioning
In functional positioning marketing team should take steps towards fulfilling actual needs
and desire of customers. It is necessary task to team for gaining hue competitive advantage in
hospitality industry. Functional positioning gives opportunity to hotel for knowing expectations
of people by communicating with them.
Symbolic Positioning
Mostly reputed and luxury brands uses this type of positioning, in which Hyatt hotel is
also a luxury brand, so it can easily take huge advantages from this type. Marketing team of
company is responsible to aware people or customers about hotels' luxuriousness. It is necessary
to attract those customers towards brand which wants to fulfil their 'self-esteem' needs.
Positioning strategy is the most appropriate strategy to hotel for gaining huge competitive
advantage in market. Reason is, it is the stage in STP model where company is able to build
emotional connections with their customers. In this stage, marketing team of company take
actual steps towards fulfilling major needs of customers. Marketing team is too active to taking
various advantages from positioning (Richardson, 2019). It is the strategy which company only
employed for positively influence customers in different market segments. It gives opportunity to
the hotel for fulfilling desires of people or customers in hospitality industry.
CONCLUSION
It can be concluded that segmentation, targeting and positioning (STP) are very important
marketing strategy for the Hyatt hotel. This hotel can easily gain large customer base in
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hospitality industry through these strategies. Currently company is achieving huge competitive
advantage the support of STP strategies.
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REFERENCES
Books and Journals
HERNANDEZ, D. L. and ÇENGEL, Ö., 2019. Impact of Analytics on Strategic Marketing
Performance. Journal of Technologies and Applied Sciences. 1(02). pp.17-29.
Li, J. J., 2017. Rational Thinking of the Marketing Strategy Based on Customer Equity.
In Proceedings of the 23rd International Conference on Industrial Engineering and
Engineering Management 2016. (pp. 69-73). Atlantis Press, Paris.
Paurova, V., Gogolova, M. and Kliestikova, J., 2019. THE IMPACT OF THE COMPANY'S
MARKETING STRATEGY ON BUSINESS SUCCESS. Economic and Social
Development: Book of Proceedings, pp.390-398.
Putra, E. N. W., 2018. Innovation strategy for startup business: a case study using business
model canvas. STRATEGIC COMMUNICATION IN CONCEPTUAL AGE. p.28.
Richardson, N., 2019. Sustainable Marketing Planning. Routledge.
Schlegelmilch, B. B., 2016. Segmenting targeting and positioning in global markets. In Global
marketing strategy. (pp. 63-82). Springer, Cham.
Weinstein, A., 2018. Superior Customer Value: Finding and Keeping Customers in the Now
Economy. Routledge.
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