Marketing Strategies and Positioning of Hyatt in the Travel and Tourism Industry

This document discusses the marketing strategies and positioning of Hyatt in the travel and tourism industry. It covers topics such as segmentation of customer base, types of marketing strategies adopted by Hyatt, and the importance of positioning for the success of the organization.

Travel and
Tourism
Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Segmentation of customer base ..................................................................................................1
Types of marketing strategy adopted by Hyatt............................................................................2
Positioning strategy of Hyatt ......................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Hyatt Hotels Corporation is American Hospitality company having the headquarters in
Riverside Plaza, Chicago. It manages & franchises business and luxury hotel, resorts and the
vacation properties. Hyatt is recognised at number 32 in the listings by Fortune Magazine for the
best companies to work in. It has been awarded by Human Rights Campaign with 100% equality
index from 10 years.
MAIN BODY
Segmentation of customer base
Segmentation refers to process of dividing market into potential customers in groups,
segments on the basis of different characteristics. Segments which are created consists of
different consumers responding similar to the marketing strategies sharing traits like needs,
interests or the locations (Eugenio-Martin and Inchausti-Sintes, 2016).
Different types of segmentation
There are different types of market segmentation:
Demographic segmentation
This is the commonly used market segmentation by most of the businesses. It is based
over the statistical data for a group. Demographic segmentation is framed by business over age,
income, location, annual income and education. This type of segmentation is factual and
statistical, and is more easier to research. In segmentation of this type helps the hospitality
industry to narrow down the markets. Some hotels target over a specifically chosen group.
Psycho-graphic Segmentation
Psycho-graphic is like demographic segmentation, only difference is that it has focus
over emotional and mental characteristics. The factors give valuable insights about the
preferences, motives and the needs. Businesses by adopting these aspects associated with the
target audience will help in creating contents appealing them more efficiently. Examples of the
psycho-graphic characteristic includes personality interests, traits, values, beliefs, lifestyles and
the attitude (Mulet-Forteza and et.al., 2018). When the response of the target audience is
different from the motive, companies are required to put the psycho-graphic information.
Behavioural Segmentation
Another segmentation is based on the behaviours of consumers mainly regarding the
product and services offered by the industries. Companies divide their target group of audiences
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based on the behaviours displayed by them regarding their tastes and preferences. Actions of
audience helps companies in identifying the interactions of people with products, services, apps,
brands or website. Some of the examples of behavioural segmentation are easy accessibility,
easy availability, services provided, usage rates or the trend being followed. Behavioural
information of the consumers could be easily accessed from various sources.
Geographic Segmentation
It refers to splitting the market based over the locations having useful marketing
strategies. It gives important information related to the needs of people with particular location.
There are number of geographic segmentations. Availability of company to the people at
different locations. It also involves targeting the locations that will be served by company after
targeting its audiences.
Segmentation strategy of Hyatt
Hyatt has adopted demographic segmentation targeting the specific customers for having
the specific customer base. It segments its customers on the basis of their income and
occupation. It has made segmentation of higher class of society as it is a luxurious hotel therefore
its target customers are people with high earning incomes and business class people. Also it
involves behavioural segmentation providing people with quality services and number of
benefits. Hotel is easily accessible by customers from all the platforms. Hotel is existing in most
of the major cities of different countries and also the services provided give them with insights of
higher class (Sirgy and et.al., 2018). These market segmentation has helped the hotel to gain
recognition and create brand awareness among the society.
Types of marketing strategy adopted by Hyatt
Marketing strategies are very important for the success of organisations. The marketing
strategies define the companies and success adopted by such companies. It is essential for the
business entity to frame effective marketing strategies.
Marketings strategies in hospitality industry.
Branding
This is an important marketing strategy used by organisation for promoting their
business. It involves making promise to customers about the quality of goods and services that it
will be providing. Companies decide the products and services that it will be providing to the
people. Branding helps hotels in gaining competitive advantage over its competitors and
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therefore Hyatt has adopted this marketing strategy as foremost. Hyatt has became a leading
brand in the hospitality industry.
Relationship Marketing
For every company of this field is required to build effective relationship with its
customers. This is the main motive of each hotel to have strong and effective relationship with its
customers. Relationship building is essential for retaining the exiting customers and also
retaining their loyalty. They have an effective influence over the marketing of company.
Paid advertising
There are multiple approaches to marketing. Paid advertising is one of the common and
most used tool in the marketing of business. This includes advertisements of TV and in print
media. This is the oldest method of marketing its new products and services. Hotels advertise
about their products and services provided by them on different advertising platforms. It includes
advertising over hoardings and print media like news papers , magazines and many more.
Diversified Marketing
This includes targeting audience by integrating and customizing the marketing strategies.
Organisation under this frame their marketing strategies as per the different aspects of their target
customers such as culture, attitudes, beliefs and other needs and requirements. It is essential for
the companies to market on the bases of their customers satisfying their demands and
requirements.
Social media marketing
Apart from the websites there is an increased level of focus over the social media
marketing. Every business from every field is using the social media platforms for promoting
their business (Martín, Mendoza and Román, 2017). Today the social media has helped
businesses to grow to large extent with success. Social media is used by every individual at the
current times which helps business to provide effective marketing for their business. Social
media marketing has helped hotel industry to grow to next level. Hyatt uses social media
marketing for the business.
Positioning strategy of Hyatt
Principles of positioning marketing
Positioning refers to process which produces image and place the products and services
of company in minds of people. It is main process through which customers become aware
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about the brands and reputations. Positioning is also known as process involving contemporary
creative communication. Principles of marketing are :
Unique selling – Company must have something unique and special to offer to its consumers.
Consumers are always in search for something new and unique. Products and services play a
major part in the success of organisation.
Risk Reversals – Differentiating the brand from that of others. Companies are required to
provide and do for customers that the competitors cannot do. It attracts large business for the
company.
Inordinate value – Customers must be provided with the right value for the deal provided by
customers. It enables the customers to make comparisons from the competitors.
Complete, clear and concise education – Always try that consumers are not left with questions,
companies should provide its customers with the information and understanding about what they
love and know (Khan and et.al., 2017).
Importance of positioning for success of organisation
Positioning helps the business in becoming more successful if it is framed properly by
organisations. Positioning is important for business for number of reasons such as
For making the organisation market oriented
Positioning has become part of greater marketing philosophy. This is concerned with
identifying the superior points of the products or services provided that match more to the
consumers than with competitions.
Helps in coping the market changes
Positioning is a broad task, it involves considering the market changes and it effects over
the industry. New developments in market places, competitive advantages are required to be
discovered, identified or developed for suiting the expectations of market.
Meeting the expectations of buyers
Positioning helps managers and company in becoming more alert and active about the
target group. Company can better meet its expectations by analysing the expectations of society
and target market where it is positioned.
Designing the promotional strategies
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Positioning helps business in designing the promotional programmes. They decide the
products, services benefits associated with the products, appropriate means and other factors that
are essential for promoting the product.
Promoting goodwill and consumer loyalty
Systematic positioning helps the business enterprise in enforcing the name of company,
products, services and the brand. This helps in making brand recognition in the society. This
helps business in creating the goodwill and winning the customer loyalty (Becker, 2016).
Positioning strategy adopted by Hyatt
Hyatt is well known brand at current period. It has established its business in almost
every location in number of countries. Hyatt adopts the product characteristics and the customer
benefits as its key positioning strategy. This has helped the hotel in bringing brand awareness in
the society.
CONCLUSION
From the above study it could be summarised that Hyatt is using the marketing strategies
effectively in the growth of business. Demographic segmentation is focused by company. Ait
adopts branding and social media marketing. Positioning plays an important part in the success
and future growth of the organisation.
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REFERENCES
Books and Journals
Becker, E., 2016. Overbooked: The exploding business of travel and tourism. Simon and
Schuster.
Khan, S.A.R. and et.al., 2017. Travel and tourism competitiveness index: The impact of air
transportation, railways transportation, travel and transport services on international
inbound and outbound tourism. Journal of Air Transport Management.58.pp.125-134.
Sirgy, M.J. and et.al., 2018. Self-congruity theory in travel and tourism: Another
update. Creating experience value in tourism.pp.57-69.
Eugenio-Martin, J.L. and Inchausti-Sintes, F., 2016. Low-cost travel and tourism
expenditures. Annals of Tourism Research. 57. pp.140-159.
Martín, J.C., Mendoza, C. and Román, C., 2017. A DEA travel–tourism competitiveness
index. Social Indicators Research.130(3). pp.937-957.
Mulet-Forteza, C. and et.al., 2018. Twenty five years of the Journal of Travel & Tourism
Marketing: a bibliometric ranking. Journal of Travel & Tourism Marketing.35(9).
pp.1201-1221.
[Online]. Available through : <>.
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