Free UK Hospitality Marketing Research Essay Sample
Market segmentation is an adaptive strategy. It is made by the partitioning of the market with the aim of choosing one or more market segments. This is aimed at developing specific marketing mixes that acclimatize to particular market needs. Market segmentation is not necessarily a solely adaptive strategy. Furthermore, market segmentation can also consist of the selection of those segments best suited for a particular competitive advantage comparative to competitors in the same segment. This in turn reduces the cost of adaptation in order to gain a niche.
Other rudiments also ought to be considered and are exemplified by simplicity and potential flexibility of the segmentation configuration across international boundaries. Three key factors were established in thus regard and are illustrated by: the size of the segment and growth company objectives and resources and the attractiveness of the segment structure. Furthermore, examining the firm's skills and resources as reflected in the value chain, and their suitability to target market alternatives is also essential in determining market segmentation and target markets. This is however based on a SWOT analysis fashioned through strategic marketing planning process. In this regard, this grounds our thesis by stating that companies would only succeed by applying marketing concept illustrated by being more sensitive to the changes in customer needs and by identifying significant trends in the economic and social environment that might impact on its market/segments.
300 words per page instead of 280
Free Revisions (on demand)
Free plagiarims report (on demand)
The most fundamental methodology employed in this analysis was through literary review of articles concerning the impact of market segmentation, positioning and identification of the target market. Secondly, an interview was carried out to members of staff of Treglos Hotel as well as the issuing of questionnaires which served as primary sources of data. Interviews were carried out on a number of personnel of the Treglos Hotel exemplified by the front office manager, accountant, marketing manager and other subordinate staff who were highly concerned with the market changes in the hospitality business. Some of the questions asked were whether they had realized any significant change in consumer demands over the past few years and how the changes may have impacted upon the business. Moreover, the interview sought to explore any strategic adaptations that the organization may have employed to counter these changing trends.
Questionnaires were issued to those members of staff who could not be easily available for a direct interview due to the workload associated with the hospitality industry. Since most of them directly interact with their customers, it was imperatively difficult to have a direct interview with. Nonetheless, the questionnaire was aimed at exploring some of the challenges that the personnel in the Hotel were experiencing in regard to customer demands. Some of the questions in the questionnaire implored on what interactive mechanisms the Hotel had adopted towards serving their customers. Finally, the questionnaire also incorporated some of the questions asked during the direct interview which included how the organization had adopted to implementing some of the strategies that arose from changes in consumer demand and market.
Nonetheless, interviews and questionnaires may have fallen short in the credibility test since some of the correspondents were rather reluctant towards giving out some useful information regarding their organization's strategic alignment. This was in regard to sustaining its competitive advantage over its rivals. Moreover, some of the responses may have not been entirely honest due to the crippled credibility associated with questionnaires. No immediate feedback was available hence may have compromised the validity of some data. Nonetheless, most of the data collected was concurrent with other researches conducted over the Hospitality Industry. Therefore, issues discussed in this paper have a heightened sense of a generalized reflection.
The Concepts of Target Market(S), Segmentation and Positioning
According to Porter, Michael E. (1980), there are two major strategic questions that arise from market segmentation. Regardless of the fact that market segments may differ in terms of their structural attractiveness and the requirements for a competitive advantage, these two factors are prime in market segmentation. These factors are illustrated by:
Through market segmentation, an organization can present higher value to customers by mounting a market mix that accosts explicit needs and concerns of the chosen segment. This means that the firm makes a monopolistic/oligopolistic market conditions through the exploitation of a variety of demand curves for a definite product kind. This is an extended function of the theory of price discrimination in microeconomic. This theory states that an organization attempts to realize the maximum price that each segment would bring. In this regard, this theory's dependence on price is widened to incorporate all 4 P's associated with the marketing mix Porter, Michael E. (1980). This theory is however practical particularly in systems active in product categories engulfed by stiff competition. The application is also helpful where suitably huge markets with discrete sets of value preferences are instituted. Moreover, they can be applicable where the firm decides to proactively establish a stranglehold by coming up with value preferences amongst a set of consumers.
Segmentation as a process is made up of: identification, segment selection and the formation of marketing mixes aimed at target segments. Basically, the result of a good segmentation process should meet the following values:
In terms of positioning, Hitt, M., Ireland, R., & Hoskisson, R. (2008) recommended that after selecting target markets the strategist ought to come up with positioning targets to then develop them into a complete marketing mix. Conversely, the development of the positioning objective once the value proposition and brand identity have been established. This definition follows the recommendation which lies in the long-drawn-out range of position alternatives. Three places have been proposed for establishing branding position elements. These are: points of influence within the individual composition (quality, sub-brand), the core identity (fundamental, changeless spirit of a brand), and the value proposition (reimbursement that compel relationships between target audiences).
Positioning should be concurrent with selecting target markets. Positioning objectives should guide one in establishing a detailed market mix. It is essential to recognize the definition of positioning as "that part of the brand identity and value plan that is to be dynamically passed on to the target audience and that which exhibits a gain over other competing brands. In other words, positioning statement refers to the point where a collection of imputes join to form one concept which is aimed at beguiling the essence of that which the target market looks up to in the product category.
Custom essay writing service bestwritingservice.com
100% satisfaction guaranteeOrder now
Trend Analysis of Treglos Hotel
In terms of geographical trend affecting market Treglos Hotel is located on the North Cornwall coast. It enjoys a magnificent and an uninterrupted view of the Constantine Bay. Treglos provides the ideal base for a Holiday in Cornwall through the rugged and thespian costal paths as well as golden beaches. It also offers a tranquil environment for relaxation with its stunning landscaped gardens. This geographical location is well suited for any kind of visitor as it has the provision of meeting any situation. It accommodates those who are after adventure as well as those who are just seeking a time out from their normal activities. In terms of its market, this geographical location appeals to clients and visitors with different demographic as well as intentional backgrounds. In this regard, its trend analysis in terms of its market shows that the organization has broadened it target market so as to accommodate visitors and customers with different motivations.
Treglos Hotel has an expansive market segment and sales through its self catering services and a number of facilities that marked its segmentation process. There are four comfortably rendered apartments, Trevose, Bedruthan, Constantine and Boobys which are located within the hotel grounds. The restaurant also has 'take-away' service, swimming pool and other facilities. Other facilities are exemplified by: an indoor heated swimming pool, hot tub, (complying with the legal requirement) and a health boosting infrared cabins. Furthermore, the availability of a contemporary bar where informal lunches or an aperitif before dinner are offered also heightens its business segment. This in turn contributes to the expansion of its target market thus marking its segmentation process.
Competitor Analysis/STEP Analysis
The strength of competitive rivalry changes from one organization to another but this intensifies over time. In this regard, gaining and systematic comprehension of competitors is not only important to effective strategy formulation but also critical to survival, Hitt, M. et al (2008). To efficiently examine competitors, one should be in a position of understanding four competitor dimensions: critical vulnerabilities, current strategy, resources and capabilities and likely competitive moves. In the case of Treglos hotel, the following data table represents the process of its competitive analysis.