1. Week 2Week 2
Segmentation, Targeting,
and Positioning
Hospitality Marketing
Nur Agustinus
Segmentation, Targeting,
and Positioning
Hospitality Marketing
Nur Agustinus
2. ObjectivesObjectives
• Be able to define the three steps of target
marketing: market segmentation, target
marketing, and market positioning.
• Understand the major bases for segmenting
consumer and business markets.
• Be able to define the three steps of target
marketing: market segmentation, target
marketing, and market positioning.
• Understand the major bases for segmenting
consumer and business markets.
• Be able to define the three steps of target
marketing: market segmentation, target
marketing, and market positioning.
• Understand the major bases for segmenting
consumer and business markets.
• Be able to define the three steps of target
marketing: market segmentation, target
marketing, and market positioning.
• Understand the major bases for segmenting
consumer and business markets.
• Be able to define the three steps of target
marketing: market segmentation, target
marketing, and market positioning.
• Understand the major bases for segmenting
consumer and business markets.
3. IntroductionIntroduction
• Market - Group of people with sufficient
purchasing power, authority, and willingness
to buy
• Target market - Group of people a firm
believes is most likely to buy its goods and
services
• Market - Group of people with sufficient
purchasing power, authority, and willingness
to buy
• Target market - Group of people a firm
believes is most likely to buy its goods and
services
• Market - Group of people with sufficient
purchasing power, authority, and willingness
to buy
• Target market - Group of people a firm
believes is most likely to buy its goods and
services
• Market - Group of people with sufficient
purchasing power, authority, and willingness
to buy
• Target market - Group of people a firm
believes is most likely to buy its goods and
services
3
4.
5. Types of MarketsTypes of Markets
• Consumer products - Products bought by
ultimate consumers for personal use
• Business products - Goods and services
purchased for use either directly or indirectly
in the production of other goods and services
for resale
• Consumer products - Products bought by
ultimate consumers for personal use
• Business products - Goods and services
purchased for use either directly or indirectly
in the production of other goods and services
for resale
• Consumer products - Products bought by
ultimate consumers for personal use
• Business products - Goods and services
purchased for use either directly or indirectly
in the production of other goods and services
for resale
• Consumer products - Products bought by
ultimate consumers for personal use
• Business products - Goods and services
purchased for use either directly or indirectly
in the production of other goods and services
for resale
5
6. The STP Process
• Segmentation is the process of classifying customers into
groups which share some common characteristic
• Targeting involves the process of evaluating each segments
attractiveness and selecting one or more segments to enter
• Positioning is arranging for a product to occupy a clear,
distinctive and desirable place relative to competing products in
the mind of the consumer
• Segmentation is the process of classifying customers into
groups which share some common characteristic
• Targeting involves the process of evaluating each segments
attractiveness and selecting one or more segments to enter
• Positioning is arranging for a product to occupy a clear,
distinctive and desirable place relative to competing products in
the mind of the consumer
• Segmentation is the process of classifying customers into
groups which share some common characteristic
• Targeting involves the process of evaluating each segments
attractiveness and selecting one or more segments to enter
• Positioning is arranging for a product to occupy a clear,
distinctive and desirable place relative to competing products in
the mind of the consumer
• Segmentation is the process of classifying customers into
groups which share some common characteristic
• Targeting involves the process of evaluating each segments
attractiveness and selecting one or more segments to enter
• Positioning is arranging for a product to occupy a clear,
distinctive and desirable place relative to competing products in
the mind of the consumer
• Segmentation is the process of classifying customers into
groups which share some common characteristic
• Targeting involves the process of evaluating each segments
attractiveness and selecting one or more segments to enter
• Positioning is arranging for a product to occupy a clear,
distinctive and desirable place relative to competing products in
the mind of the consumer
7. DefinitionDefinition
• Market Segmentation:
– Dividing a market into distinct groups
with distinct needs, characteristics,
or behavior who
might require
separate products
or marketing
mixes.
• Market Segmentation:
– Dividing a market into distinct groups
with distinct needs, characteristics,
or behavior who
might require
separate products
or marketing
mixes.
• Market Segmentation:
– Dividing a market into distinct groups
with distinct needs, characteristics,
or behavior who
might require
separate products
or marketing
mixes.
• Market Segmentation:
– Dividing a market into distinct groups
with distinct needs, characteristics,
or behavior who
might require
separate products
or marketing
mixes.
8. Segmentation ProcessSegmentation Process
• Marketers follow two methods to determine the
bases on which to identify markets:
– Segments are predefined by managers based
on their observation of the behavioral and
demographic characteristics of likely users
– Segments are defined by asking customers
which attributes are important and then
clustering the responses
• Marketers follow two methods to determine the
bases on which to identify markets:
– Segments are predefined by managers based
on their observation of the behavioral and
demographic characteristics of likely users
– Segments are defined by asking customers
which attributes are important and then
clustering the responses
• Marketers follow two methods to determine the
bases on which to identify markets:
– Segments are predefined by managers based
on their observation of the behavioral and
demographic characteristics of likely users
– Segments are defined by asking customers
which attributes are important and then
clustering the responses
• Marketers follow two methods to determine the
bases on which to identify markets:
– Segments are predefined by managers based
on their observation of the behavioral and
demographic characteristics of likely users
– Segments are defined by asking customers
which attributes are important and then
clustering the responses
• Marketers follow two methods to determine the
bases on which to identify markets:
– Segments are predefined by managers based
on their observation of the behavioral and
demographic characteristics of likely users
– Segments are defined by asking customers
which attributes are important and then
clustering the responses
9. Step 1. Market
Segmentation
Bases for Segmenting
Consumer Markets
Step 1. Market
Segmentation
Bases for Segmenting
Consumer Markets
Geographic
Nations, states,
regions or cities
Step 1. Market
Segmentation
Bases for Segmenting
Consumer Markets
Demographic
Nations, states,
regions or cities
Demographic
Age, gender, family size
and life cycle, or
income
Psychographic
Social class, lifestyle,
or personality
Behavioural
Occasions, benefits
sought, user status,
usage rate, loyalty
Occasions, benefits
sought, user status,
usage rate, loyalty
10. Market SegmentationMarket Segmentation
• Geographical segmentation
– Marketing mixes are
customized geographically
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
Key TopicsKey Topics
• Segmenting Consumer
Markets
• Segmenting Business
Markets
• Segmenting
International Markets
• Requirements for
Effective Segmentation
• Geographical segmentation
– Marketing mixes are
customized geographically
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
Key TopicsKey Topics
• Segmenting Consumer
Markets
• Segmenting Business
Markets
• Segmenting
International Markets
• Requirements for
Effective Segmentation
• Geographical segmentation
– Marketing mixes are
customized geographically
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
• Segmenting Consumer
Markets
• Segmenting Business
Markets
• Segmenting
International Markets
• Requirements for
Effective Segmentation
• Geographical segmentation
– Marketing mixes are
customized geographically
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
• Segmenting Consumer
Markets
• Segmenting Business
Markets
• Segmenting
International Markets
• Requirements for
Effective Segmentation
• Geographical segmentation
– Marketing mixes are
customized geographically
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
• Segmenting Consumer
Markets
• Segmenting Business
Markets
• Segmenting
International Markets
• Requirements for
Effective Segmentation
11.
12. Market SegmentationMarket Segmentation
• Geographical segments
• Demographic segmentation
– Most popular type
– Demographics are closely
related to needs, wants and
usage rates
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
Key TopicsKey Topics
• Segmenting Consumer
Markets
• Segmenting Business
Markets
• Geographical segments
• Demographic segmentation
– Most popular type
– Demographics are closely
related to needs, wants and
usage rates
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
Key TopicsKey Topics
• Segmenting Consumer
Markets
• Segmenting Business
Markets
• Geographical segments
• Demographic segmentation
– Most popular type
– Demographics are closely
related to needs, wants and
usage rates
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
• Segmenting Consumer
Markets
• Segmenting Business
Markets
• Geographical segments
• Demographic segmentation
– Most popular type
– Demographics are closely
related to needs, wants and
usage rates
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
• Segmenting Consumer
Markets
• Segmenting Business
Markets
• Geographical segments
• Demographic segmentation
– Most popular type
– Demographics are closely
related to needs, wants and
usage rates
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
• Geographical segments
• Demographic segmentation
– Most popular type
– Demographics are closely
related to needs, wants and
usage rates
• Psychographic segmentation
• Behavioral segmentation
• Using multiple segmentation
variables
27. Target MarketingTarget Marketing
• Socially Responsible Targeting
– Some segments are at special risk:
• Children
• Inner-city
minority
consumers
• Internet
shoppers
– Controversy occurs when the methods used
are questionable.
• Socially Responsible Targeting
– Some segments are at special risk:
• Children
• Inner-city
minority
consumers
• Internet
shoppers
– Controversy occurs when the methods used
are questionable.
• Socially Responsible Targeting
– Some segments are at special risk:
• Children
• Inner-city
minority
consumers
• Internet
shoppers
– Controversy occurs when the methods used
are questionable.
• Socially Responsible Targeting
– Some segments are at special risk:
• Children
• Inner-city
minority
consumers
• Internet
shoppers
– Controversy occurs when the methods used
are questionable.
• Socially Responsible Targeting
– Some segments are at special risk:
• Children
• Inner-city
minority
consumers
• Internet
shoppers
– Controversy occurs when the methods used
are questionable.
30. PositioningPositioning
• Positioning:
– The place the product
occupies in consumers’
minds relative to
competing products.
– Typically defined by
consumers on the basis
of important attributes.
• Positioning:
– The place the product
occupies in consumers’
minds relative to
competing products.
– Typically defined by
consumers on the basis
of important attributes.
• Positioning:
– The place the product
occupies in consumers’
minds relative to
competing products.
– Typically defined by
consumers on the basis
of important attributes.
• Positioning:
– The place the product
occupies in consumers’
minds relative to
competing products.
– Typically defined by
consumers on the basis
of important attributes.
• Positioning:
– The place the product
occupies in consumers’
minds relative to
competing products.
– Typically defined by
consumers on the basis
of important attributes.
31. PositioningPositioning
• Choosing a Positioning Strategy:
– Identifying possible competitive advantages
-- many potential sources of differentiation
exist:
• Products
• Services
• Channels
• People
• Image
• Choosing a Positioning Strategy:
– Identifying possible competitive advantages
-- many potential sources of differentiation
exist:
• Products
• Services
• Channels
• People
• Image
• Choosing a Positioning Strategy:
– Identifying possible competitive advantages
-- many potential sources of differentiation
exist:
• Products
• Services
• Channels
• People
• Image
• Choosing a Positioning Strategy:
– Identifying possible competitive advantages
-- many potential sources of differentiation
exist:
• Products
• Services
• Channels
• People
• Image
• Choosing a Positioning Strategy:
– Identifying possible competitive advantages
-- many potential sources of differentiation
exist:
• Products
• Services
• Channels
• People
• Image
33. PositioningPositioning
• Choosing a Positioning Strategy:
– Choosing the right competitive advantage
• How many differences to promote?
– Unique selling proposition
– Positioning errors to avoid
• Which differences to promote?
• Choosing a Positioning Strategy:
– Choosing the right competitive advantage
• How many differences to promote?
– Unique selling proposition
– Positioning errors to avoid
• Which differences to promote?
• Choosing a Positioning Strategy:
– Choosing the right competitive advantage
• How many differences to promote?
– Unique selling proposition
– Positioning errors to avoid
• Which differences to promote?
• Choosing a Positioning Strategy:
– Choosing the right competitive advantage
• How many differences to promote?
– Unique selling proposition
– Positioning errors to avoid
• Which differences to promote?
8- 33
34. PositioningPositioning
Criteria for Meaningful DifferencesCriteria for Meaningful Differences
• Important
• Superior
• Preemptive
DistinctiveDistinctive
CommunicableCommunicable
AffordableAffordable
• Important
• Superior
• Preemptive
DistinctiveDistinctive
CommunicableCommunicable
AffordableAffordable
• Important
• Superior
• Preemptive
DistinctiveDistinctive
CommunicableCommunicable
AffordableAffordable
ProfitableProfitable
8- 34
ProfitableProfitable
39. Group Assignment (Max 5 Students)Group Assignment (Max 5 Students)
Make Positioning Matrix
of at least 5 restaurants
in a mall (specify the
mall) by discussing it
among groups based on
the criteria on the left
and making some
possible matrix.
Make Positioning Matrix
of at least 5 restaurants
in a mall (specify the
mall) by discussing it
among groups based on
the criteria on the left
and making some
possible matrix.
Make Positioning Matrix
of at least 5 restaurants
in a mall (specify the
mall) by discussing it
among groups based on
the criteria on the left
and making some
possible matrix.
Make Positioning Matrix
of at least 5 restaurants
in a mall (specify the
mall) by discussing it
among groups based on
the criteria on the left
and making some
possible matrix.
Make Positioning Matrix
of at least 5 restaurants
in a mall (specify the
mall) by discussing it
among groups based on
the criteria on the left
and making some
possible matrix.
