Market segmentation and customer value proposition

1. How has Marriott segmented the customer market? How do the primary customer groups Marriott is targeting vary among the different brands?

Market segmentation refers to the scheme of subdividing the entire market into smaller units consisting of consumers whose needs are almost similar as well as their purchasing behavior. A market segment has a group, individuals, or organizations with characteristics that make them portray similar product needs. Two market segmentation methods are used by business organizations: concentration strategy and multi-segment strategy. In the concentrated strategy, the firm uses a single market segment with one marketing mix. In this case, the firm aims at maximizing sales, increasing efficiency as well as attracting a large portion of the segment chosen. On the other hand, multi-strategy marketing uses two or more segments which are chosen with a marketing mix for each and different marketing plan.

With its large lodging properties located in the United States as well as 67 other nations and regions, Marriot categorizes its business into four major segments. These are Select-service lodging, Extended-service lodging, Timeshare and Full-service lodging (Marriott International, 2009). Marriott uses different approaches in approaching the target customers for its brands. It uses different prices in segmenting various markets. There is a major advantage in using differential pricing as it’s easy to segment the market into narrow customer segments (Yelkur & DaCosta, 2001)

The different brands have variations in how they attract their primary customers. Different brands are offered to provide fine-tuned services to the clients, who, in most cases have variations in their tastes and service needs. For example if we look at the major brands offered, whose focus is full-service lodging, the aim is mainly customers who need full attention and may in most cases want to have full service while in the lodgings. It is also a preserve of those who may want special personalized attention.

Several benefits are pegged with the brands that offer full-service lodging such as fitness centers, gift shops, meeting facilities, easily and readily accessible internet among others. Many brands generally offer full service due to the nature of the clients received who may be travelers, executives and people who are in vacations as well as those in pursuit of luxury places to frequent for their holidays. The target customers in this case do not have extra time to perform some of the requirement on their own. They therefore need the full attention of the attendants. In full-service also, the several extra services are provided to the clients, which include swimming pools, guest house facilities, Wi-Fi and many in house services to crown the client’s stay in the hotels and lodges.

2. What is the “customer value proposition” for the major Marriott brands?

In providing customer value proposition, Marriott International ensures that the customers obtain the best value for their money. The different brands offered have different price tags which go along with them. Depending on the kind of service sought by the customer, the price is set for the brands. There are brands which are lowly priced due to the limitation in the services offered. Others are highly priced as they offer a wide range of facilities. Customer value proposition ensures that the customers remain loyal to the brands offered (Thomson, 1999).

Brands relating to select services concentrate on providing critical needs of the clients. The needs could be business meetings where the best audio-visual facilities are provided. Some clients whose orientation could be the need to discover something new while in their outings are quenched of their thirst in the Renaissance hotels and lodges located in the various parts of the U.S. and internationally. In providing Timeshare facilities, clients whose major need is to have the experience of a home away from home get dwelling facilities such as villa accommodations with several bedrooms. The facilities provided for the extended-service vary depending on the client needs. Some clients may want to register in clubs which offer periodical home facilities after a period, say a year.

References

Marriott International Inc., (2009), Marriott Brands and Marriott Brands Hotels, Retrieved June 17, 2009 from http://www.marriott.com/corporateinfo/glance.mi

Rama Y., DaCosta, M. M. (2001), Differential pricing and segmentation, MCB UP Ltd.

Thompson, H. (1999), Customer-centered enterprise, McGraw-Hill professional

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