Principle Marketing
2.3 learning outcome:
Target-Market Strategies: Choosing the Number of Markets to Target
Henry Ford proved that mass marketing can work—at least for a while. Mass marketing is also efficient because you don’t have to tailor any part of the offering for different groups of consumers, which is more work and costs more money. The problem is that buyers are not all alike. If a competitor comes along and offers these groups a product (or products) that better meet their needs, you will lose business.
Multisegment Marketing
Most firms tailor their offerings in one way or another to meet the needs of different segments of customers. Because these organizations don’t have all their eggs in one basket, they are less vulnerable to competition. Marriott International is an example of a company that operates in a multisegment market. The company has fifteen different types of facilities designed to meet the needs of different types of market segments, including the following: * Marriott Courtyard. Targeted at over-the-road travelers. * Ritz-Carlton Hotels. Targeted at luxury travelers. * Marriott Conference Centers. Targeted at businesses hosting small- and midsized meetings. * Marriott ExecuStay. Targeted at executives needing month-long accommodations. * Marriott Vacation Clubs. Targeted at travelers seeking to buy timeshares.
A multisegment marketing strategy can allow you to respond to demographic and other changes in markets. For example, the growing number of people too old to travel have the option of moving into one of Marriott’s “Senior Living Services” facilities, which cater to retirees who need certain types of care. A multisegment strategy can also help you weather an economic downturn by allowing customers to trade up or down among your brands and products. Suppose you take a pay cut and can’t afford to stay at Marriott’s Ritz-Carlton hotels anymore. A room at a JW Marriott—the most luxurious of the Marriott-brand hotels but cheaper than
Target-Market Strategies: Choosing the Number of Markets to Target
Henry Ford proved that mass marketing can work—at least for a while. Mass marketing is also efficient because you don’t have to tailor any part of the offering for different groups of consumers, which is more work and costs more money. The problem is that buyers are not all alike. If a competitor comes along and offers these groups a product (or products) that better meet their needs, you will lose business.
Multisegment Marketing
Most firms tailor their offerings in one way or another to meet the needs of different segments of customers. Because these organizations don’t have all their eggs in one basket, they are less vulnerable to competition. Marriott International is an example of a company that operates in a multisegment market. The company has fifteen different types of facilities designed to meet the needs of different types of market segments, including the following: * Marriott Courtyard. Targeted at over-the-road travelers. * Ritz-Carlton Hotels. Targeted at luxury travelers. * Marriott Conference Centers. Targeted at businesses hosting small- and midsized meetings. * Marriott ExecuStay. Targeted at executives needing month-long accommodations. * Marriott Vacation Clubs. Targeted at travelers seeking to buy timeshares.
A multisegment marketing strategy can allow you to respond to demographic and other changes in markets. For example, the growing number of people too old to travel have the option of moving into one of Marriott’s “Senior Living Services” facilities, which cater to retirees who need certain types of care. A multisegment strategy can also help you weather an economic downturn by allowing customers to trade up or down among your brands and products. Suppose you take a pay cut and can’t afford to stay at Marriott’s Ritz-Carlton hotels anymore. A room at a JW Marriott—the most luxurious of the Marriott-brand hotels but cheaper than