Segmentation is a process of grouping together markets that have a similar characteristics, needs and buying styles. In other words, segmentation helps the business to satisfy and improve anew products or services. Market could be customers, consumers, business, group or a mixture of many and individuals. Here, I choose 5 stars Hotels to be segmented, which are Hyatt Hotel and Kingsbury Hotel.
The market can be segmented into several categories such as demographic, psychographic, geographic and behavioral. My research focuses on these four divisions for two hotels. Moreover, I did survey questionnaire to analysis and compare the customer needs for the hotels based on above four segmentations.
Geographic segmentation is used to identify business target markets based on where the businesses are located. By looking at a geographic division, the Kingsbury and Hyatt Hotels should be located in the central area or Capital city to be easy accessible for business people, leisure travelers, tourists and families. As both of them are in Capital cities they agree exactly with the geographic segment. Further, Hyatt Hotel is an international hotel but Kingsbury hotel is a local hotel which is only in Colombo City.
Demographic segmentation is one of the most common approaches to segmenting markets. With this segment, a hotel simply divides the customers into groups based on several defined traits. Age, race, gender, marital status, occupation, education and income are the common