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Essay / Marriott Market Segmentation and Market Research
Case Study: Marriott Market Segmentation and Market ResearchIntroduction: Marriott is one of the world's most renowned hotels with over 3,800 properties in 72 countries and territories. However, the hotel chain did not appear overnight. What started as a root beer stand at JW Marriott, has grown into a restaurant chain. Later, Bill Marriott, son of JW Marriott, managed to grow the family business from a restaurant chain to a hotel chain in over 50 years. Bill Marriott achieved great success in expanding Marriott's portfolio which now includes 16 different hotel brands including Ritz Carlton, Renaissance, Springhill Suites, Gaylord Hotels and many others (Jr, 2013). The underlying factor in Marriott's success is the marketing plan. owned by Marriott, which involves effective market segmentation. Market segmentation refers to the process of classifying customers and prospects into groups with similar needs and purchasing behavior (Morritt, 1997). The reason for segmenting the hotel industry is to define the main types of demand, identify customer characteristics as well as estimate future growth trends (D'Antonio, 2013). Market segments must have the following criteria: identifiable, measurable, meaningful, accessible and exploitable (Samli, 2013). Segmentation must be “post-hoc”, that is, market research is carried out in order to identify market segments (Morritt, 1997). A company can choose to focus on a single market segment or opt for multiple market segments. The former is rare while the latter is common so that the company can meet the diverse needs of different market segments. Marriott focuses on several market segments. Thus, it is middle of paper ......ing the drivers of today's market that effective market segmentation can be carried out. Works Cited D’Antonio, S. (2013, September 25). Market Segmentation: Identifying Where Hotel Demands Are Coming From.Jr, JW (April 2, 2013). JW Marriott Jr: From Root Beer Stand to Global Hotel Company. (D. Schawbel, interviewer)Marriott. (2014). Retrieved from Marriott: http://www.marriott.com/default.miMayock, P. (March 5, 2013). "Marriott launches into economy segment with Moxy". Retrieved from Hotel News Now: http://www.hotelnewsnow.com/Article/10035/Marriott-dives-into-economy-segment-with-MoxyMorrissey, J. (2012). Millennials are checking in. New York: The New York Times. Morritt, R. (1997). Niche marketing for hotel managers. Journal of Marketing Segmentation, 191-209. Samli, A.C. (2013). International consumer behavior in the 21st century. New York: Springer Science.