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©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th edition Upper Saddle River, NJ 07458 Kotler, Bowen, and Makens Chapter 8 Market Segmentatio n, Targeting, and Positioning Dr. John V. Padua

Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

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Page 1: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Chapter 8

Market Segmentation, Targeting, and

Positioning

Dr. John V. Padua

Page 2: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Chapter Objectives• Explain market segmentation and identify

several possible bases for segmenting markets

• List and distinguish among the requirements for effective segmentation

• Illustrate the concept of positioning for competitive advantage

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 3: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Markets

• A market is all actual and potential buyers of a product or service

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 4: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Market Segmentation

• Geographic Segmentation

• Demographic Segmentation

• Psychographic Segmentation

• Behavior Segmentation©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 5: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Geographic Segmentation• Dividing the market into different

geographic units

– Nations– States– Regions– Counties– Cities– Neighborhoods

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 6: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Demographic Segmentation

• Dividing the market into groups based on demographic variables– Age– Gender– Income– Occupation

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 7: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Psychographic Segmentation

• Dividing buyers into different groups based on social class, lifestyle, and personality characteristics

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 8: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Behavior Segmentation• Buyers are divided into groups based on their

knowledge, attitude, and use or response to a product

• The best starting point for building market segments

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 9: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Requirements for Effective Segmentation• Measurability

• Accessibility

• Substantiality

• Actionability

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 10: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

• Size, purchasing power, profiles of segments can be measured.

• Segments can be effectively reached and served.

• Segments are large or profitable enough to serve.

Measurable

Accessible

Substantial

Actionable• Effective programs can be designed to attract and serve the segments.

Requirements for Effective Segmentation

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 11: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Positioning Strategies

• Products can be positioned on specific attributes or against another product class

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 12: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Product Differentiation• Physical Attribute Differentiation

• Service Differentiation

• Personnel Differentiation

• Location Differentiation

• Image Differentiation ©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 13: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Selecting the Right Competitive Advantages

• Avoid:– Underpositioning - failing ever to position

the company at all – Overpositioning - giving buyers too

narrow a picture of the company– Confused positioning - leaving buyers

with a confused image of a company

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Page 14: Marketing for hospitality and tourism chapter 8 market segmentation, targeting and positioning

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens

Positioning Measurement

• Perceptual mapping is a research tool used to measure a brand’s position

©2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and Makens