The Relevance and Utility of Market Segmentation for the International Hospitality Industry

Abstract

Market segmentation is one of the most important things a company does and generally it is done by the marketing department of the firm. The main aim of segmentation is to appeal to the potential customers and then to concentrate efforts and money in an effective way. It helps in designing satisfying product for the selective group. It also helps in defining the market position of the product in highly competitive world. Segmentation helps in understanding needs and wants of the group, positioning, selecting efficient marketing mix and effective use of capital and increasing profitability by maximising customer satisfaction. There are many ways to segment a market. Different variables can be taken into consideration separately or with combination of two or more which will help in finding the best way to view the segment. These include demographical, geographical, purpose, behavioural and benefits method. According to Bowen, Harrah (1998) demographic and geographic are the most favoured methods of segmenting a market in international hospitality. This paper has been completed with the help of secondary data – Journal, Case Studies, Books and guides on Hospitality Marketing.

Keywords: Market Segment, Market, Demographic Segmentation, Psychographic Segmentation, Behavioural Segmentation

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