Why Would Companies Use A Market Segmentation Strategy

Question: What is market segmentation?

Answer: Dividing a market into distinct groups who might require separate products and/or marketing mixes

Identify bases for segmenting the market
ii. Develop profiles of resulting segments
Question: Why do companies use segmentation?
Answer: The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. In the long run, this benefits the company because they can use their corporate resources more effectively and make better strategic marketing decisions.
Question: What are the bases commonly used for segmenting hospitality and travel markets?
Answer: -Geographic
Nations, states, regions, counties, cities or neighborhoods
-Demographics
Age and life-cycle stage
Gender
Income segmentation
-Psychographic
Lifestyle
Personality
-Behavioral
Occasion segmentation
Benefits sought
User status
Usage rate
Loyalty status
Question: Undifferentiated marketing
Answer: Mass marketing
Ignores market segmentation differences and goes after the entire market with one market offer
Focuses on common needs of the consumer rather than on differences
Question: Full market coverage strategy
Answer: Targeting all market segments but with a tailored message and brands
E.g.: Marriott