Behavioral Market Segmentation for Five Star Hotel

Marketing Strategy

1

Question One: Promotional Decision

  • The business has to make various decisions while designing promotional strategy.
  • Special price setting is usually one of the major decisions that a company has to make.
  • For instance, the company must change the price setting for a period of time either short or long term period. The price setting must consider the potential profit and revenue the company aims at making.
  • The company must decide on the execution plan of the decision.
  • The execution plan involves, setting of the promotional objectives, determining promotional budget, target market segmentation, the promotional appeal, and the promotional mix.
  • The promotional mix that a company can choose include; advertising, sales promotion, public relation, personal selling, direct selling or digital selling.
  • The company has to make decision with regard to type of the product market, overall marketing strategy, buyers’ readiness stage and product life cycle.
  • Also, the company must make decision on how to affect the marketing communication process.
  • Marketing communication process undergoes seven stages that are; source, encoding, transmission, decoding, recipient, response and feedback.
  • The company must make the decision on the best evaluation model of the product promotional process.

Question Two: Behavioral Market Segmentation for Five Star Hotel

  • Behavioral segmentation involves dividing the potential customers on the basis of their behaviors. Buyer’s behaviors are the ways in which customers respond and buy products in the market.
  • The first segmentation of the first star hotel can be on the basis of baying on occasion. Notably, the hotel can target customers that party and explore during festive seasons like end-year festivals. As a result, the company can tactically advertise their products towards these seasons.
  • The second element of behavioral segmentation is the benefit sought. The benefit sought can regard the place to stay like restaurant and the food sold. As a result, the hotel can design its marketing message to address the specific need of the customer.
  • The hotel can also segment its customers based on loyalty. Notably, the hotel may be receiving new customers together with the loyal customers. The company must initiate a strategy that can assist in retaining the new customers.
  • Also, the company needs to determine the variety seeking of the customers. There are some customers that buy a particular product maybe food and beverage only. On the other hand, some customers will purchase a variety of product and services.

2

Question one: Marketing

  • Marketing is a process by which organizations and businesses promote themselves and their product by communicating with potential customers.
  • Marketing includes all types of advertisement.
  • Marketing benefits not only the company but also society.
  • Marketing, for instance, enable the company to attract many customers hence receiving high revenue and profit.
  • On the other hand, marketing educates and informs the customers. A company doing marketing will identify customers’ needs and explain how the available product can satisfy those needs. Besides, marketing also enables customers to learn about new products in the market.
  • Marketing also manages societal expectations. Customers do rely on the consistency of a brand hence developing brand loyalty. Marketing assists in informing the customers of the major changes in the market.
  • Marketing also brings about economic benefits to society. Marketing enables the company to attract many customers hence earns more revenue. A company that receives more revenue is likely to expand rapidly hence creating more jobs, pay more taxes, and contribute to the general economic growth.
  • Marketing assists in modeling customers’ behaviors. Companies will have to do behavioral research about the customer’s behavior rather than using the data to craft awareness campaigns that can change customer behaviors.

Question Two: Tenets Pillars of Marketing Philosophy

  • Marketing philosophy has five pillars. The five pillars are; production, product, selling, marketing, and societal marketing concept.
  • The production concept argues that buyers prefer that they are widely available in the market and are cheap. This theory, therefore, focuses on achieving high productivity at a low cost and mass distribution. The marketers assume that the customers are interested in low-cost products than high-cost products.
  • On the other hand, the product concept argues that customers prefer products of high quality and have innovative features. The managers use this concept to produce differentiated products with unique features that will obtain superiority. Marketers assume that the buyers are likely to appraise the quality of the product.
  • On the other hand, the selling concept argues that customers will not buy sufficient of the company’s products if the organization fails to make any marketing attempt. As a result, a business organization must undertake a series of promotional activities to increase its sales.
  • On the other hand, the marketing concept holds that a company needs to develop effective communication and marketing plans that surpass that of the competitors. The marketing concept believes in attaining a competitive advantage in the market.
  • The societal marketing argues that marketing task needs to determine the customers’ need, interest, and wants. After that, the company must strive to deliver to those needs effectively that the competitors. Therefore, a company should be at the forefront of enhancing social wellbeing.

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