Accor Case Study - Segmentation

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“Present day marketing strategy can be summed up in the following three words- segmentation, targeting and positioning (STP)” Kotler.P, pg278-279. Therefore for the purpose of this paper, market segmentation, targeting and position will be defined. Following this will be brief explanations on differentiated and concentrated STP strategies. This will then be followed by the case study, which being the Accor SA’s internet site. The site will be analysed on how it caters for the different segments of its market. The sites evaluation will categorised under geographic and demographic segmentation.

Segmentation, Targeting and Positioning
“Target marketing is when a seller identifies market segments, selects one or more , and develops products and services tailored to each selected segment” Kotler P. pg 288. In the travel and tourism industry, as well as in most other business sectors, specifically focusing on unique market segments has become a necessity for survival in today’s competitive marketplace “There are three major steps in target marketing. The first being market segmentation, which is dividing a market into distinct groups who might require separate products and/or marketing mixes,” Kotler P. pg 200. Businesses analyse the marketplace and find different ways of segmenting. This can be carried out in numerous ways - demographics, geographics, and socioeconomic status and psychographic are some of the criteria used. The purpose of dividing consumers into these groups is based on the assumption that each segment has homogeneous needs, wants and buying practices, thus they are more likely to respond similarly to a given marketing strategy.

“The second step is market targeting” Kotler P. pg 200. The process of targeting is distinct from segmentation as it solely involves the evaluating of segments which a business chooses to address. The final step in the target marketing process is positioning. Positioning is the design or tailoring of an...
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