Develop and Manage
Hotel Urban: Segmentation,
Targeting and Positioning
Definition of Market Segmentation
Market Segmentation is a vital first step in the contemporary method of creating products to suit niches within the total market rather than the traditional method of mass marketing. Segmentation involves categorising the total market into groups based on commonalities. The groups will make up potential target markets which businesses must then decide if they are potentially profitable enough to create a product or cater a service to. The main segments to focus on are geographic, demographic, psychographic and behavioural commonalities within the market.
Geographic segmentation is looking at the geographical location guests are coming from and how the geographic location of the hotel influences a guest needs in facilities and ways of using the service. The guests of Hotel Urban are generally coming from interstate within Australia with a smaller minority International Tourists. The guests are generally from urban locations in Capital Cities and are seeking a different experience from their usual geographic surroundings. The geographical location of Hotel Urban is a major influence of the guests who stay at the hotel, particularly the Royal North Shore Hospital provides guests in the form of both recovered patients and relatives of patients.
Demographic Segmentation is looking at the market from the perspective of several personal characteristics. The eight characteristics are age, family life cycle, gender, occupation, education, nationality, race and religion. Overall Hotel Urban manages to cater to all aspects of these categories to different degrees of effectiveness. In particular the demographic segmentation of a guest staying at Hotel Urban is a mature modern adult well educated Australian business person. This is reflected in for example, daily newspapers being delivered to every room type of the hotel as Hotel Urban understands their main guest type would be interested in keeping up with current affairs.
Psychographic Segmentation is divided into 3 parts. This includes, social class, lifestyle and personality characteristics. The social class involves the lower class, the middle class and the upper class. Hotel Urban is able to cater for all of the social classes. They have a variety of rooms to suit the needs and financial state of the guest. For example, the most expensive room is the Sweet Urban which is $219 per night on a weekday compared to the cheapest room, the Urban Twin which is $119 per night on a weekday.
This would be more suitable for the lower class as it is at an affordable rate and provides the guest with a value for money.
The majority of guests at Hotel Urban are middle class people who have a variety of rooms to choose from. They may choose a cheaper room for the value for money or may consider a more expensive room for the extra luxury involved. The facilities also play a role in social class as they cater to all the social classes to provide the luxury of having these facilities in the same building instead of finding somewhere else to use these.
Hotel Urban has facilities to provide the guests with the opportunity to continue their regular lifestyle as much as possible. These facilities include a gym, meeting and events spaces and accessible internet. Hotel Urban is designed for the lifestyle of people who are after accommodation in a convenient location and is easily accessible. For example, busy business people who regularly go to the gym will have to opportunity to continue their work out at the hotel’s gym after meetings or at any other time of the day as it is open 24/7 for in-house guests only.
Personality Characteristics of the guests in Hotel Urban is ideally targeted at sophisticated, educated...