(1) Most appropriate market segmentation for Harbour hotel to segment their customers would be a hybrid from geographic, demographic, psychographic and usage situation factors.
Feature of geographic segmentation is the market which is divided by location. People who live in the same area usually have similar needs and preferences. As for Harbour hotel, it is a neat 3-stars hotel located in Mongkok which is the heart of the shopping area in Hong Kong. People in China and several South East Asia countries tend to have lower budgets for hotels but reserve more for shopping, they are our major targeted customers.
Demographic segmentation is that the market is measured by consumers’ age, gender, income or education, etc. Harbour hotel can segment their customers by the disposal income and education. Lower disposal income and less educated customers have high preference to stay in budget hotels.
Psychographic segmentation strategy whereby the intended audience for a given product is divided according to social class, lifestyle, or personality characteristics. Harbour hotel can target customers to lower-middle social class in China and South East Asia region. Not only concern the social classes but also combines with their lifestyle; focusing people who are sensitive in price and always concern the best value of what they pay for is essential.
Usage situation factor divides customers by different occasion or seasonality. Hotel business is influenced highly by season and public holidays. Such as China Labours days in the beginning or May and the China National holidays in the beginning of October; demand of hotel rooms is tremendous. Target customers can be shifted up to middle class level in order to maximize profits.
(2) Why is it important to identify consumers’ needs?
It is because customer is the central to any firm. Without them company won’t have a business. Identifying customer needs is one of the most important parts of marketing research as...
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