Pages 3 (753 words)
Importance of segmentation in hospitality industry Importance of segmentation in hospitality industry The success of marketing policies used within each industry is depended on the level at which these policies are aligned with the industry’s needs and trends, as influenced by the local culture and ethics.
The potential use of segmentation in hospitality industry is discussed in this paper. Emphasis is given on the value of segmentation in the particular industry, as the specific issue is analyzed in the relevant literature. In order to understand the importance of segmentation in hospitality industry it would be necessary to refer to the characteristics of segmentation as a marketing technique. Then, its use in hospitality industry could be explored. According to Stanton market through segmentation a market, which is heterogeneous in regard to a particular product is partitioned, or else divided, into segments, so that each of these segments to be homogeneous for the particular product (Stanton 1983, cited by Vieceli & Valos, 1998, p.137). From a similar point of view, Lamb, Hair & McDaniel note that market segmentation helps marketers to identify the preferences and needs of different groups of people within a particular area (Lamb, Hair & McDaniel 2008, p.232). Market segmentation has led to the transformation of business practices worldwide. For instance, Wal-Mart has established a unique marketing approach: its stores address the needs of six different market segments, being aligned with six different styles: “urban, suburban, Hispanic, multicultural, baby boomer and rural” (Lamb, Hair & McDaniel 2008, p.232). ...