Market Targeting: Exploring Differentiated Marketing Strategy with Marriott

QUESTION

Discussion ch6:  Market targeting can be carried out at several different levels.  Pick one of those levels and provide an example of why a company would use that strategy, are there any downsides to the strategy?  For example, Marriott uses a differentiated marketing strategy which helps them position their various hotel brands to differing customer segments.

ANSWER

 Market Targeting: Exploring Differentiated Marketing Strategy with Marriott

Introduction

Market targeting is a crucial aspect of marketing strategy, as it allows companies to identify specific customer segments and tailor their offerings to meet their unique needs. One effective approach is differentiated marketing, where a company develops and positions multiple products or brands to serve distinct customer segments. In this discussion, we will explore the concept of differentiated marketing and analyze how Marriott, a leading hospitality company, utilizes this strategy to cater to diverse customer segments. While differentiated marketing offers several advantages, it is not without its downsides.

Understanding Differentiated Marketing Strategy

Differentiated marketing involves creating different marketing mixes for different target markets. Instead of adopting a one-size-fits-all approach, companies like Marriott recognize that customers have varying preferences, needs, and buying behaviors. By segmenting their target market, they can design specific products, services, and marketing campaigns to effectively reach and serve each segment. This approach enables companies to maximize their market potential and gain a competitive edge by catering to a broader range of customer needs.

Marriott’s Differentiated Marketing Strategy

Marriott is renowned for its differentiated marketing strategy, which is evident in its portfolio of hotel brands targeting diverse customer segments. The company recognizes that customers seeking accommodations have different preferences in terms of luxury, price, location, and amenities. To address these varying demands, Marriott has created a range of distinct hotel brands, each with its own positioning and target market.

For instance, Marriott’s luxury brand, The Ritz-Carlton, targets affluent travelers seeking an indulgent experience with top-notch service, luxurious amenities, and iconic locations. This brand caters to customers willing to pay a premium for a memorable and exclusive stay. In contrast, Marriott’s Courtyard brand focuses on the needs of business travelers, offering comfortable and convenient accommodations, business-friendly amenities, and a modern ambiance at a more affordable price point.

By adopting a differentiated marketing strategy, Marriott can effectively position its various hotel brands to appeal to specific customer segments. This allows the company to tap into different market niches, reach a broader customer base, and capture additional revenue streams. Furthermore, each brand’s unique identity helps Marriott avoid direct competition among its own properties and minimizes cannibalization of market share.

Downsides to Differentiated Marketing

While differentiated marketing offers significant benefits, it also presents some potential downsides. One of the main challenges is the complexity associated with managing multiple brands. Maintaining consistent brand identities, ensuring brand differentiation, and allocating resources appropriately can be demanding and resource-intensive. Companies must carefully manage their marketing efforts to prevent confusion among consumers and maintain clarity in their brand positioning.

Additionally, differentiated marketing can be costly, requiring substantial investments in market research, product development, and marketing campaigns tailored to each target segment. Companies need to weigh these expenses against the potential benefits of capturing additional market share and customer loyalty. Moreover, if the market segments are too small or the brand positioning is not strong enough, the returns on investment may be diminished.

Conclusion

Differentiated marketing is a powerful strategy that allows companies like Marriott to effectively target diverse customer segments with tailored offerings. By leveraging their understanding of customer preferences, needs, and behaviors, companies can position multiple brands to capture a broader market share and gain a competitive advantage. While there are challenges associated with managing multiple brands and the potential for higher costs, when executed well, differentiated marketing can lead to increased customer loyalty, improved market positioning, and enhanced profitability. Marriott’s success in implementing differentiated marketing exemplifies the effectiveness of this strategy in the hospitality industry.