Apply the principles and theory in the development of a marketing strategy. Phase 1: � Identify a market � Segment the audience � Select a target market strategy � Create a positioning statement Phase 2: � Develop a marketing mix strategy ……
Marketing is a process intended to help a company devise customer relationships that are profitable to the company while at the same time meeting customers’ expectations fully (Kotler & Armstrong, 2011). Good marketing involves understanding and devising marketing strategies that are intended to create value for the customers (Kotler & Armstrong, 2011)
The Sebel Hills Sydney is a company in the hotel industry located in Central Sydney, and offering luxurious hotel services to its customers. Its services include; bar and restaurant, gymnasium facilities, swimming pools and spas, and others such as car parking and concierge services. Before developing the marketing strategy for the hotel, one has to understand who the hotel’s market is, segment the market and select a market strategy for the chosen segment, and thereafter create a position statement before developing marketing strategies.
IDENTIFICATION OF THE MARKET
Identification of the market is the first step towards developing a good marketing mix strategy for one’s market. A market refers to the potential and the actual buyers of a company’s products and services. Identifying the market helps a company know who are likely to be its customers and who it is likely to sell its products to (Kotler & Armstrong, 2011).
In the case of Sebel Surry Hills Sydney hotel the markets are the customers who require the services that a hotel can offer. They constitute those customers who want to enjoy the hotel’s recreational facilities, bar and restaurant services, the lodging facilities, among others.
SEGMENTATION OF THE MARKET
Segmentation is a form of target marketing where a company’s market is divided into smaller segments that are more manageable for the company to deal with as compared to a whole market. The company narrows down its customer base in terms of their geographical location, demographic factors, psychographic factors, and behavioral factors. Customers are therefore segmented according to their needs and characteristics, and such a strategy allows the company to focus its marketing efforts on customers according to their tastes and preferences (Kotler & Armstrong, 2011).
The hotel’s market can further be subdivided into the following main market segments; travelers, couples and families.
TARGET MARKETING STRATEGIES
After segmenting the market, the next step is to develop a viable marketing strategy for each market segment. Some generic target marketing strategies that the hotel can use include; product differentiation, cost leadership and micromarketing.
Product differentiation involves making innovative products that are different from competitors. When such a strategy is used, the company may have to charge a fee above the normal rate in order to make up for the extra costs that were incurred in making a product or a service unique (Pinson & Jinnett, 1996). For the Sebel Surry Hills Sydney hotel, this strategy could be used for the travelers segment because travelers depending on their needs are likely to demand luxurious hotel accommodation in order to have a different customer experience after visiting other hotels in Sydney or in other places worldwide.
Not all customers are willing to pay that extra fee, so they will require products and services that are much cheaper. In such a case the company can choose to use the cost leadership marketing strategy where its main intentions will be to provide low cost products or services to its customers. Here, the company uses lower cost facilities so that the low prices that they charge are a reflection of the costs incurred in offering those services (Pinson & Jinnett, 1996). The hotel can use this strategy on the families segment, because families that need to spend holidays or celebrate other occasions might be concerned if they were to be charged more than the average hotel industry prices.
Micromarketing which is like niche marketing but a more focused form of marketing can be used for those customers who like to have customized marketing approaches availed to them. The marketing effort is therefore tailored to meet the needs of the targeted customers (Verdino, 2010). This strategy for the hotel would be more appropriate for the couples segment. This is because, for instance, a person may want a service that would impress his or her partner, or would like a service that is suited to a particular special occasion such as a wedding anniversary.
CREATION OF POSITIONING STATEMENTS
The next step after selecting the target market strategy is to develop a positioning statement for each of the market segments. A positioning statement is intended to tell the targeted customers what the company is all about, what they offer and how the product is different from that of competitors, in terms of quality, price or even in terms of its application (Kotler & Armstrong, 2011).
For hotel Sebel Surry Hills the following could serve as positioning statements for the targeted segments:
For the differentiation strategy, the statement could be, “Hotel Sebel Surry Hills, providing travelers with the best and most luxurious accommodation services that guarantee a memorable stay in Sydney”.
For the cost leadership strategy, the statement could be, “For families who want to enjoy holidays at favorable prices in hotel Sebel Surry Hills”.
For the micromarketing strategy the following statement could be appropriate, “Sebel Surry hills hotel, giving you the best and quality night out with your loved one”.
DEVELOPMENT OF THE MARKETING MIX STRATEGIES
The next step after creating the positioning statement is to develop and define the marketing mix strategies that will be used to get the products and services known to the customers in order for them to make the ultimate purchase decision.
The 4 P’s help companies to know how the right product will be distributed (place) to the targeted customers at the right prices, and what promotional efforts will be used to inform customers about the product (Kotler & Armstrong, 2011). The marketing mix strategies for the hotel can be developed as follows:
Product here means giving the customers the right products that are meant to satisfy their needs. The product has to be one that is of good quality and it may require other features to accompany it in order to give the targeted customers the total customer experience (Cadogan, 2009). The appropriateness of the product determines how the other P’s of the mix will be carried out.
The main service being sold to travelers at the Sebel Surry Hills Hotel is accommodation facilities. This is because; persons travelling will usually require a place that can offer them the required accommodation. This service will include, comfortable beds, food, recreational facilities and anything else that will make the travelers want to stay at the hotel for the period they are touring Sydney or for their business stays.
For the families, the product being sold to them will mainly be recreational facilities. Most families will decide to spend time in hotels for purposes of enjoying time with one another and to strengthen the bond that ties them together. The services to be marketed to them will include the swimming pools and spas in the hotels.
For the couples, the main products that will be sold to them are the restaurant facilities, where the hotel is to ensure that they enjoy the food and beverages that they have to offer to them.
Price in the mix refers to the amount the targeted customers have to pay in order to get access to the products. It depends on what prices other products in the same industry are being sold at, and how much the consumers are willing to pay for them (Kotler& Armstrong 2011).
The price to be charged to the travelers will be higher if the hotel avails quality and superior rooms that are spacious with all the required facilities ranging from adequate and punctual room services, good beds fitted with comfortable mattresses, gymnasium facilities to ensure that travelers have time to work out before they start out for the day, among others.
For the families, facilities such as swimming pools, saunas and spas will have to go for low prices because so many hotels in Sydney offer these facilities and choosing to charge higher prices might make the hotel lose their customers in the that segment.
Provided that the couples are offered the necessary foods and beverages needed to make their special events memorable, the hotel will only charge prices according to the demands of the customers for instance the kind of wine they will want or even the dessert.
Place refers to how the products will be availed to the customers within the specified time period (Cadogan 2009). The hotel can not distribute or transport its products and services to all its targeted customers rather, it is the customers who have to check in or make bookings at the hotel. Sebel Surry Hills can give all their targeted customers an easy time if they invest in making bookings available via the internet. This will ensure that customers are able to make their bookings in time and from wherever they are without having to make trips to the hotel only to find that they can not be served in cases where the hotel is full. The fact that the hotel is centrally located in Sydney makes it easy for customers to access it.
This refers to the means the business will use to advertise and sell its products to the targeted customers (Kotler & Armstrong, 2011). Convenient ways of advertising the hotel to customers could be through the televisions and internet so that customers are able to see what it has to offer for all the targeted groups.
Promotion could also refer to after sales services or additional services that the hotel is willing to offer its customers. Additional services could include keeping part of the hotel rooms to serve as business centers where business travelers can hold their meetings, giving customers baby cots and rollways so that it is easy for them to move around with their kids and also offering concierge services so that customers move around the city with ease.
For a company to develop good marketing strategies, it is essential that it identifies its market and segments it into smaller groups so that it focuses its marketing efforts to the right customers. Also it needs to select strategies and create positioning statements for each one of them before it can incorporate the 4 P’s of the marketing mix in developing marketing strategies.
Cadogan, J. W. (2009). Marketing Strategy: Marketing-mix strategies. SAGE.
Kotler, P. & Armstrong, G. (2011). Principles of Marketing. 14th Ed. Prentice Hall.
Pinson, L. & Jinnett, J. (1996). Target Marketing: Researching, Reaching and Retaining your
Target. Upstart Pub. Co.
Verdino, G. (2010). Micromarketing: Get Big Results by Thinking and Acting Small.
Mc-Graw Hill Professionals
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