POSITIONING The Hotel Market How Does

POSITIONING

The Hotel Market

How Does positioning Fit Into the Marketing Mix Sellers have 3 basic approaches to market n Mass market, Product differentiation or target market n Target marketing has 3 steps which are segmentation, targeting and positioning n

POSITIONING n n n Positioning is something (perception) that is done in the minds of the target market. A product's position is how potential buyers see the product. Positioning is expressed relative to the position of competitors.

Al Ries and Jack Trout 1969 n The term was coined in 1969 by Al Ries and Jack Trout in the paper "Positioning" is a game people play in today’s me-too market place" in the publication Industrial Marketing.

Relative Competitive Position How a company performs relatively towards its competitors (relative competitive position) n their position relative to competitors n n n Michael E Porter's five forces of competitive position model Market attractiveness and directional policy matrix

The Hotel Market

Positioning of Hotel Industry ( product positioning map) HIGH QUALITY 6 • Boutique Hotel • B&B 3 1 5 • Hilton • Travel Lodge 2 • Best Western LOW PRICE HIGH PRICE 4 • Formula 1 LOW QUALITY “Product Space” Representing Consumers’ Perception for Different Types of Hotels ?

Examples in Hotel Industry Positioning on specific product features : Large or well known chain, safe and reliable. HILTON Positioning on specific benefits, needs, or solutions : budget business accomodation for the budget conscious TRAVEL LODGE Positioning on specific use categories : fed up of dreary chains INDEPENDENT HOTEL Positioning on specific usage occasions : looking for a home from home, homely hotel. B & B Positioning against another product : why spend on the TL when you can get a room for half the price. Formula 1 Positioning through product class dissociation : not a hotel but an office away from home. BEST WESTERN