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Marketing Assignment: The Mayfair Hotel's Market Segment, Market Environmental Factors, And Competitors


Task: Aim: This assessment aims to develop your ability to identify market segments, marketing environmental factors and competitors to a hotel and its destination.

Hotel Overview
• Select a hotel of your choice in South Australia and provide a brief overview of the hotel and the products and services that it offers to guests.

Marketing Environment
• Explain the difference between micro and macro environmental factors in marketing.
• Discuss the effect of two (2) macro-environmental factors on the South Australian hotel you selected.

Market Segmentation
• Describe what a target market is.
• Explain the importance of a positioning strategy.
• Describe what you believe is your selected hotel’s positioning strategy and identify two (2) target markets appropriate for this hotel.

• Describe what a competitor analysis is and why it is important.
• Identify two (2) hotels in South Australia that are key competitors to your selected hotel and explain why you have identified these hotels as competitors.


1. Introduction
This aim of the current discussion is to analyze the significance of market segment, market environmental factors and competitors in the hospitality industry. Mayfair Hotel,Adelaide has been chosen as the subject organization based in South Australia to analyze market environmental factors and market segment etcetera.

2. Overview (Mayfair Hotel)

It is the most modern boutique five-star hotel located at King William in South Australia consisting of entertainment areas and bars. The hotel provides facilities like WIFI and mini-lounges or pubs. Apart from providing 170 luxurious rooms, it also offers other facilities like function and meeting rooms, gym, centres of business, gym, rooftop bar and "Mayflower" restaurant. Ten different styles of rooms are provided that include deluxe and luxury beds. The top South Australian tastes of cocktails and cuisines are offered by the dining facility of the “Mayflower restaurant”.

3. difference between micro and macro environmental factors

The micro-economic factors include analysis of the customers of the hotel, overview of the hotel, and analyzing the competitors of the hotel. It means that the internal factors of the business are evaluated. A SWOT analysis is prepared where the strengths, weaknesses, opportunities and threats regarding the marketing of the Mayfair hotel in South Australia are analyzed. The macro-environmental factors include the analysis of the technological, political, socialand economic factors of the marketing of the hotel in South Australia.

4. Effects of macro-environmental factors

4.1 Political factor

One of the members of the "Commonwealth of Nations" and "World Trade Organization" is Australia. It is strongly associated with the United States. The political atmosphere in Australia is stable and safe(Ibrahim, et al., 2018). The justice minister of New Zealand has criticized the deportation laws of Australia. Thus, the Mayfair hotel is perfect for this region. The United Nations have also criticized that Australia has failed to protect the indigenous and human rights.

4.2 Economic factor
The essential materials that are imported to Australia include medicines, plastics, metals, furniture, machinery, vehicles, fuels like oil, and many other items(Köseoglu, et al., 2016). The principal exports of Australia are Wheat, coal, gold, beef, natural gas, iron ore, and Wheat. The current rate of tax in Australia is 30%. The 13th largest economy in the world is Australia. The growth of the economy was by 2.4% in 2017, and by 2018 it was expected to increase by 3%.

5. Market segment
5.1 Market segment

The target market could be defined as the methodology of segmentation of customer, location based on demographics, buying behavior and preferences etcetera. Various criteria are used by marketers to identify their target audience for their product or service(Saqib, 2019). The marketers approach each segment of the market after fully identifying the lifestyles, needs, and nature of the customers.

5.2Importance of positioning strategy
Positioning strategy of the products is one of the essential components of marketing(Sainaghi, et al., 2018). It is the process used by marketers to communicate with the attributes of the products to reach the customers based on their needs, lifestyles, and different available channels of communication. It helps the marketers to understand the needs of the customers, measure the competitive pressures, and target the various channels of communication(JadAllah, 2018). The business has to be located in such a place where the customers are interested in purchasing the products or services and afford the products(Khatter, et al., 2019). The area has to be connected well with various network services, especially transport services and the cost of travelling to that place.

5.3Positioning strategy of Mayfair hotel

Elements of a positioning strategy

Key concepts


·         Customers and hotel market are the main components in segmentation of the hotel marketing strategy.

·         The customer segmentation in Mayfair hotel is categorized according to the demographic, geographic, and psychographic factors.

·         The market positioning takes place according to the quality of products or service provided by Mayfair hotel.


·         The Mayfair hotel is entirely focused on following the rules and regulations of the hotel so that the services provided by the hotel can satisfy the customers.

·         Being a five-star hotel, Mayfair will target those customers who can afford to stay in that hotel and provide more customized services to attract more customers. The richer section or the high-income group of people are mainly targeted.

·         The hotel focuses on offering better services to its customers every day so that it can target a higher number of customers by promotion and advertisements.

·         The May fair hotel remains unfocused on all the sections of the section. The section of the society that is focused by the hotel has been specified. The middle class and the lower-class sections remain unfocused.


·         The maintenance of the service quality of the Mayfair hotel will keep the hotel in a better position among its competitors.

·         The targeting of the customers by the Mayfair hotel helps in the growth of the hotel in future. The hotel will remain in a good position among its competitors.

·         The more the hotel focuses on the target customers and services, a better positioning strategy plan can be developed by the hotel.

5.4 target markets of Mayfair Hotel
The target market of the May fair hotel is the richer section of the society and thus, providing high-quality services to meet the expectations and needs of the customers. The primary target market for Mayfair is Other Major Australian Cities, UK and USA etcetera.

6. Competition
6.1 competitor analysis

Competitor analysis is a strategy used to identify the competitors and study about their products, marketing and sale strategies.

6.2 importance of competitor’s analysis
Competitor's analysis is essential to shape the strategy of the company(Koschade, 2016). The strengths and weaknesses of a company within the market can be determined by analyzing the competitors.

6.3 Key competitors of Mayfair Hotel
The key competitors of the Mayfair hotel are “Thorngroves Manor Hotels” and The Playford hotel”.

6.4 Explanation
Key competitors of Mayfair predominantly deal with services related to premium hospitality components and belongs to same market Segments. Tourists can substitute Mayfair with the key competitors whereas suppliers have complete bargaining power over Mayfair due to high concentration of competitors in the region(Bowie, et al., 2016).

The significance of the market segment, environmental factors, and competitors of the Mayfair hotel have been analyzed in the assignment. The assignment has helped to analyze the positioning strategy used by the Mayfair hotel to attract potential customers.

7. Bibliography
Bowie, D., Buttle, F., Brookes, M. & Mariussen, A., 2016. Hospitality marketing. s.l.:Taylor & Francis.
Ibrahim, H. M. H., Al-Hrout, S. A., Alsardia, K. M. A. & Ragab, M., 2018. Factors Influencing Tourism Marketing Strategies in Jordanian Five Stars Hotels. International Journal of Marketing Studies, 10(4).
JadAllah, R., 2018. An Exploration Into how Design Can Better Align the Attributes of Luxury and Sustainability for'high-end'Hotel Guest Rooms.
Khatter, A. et al., 2019. Analysis of hotels’ environmentally sustainable policies and practices. International Journal of Contemporary Hospitality Management.
Koschade, A., 2016. Willkommen in Hahndorf: a linguistic landscape of Hahndorf, South Australia. International Journal of Humanities and Cultural Studies (IJHCS) ISSN 2356-5926, 3(1), pp. 692-716.
Köseoglu, M. A., Ross, G. & Okumus, F., 2016. Competitive intelligence practices in hotels. International Journal of Hospitality Management, Volume 53, pp. 161-172.
Sainaghi, R., Baggio, R., Phillips, P. & Mauri, A. G., 2018. Hotel performance and research streams: a network cluster analysis. International Journal of Contemporary Hospitality Management.
Saqib, N., 2019. A positioning strategy for a tourist destination, based on analysis of customers’ perceptions and satisfactions. Journal of Tourism Analysis: Revista de Análisis Turístico.


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