Segmentation Assignment: Role of STP in Marketing in Event & Tourism Sector
Segmentation Assignment Brief:
Segmentation: Analyse the role of segmentation in marketing in events sector and how marketers use this understanding to achieve competitive advantage. Illustrate with examples.
This essay is designed to assess your understanding of the role segmentation, targeting and positioning plays in marketing and helping a company to achieve success in relation to its competitors.
It means that you need to understand and explain why STP is an important part of marketing, how segmentation and targeting is achieved and how this is communicated to customers through a clear positioning using the marketing mix to achieve success against their competitors.
You would start the essay by looking at the importance of segmentation in today’s marketing in companies and how and why it is used.
You would outline the different types of segmentation that can be used (geographic, demographic, geodemographic, psychographic, behavioural and/or a combination of these. Give examples for each of these of how companies have used this knowledge to reach target customers.
You could discuss how some companies have adopted undifferentiated marketing (to all segments) but that most use differentiated marketing (clearly targeting different segments) or niche marketing (only marketing to one segment).
You would finish by examining how targeting allows a business to create a clear positioning in the minds of the customer through the use of marketing mix elements of product quality, price and messaging, and how this helps them differentiate themselves from competitors.
Your case studies can be drawn from your text books, the seminar readings and other sources that you find. You can draw on a range of company types in travel, hospitality, leisure and events (and do not have to stick to either events or tourism).
Use of references: This assignment should contain no fewer than 15 references, of which at least 10 are from text books suggested for the course or from academic journal articles (Do not use the lecture notes as references). The remainder could be from factual sources such as trade magazines or the website of the business you have chosen.
The references should be annotated in the text and linked to a full bibliography which comes after the coursework and before any appendices (References are NOT part of the word count). All references should be in the Harvard referencing system style as laid out in the LSBU library help sheet.
As stated in the segmentation assignment, in the recent era of rapid globalization, customer acquisition has been essential for companies in event sector. The business operating in this event and tourism sector is in need of identifying the targeted customers and thus takes measures that are effective in promoting the products. The customer’s segmentation and targeting them is essential for the company to know their customers better. The proper positioning of the products as per the needs of the customers is the key to success for the business. The implication of marketing mix is determined to be an excellent marketing tool that ensures that the company is able to execute excellent business measures and thus fetch positive results that benefit the companies. The top to bottom approach is used in the segmentation of the customers. To emphasis the satisfaction of the customers, the impaction of strategic tools is a must. The essay highlights the tools like STP as well as marketing mix with the illustration of the different measures taken by the business to succeed in the coming business environment in a coherent manner.
In recent times, segmentation of the customers is important in planning effective marketing strategies by the leading businesses mainly in the event businesses. Morritt and Weinstein (2012) mentioned that the division of the market using segmentation into micro-markets are helpful in creating smaller markets size that enables the business to increase the level of specialisation that is required for the organisation to adopt competitive advantages.Sert (2017) argued that the segmenting of the markets is a must for the business so that they can work with the niche markets and therefore develop better measures in serving the customers. The Implication of the marketing tools is essential to ensure effective marketing strategies. It is thus productive in fetching better outcomes of the promotional measures executed. The use of tools like STP is contributing towards knowing the customers better by evaluating the needs and thusserving them as per their taste and preferences.Pomering (2017), at the same time, mentioned that tools like marketing mix had been used by businesses in even industry both big and small so that they can develop coherent measures and above confusion while placing promotional measures. In recent times, the use of an effective marketing mix is a must so that the threats to rivals and the new entrance in the markets can be rescued. The substitute good is easily available, and therefore the business operating in the retail or hospitality industries needs to ensure that the logical planning using marketing tools are done by experts to fetch success.
Kotler et al.(2016) the segmentations are mainly done on the basis of geographical location, demographic, behavioral and psychographic differences within the customers. This is helpful in understating the customers better and thus ensuring that the measures are taken to keep them satisfied with the use of the effective services executing strategies. For Instance, taking into consideration the example of Popeyes, a fast-food restaurant chain, the customers residing near to the stores are targeted on the basis of geographic location. On the other hand, the business is in the fast-food industry will be focusing on the younger generation to fetch maximum sales. Segmenting the customers on growths of behaviourism in psychology, the customers willing to buy the fast food and are lowing spices food products are the segmented core customers by the business (Kotler et al., 2016). Brotspies and Weinstein (2019) supported the facts and mentioned that the use of the different types of segmentation of the market is helpful in targeting a narrow customer base, and thus promotional measures to keep the limited customers are helpful in fetching better results to the business. The use of geographic segmentation is on the basis of location in the event business. In most cases, it is country-specific. However, the business operating at the international level is not using these market segmenting approaches as they are willing to serve customers all across the globe. The use of demographic segmentation is essential as it categorisers populations on the basis of age, gender or income groups. For instance, the beauty product is targeting the female segments of the population. On the other hand, the stationary products segment the students. The use of demographic segmentation is essential so that the promotional measures are planned in a coherent manner. Waltersand Bekker (2017) support the arguments mentioned that psychological, as well as behavioural segmentation, are essential in evaluating the targeted customers. It is effective in creating effective customer engagements. The segmentation methods are helpful in segmentation the customers who are interested in the products or services, thus building loyalty among the customers for the brand.
On the other hand, Kolb (2021) argued that the organisation with the limited capacity of marketing mainly focus on the single visitor segment or the niche marketing. In the process of targeting multiple segments, it is essential for the business to meet the desire of more than one targeted group. It is also mentioned that positioning of a product implies the unique benefits are effectively communicated to the targeted segments. Morritt and Weinstein (2012) mentioned that the marketing trends had undergone a huge change in recent times. In the hospitality industry, effective marketing is helpful with the use of the marketing trends and thus ensures that the segmentation of the population along with the coherent selection of the marketing mix is done to gain success. The niche marketing segment, as mentioned by Akba et al. (2017), focuses on the particular market group. This is effective in creating a better notion of planned marketing measures. On the other hand, a businesses likeMyles Kennedy & Companyis adopting undifferentiated marketing. The use of a wider customer base is used so that the business is able to serve a wide customers base by fetching effective satisfaction to them. It is most evident that the business at the global level is opting for undifferentiated marketing measures. The extensive product differentiation is allowing the business to develop a better prospect to serve wider customers bases.Malegaonkar (2017), at the same time, mentioned that the adoption of niche marketing practices is effective in creating better expertise among the marketing. The development of better interpersonal relations among the customers is developed, and the business is able to keep track of the changing needs of the customers. The customers have irrational buying behaviours. The preferences changes with time. The use of differential marketing has a limited customer’s base, and thus, adopting promotional measures using different tools of marketing is effective in creating better measures to create awareness. On the other hand, undifferentiated marketing is subjected to controversies and business threats. A business with a wider customer base is unable to keep all its targeted customers satisfied at the same time. Thus it is essential to segment the targets the customers effectively and propose logic.
As mentioned by Reic (2016), understanding the perspective of the customers is essential in ensuring that the transparent targeting of the population is essential in creating an effective marketing ability. It is mentioned that the elements of the marketing mix are contributing to developing better marketing measures. For instance, in the case of McDonald's, the products are mainly fast-food, including burgers and fries. The products are made as per the taste and preferences of the customers and thus ensure that an effective level of satisfaction can be fetched. On the other hand, prices are kept reasonable so that the customers can develop the buying power to enjoy the foods served by Mc Donald’s. The prices of the foods served by the business vary from one county to the other depending on the economic condition of the countries as well as the buying power of the customers. Place plays a vital role. Mc Donald’s are targeting the busy locations so that the stores are easily accessed, and the company is able to reach a wider customer base.George (2021) commented that the promotion of the products is essential so that the company is able to ensure that the information is effectively imparted to the customers. The trend of online marketing is evaluated to be the most promoting measure to execute promotional strategies. Relations marketing are considered to attract and retain customers. Online marketing is effectively used by businesses to develop understanding about the products served by the business among the customers. Cooper (2019) mentioned that the use of clear targeting of the customers ensure that the product positioning is done in a coherent manner. Most of the companies in the retail business are positioning their product in low price high-quality approaches. This is mostly when the targeted customers are from the economically weaker sections. On the other hand, in the process of targeting the affluent class, the use of the high price and high-quality relation is used for product position.
Gus (2020) portrayed the fact brand image is effective in developing the perception of the audiences. Effective marketing tools such as segmenting and targeting the products. Ç?nar et al. (2020) mentioned the example of the hospitality sector. It has been mentioned that the business is using the strategies measures in developing a coherentunderstanding of the interest of the customers and their needs regarding comfort and food. The use of effective measures of segmentation is helpful in targeting the customers to travel and is willing to stray in confirmable hotels. On the other hand, posting the services on the lowers price ranges are productive in attracting customers from lowers and middle-income groups to take the services as well. The use of the effective locations of the hotels in the tourist destinations along with the proper marketing measures is portraying effective sauces measures of the business in the competing hospitality industry.
It can be stated that with the risein the market competition in the different industries, theuse of effective marketing tools isconsidered to be effective. It has been thus helpful in developing stronger measures in creating a transparent idea about the targets customers in the event sector as well.The tools like STP and the marketing mix acts as the guidance’s to the competing business in event and tourism sector and thus help the marketer to ensure effective business measures. It can be concluded that promotions are vital in the process of developing better interpersonal relationships among the customers. It is considered to be excellent in portraying marketing plans that have the ability to fetch elevation in product sales. The targeting of the customers and position of the products along with marketing mix is effective in reducing market threat ensuring business success to all the companies that are adopting the marketing tools. The use of market trends in adopting marketing strategies is important for the business in produce better satisfaction to the customers.
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