7. Market Segmentation, Targeting, and Positioning

This chapter explores market segmentation as well as how tourism and hospitality marketers can position their offerings to gain a competitive advantage in the marketplace. It begins with an explanation of market segmentation, which is essential for designing and implementing a marketing mix. It considers how tourism and hospitality companies decide on which market segments to focus their marketing efforts. It also discusses the criteria used by the marketer to ensure effective segmentation: using demographic, psychological, and behavioural criteria. Further, it discusses the process of target marketing and the different approaches that a tourism and hospitality organisation can take. The chapter concludes with a discussion of market positioning and how companies can position their offerings to gain a competitive advantage. Lastly, the chapter’s case study examines these principles in the context of Moxy Hotels, designed to capture the millennial traveller market, and owned by Marriott Hotels International Group.