Marketing in Hospitality Assignment Example | Topics and Well Written Essays - 500 words

Marketing in Hospitality - Assignment Example Customer’s needs are different and segmenting a target market makes the company more efficient and can achieve higher performance. Performance  is seen through  indicators such as revenue or sales. Another reason for market segmentation is the fact that customers have different disposable incomes. Thus, their sensitivity to price is different (Boundless, 2014). A  business that  segments their  target market  by  offering their products at various prices, can cater to a larger section of a given market. This results in enhanced profits for the company. Market segmentation can be used by a company to position a product. Customers can be encouraged to start using a particular product if it is offered at a low price. After gaining that  low-price  market, a company can then growth the company through built up sales revenue that is reinvested back into the enterprise. A benefit of market segmentation as a marketing strategy is that it can be used to maintain a share of a market segment. A business without a strong lead will find it hard to maximize profitability due to larger brands. Large brands maximize scale of economies in production and marketing and leverage their relationship with distributors and retailers to deliver an extremely differentiated product to the end consumer. Small companies may find it harder to find a particular segment of the market to satisfy. Marketing mix refers to a marketing strategy that involves combining  factors that can be controlled by a business, to achieve its objectives of marketing a product to a particular target market segment (Chong, 2003). The reason for this is that these factors are essential aspects of marketing activities. Market planning can then be better translated into practice. The basic components of a marketing mix are the product, price, place, and promotion. Other components may include people, process, and

Prospective on corporate strategy Essay Example | Topics and Well Written Essays - 750 words

Prospective on corporate strategy - Essay Example He argues that if these principles are not followed in entirety then a firm would be unable to maintain or enhance its strategic position. The first principle is to develop the ‘right goals’, which means the targets and objectives that are realistic and achievable in real world. For instance, the goals should be defined in a way they could create economic value for customers. This is happened when certain want-satisfying products are developed and marketed that in turn lead to consumer satisfaction / loyalty and relationship building in the long run (Porter, 1996). Profits are viewed by Porter (2001) as a secondary element of strategy because if a firm’s primary aim is profit then it would probably devise wrong policies. The second principle is ‘value proposition’ that refers to promises made by a supplier to its buyers. Indeed, the stronger the value proposition the greater the probability of enhanced strategic positioning. The third principle is â⠂¬Ëœdistinctive value chain’, which means that firms should differentiate their business functions compared to their rivals to support its distinctive value proposition (Hamel & Prahalad, 1990). The fourth principle is to ‘trade off’ certain characteristics during strategy formulation to ensure differentiation. ... Indeed, an organization with weak positioning could not survive, expand and sustain in a challenging, complex and unpredictable 21st century business environment. Task 2 It is worth mentioning that this is a globalized world (an outcome of technological advancements) where competition is intense among business firms due to relatively fewer barriers in entering in corporate arena. Nevertheless, the organizations also enjoy multiple benefits due to these technological innovations because they automate their business process and ensure their virtual presence to enhance their strategic position (inclusive of productivity and efficiency, cost reduction, market reach / share and sales volume). Apparently, it seems as if internet is a very useful tool for any firm (traditional operations) or e-business to attract a large pool of potential customers through web (dot com) presence. However, the first major criticism is that a significantly large number of dot com ventures fail and internet is not extremely beneficial for sales purposes because today it has been used by all entities (Stead et al, 2007). Indeed, every credible small and large business has created a website to facilitate and entice potential consumers towards their products (for example General Motors will not have a genuine advantage on Toyota and Chrysler because every global corporation enjoys online presence). For instance, another criticism is that the online customers are disadvantaged because they could not physically test and validate the products they order online (on web); therefore, they tend to make purchases online mostly from companies that have earned credibility and authenticity in open market and