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