Marriott: Getting Down to Business with the Business Travelers - Case Study Example

The paper "Marriott: Getting Down to Business with Business Travelers" is a perfect example of a case study on business. Loyalty and profitability are some of the key considerations business ventures concentrate on to achieve desired objectives. Various organizations use diverse ways to ensure customer loyalty, as well as profitability. One such person who invented various ways of satisfying customers is Marriot. This is because the market comprises different individuals who express similar needs but have different expectations, as well as desires.

1. How is Marriott segmenting the market for hotel services?

Marriot segmented the hotel services into different service levels depending on the cadre and demand of hotel users. Consequently, the basis of segmentation got prioritized on flexibility and customer satisfaction. Currently, the US market gets dominated by 80% hotels, which offer different brands. This is because of the influence of the Marriott segmentation of hotels based on target groups. On top of flagship brands, which included superb restaurants, athletic facilities, upscale amenities, and board rooms; Marriott added seven more segment brands into the market. The segments included courtyards, town place suites, resident inn, the fair field in, renaissance resorts, and spring hill suites not forgetting Ritz-Calton (Dittmer, 2002).

The segments provide luxury and comfort to targeted customers at different levels. Recognizing the different need s of customers Marriott also formed a basis of segmentation whereby each brand gets designed for customers. For instance, Marriott discovered many customers stay for limited nights in hotels; however, business people stay for weeks. Consequently, spring hill suites offer services for dignitaries who require high security and concealed identities. On the other hand, Ritz-Calton has luxurious and the latest virtual meeting technologies in demand by many billionaires. Courtyard mobilizes consistency in fulfilling the demands of business travelers while fair field inn targets the upper economy.

In conclusion, the nature of segmentation leads to either customer satisfaction or disappointment. It is in this regard that segmentations should meet features desired by customers. This ensures customer loyalty.

2. Which of the three targeting strategies is Marriott using? Explain

In order to stabilize the product mix, Marriott uses three distinctive targeting strategies. To start with is building the right relationship with the right customers (segmentation). This is the reason behind segmentation as Marriott targeted customers. Renaissance resorts, which is one of Marriott’s brands designed and located at strategic points for pleasure, as well as business travelers. By building the right relationship with different customers, Marriott was able to meet the diverse customer expectations at the same time.

To prevent competition from other service providers, Marriott also uses a strategy of market segmentation, where heterogeneous markets get divided into groups providing diverse services. The groups have varied behavior and characteristics to match the unique demand of customers. Target marketing involves evaluating various segments in relevance to returns and profitability before entering the segment. Market positioning is a strategy, which Marriott uses to make decisions involving various segments. The positioning of a segment or a product enables consumers to reflect intellect relative aggressive products (Temporal, 2002).

In conclusion, various strategies promote the profitability and efficiency of various organizations; however, it is imperative to identify grounds of segmentation, come up with measures to promote segment attractiveness; as well as strategize positioning in the marketing mix, to reduce the distance to customers.

3. As Marriott builds, more green hotels, should it reposition its hotel brands as being environmentally friendly? Why or why not?

Currently, various environmental organizations and activists are in motion, to ensure all fraternities using the environment limit excessive and poor use. It is in this regard that transformations remain in different service industries, to conform to the requirements. On the other hand, customer demands are also shifting to environmentally friendly services. Many business operations; therefore, are moving to customer-friendly means of offering services. Reposition of Marriott hotel brands into environmentally friendly and green hotels, therefore, would be a correct move into reaching customer demands. Marriott International is a heterogeneous facility, which needs to move with changing trends in the market. In as much as the changes remain needed, it should not exceed a percentage greater than 60% to allow flexibility it is a delightful move for Marriott (Town & Engelmann-Stendebakken, 2002).

`In conclusion, building more green hotels by Marriott is a marvelous move, which can help the different segments in gaining a competitive advantage. This guarantees the transformation of Marriott hotels into green segments. This is because it reduces energy consumption by 20%, enhances green multi-billion dollar chains of businesses not forgetting inspiration and education to the guests.

4. What specific types of data should Marriott have in its customer database for segmentation purposes?

In as much as general data is required in a hotel database, segmentation requires unique data. The data include the guest hosted at different segments. Nature of the guest assists in coming up with cost-benefit analysis, when designing the segments. For instance, information from the guest hosted help in identifying facilities to put in different compartments. This is to prevent embarrassment when guests demand what is a mystery. Consequently, Marriott should also have a database on the common functions of different customers. This helps in coming up with the right product for customers to prevent disappointments (Goff, 2006).

In conclusion, failure to provide essential services in the process of segmenting results into failures; however collecting the right information before segmentation leads to success. It is in this regard that Marriott should select relevant data of customers to prevent disappointments.