Marriott's Market Segmentation

Buket Ozcan

Marriott's Market Segmentation
Marriott believes all customers require a base service level and that customers differ in their willingness to pay for different levels of comfort and luxury. That is why they created a tier of different style hotels varying from price and amenities to meet each consumer’s wants, needs and income. Approximately 3,747 properties -14 brands in 72 countries. 

What Segmentation Characteristics are being used?
Geographic; for example in metropolitan cities there are several luxuries hotels, but small cities like Buffalo there is no luxury hotels.

What Type of Segmentation Does Marriott Employ?
Marriott uses multi-stage segmentation. They have tailored their brand named hotels to cater to distinctive target markets. For example their brand offers the following hotel options: Marriott offers some seasonal promotions. For example, market segmentation strategy is featured on Marriott’s main web page. They are targeting Football fans who are VISA card owners, an NFL MVP Combo. Pay with your Visa Card and get a $20 Visa Gift Card and NFL MVP Combo Snack Pack.

Marriott’s Customer Groups;
Luxury, seasoned traveler, high income bracket and middle-upper age, Business Professionals, Singles, Weddings, special occasions, upscale business meetings, Business Travelers (short and long term), Upper and Middle Class, not a lot of time, need tech amenities, Travelers that are soaking up the sites long term, Young Business Professionals, Conferences and meetings, Families, Couples, Seasoned travelers, location and convenience, middle class, Singles
Conventions, Trade Shows.

Demographics; (income, religion, culture, education). There are tiers of hotels in specific areas contingent on the needs and wants of the consumer. There is a tier for every income within the Marriot organization. Age – each hotel chain offers different services for specific age groups.

Purpose of the trip; splitting it into two groups; Corporate vs. pleasure/leisure. What does the consumer want when choosing a hotel? Why are they traveling and what amenities does that particular hotel offer that suit their needs?

Psychographics; the lifestyle that the individual is accustomed to. For example a jet-setter residing in Beverly Hills is going to want to stay in accommodations that they are used to. They would be more likely to pick a JW Marriot over a Fairfield to meet their needs.
Behavioral Segmentation; brand loyalty, frequency, usage status, benefits. Marriot offers a reward program with free nights, upgrades, different third party promotions to appeal to its loyal customers

Product Related; consumers have specific services that appeal to them. Fitness, sustainability, technological needs.