Positioning
Positioning presents one of the most important aspects within the service sector. This is since it contributes towards exposing intangible services on appropriate point of reference. Positioning can be referred to as a method of differentiation used in the process of identifying, developing and communicating organization’s products and services. Positioning tend to expose perceived superior and distinctive qualities of intended products and services to target consumers.
The concept provides good grounds on which services can be differentiated. Normally, service companies create some positioning of their goods and services in such a way that they are able to influence purchase decisions amongst consumers. There is possibility of positioning to be incorporated as part of marketing strategy.
Such planned positioning enables clear distinction between services from different companies within same competitive market. Generally, consumers within the same market, have different needs hence attracted to distinctive offers within the market. Efficient services should satisfy selected distinctive characteristics based on certain criteria such as; importance, distinctiveness, communicability, superiority, affordability as well as profitability (Kotler and Keller, 2007).
Certain characteristics should be evaluated for effective positioning. Such include; intangibility, degree of variability in the nature of service provided as well as inseparability which justifies connection between customer and available services (Fill, 2005).
Segmentation profile of the target market showing customers of the selected local service organization and various influences on consumer buying behaviour
Accor Hotel Marketing
Accor Hotel Group comprises of group of hotels spread all over various regions of the world and using one brand name. In marketing their services, Accor Hotel involves deep scrutiny of all their services for the purposes of promoting their business. Such process entails formulation of valid marketing mix including application of 4P’s.
Market Segmentation for Accor Hotel
Accor comprises of group of small hotels with each hotel operating based on centralized revenue management system. The hotel operates within the international market managing, owning and franchising nearly over four thousand hotels most of them being Small microenterprises.
Accor Group of hotels segments the market based on the needs which require satisfaction. The changing needs and requirements within the market segments are identified through concrete and effective marketing strategies and decisions. The hotel market segments are divided based on main components such as geographic, psychographic and socio-economic.
Accor hotel group segmentation based on geographic bases comprises of hotel companies found within different regions of the world such as; Ibis, Formulae 1, Etap hotel names used within Europe and other regions. While in the United States the names used include Motel 6 and Red Roof Inns. While psychographic bases incorporates hotel’s life cycle, various buying patterns, motives of customers and attitude regarding intended services.
Such services comprise of economy to upscale luxury class hotels within business and leisure sectors. Additionally, Accor’s social-economic bases comprises of women segment, weak-end segment as well as instant market segment. Despite, feeding many segments, the life-style segment proves to be the most lucrative in terms of services demanded (Rajan, 2006).
Marketing Mix for Hotel Industry
Marketing mix comprises of various offers from the market in which the hotel operates. The mix involves application of the 4P’s (Promotion, place, price and people) in the process of identifying potential market segments for the intended services. Appropriate implementation of marketing mix determines the level of acceptability of the products and services and at the same time assists in the process of stirring demand for hotel’s services.
Various decision making areas requires attention since they determine to a larger extent positioning of hotel’s services. Such areas comprises of distinctive peripheral services, involvement of creative promotional services, application of affordable pricing strategies capable of assisting Accor Hotel command significant market share. Working with trustworthy and diligent personnel is recommended for the purposes of maintain considerable competitive advantage within the market.
Product mix for Accor hotel services comprises of services rendered within catering sector, management on various small hotel branches such as restaurant and cafeterias spread all over the regions as previously mentioned. This also includes management and provision of executive rooming services and efficient management of convention halls.
However, boarding services within hotel industry are considered important component of the product mix. There is well developed and established information technology which Accor utilizes to attract customers such as online technology (Ramboll management, 2002, pp.2-3). Besides, there should be adequate services in terms of sufficient ventilation, entertainment, lighting system and water supply within the hotel’s premises.
It is important that organizations should integrate distinctive service operations allowing for efficiency in coordination between customers and individual hotels. Efficient positioning is considered capable of revealing needs of intended market segment and various methods on how to satisfy such needs.
At the same time payment systems should be modified with the changing technology. Such changes reinforces positioning of services based on efficient internet payment systems, such improvement would enable more online bookings hence decreasing transaction costs.
Improvement done in the whole chain of pricing enables easier adjustments; this is especially whenever any individual hotel alters prices within revenue management system. Such movements allows for individual reaction of the hotel towards fulfilment of local customer needs (Ramboll management, 2002, pp.2-3).
Promotion mix for such hotel involves various awareness campaigns through various means such as social media. Potential customers become aware of such facilities based on the nature of advertisement used in describing the quality of services and products offered. Such distinctive qualities are promoted through business advertisement, extensive publicity, and sales promotion, personal selling amongst other potential promotion tools.
Consumer buying behaviours are usually determined by nature of services based on the marketing mix. Most of the hotels utilize print media with the most current one being use of computerized technology. Hotels have found it easier to reach customers through social sites such as face book and e-mails.
Application of CRS system within hotels enables e-booking which ultimately contributes towards an increase in the number of bookings within particular segments. At the same time development of third-party websites assists hotels in the process of making reservation for their consumers or travel agents. Such wide range of technological installations, assist in the process of optimizing available hotel capacity within the world scale. This provides opportunities for individual hotels in terms of international bookings (Rajan, 2006).
The nature of publicity will determine to a larger extent, consumer response towards hotel services. Such business ventures require publicity of a number of events taking place within the hotel. Provisions for menus, entertainment events, conferences and exhibitions should be publicized through media. Pictures of dignitaries staying within the hotel premises contribute towards consumer attraction. At the same time, the kind of pricing mechanism used of which tactical pricing is found appropriate in the promotion of hotel businesses.
Explanation on positioning strategies used by the selected local service organization
Unlike other major competitors within the market, Accor focuses on building its current credentials and reputation based on high quality service provision amongst high-end consumers. Most hotels focus on diversifying their services especially within saturated markets such as United Kingdom.
Establishing a chain of hotel services within densely populated areas would ensure that the business attracts higher demand. However, as indicated, management of Accor engages in segmentation, notably through the introduction technologically proven essential service lines.
Accor hotels utilize choice of location as one of the most essential positioning strategy. This is applicable in their owned restaurants, guest houses and small tourist attractions centres. At the same time, their distribution system utilizes modern computerized technology for purposes of increasing user of information. This ensures that the distribution and advertisement of service materials reach large population of media users.
The hotel also uses their travel agents as middlemen who happen to buying hotel rooms in bulk and ultimately sell to intended retailers. Such tour operators found within the hotel industry are referred to as producers of services. Such dimensions of business deals enables travel agents to purchase sufficient services at the request of specified clients hence providing convenient network of sales outlets capable of catering for the needs of intended market segment.
Positioning Map
Positioning map is used within hotel industry for the purposes of identifying various positioning of competitors’ services with respect to identified distinctive characteristics. In this case, the analysis is done by drawing positioning map for particular market segment. However, customers from different market segments may have different opinion and perception on the nature of services provided and intended benefits. (Kaplan and Norton, 1996b).
References
Fill, C 2005, Marketing Communications – Engagement, strategies and practice, Pearson Education Ltd, Edinburgh Gate
Kaplan R & Norton, D 1996b, The balances scorecard: translating strategy into Action, Harvard Business School Press, New York.
Kotler, P & Keller, K 2007, Marketing Management, Pearson, Upper Saddle River, New Jersey,
Rajan, V 2006, “CRM Implementation: Effectiveness Issues and Insights,” Journal of Service Research, Vol. 9, No.2, pp. 184-194
Ramboll management, 2002, “Case Study: Accor Hotels,” The European e-Business Watch, Vol. 2, No.1, pp. 2-3