BUS203: Principles of Marketing

Most firms tailor their offerings in one way or another to meet the needs of different segments of customers. Because these organizations don't have all their. eggs in one basket, they are less vulnerable to competition. Marriott International is an example of a company that operates in multiple market segments. The company has different types of facilities designed to meet the needs of different market segments. Marriott has invested in unique brands so consumers don't confuse the brand and the brand is not diluted. Some of the Marriott brands and their target markets are as follows:

• Marriott Courtyard. Targeted at over-the-road travelers.
• Ritz-Carlton Hotels. Targeted at luxury travelers.
• Marriott Conference Centers. Targeted at businesses hosting small- and midsized meetings.
• Marriott ExecuStay. Targeted at executives needing month-long accommodations.
• Marriott Vacation Clubs. Targeted at travelers seeking to buy timeshares.

A multisegment marketing strategy can allow firms to respond to demographic changes and other trends in markets. For example, the growing number of people too old to travel have the option of moving into one of Marriott's "Senior Living Services" facilities, which cater to retirees who need certain types of care. A multisegment strategy can also help companies weather an economic downturn by allowing customers to trade up or down among brands and products. Suppose you take a pay cut and can't afford to stay at Marriott's Ritz-Carlton hotels anymore. A room at a JW Marriott - the most luxurious of the Marriott-brand hotels but cheaper than the Ritz - is available to you. A multisegment strategy can also help companies deal with the product life cycle issues. If one brand or product is "dying out," the company has others to compete.