THE USE OF BRANDING AND MARKET SEGMENTATION IN HOTEL MARKETING: A CONCEPTUAL REVIEW

Year 2018, Volume: 1 Issue: 2, 12 - 23, 27.12.2018

Yusuf Hossein Khan Sheikh Md. Abdul Hakeem Nikola Naumov

Abstract

This paper aims to analyse the use of branding
and market segmentation from a hotel marketing perspective. The use of branding
has enabled market segmentation and delivered financial and organisational
growth for hotel operators. This application of marketing has increased value
for the organisation and the customer by delivering a level of service that is
tailored to the consumer expectations and needs. Branding brings the quality
assurance and leads to customer loyalty and greater customer choice. The paper
supports the argument that brand creation makes the management of hotels more
complex and can lead to inefficiency which the hotel management must decide if
branding is a useful tactic or not. We argue that not all organisations have
the resources to implement market segmentation and smaller operators find it
increasingly difficult to compete against larger competitors. The modern hotel
industry is increasingly competitive and market segmentation is expected to
continue. Modern communications and ICT developments have eroded the value of
brands and the competitive advantage they bring over smaller independent hotels.
Consumer power is a growing trend that hotels must deal with and redefines
their supply chain model. Brand owners are required to remember that the
product and guest satisfaction should be the ultimate goal for an organisation
as it increases brand value and encourages customer loyalty. Marketing and
branding cannot be discussed in isolation within an organisation and brand
principles should be carried out throughout the entire customer experience for
commercial success.

Keywords

Market Segmentation, Branding, Brand Value Marketing

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