SEGMENTATION

InterContinental Hotels



InterContinental Hotels

Market Segmentation

Market segmentation is the science that pertains to the division of the overall market into various subsets of customers or segments, for that matter. The members of these subsets share uniform needs and characteristics. Since market segmentation involves essential market research, the processes can be very costly, (Smith, 1956). However, it is particularly essential for those businesses that are small and lack the necessary resources for targeting big markets and maintaining an array of differentiated products for the varied markets. Market segmentation also involves small businesses to develop a marketing mix and a product that suits a relatively uniform part of the market.

Through focusing its resources on a very specific base of customers, small business organizations can be able to carve up a certain niche of the market and serve their demands well than most of the large competitors. Market segmentation ranges from mass marketing to one-to-one marketing. The former focuses on offering a single product to consumers all over the world, while the later focuses on designing products according to the specifications and requirements of each and every customer, (Smith, 1956). Businesses now realize that since no two people can be alike in their consumption patterns, it is not a possibility to please all the consumers with a single product.

Marketers also realize that it is a rare feasibility for them to develop a product that is distinctive for each customer. Instead, many businesses make great attempts for improving their shortcomings of attracting an important base of consumers through the division of the overall market into various small segments, rather than matching the product and the marketing mix closely to the requirements and the needs of different segments.

In the discussion, the market segmentation of InterContinental Hotel Group (IHG) is focused upon, along with the reasons as to why this segmentation is of a good advantage for the IHG system of hotels and resorts.

Market Segmentation of IHG

The Hotel industry is mainly segmented in accordance with the price points and the Intercontinental Hotel Group (IHG) focuses on three major segments which are responsible for generating more than ninety percent of the revenues for the branded hotels. These three segments are; upscale, midscale and luxury. However, IHG believes that in order to build up the proffered brands, there is a need to completely understand the needs of the guests and ensure that the brands stay relevant and contemporary.

Brands Owned by IHG

The brands owned by IHG include; InterContinental Hotel and Resorts found in important cities and famous resort destinations across more than fifty countries in the world. Crowne Plaza resorts and hotels located in the upscale four star segment. It specializes in meeting modern business facilities with a unique and a promising service style for offering a very productive experience to the guests.

Hotel Indigo is IHG's youngest brands among all the other brands. It was launched back in 2004, and stressed its focus on those guests who love design and art and wish to ...