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JOURNAL OF TOURISM INTELLIGENCE AND SMARTNESS

Year: 2018 Volume: 1 Issue: 2 Pages: 12/23

THE USE OF BRANDING AND MARKET SEGMENTATION IN

HOTEL MARKETING: A CONCEPTUAL REVIEW

Md. Yusuf Hossein KHAN

Assistant Professor, College of Tourism and Hospitality Management International

University of Business Agriculture and Technology, Dhaka, Bangladesh E-mail: yusuf.hossein@iubat.edu

Sheikh Md. Abdul HAKEEM

Ph.D. Student, Portsmouth Business School, Portsmouth University Portsmouth, U.K. E-mail: skhakeem@hotmail.co.uk

Nikola NAUMOV

Ph.D., Senior Lecturer in Hospitality amp; Tourism Management, Department of Events Tourism amp; Hospitality, Faculty of Business amp; Law, University of Northampton, U.K.

E-mail: nick. naumov@northampton.ac.U.K.

Keywords: Market Segmentation、Branding 、Brand Value 、Marketing 、Hotel Industry

Abstract

This paper aims to analyze the use of branding and market segmentation from a hotel marketing perspective. The use of branding has enabled market segmentation and delivered financial and organization growth for hotel operators. This application of marketing has increased value for the organization 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 organization 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 organization as it increases brand value and encourages customer loyalty. Marketing and branding cannot be discussed in isolation within an organization and brand principles should be carried out throughout the entire customer experience for commercial success.

1. INTRODUCTION

The theory of hotel marketing may mean everything from personal selling, advertisement, making hotel rooms available online, etc. These activities are carried out in the prearranged market and this procedure is referred asrsquo; market segmentationrsquo; (Prasad amp; Dev, 2000). The need for satisfactory lodging with outstanding services is the fundamental requirement of each guest. Nevertheless, considering the several kinds of hotels available for the different market segment, there is a need of classifying the hotels so the guest expectations are met (Kapiki，2012). This theory is based on what to focus and why as the hotel chains businesses have finite properties and it may not be possible to have the right product for everyone. A company with limited properties needs to pick only the best chances to influence. It cares components of what tourists demand in a hotel, what that demand requires in the way of construction, size, services, amenities, personnel and room rate. The most broadly used brand divisions in hotel industry encompass economy hotels, midscale without food and beverage, mid-scale with Famp;B, economy prolonged stay, mid-scale or upscale extended stay hotels, upper upscale, and premium luxury hotels (Solutions, 2018). The official and unofficial hotel classification procedures goal at categorizing the hotels on the basis of levels of services offered, quality of food and beverages offered, level of cleanliness, quality of guest rooms and bathrooms (Naragajavana,2008). In the ever-changing and globalize world of hospitality, marketing, market segmentation, and brand management have become the new norms of customer retention and long-term business success (Dev et. al. 2009). The role of marketing has grown considerably in line with the ever-increasing demand for hospitality products and services. With the hospitality industry becoming ever more mature, the role of branding and marketing strategies within the marketing mix has become ever more important than before. A controversy now exists as to whether brands have been developed as a benefit to the industry and its stakeholders or the management of many different brands under a company portfolio adds unnecessary challenges to organizations struggling to compete in the modern business environment (Siliviaamp;Murgoci,2007). An investigation of a customer database calls into question the knowledge, mutual among academic observers, that market segmentation can work as a grand approach for either trip lines or for hotel brands. In pursuing a market segmentation approach, a brand would emphatic its efforts on a distinct group of customers to the exclusion of supplementary groups. The results propose that market segmentation may be effective on a tactical level. That is rather than think of market segmentation as a tactical measure, trip lines and hotel businesses can work to gain modest benefit with precise demographic groups, and therefore contest in a set of somewhat distinguished markets (Lynn, 2007). Several branding is a mutual marketing method used by the furthermost hotel chains having numerous sub-brands. Marketing of such all sub-brands may be challenging to organization and unclear for visitors. The misperception can rise because various hotels brands are valued at diverse level

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