Market segments : part of the whole market where a particular customer group has similar

characteristics.

Socio-economic group: division of people according to social class based on employment

status.

MAKE NOTES ON MARKET SEGMENTATION

ACCOR

1. Accor has a number of hotel brands that it targets at different customer groups, each
with different needs. For example, some customers, the young and low income
travellers, may only be able to afford ‘budget accommodation’. Therefore, the Hotel F1
brand might suit their particular needs. Rooms only cost from €19 per night. Another
group of customers targeted by Accor are very wealthy and look for luxury; the Raffles
brand will provide for this group. There are just 12 Raffles hotels and each one is unique
in style. The brand also offers unique features including the famous Long Bar and
Writers Bar (which come from the original Raffles Singapore), Raffles Patisserie and
Raffles Spa. A room in Raffles, Singapore may cost at least €800. Accor also targets
well-connected and sophisticated travellers. Its Pullman brand has 100 four- and five-
star hotels across Europe, Africa, the Middle East, Asia-Pacific and the Americas. Prices
per room will start at around €120, however, they could be a lot higher depending on the
location. Finally, Accor has a brand that meets the needs of people with a little more
purchasing power than low-income consumers. For about 60 euros per night, the
Mercure brand with 738 hotels in 51 different countries, offers warm, personalised
contemporary rooms. They are welcoming, clean with high quality furniture. Accor has
divided the market according to different needs and income levels.\
2. By targeting different customer groups, Accor will be able to serve a wider range of
customers. This will enable them to increase their revenue. If Accor only offered, say,
the Mercure brand, it would miss out on the opportunity to charge higher prices to those
who are willing to pay for a higher quality service such as Raffles. It would also miss out
on a large budget hotel market if it did not operate Hotel F1.

CASE STUDY TOYOTA

1. The main reason is for every segment of the market a person can afford a car according
to their budget. The more money the better the product you get.
2. C2 C1
3. a)The Land cruiser is targeted for geographical areas for desert riding and offroading in
general.
b) People who have good income can afford a car better for the price.
4. Rolls Royce is targeted for very wealthy people. The starting price of cars are from 1.3
million sar.