Recruiter's Glossary

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Market Segmentation

Term from Hospitality industry explained for recruiters

Market Segmentation is a basic business strategy where hotels and restaurants divide their potential customers into different groups based on shared characteristics. This helps businesses target their services and marketing to specific types of guests. For example, a hotel might separate their customers into groups like business travelers, families on vacation, or wedding parties. This approach helps hospitality businesses customize their services, set appropriate prices, and create targeted marketing campaigns for each group. Other terms that mean similar things are "customer segmentation," "guest profiling," or "target market analysis."

Examples in Resumes

Developed Market Segmentation strategies that increased hotel bookings by 25%

Created targeted promotional campaigns based on Market Segmentation analysis

Used Customer Segmentation data to optimize room pricing and increase revenue

Typical job title: "Market Analysts"

Also try searching for:

Marketing Manager Revenue Manager Market Research Analyst Marketing Coordinator Sales Strategist Customer Experience Manager Business Development Manager

Where to Find Market Analysts

Professional Associations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you develop a market segmentation strategy for a luxury resort?

Expected Answer: A strong answer should discuss analyzing guest data, identifying key customer groups (like business travelers, families, couples), creating specific service packages for each group, and measuring the success of different approaches. They should also mention how to adjust pricing and marketing for different segments.

Q: How do you measure the success of market segmentation strategies?

Expected Answer: Look for answers that discuss tracking booking rates for different guest segments, measuring revenue per segment, analyzing customer feedback, and monitoring the return on investment for targeted marketing campaigns.

Mid Level Questions

Q: What factors do you consider when creating customer segments?

Expected Answer: Should mention factors like guest purpose (business/leisure), spending patterns, length of stay, booking preferences, and demographic information like age and family status.

Q: How would you use market segmentation data to improve guest services?

Expected Answer: Should discuss using guest preferences to customize services, creating targeted packages, training staff to handle different guest types, and adjusting amenities based on segment needs.

Junior Level Questions

Q: What is market segmentation and why is it important in hospitality?

Expected Answer: Should explain that it's the process of dividing customers into groups with similar needs and preferences, helping hotels provide better service and more effective marketing.

Q: What are some common market segments in the hotel industry?

Expected Answer: Should be able to identify basic segments like business travelers, leisure travelers, families, couples, and group bookings, with basic characteristics of each.