Tourism Marketing Principles
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Assessment File Blog Report-B&T-TMP
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CONTENTS
Executive Summary.....................................................................................................2
Chapter One................................................................................................................2
An Introduction that Defines Tourism Marketing Concepts..........................................2
Chapter Two................................................................................................................3
Background of the Company.......................................................................................3
Chapter Three.............................................................................................................3
Internal Analysis..........................................................................................................3
Chapter Four................................................................................................................5
External Analysis.........................................................................................................5
Chapter Five................................................................................................................7
Future Development and Conclusion...........................................................................7
References..................................................................................................................7
Executive Summary
The following report thoroughly examined Marriott International's marketing. It outlines the report's
purpose and the techniques employed for both internal and external analysis, such as STP analysis and
Porter's Five Forces. In addition to discussing customer segmentation and targeting tactics, the report
identifies Marriott's competitive position, important suppliers, and entry barriers. It also assesses how
the business will develop going forward and suggests ways to make its marketing strategy better
(Kotler and Armstrong, 2023; Jobber and Ellis-Chadwick, 2023).
Chapter One
An Introduction that Defines Tourism Marketing Concepts
This report's objective is to analyse Marriott International's marketing strategy with an emphasis on
the internal and external factors that impact its performance.
The structure of the report is as follows: The history of the company is presented in Chapter 2.
In Chapter Three, Porter's Five Forces are used to analyse Marriott's competitive environment
(Middleton et al., 2009). After conducting an internal analysis using STP in Chapter Four, Chapter
Five examines recommendations and future developments.
Chapter Two
Background of the Company
Marriott International is a prominent worldwide hospitality company with more than 8,500 properties
spread across 138 countries (Kotler and Armstrong, 2023). Since its founding in 1927, Marriott has
expanded to offer a variety of brands, ranging from high-end lodging to low-cost options (Kotler and
Armstrong, 2023).
Marriott uses a management and franchising business model and provides a range of services,
including accommodations, event planning, and travel initiatives. Enhancing customer experiences
through technology and sustainability initiatives is the company's main priority (Cavalcante et al.,
2021). Marriott's competitive edge is bolstered by its customer loyalty program, Bonvoy, which offers
customised benefits and encourages customer engagement.
Chapter Three
Internal Analysis
Conducting an internal analysis using the STP framework is crucial for evaluating the organization's
competitive situation and determining its capacity to satisfy customer demands. In order to determine
competitive advantages and potential areas for development, this analysis will investigate
segmentation, targeting, and positioning tactics.
-Analysis of Segmentation: Dividing a large market into smaller groups of customers with
comparable needs, tastes, and purchasing patterns is known as segmentation. Effective segmentation
necessitates determining distinct differences between customer groups based on behavioural,
psychographic, demographic, and geographic characteristics, claim Kotler and Armstrong (2023).
Available at: [Link]
demographic-segments-icons-neubrutalism-style-image357411966 (Accessed: 6 April 2025).
-Geographic Segmentation: The company may divide up its clientele according to geography, climate,
or location. For instance, Ahmet and Hancer (2022) contend that by addressing linguistic and cultural
barriers, geographical segmentation in the tourism and hospitality industry aids in customising
offerings for visitors from various nations or regions.
-Demographic segmentation is the process of dividing up your clientele according to factors like age,
gender, income, occupation, and level of education. According to Blythe and Martin (2023),
demographic segmentation aids in the development of tailored marketing messages. Luxury travel
companies, for example, might aim to attract wealthy clients, whereas more affordable options are
more appealing to younger tourists.
-Psychographic Segmentation: Lifestyle, values, attitudes, and interests are the main topics of this
kind of segmentation. Understanding psychographic factors helps the organisation match its services
with customers' sustainability preferences and environmental consciousness, which is especially
important in today's tourism marketing, claim Cavalcante et al. (2021).
-Behavioural Segmentation: It's critical to separate the market according to consumer knowledge,
attitudes, usage, and reactions. Dolnicar and Ring (2014) stress that the creation of tailored offers and
promotions is made possible by an awareness of consumer behaviour, such as the frequency of travel
or brand loyalty.
2. Targeting Strategy
Following market segmentation, the company needs to decide on a suitable targeting approach. Four
primary targeting strategies are delineated by Kotler and Armstrong (2023):
-Undifferentiated Marketing: This strategy offers a single product to every consumer, treating the
market as a single segment. Although economies of scale can be attained in this way, a variety of
customer needs may be overlooked.
-Differentiated Marketing: The company can cater to various market segments with a variety of
products and marketing approaches. According to Middleton et al. (2009), tourism businesses can
serve both luxury and low-cost tourists by using differentiated marketing.
-Concentrated Marketing: By concentrating on a single market niche, a company
can specialise and establish a solid reputation. Concentrated marketing can be
very successful for niche tourism markets where personalisation and
customisation are crucial, as noted by Jain (2013).
-Niche Target Marketing: This tactic focusses on a very particular and frequently
untapped market. According to Komari et al. (2020), brand differentiation and
customer loyalty can be achieved through niche marketing.
3. Positioning and Perceptual Mapping
Positioning involves creating a distinct image in the minds of customers by highlighting unique
benefits and attributes. Ivy (2008) suggests using a perceptual map to visually represent how
consumers perceive a brand compared to competitors. Below is a perceptual map comparing the
organization with four competitors based on price and quality.
The organization’s position suggests a focus on delivering high-quality services at a competitive
price. However, to strengthen its competitive position, it can explore moving toward a differentiated
strategy that addresses diverse customer preferences.
Chapter Four
External Analysis
The external environment of Marriott International is evaluated using Porter's Five Forces model
(Dolnicar and Ring, 2014).
3.1 Rivalry Between Current Businesses
Due to the existence of international brands like Hilton, Hyatt, IHG, and Accor that provide
comparable services across luxury, mid-scale, and budget segments, the hospitality sector is marked
by fierce competition. Kotler and Armstrong (2023) assert that differentiation via branding, customer
experience, and loyalty programs becomes essential in fiercely competitive markets. With its varied
portfolio of over 30 brands that appeal to various consumer segments and its Bonvoy loyalty program,
Marriott keeps a competitive edge. However, given that most businesses make significant investments
in digital platforms and customer relationship management (CRM) systems, Dolnicar and Ring (2014)
point out that boosting digital marketing initiatives and providing individualised customer experiences
have become essential in preserving a competitive edge.
Additionally, by combining brand offerings, Marriott's strategic acquisitions—like the acquisition of
Starwood Hotels—have boosted its market presence while simultaneously escalating competition.
Marriott responded to competitors' emphasis on sustainable practices by pledging to lower carbon
emissions and adopt eco-friendly procedures, according to Cavalcante et al. (2021), who contend that
sustainability-oriented differentiation has become crucial in the travel and hospitality industry.
3.2 Important Suppliers and Their Significance
Property owners, real estate developers, technology service providers, and providers of food, linens,
and cleaning services are examples of suppliers in the hospitality industry. Given the number of
contracts Marriott oversees worldwide, individual suppliers usually have little negotiating power;
however, Jobber and Ellis-Chadwick (2023) contend that suppliers offering specialised or superior
products might have more clout. Because seamless technological integration is crucial in today's
hospitality industry, technology providers that offer digital booking platforms or property
management systems, for example, may have more clout.
Additionally, because of its size, Marriott can negotiate advantageous contracts with suppliers,
reducing the risk of price fluctuations and guaranteeing a consistent level of quality in its supply.
However, Middleton et al. (2009) emphasise that to maintain service standards, supplier relationships
in the tourism and hospitality industries need to be carefully managed, particularly as sustainability
practices gain importance.
3.3 Important Purchasers and Their Purchasing Power
The hospitality industry’s main buyers include travel agencies, corporate clients, and individual
tourists. Due to the variety of options and price transparency offered by platforms like [Link],
Expedia, and Airbnb, buyers hold significant bargaining power (Blythe and Martin, 2023). Digital
marketing and review platforms further empower consumers by making service quality information
easily accessible, emphasizing the need for brands like Marriott to maintain high standards and
positive reviews.
Loyalty programs such as Marriott Bonvoy help foster long-term relationships and reduce buyer
switching. However, Ahmet and Hancer (2022) highlight that in an increasingly tech-savvy
environment, retaining customers and minimizing buyer power requires seamless digital interactions,
convenience, and personalized experiences.
3.4 Obstacles to Admission
High barriers to entry, such as capital-intensive investments, brand recognition, economies of scale,
and regulatory compliance, make the hospitality industry less vulnerable to new competitors. Ivy
(2008) claims that well-known companies like Marriott enjoy economies of scale, which allow them
to make investments in marketing, technology, and infrastructure that newcomers might find difficult
to match. Furthermore, the expense of purchasing desirable real estate sites in well-known
cities and popular tourist locations discourages new competitors even more.
Government regulations regarding safety, hygiene, and environmental standards also act as
barriers, as compliance requires significant financial and operational resources. Jain (2013)
highlights that brand reputation and customer loyalty create significant entry barriers, making
it challenging for new entrants to compete on service quality and customer trust.
3.5 Alternative Goods and Services
With the growth of alternative lodging websites like Airbnb and VRBO, which provide affordable,
homely stays that appeal to tourists on a tight budget and seeking new experiences, the threat of
substitutes has grown. Price sensitivity and a shift in consumer preferences towards distinctive, local
experiences make substitutes more alluring, according to Komari et al. (2020). By diversifying its
offerings with home-sharing services like Homes & Villas by Marriott International, which offer
comparable experiences with the guarantee of brand quality, Marriott lessens this threat.
Although switching costs are typically low, Jeffries (1971) points out that by promoting repeat
business and building brand attachment, loyalty programs and brand reputation can lessen this threat.
Additionally, Marriott's emphasis on service differentiation through digital innovations, personalised
experiences, and exceptional customer service lessens the appeal of alternatives.
Chapter Five
Future Development and Conclusion
In order to satisfy changing customer preferences, Marriott must improve its online presence and
implement more environmentally friendly procedures, according to the marketing audit (Cavalcante et
al., 2021).
Marriott's current marketing strategy uses unique offerings to effectively target a variety of customer
segments. To strengthen its competitive edge, more funding for sustainability and digital marketing is
advised (Ahmet and Hancer, 2022). Marriott will be able to increase brand loyalty and personalise
customer experiences by bolstering its social media presence and utilising data analytics.
References
Ahmet, O. and Hancer, M. (2022) Digital Marketing and Social Media Strategies for
Tourism and Hospitality. London: Goodfellow Publishers Limited.
Bhasin, H. (2017) ‘4 types of Market segmentation and how to segment with
them?’, [Link]. Available at: [Link]
segmentation-segment
Blythe, J. and Martin, J. (2023) Essentials of Marketing. 8th Ed. London: Pearson.
Cavalcante, W.Q. de F., Coelho, A. and Bairrada, C.M. (2021) ‘Sustainability and Tourism
Marketing: A Bibliometric Analysis of Publications between 1997 and 2020 Using
VOSviewer Software’, Sustainability, 13(9), p.4987. doi:[Link]
Dreamstime (n.d.) Market segmentation diagram shows geographic, behavioral,
psychographic, demographic segments icons in neubrutalism style. [Online
image]. Available at: [Link]
diagram-shows-geographic-behavioral-psychographic-demographic-segments-
icons-neubrutalism-style-image357411966(Accessed: 6 April 2025).
Dolnicar, S. and Ring, A. (2014) ‘Tourism marketing research: Past, present and
future’, Annals of Tourism Research, 47, pp.31–47.
doi:[Link]
Ivy, J. (2008) ‘A new higher education marketing mix: the 7Ps for MBA
marketing’, International Journal of Educational Management, 22(4), pp.288–299.
doi:[Link]
Jain, M.K. (2013) ‘An Analysis of Marketing Mix: 7Ps or more’, Asian Journal of
Multidisciplinary Studies, 1(4), pp.23–28.
Jeffries, D.J. (1971) ‘Defining the tourist product — and its importance in tourism
marketing’, The Tourist Review, 26(1), pp.2–5. doi:[Link]
Jobber, D. and Ellis-Chadwick, F. (2023) Principles and Practice of Marketing. 10th Ed.
London: McGraw Hill.
Komari, A., Indrasari, L.D., Tripariyanto, A.Y. and Rahayuningsih, S. (2020) ‘Analysis of
SWOT Marketing Strategies and 7P Influence on Purchasing Decision’, Journal of Physics:
Conference Series, 1569(3), p.032002. doi:[Link]
6596/1569/3/032002.
Kotler, P. and Armstrong, G. (2023) Principles of Marketing, Global Edition. 19th Ed.
Harlow: Pearson Education Limited.
Middleton, V., Fyall, A., Morgan, M. and Ranchhod, A. (2009) Marketing in Travel and
Tourism. 4th Ed. London: Routledge.