SEGMENTING AND TARGETING MARKETS

In the pursuit of continued growth, Marriott continued to diversify its business. The 1982 acquisition of Host International made it America's top operator of airport food and beverage facilities. Over the course of the following three years, Marriott added 1,000 food service accounts by purchasing three food service companies, Gladieux, Service Systems, and Saga Corp. Determining that its high penetration in the traditional hotel market did not offer many opportunities for growth, the company initiated a segmented marketing strategy by introducing the moderately priced Courtyard by Marriott hotels in 1983. Moderately priced hotels comprised the largest segment of the U.S. lodging industry, a segment filled with established competitors such as Holiday Inn, Ramada, and Quality Inn. Research conducted by Marriott registered the greatest consumer dissatisfaction in the moderately priced hotels, and Courtyard hotels were designed to offer travelers greater convenience and amenities, such as balconies and patios, large desks and sofas, and pools and spas.