Made famous through the well-known radio and TV commercials spoken in the distinctive "down-home" voice of Tom Bodett, the Dallas-based Motel 6 chain of budget motels is probably familiar to you. Based on the information provided here and any personal knowledge you may have about the company, you will analyze the marketing strategy of Motel 6.
Read the following paragraphs, then complete the questions that follow.
Motel 6 was established in 1962 with the original name emphasizing its low-cost, no-frills approach. Rooms at that time were $6 per night. Today, Motel 6 has more than 760 units, and the average nightly cost is $34. Motel 6 is the largest company-owned and operated lodging chain in the United States. Customers receive HBO, ESPN, free morning coffee, and free local phone calls, and most units have pools and some business services. Motel 6 has made a name for itself by offering clean, comfortable rooms at the lowest prices of any national motel chain and by standardizing both its product offering and its operating policies and procedures. The company's national spokesperson, Tom Bodett, is featured in radio and television commercials that use humorous stories to show why it makes sense to stay at Motel 6 rather than a pricey hotel.
To hear some of their latest radio commercials Click the first link below.
To refresh your memory of their background second Click the second link below.
In appealing to pleasure travelers on a budget as well as business travelers looking to get the most for their dollar, one commercial makes the point that all hotel and motel rooms look the same at night when the lights are out—when customers are getting what they came for, a good night's sleep. Motel 6 location sites are selected based on whether they provide convenient access to the highway system and whether they are close to areas such as shopping centers, tourist attractions, or business districts.
Remember there is a 50% penalty for being late with these assignments.
|1.||In SELECTING A TARGET MARKET, which approach is Motel 6 using to segment markets? How do you know?|
a. concentration approach
b. multisegment approach
|2.||In DEVELOPING A MARKETING MIX, identify in the second column of the table what the current strategy is and then identify any changes you think Motel 6 should consider for carrying it successfully through the next five years.|
This chart below will help you visualize the requirements of this exercise. You are not ecpected to fit your answer into the boxes in the chart.