ANALYZING MOTEL 6’S MARKETING STRATEGY Background:
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. Task:
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. 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 outwhen 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. 1. | In SELECTING A TARGET MARKET, which approach is Motel 6 using to segment markets? 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. |
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