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Marketing involves satisfying consumers' needs and wants with products of two types, goods and services. Hotels provide an intangible product, referred to as a service. On the other hand, toothpaste is an example of a product that is a tangible good. The lifeblood of both is marketing. Different as they are, each utilizes market segmentation and positioning. The segmentation movement in the hotel industry is analyzed in the light of marketing principles developed from the consumer goods sector. The analysis suggests that the hotel industry is engaged in a multiple segmentation strategy