1.       Explain, with examples, what is meant by the term ‘market segmentation’!

Answers:             Market segmentation is categorized different resources into different section. For example, a fashion business uses age into segment to produce more specific clothing styles.  



2.       Why does successful market segmentation need to be supported by market research? Use this case as an example in your answer.

Answers:             Companies that identify their market segments should be able to evaluate different segments and decide how many segments to enter. Companies can know/make products according with the market and which products can compete in the market. Companies can know how much is the demand and how big is the potential. In addition, to know when the demand rises up and when it is going down. For example, the case study able to differentiate tourists into six groups of travellers to Hong Kong. Also provide each group with different marketing activities. E.g. 'bring a friend' promotions for young single leisure travellers.



3.       Explain two of the ways that this research has segmented the total tourist market of Hong Kong.

Answers:             The Age. This consists of young (under 55) or mature visitors, aged 55 years or older. This income, this includes business travellers with income above $50,000 or below $50,000 per year. Ethnic, travellers who visiting friends or family in Hong Kong.



4.       Discuss the benefits to a travel company in Hong Kong using the information in this case target different segments of the tourism market with different marketing activities! 

Answers:             The travel company can identify their market precisely and able to give services more specifically to its groups. The travel company can set the price and promotion for different segments. For example, add more sights for leisure travellers groups. If the marketing activities are successful, this will attract customers. So, this increase sales to the travel company.  It will also reduce cost for the company. For example, High-income business travellers could concentration more on shopping facilities. The travel company can charge higher price to business travellers to increase revenue and profits.